Philosophers and practical men: Charles Babbage, Irish merchants and the economics of information

Before the emergence of coordination of production by firms, manufacturers and merchants traded in markets with asymmetric information. Evidence suggests that the practical knowledge thus gained by these agents was well in advance of contemporary political economists and anticipates twentieth-century developments in the economics of information. Charles Babbage, who regarded merchants and manufacturers as the chief sources of reliable economic data, drew on this knowledge as revealed in the evidence of manufacturers and merchants presented to House of Commons select committees to make an important pioneering contribution to the theory of production and exchange with information asymmetries.

Zipf and Type-Token rules for the English, Spanish, Irish and Latin languages

The Zipf curves of log of frequency against log of rank for a large English corpus of 500 million word tokens, 689,000 word types and for a large Spanish corpus of 16 million word tokens, 139,000 word types are shown to have the usual slope close to –1 for rank less than 5,000, but then for a higher rank they turn to give a slope close to –2. This is apparently mainly due to foreign words and place names. Other Zipf curves for highlyinflected Indo-European languages, Irish and ancient Latin, are also given. Because of the larger number of word types per lemma, they remain flatter than the English curve maintaining a slope of –1 until turning points of about ranks 30,000 for Irish and 10,000 for Latin. A formula which calculates the number of tokens given the number of types is derived in terms of the rank at the turning point, 5,000 for both English and Spanish, 30,000 for Irish and 10,000 for Latin.