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- Over at the Washington Center for Equitable Growth: The Daily Piketty: Thursday Focus: April 24, 2014
by J. Bradford DeLong in Grasping Reality with the Invisible Hand, 2014-04-24 14:46:13 UTC
Over at the Washington Center for Equitable Growth: As Thomas Piketty Day at the University of California at Berkeley comes to an end, we eat Hawaiian poke and sausage-stuffed mushrooms catered from the truly excellent Assemble , and watch the sunset over the Golden Gate from the back patio of the Gourinchas/Fourcade palazzino. We muse on the extent to which Thomas Piketty's patterns of movement for the rate of profit r minus the economy's growth rate g are at bottom patterns of changing land valuation, with the fall of European agriculture as a source of wealth and the rise of urban location [...]
- CAPM: Teoria e EvidÃªncia
by Roberto Ushisima in Empresas e Mercados, 2014-04-24 13:48:00 UTC
O Capital Asset Pricing Model (CAPM) Ã© o modelo de precificaÃ§Ã£o de ativos mais famoso e todo estudante de FinanÃ§as (e mesmo mais geralmente de administraÃ§Ã£o ou economia) teve algum contato com o modelo, que deu o Nobel para William Sharpe em 1991. Ã‰ muito utilizado para investimentos, estimaÃ§Ã£o de custo de capital e anÃ¡lise de desempenho. No artigo de Fama e French , uma retrospectiva do modelo, de sua formulaÃ§Ã£o teÃ³rica atÃ© os testes empÃricos. NÃ£o vou entrar em tantos detalhes, jÃ¡ que escrevi sobre vÃ¡rios dos temas abordados no artigo. M [...]
- Inequality: a missing perspective
by chris dillow in Stumbling and Mumbling, 2014-04-24 13:28:09 UTC
The debate about inequality comprises, to a large extent, two camps. In one there are those like Martin Wolf who believe inequality is a problem which can be solved. In the other are those who doubt that inequality is a problem - either because "material equality has no intrinsic value" or because, as Tyler says , "what might appear to be static blocks of wealth have done a great deal to boost dynamic productivity."
This division, though, overlooks what seems to me a reasonably tenable position, which goes something like this:
Yes, inequality is a problem. This is partly because it is often a [...]
- The Taylor Rule
by ? in FRED blog, 2014-04-24 13:00:06 UTC
This graph shows the Taylor Rule, which is a simple formula that John Taylor devised to guide policymakers. It calculates what the federal funds rate should be, as a function of the output gap and current inflation. Here, we measure the output gap as the difference between potential output (published by the Congressional Budget Office) and real GDP. Inflation is measured by changes in the CPI, and we use a target inflation rate of 2%. We also assume a steady-state real interest rate of 2%. These are a lot of assumptions, and you are welcome to change them on the graph by playing around with t [...]
- Fungerar friare, icke-traditionell matematikundervisning bÃ¤ttre?
by bergh in Berghs Betraktelser, 2014-04-24 10:05:26 UTC
I Economics of Education Review Ã¤r en artikel pÃ¥ vÃ¤g ut som undersÃ¶ker effekterna av en matematikundervisningsreform i Kanda. ( gratis wp-version ).
HÃ¤r Ã¤r artikelns highlights:
â€¢ We evaluate the effects of teaching method reform on math scores in grades 2 to 10.
â€¢ Evaluation based on a natural experiment implemented in the early 2000'sin Canada.
â€¢ Impact estimated for the distribution of scoresand mean scores.
â€¢ Strong negative effects estimated on all points of the distribution and means.
â€¢ More negative effect obtained in the later grades of [...]
- Corrupting Piketty in the 21st Century
by Lambert Strether in Naked Capitalism, 2014-04-24 04:55:14 UTC
By Rumplestatskin, a professional economist with a background in property development, environmental economics research and economic regulation. Follow him on Twitter @rumplestatskin . Cross posted from MacroBusiness
The media attention surrounding French economist Thomas Piketty â€™s new book Capital in the 21st Century is growing ever more fervent. Here are my two cents.
To me three things are clear to be about this book. First, it is a timely reminder that distribution of resources within society matters. This is especially important for an economics profession who has often ignored t [...]
- Read with perspective the eleventh review
by Francesco Franco in The Portuguese Economy, 2014-04-23 22:57:00 UTC
The IMF eleventh review of Portugal is available online (here). The review is balanced and technically sound. It offers a detailed analysis of the macroeconomic developments, the fiscal stance, the debt �sustainability analysis (both public and external) and the state of goods and labor markets functioning. Finally it contains the IMF staff recommendations. A synthetic summary of the conclusions is: 1. the economy performance has improved in the last four quarters, 2. the plans to continue the external rebalancing, to anchor on a sustainable trajectory both private and public debt and to effec [...]
- New paper on the political economy of monarchy
by Peter Kurrild-Klitgaard in Peter Kurrild-Klitgaard, 2014-04-23 14:00:00 UTC
Since my teenage years I have been fascinated by the colourfulness of monarchy. �Most other children grow out of it, but I did not--and have occasionally mixed it up with my professional interest in political economy and comparative politics. The forthcoming issue of Journal of Institutional and Theoretical Economics features an article by myself and Christian BjÃ¸rnskov : "Economic Growth and Institutional Reform in Modern Monarchies and Republics: A Historical Cross-Country Perspective 1820â€“2000" (gated version ; old, ungated version ). �Here is the abstract: Conventional arguments [...]
- Search-Based Endogenous Illiquidity and the Macroeconomy
by Christian Zimmermann in NEP-DGE blog, 2014-04-22 21:10:30 UTC
By Wei Cui and Sören Radde
We endogenize asset liquidity in a dynamic general equilibrium model with search frictions on asset markets. In the model, asset liquidity is tantamount to the ease of issuance and resaleability of private financial claims, which is driven by investors’ participation on the search market. Limited resaleability of private claims creates a role for liquid assets, such as government bonds or fiat money, to ease funding constraints. We show that liquidity and asset prices positively co-move. When the capacity of the as [...]
- "British workers hit hard"
by chris dillow in Stumbling and Mumbling, 2014-04-22 13:28:12 UTC
There's one curious thing about Ukip's notorious posters that hasn 't been mentioned - that they represent a flat rejection of orthodox neoclassical economics.
"British workers are hit hard by unlimited cheap labour" says one poster. However, in theory this would be true even if our borders were completely shut to foreign workers.
The idea here is simple. If there were unlimited cheap labour overseas, foreign companies would be able to produce very cheap goods which would undercut UK firms. Those firms would then either close down - which would raise unemployment and cut UK wages - or would f [...]
- El Capital en el siglo XXI
by Manuel Bagues in Nada Es Gratis, 2014-04-22 05:40:20 UTC
Desde la reciente traducciÃÂ³n al inglÃÂ©s de su libro Le capital au XXIe siÃÂ¨cle , el economista francÃÂ©s Thomas Piketty estÃÂ¡ alcanzado el estatus de estrella de rock en los medios de comunicaciÃÂ³n. Y esto es una gran noticia porque, como bien dice Piketty, la ciencia econÃÂ³mica (y las demÃÂ¡s ciencias sociales) son demasiado importantes como para dejarlas ÃÂºnicamente en manos de los acadÃÂ©micos. No es fÃÂ¡cil aÃÂ±adir mucho mÃÂ¡s a todo lo que se ha dicho al respecto en estas ÃÂºltimas semanas ( FT , NYTimes , Economist , Krugman y un largo etc.), pero por si acaso aÃÂ [...]
- La crise 2007-2008 : le marchÃ© du riz
by firstname.lastname@example.org (Geoffrey Lorre) in BS Initiative, 2014-04-22 00:00:00 UTC
- Les fondamentaux de production sur le marchÃ© du riz nâ€™Ã©taient pas trÃ¨s bons en 2007, mais pas diamÃ©tralement diffÃ©rents des annÃ©es prÃ©cÃ©dentes.
- La financiarisation fut plus importante quâ€™auparavant du fait de la crise des subprimes, mais restait tout de mÃªme limitÃ©e puisque le marchÃ© des futures sur le riz Ã©tait Ã©troit.
- Finalement, ce fut le comportement des Ã‰tats qui a provoquÃ© lâ€™augmentation importante des prix du riz observÃ©e Ã lâ€™Ã©poque.
La crise financiÃ¨re et Ã©conom [...]
- More On the Limitations of the Jarque-Bera Test
by Dave Giles in Econometrics Beat: Dave Giles' Blog, 2014-04-21 22:43:00 UTC
Testing the validity of the assumption, that the errors in a regression model are normally distributed, is a standard pastime in econometrics. We use this assumption when we construct standard confidence intervals �for, or test hypotheses about, the parameters of our models. In a post some time ago I pointed out that this assumption is actually is sufficient, but not necessary , for the validity of these inferences. More recently, here and here , I discussed some aspects of the normality test that most econometricians use - the asymptotically valid test of Jarque and Bera (1987). Let's refer t [...]
- When did Globalization Actually Started?
by bbatiz in NEP-HIS blog, 2014-04-21 18:13:04 UTC
West versus East: Early Globalization and the Great DivergenceÃ¢â¬â¢
By Rafael Dobado-GonzÃÂ¡lez (Complutense), Alfredo Garcia-Hiernaux (Complutense), and David E. Guerrero-Burbano (CUNEF)
Abstract: This paper extends our previous work on grain market integration across Europe and the Americas in the eighteenth and nineteenth centuries (Dobado, GarcÃÂa-Hiernaux and Guerrero, 2012). By using the same econometric methodology, we now present: 1) a search for statistical evidence in the East of an Ã¢â¬ÅEarly GlobalizationÃ¢â¬Â comparable to the one ongoing in the West by mid eighteenth ce [...]
- 265 â€“ Fossil fuel subsidies
by David Pannell in Pannell Discussions, 2014-04-21 15:00:38 UTC
Amidst all the discussions about carbon taxes and emissions trading schemes for mitigating climate change, we hear very little about fossil fuel subsidies. Youâ€™d be forgiven for not knowing that they are, in fact, enormous.
This matters for several reasons, including that these subsidies encourage increased use of fossil fuels. From the perspective of climate-change policy, fossil-fuel subsidies make things even worse than they need to be. Climate policies are intended to push us in one direction, but fossil-fuel subsidies are pushing us in the opposite direction. Itâ€™s like runni [...]
- Institutional Discrimination Against North American Football
by Jonathan Finegold in Economic Thought, 2014-04-21 14:00:13 UTC
Why don’t Spanish teams recruit heavily from Spanish-speaking leagues in North America (all those north of, and including, Panama)? While these countries produce the occasional star, the average quality of their players is relatively lower than that of South America and Europe. Panamanian, Nicaraguan, even Mexican (the strongest league in North America), players do not attract the lucrative offers that many South American players do. Why is that? Because the way regional football associations are organized. The average quality of their continental tournament is much, much lower than South Amer [...]
- The decline of manufacturing
by ? in FRED blog, 2014-04-21 13:00:53 UTC
Many have complained about the decline of the manufacturing sector in the United States. As this graph shows, how recently this decline started depends on what you look at. If you look at the number of people employed in that sector, the decline started only a decade ago. If you look at the share of manufacturing in total employment, the steady decline has been ongoing for decades. For a nice overview of the evolution of employment in the manufacturing sector, see this article in the Journal of Economic Perspectives .
How this graph was created: Choose the MANEMP series to graph the line and [...]
- EspaÃ±a: la morosidad bancaria no cede.
by JosÃ© Francisco Bellod Redondo in jfbellod, 2014-04-21 10:26:00 UTC
Datos Banco de EspaÃ±a: la morosidad se mantiene en niveles histÃ³ricamente elevados, 13Â´4%. Â¿DÃ³nde estÃ¡n los brotes verdes? � [Y ademÃ¡s..." La Nairu y la Pseudociencia Neoliberal "] [...]
- La libertad econÃ³mica en el largo plazo: Evidencia de los paÃses de la OCDE
by admin in Nada Es Gratis, 2014-04-21 05:00:54 UTC
porÂ Leandro Prados de la Escosura Â
Â¿CÃ³mo ha evolucionado la libertad a travÃ©s del tiempo? Suele distinguirse entre libertad â€œnegativaâ€, definida como la falta de interferencia o coacciÃ³n por otros (libertad desde), y libertad â€œpositivaâ€, entendida como garantÃa de acceso a los recursos que permite a las personas controlar su propia existencia (libertad hacia) (Berlin, 1958). Un ejemplo de libertad negativa es la libertad econÃ³mica. Un paÃs serÃ¡ econÃ³micamente libre en la medida que la propiedad privada estÃ© protegida, los contratos [...]
- Deflation in Sweden: Svensson's Advice is the Problem, Not the Solution
by Stephen Williamson in Stephen Williamson: New Monetarist Economics, 2014-04-20 20:05:00 UTC
As Lars Svensson notes, Sweden now has inflation that ranks among the lowest in the world. From the Riksbank's website, CPI inflation in Sweden looks like this: The Riksbank has a 2% inflation target, so clearly they are missing on the low side. Of course, given the typical wishful thinking of central bankers, you can see from the chart that they are forecasting that they will hit the target a year from now, and exceed it later in 2015 and 2016. So, why is inflation so low in Sweden? Svensson claims: The deflation has been caused by the Riksbankâ€™s tight monetary policy since the summer [...]
by himaginary in himaginaryの日記, 2014-04-20 00:00:00 UTC
ã“ã“ ã§ç´¹ä»‹ã—ãŸEggertssonï¼Mehrotraè«–æ–‡ã«ã¤ã„ã¦ã€ Unlearning Economics (UE) ãŒã€è‹¥å¹´å±¤ã®å€Ÿã‚Šå…¥ã‚ŒãŒå¤–ç”ŸåŒ–ã•ã‚Œã¦ã„ã‚‹ä¸Šã«ã€ãƒ¢ãƒ‡ãƒ«ãŒå˜ç´”éŽãŽã‚‹ã€ã¨ æ‰¹åˆ¤ã—ãŸ ã€‚ãã‚Œã«å¯¾ã—ã‚µã‚¤ãƒ¢ãƒ³ãƒ»ãƒ¬ãƒ³âˆ’ãƒ«ã‚¤ã‚¹ãŒã€ãã®æ‰¹åˆ¤ã¯ãƒ¢ãƒ‡ãƒ«ã«ã¤ã„ã¦ã®ç [...]
- Misunderstanding macroeconomic models
by Mainly Macro in Mainly Macro, 2014-04-19 23:36:00 UTC
The first half of this post is meant for non-economists, but it ends with a couple of points on OLG modelling I recently wrote a post on the Eggertsson and Mehrotra paper on secular stagnation , because I thought the paper was interesting. A much more critical post from Unlearning Economics (UE) has just appeared in Pieria . UE says it â€œhelps to illustrate the troubles faced by contemporary macroeconomicsâ€. One of UEâ€™s complaints seems to reflect a misunderstanding, often shared by non-economists, about what much academic macromodelling is designed to do. UE objects to the f [...]
- Monetary Policy and the Economic Recovery
by Guest Author in The Big Picture, 2014-04-19 17:00:27 UTC
Monetary Policy and the Economic Recovery
Chair Janet L. Yellen
At the Economic Club of New York, New York, New York
April 16, 2014
Nearly five years into the expansion that began after the financial crisis and the Great Recession, the recovery has come a long way. More than 8 million jobs have been added to nonfarm payrolls since 2009, almost the same number lost as a result of the recession. Led by a resurgent auto industry, manufacturing output has also nearly returned to its pre-recession peak. While the housing market still has far to go, it seems to have turned a corner.
It is a si [...]
- Et si la Grande ModÃ©ration ne sâ€™Ã©tait jamais achevÃ©e ?
by ? in D'un champ l'autre, 2014-04-19 15:17:00 UTC
A partir des annÃ©es quatre-vingt-dix, plusieurs travaux empiriques suggÃ¨rent que les Etats-Unis connaissent une
extrÃªme stabilitÃ© macroÃ©conomique aprÃ¨s 1984, un phÃ©nomÃ¨ne que James Stock et Mark Watson (2002) ont qualifiÃ© de Â« Grande
ModÃ©ration Â» ( Great Moderation ). En particulier, le taux de croissance du PIB semblait moins volatile quâ€™au cours des prÃ©cÃ©dentes dÃ©cennies. Selon
Blanchard et John Simon (2001) , la variabilitÃ© de la croissance trimestrielle de la production rÃ©elle a Ã©tÃ©
- Los salarios en EspaÃ±a, a niveles del aÃ±o 2002
by JosÃ© Francisco Bellod Redondo in jfbellod, 2014-04-19 08:45:00 UTC
SegÃºn los datos de la Contabilidad Nacional Trimestral, la remuneraciÃ³n de los aslariados por hora trabajada se sitÃºa a finales de 2013 en 20Â´58 â‚¬ hora (ahÃ entra tambiÃ©n la cotizaciÃ³n de la empresa a l a Seguridad Social). Si descontamos el efecto de la inflaciÃ³n, el salario en tÃ©rminos reales estarÃa en 15Â´26 â‚¬... es decir... a niveles de 2002. Hemos perdido todo el poder adquisitivo (que tampoco era mucho) ganado durante el "boom inmobiliario" y encima tenemos 6 millones de parados (para ellos no hay salario) y el doble de endeudamiento d [...]
- A First Meeting of Old and New Keynesian Econometric Models
by John Taylor in Economics One, 2014-04-18 00:41:17 UTC
Lawrence Klein who died last October at age 93 is most remembered for the â€œcreation of econometric models and the application to the analysis of economic fluctuations and economic policiesâ€ as the Nobel Prize committee put it in the 1980 citation. Â But in these days of â€œmacroeconomists at warâ€ it is worth remembering that Klein was also a pioneer in exploring the reasons for differences between macro models and the views of the economists who build and estimate them.Â The Model Comparison Seminar that he ran during the 1970s and 1980s brought macroeconomists and t [...]
- â€œCompetition in Persuasion,â€ M. Gentzkow & E. Kamenica (2012)
by afinetheorem in A Fine Theorem, 2014-04-17 19:34:59 UTC
How’s this for fortuitous timing: I’d literally just gone through this paper by Gentzkow and Kamenica yesterday, and this morning it was announced that Gentzkow is the winner of the 2014 Clark Medal ! More on the Clark in a bit, but first, let’s do some theory.
This paper is essentially the multiple sender version of the great Bayesian Persuasion paper by the same authors ( discussed on this site a couple years ago). There are a group of experts who can (under commitment to only sending true signals) send costless signals about the realization of the state. Given the information received, [...]
- Le rÃ´le clÃ© des banques dans les dÃ©sÃ©quilibres de la zone euro
by ? in D'un champ l'autre, 2014-04-17 19:02:00 UTC
Les mÃ©canismes qui ont conduit Ã la crise de la zone euro sont aujourdâ€™hui plutÃ´t bien identifiÃ©s, mÃªme sâ€™ils ne
suscitaient pas vraiment dâ€™inquiÃ©tude avant quâ€™Ã©clate la crise. Lâ€™unification monÃ©taire a entraÃ®nÃ© une baisse des taux dâ€™intÃ©rÃªt dans les pays pÃ©riphÃ©riques, en lâ€™occurrence lâ€™Espagne, la GrÃ¨ce,
lâ€™Irlande, lâ€™Italie et le Portugal. Ces derniers ont vu leurs primes de risque converger vers celles des pays du cÅ“ur de la zone euro, notamment sur [...]
- QWERTY â€“ Kayâ€™s analysis of a non sub-optimal standard
by bbatiz in NEP-HIS blog, 2014-04-16 17:23:06 UTC
QWERTY and the search for optimality
By: Neil M Kay (University of Strathclyde Business School, Department of Economics)
Abstract: This paper shows how one of the developers of QWERTY continued to use the trade secret that underlay its development to seek further efficiency improvements after its introduction. It provides further evidence that this was the principle used to design QWERTY in the first place and adds further weight to arguments that QWERTY itself was a consequence of creative design and an integral part of a highly efficient system rather than an accident of history. This furthe [...]
- Janet Yellen Gives First Speech On Monetary Policy As Fed Chair
by Matthew Boesler in Business Insider, 2014-04-16 16:25:00 UTC
Janet Yellen just gave her first speech on monetary policy today since assuming office as chairwoman of the Federal Reserve in an event at the Economic Club of New York. Treasury yields have edged higher on her comments. Below is the full text of her speech: Chair Janet L. Yellen At the Economic Club of New York, New York, New York April 16, 2014 Monetary Policy and the Economic Recovery Nearly five years into the expansion that began after the financial crisis and the Great Recession, the recovery has come a long way. More than 8 million jobs have been added to nonfarm payrolls since 2009, a [...]
- Yellen: Monetary Policy and the Economic Recovery
by Mark Thoma in Economist's View, 2014-04-16 10:08:01 UTC
Travel day today, so for now a quick repost of Janet Yellen's speech today, more later as I can:
Monetary Policy and the Economic Recovery, by Janet Yellen, FRB : Nearly five years into the expansion that began after the financial crisis and the Great Recession, the recovery has come a long way. More than 8 million jobs have been added to nonfarm payrolls since 2009, almost the same number lost as a result of the recession. Led by a resurgent auto industry, manufacturing output has also nearly returned to its pre-recession peak. While the housing market still has far to go, it seems to have t [...]
- Climate Windows in Multilateral Aid
by Shifting Wealth in ShiftingWealth, 2014-04-16 09:21:00 UTC
Jim Yong Kim, the World Bank President (â€œOh doctor, doctorâ€¦â€) had â€œThe Phrase that Paysâ€ at the recent IMF-World Bank Spring Meetings 2014: â€œWe know we cannot end extreme poverty by 2030 without tackling climate changeâ€. Dr KimÂ´s statement , to be sure, begs the question why the World Bank (and others, such as the Gates Foundation or the OECD) is so cocksure about ending poverty by 2030? As a matter of prerequisite and logic, ending poverty would imply that Â´we can tackle climate changeÂ´ over the next fifteen years. This is highly unlikely. St [...]
- EconomÃa (y PsicologÃa) de la Productividad Laboral y los Subsidios al Desempleo
by Juan F Vargas in Foco Económico, 2014-04-15 21:00:45 UTC
Â El Ãºltimo Reporte Mundial sobre Seguridad Social de la OrganizaciÃ³n Internacional del Trabajo informa que casi la mitad de los paÃses del mundo ofrecen algÃºn tipo de subsidio de desempleo. Si bien existen diferentes esquemas, el objetivo comÃºn es proporcionar subsidios para apoyar a quienes quedan desempleados. Algunos paÃses, como la mayorÃa de Europa Occidental, ofrecen subsidios incondicionales. El sÃ³lo hecho de estar desempleado es suficiente para tener derecho a cobrar el subsidio.Â Otros paÃses, como Australia y Brasil, condic [...]
- Unconventional Monetary Policy in an Interconnected World!
by paragwaknis in Musings of the Sorts, 2014-04-15 19:54:42 UTC
I came across this news item from CNBC about Bernanke and Rajan face-off and that was enough to break the long blogging hiatus! ÃÂ Rajan raises an important question that should be addressed given today’s closely connected economic systems. In the context of unconventional monetary policies, he asksÃÂ “ If the policy hurts the rest of the world more than it helps the United States, should this policy be pursued?” ÃÂ This question is important because there has been a lot of debate about the domestic impact of Fed’s QE policies , but not much has been said aboutÃÂ the effects of such polici [...]
- When blind is not beautiful
by Matt in Aid Thoughts, 2014-04-15 09:30:58 UTC
“Hello? Is it a placebo effect that you’re looking for?
Over at Boring Development , Francisco Toro picks up on the recent Bulte et. al. paper which attempts to implement a double-blind protocol in a `standard’ policy RCT. The study’s abstract:
Randomized controlled trials (RCTs) in the social sciences are typically not double-blind, so participants know they are Ã¢â¬ÅtreatedÃ¢â¬Â and will adjust their behavior accordingly. Such effort responses complicate the assessment of impact. To gauge the potential magnitude of effort responses we implement a conventional RCT and double-blind trial i [...]
- Capital Liberalization and Inequality
by Dan Crawford in Angry Bear, 2014-04-15 06:35:00 UTC
by Joseph Joyce (is a Professor of Economics at Wellesley College and the Faculty Director of the Madeleine Korbel Albright Institute for Global Affairs)
Capital Liberalization and Inequality
Inequality, which has drawn a great deal of comment and analysis following the publication of Thomas Pikettyâ€™s Capital in the Twenty-First Century , has sometimes been seen as a byproduct to increased international trade. But now other international economic linkages are being investigated. The International Monetary Fundâ€™s Managing Director, Christine Lagarde, has acknowledged the need to t [...]
- Liberal Cities and the High (Median Rent/Median Household Income) Ratio
by Matthew Kahn in Environmental and Urban Economics, 2014-04-15 01:47:00 UTC
The NY Times� �reports that there are many liberal cities where the median rent divided by the median household income is greater than 30%. �The Times interprets this fact that the middle class can't afford to live in a series of cities ranging from Los Angeles, to Miami to San Francisco to NYC. � Interestingly, College Station Texas also has a high ratio. Why might liberal cities be increasingly unaffordable? � �Recall that the ratio has median rent in the numerator. �Liberal cities tend to be desirable places in terms of quality of life (in part because of all of those wise urban planning po [...]
- Capital and destiny
by Diane Coyle in The Enlightened Economist, 2014-04-14 14:46:05 UTC
It is with some trepidation that I offer my review of Thomas Piketty’s Capital in the 21st Century , as so much has been written, almost all of it verging on the adulatory. Of course it’s an important book – who could disagree with that when almost everybody in my world is talking about it, and it has cemented the question of inequality of income and wealth on the economic policy agenda? The book has obviously plugged into the zeitgeist. It has some flaws too.
Piketty’s construction of a long-run multi-country World Top Incomes Database for income and wealth, along with Emmanuel Saez and Anth [...]
- Informal economics
by Diane Coyle in The Enlightened Economist, 2014-04-12 12:44:51 UTC
In a discussion on Twitter last week about the rebasing exercise that increased Nigeria’s GDP by 89%, Olumide Abimbola offered to provide a reading list in informal economic activity – and here it is , very useful.The list includes Keith Hart’s pioneering paper – Keith wrote a retrospective as the intro to a more recent (2006) book, Linking the Formal and Informal Economy: Concepts and Policies , edited by Basudeb Guha-Khasnobis, Ravi Kanbur and Elinor Ostrom.
I have a couple of other suggestions to add.
For estimates of the size of the informal economy in different countries, the work of Frie [...]
- Y a-t-il des trappes Ã pauvretÃ© ?
by ? in D'un champ l'autre, 2014-04-11 23:57:00 UTC
Si les Ã©tudes sur la croissance et le dÃ©veloppement sont nombreuses, il nâ€™y a pas de consensus sur ce qui permet
Ã un pays de s'enrichir. La pauvretÃ© semble persister dans certains pays ou certaines rÃ©gions. Par exemple, le PIB par tÃªte sâ€™Ã©levait respectivement Ã 347, 1512 et 2491 dollars au Burundi, Ã
HaÃ¯ti et au Nicaragua. MÃªme si ce dernier a un revenu par tÃªte sept fois plus Ã©levÃ© que le Burundi, il nâ€™en demeurait pas moins un pays pauvre, puisque son revenu par tÃªte reprÃ©sentait alors Ã
peine 16 % de [...]
- EconPapers: The Economics of the Gift
by Alessandro Cerboni in Knowledge Team, 2014-04-11 20:44:37 UTC
See on Scoop.it – Bounded Rationality and Beyond
By David Reinstein
Abstract This essay broadly considers gifts, giving, and gift economies, modern and pre-modern, from a mainstream (and behavioural) economics perspective. I present a selective survey of the literature focusing on six key points: 1. Commercial transactions sustained by reputation are not easily distinguishable from gift exchange economies; 2. Gift-giving allows the giver to accumulate goods that cannot be purchased commercially; 3. When the giver retains some use, experience, or control over the gift, she shares in the consum [...]
- China: Future Migration Hotspot?
by Jonathan Finegold in Economic Thought, 2014-04-11 18:56:46 UTC
China is still a sending state, more migrants leave than come in. According to the World Bank , about 1.5 million people emigrated from China in 2012, on net. I am not sure how much of that includes emigration to Hong Kong and Macau. Still, compared to the United States, which received, on net, 5 million immigrants, China does not seem like a major attraction to migrants. But, will China always be a sending state, or will it soon begin to receive net immigration? Immigration is already an important facet of the Chinese economy, and there is reason to suspect that China, like Western Europe and [...]
- On forgetting land in models of secular stagnation
by Nick Rowe in Worthwhile Canadian Initiative, 2014-04-11 11:22:19 UTC
If I see one more model of secular stagnation and negative equilibrium real interest rates, that does not include land....I'm going to throw a real wobbly.
What is it with you townies? Have you never looked out of the window, when you fly (do you ever drive?) from one city to another, and wondered about all that stuff you see out there? It's called "land". It grows food, that you eat. And that land is valuable stuff, and there's a lot of it, and it can last a very long time, and it pays rent (or owner-equivalent rent). And if the rent on that land is strictly positive (which it is), and if the [...]
- Hypothetical Bias presentation at TAMU; & et cetera
by John Whitehead in Environmental Economics, 2014-04-11 09:37:46 UTC
I was in College Station, TX at the end of March to talk about hypothetical bias of stated preference data to the folks in agricultural economics (here is the PDF of the PPT ). I covered three recent papers that have ex-ante/ex-post SP/RP data which, as a whole, show (I argue):
ex-ante SP data is positively correlated with ex-post RP data;
there is hypothetical bias in ex-ante SP data (i.e., survey respondents say they'll do more of activity X than they actually end up doing);
the hypothetical bias can be adjusted (ex-ante) to reflect future behavior fairly accurately.
Here is the abstract f [...]
- ACA and EMTRs
by Eric Crampton in Offsetting Behaviour, 2014-04-11 04:02:00 UTC
Income-linked benefits with abatement regimes can do nasty things to work incentives. Here's Casey Mulligan on the recent changes to US health care :Under the Affordable Care Act, between six and eleven million workers would increase their disposable income by cutting their weekly work hours. About half of them would primarily do so by making themselves eligible for the ACA's federal assistance with health insurance premiums and out-of-pocket health costs, despite the fact that subsidized workers are not able to pay health premiums with pre-tax dollars. The remainder would do so primarily by r [...]
- Local Government Financing
by Eric Crampton in Offsetting Behaviour, 2014-04-10 21:08:00 UTC
Local Government New Zealand is looking for alternative funding mechanisms .Basing rates on property values alone may soon no longer be sustainable as the sole taxation form for many councils, says Local Government New Zealand (LGNZ). Instead, it would investigate other forms of taxation such as local consumption and local income taxes as "complementary alternatives". ... The LGNZ Local Government Funding Review comes as an ageing population contributes to an increased number of asset rich/cash poor ratepayers who struggle to pay their rates. Some councils also face major growth pressures to f [...]
- How Not to Do Macroeconomics
by Unlearningecon in Unlearning Economics, 2014-04-10 19:03:17 UTC
A frustrating recurrence for critics of ‘mainstream’ economics is the assertion that they are criticising the economics of bygone days: that those phenomena which they assert economists do not consider are, in fact, at the forefront of economics research, and that the critics’ ignorance demonstrates that they are out of touch with modern economics – and therefore not fit to criticise it at all.
Nowhere is this more apparent than with macroeconomics. Macroeconomists are commonly accused of failing to incorporate dynamics in the financial sector such as debt, bubbles and even banks themselves, b [...]
- Efficiency wages for MPs?
by chris dillow in Stumbling and Mumbling, 2014-04-10 14:01:23 UTC
In all the fuss about Maria Miller's resignation, a simple point has been ignored - that the issue here is a mainstream economic one. It's the principal-agent problem . How can principals (voters) ensure that their agents (MPs) behave in ways they want (keeping their hands out the till)?
Broadly speaking, there are three ways to achieve this.
One is simply to hire better people. However, given that most people would vote for a dead pig if it wore the right coloured rosette, this requires radical change.
A second possibility is to exercise greater direct oversight. In the Miller context, this r [...]
- A Southern Economist
by Matthew Kahn in Environmental and Urban Economics, 2014-04-10 03:57:00 UTC
I will be in Virginia next Thursday and in Georgia on Friday. � I'm grateful to my friends at James Madison University 's Economics Department �for giving me the chance to speak about my Climatopolis book. �When I published it back in 2010, it wasn't cool to be thinking about the micro economics of climate change adaptation. � Watch this video for a taste of my thinking. � On Friday at GSU, I'll have the chance to talk about my work on public transit buses. � � �People have very different reactions to this paper. �I presented it at UCLA and people really liked it. �I presented it at the Harris [...]
- The FRB/US Model and Inflation
by Stephen Williamson in Stephen Williamson: New Monetarist Economics, 2014-04-09 19:44:00 UTC
The Board of Governors has posted details on the structure of the FRB/US model, the data used in estimating the model, published work using the model, etc. If you have access to EViews, it appears you can also run simulations. There is even a long disclaimer, presumably to cover cases where someone takes the model too seriously, uses it for retirement planning or some such, and then wants to sue the Fed. On this, I have a proposal, which is a blanket disclaimer to cover everything - public speaking by Fed employees, casual chit-chat in the coffee shop, whatever: Please don't ever pay close att [...]
- La BCE, ou comment devenir moins conventionnel
by Laurence Duboys Fresney in OFCE le blog, 2014-04-09 16:25:08 UTC
parÃÂ JÃÂ©rÃÂ´me Creel et Paul Hubert
La situation ÃÂ©conomique morose de la zone euro, avec ses risques de dÃÂ©flation, amÃÂ¨ne les membres de la Banque centrale europÃÂ©enne (BCE) ÃÂ rÃÂ©flÃÂ©chir ÃÂ de nouveaux assouplissements monÃÂ©taires quantitatifs, comme en attestent les rÃÂ©centes dÃÂ©clarations des banquiers centraux allemand, slovaque et europÃÂ©en . De quoi pourrait-il sÃ¢â¬â¢agir et ces mesures pourraient-elles ÃÂªtre efficaces pour relancer lÃ¢â¬â¢ÃÂ©conomie de la zone euro ?
Les assouplissements quantitatifs, bien souvent qualifiÃÂ©s de QE (pour Quantit [...]
- Rob Lowe & the left's dilemma
by chris dillow in Stumbling and Mumbling, 2014-04-09 12:59:16 UTC
Rob Lowe, one of the stars of the greatest TV show ever made* has drawn our attention to a dilemma for leftist politics. He says : "There's this unbelievable bias and prejudice against quote-unquote good-looking people."
In one big sense this is plain false. There's abundant evidence around the world that there's discrimination in favour of good-looking people; they earn substantially more (pdf) Â than ugly ones. I doubt if Mr Lowe would have had so successful a career if he looked like Michael Gove**.
And yet on the other hand, there's a grain of truth in what he says. It's plausible that [...]
- Capital Market Access as IDA Eligibility Criterion â€“ Worthless and Dangerous
by Shifting Wealth in ShiftingWealth, 2014-04-09 10:45:00 UTC
In 1960, private capital flows to poor countries were unimportant relative to trade; they were fairly tranquil and consisted mostly of direct foreign investment. That year, IDA was established in recognition of the fact that, for many of the poorest countries, private capital and market based multilateral sources of financing were not adequate. From the start, demand for IDA resources outstripped supply. Hence the need to ration demand for concessional finance through defining eligibility criteria. Apart from the concept of relative poverty, as measured by GNI per capita below an agreed thre [...]
- A NY Times Piece Examining When Green Nudges Backfire
by Matthew Kahn in Environmental and Urban Economics, 2014-04-09 04:20:00 UTC
T his NY Times piece about motivating both liberals and conservatives to engage on climate change is worth reading. � Back in the 1990s, applied economists wrestled with the general issue of what exogenous variables have a monotonic impact on raising the probability of taking a given action. �See page 1343 of this paper for an example from health economics. �In the case of environmental policy, the same "treatment" (i.e hearing about Al Gore's new thoughts) may have different consequences for different people. � Some people who are sympathetic to his world view will be "turned on" by his new i [...]
- Social Security and the Interactions Between Aggregate and Idiosyncratic Risk
by Christian Zimmermann in NEP-DGE blog, 2014-04-09 02:38:42 UTC
By Daniel Harenberg and Alexander Ludwig
We ask whether a PAYG-financed social security system is welfare improving in an economy with idiosyncratic and aggregate risk. We argue that interactions between the two risks are important for this question. One is a direct interaction in the form of a countercyclical variance of idiosyncratic income risk. The other indirectly emerges over a household’s life-cycle because retirement savings contain the history of idiosyncratic and aggregate shocks. We show that this leads to risk interactions [...]
- Short Squeezes, Bank Runs, and Liquidity Premiums
by JP Koning in Moneyness, 2014-04-08 22:54:00 UTC
This is a guest post by Mike Sproul. Many of you may know Mike from his comments on this blog and other economics blogs. I first encountered Mike at the Mises.com website back in 2007 where he would eagerly debate ten or twenty angry Austrians at the same time. Mike was the first to make me wonder why central banks had assets at all. Here is Mike's website. � On October 26, 2008, Porsche announced that it had raised its ownership stake in Volkswagen to 43%, at the same time that it had acquired options that could increase its stake by a further 31%, to a total ownership stake of 74%. The state [...]
- Occupational licensing: NZ Edition
by Eric Crampton in Offsetting Behaviour, 2014-04-08 19:00:00 UTC
David Smith points out that New Zealand isn't as pure as I'd like. In comments over on last week's post on New Zealand's generally "less stupid" policy stance , he wrote: Eric, I'm afraid your comment on NZ occupational licensing is not correct. You can see the official list here .This just refers to regulations that have a specialist body. (Even so, it includes Real estate agents!) You will find many interesting anomalies in the way these organisations work. For instance, of particular interest to a Cantabrian would be the building regulatory bodies that have set up a system that means the av [...]
- Debito pubblico: quelli che â€˜la monetizzazione si fa coi miniassegniâ€¦â€™
by Alberto Bagnai in Il Fatto Quotidiano, 2014-04-08 06:52:45 UTC
Nel 2005 Barry Marshall , dellÃ¢â¬â¢UniversitÃÂ di Perth (Australia), ha preso il premio Nobel per aver scoperto che lÃ¢â¬â¢ulcera non ÃÂ¨ causata dallo stress, ma dallÃ¢â¬â¢ Helicobapter Pylori . Domanda: se voi aveste un ascesso a un dente, prendereste un aereo per Perth, o vi accontentereste del dentista di fiducia? Del dentista!? Sicuri!? Anche se non ha un Nobel? Sono dÃ¢â¬â¢accordo con voi, e non solo perchÃÂ© da qui a Perth cÃ¢â¬â¢ÃÂ¨ piÃÂ¹ o meno un giorno di volo, ma anche perchÃÂ© si dÃÂ per scontato che un illustre gastroenterologo, di denti, non ne sappia un gran [...]
- What is Fair?
by Josh in The Everyday Economist, 2014-04-07 19:13:09 UTC
I recently read Thomas Piketty’s Capital in the 21st Century (my review of which will soon be published by National Review, for those interested). In reading the book, an implicit theme is that of fairness. Throughout the text, Piketty argues that his evidence on inequality suggests that there is a growing importance of inheritance in the determination of income and that this trend is likely to continue. It seems that Piketty sees this as problematic because it undermines meritocracy and even democracy. Nonetheless, when we start talking about there being too much inequality or too great o [...]
- 263 â€“ The EQ Index
by David Pannell in Pannell Discussions, 2014-04-07 15:00:16 UTC
Here is an idea: an index measuring the quality of the process used to evaluate environmental projects? It would provide a simple summary of the extent to which the evaluation process can be relied on to produce information that is useful for decision making. It would also provide a checklist of issues for people to think about when they are putting together an evaluation or prioritisation process.
Letâ€™s call it the EQ Index, for Evaluation Quality.
I like the idea because many existing systems have weaknesses that lead to poor decisions about environmental projects. If people talked ab [...]
- BÃ¼cherkiste (9): Die Festung der MakroÃ¶konomen
by Gerald Braunberger in Fazit, 2014-04-07 10:11:50 UTC
“I came to the position that mathematical analysis is not one of the many ways of doing economic theory: it is the only way. Economic theory is mathematical analysis. Everything else is just pictures and talk.”
Robert Lucas (2001)
“First, by and large, journalists and policymakers – and by extension the US public – think about macroeconomics using the basically abandoned frameworks from the 1960s and 1970s. Macroeconomists have failed to communicate their new discoveries and understanding to policymakers or to the world.”
Narayana Kocherlakota (2009)
Kein Teilgebiet der Wirtschaftswissensch [...]
- Pay gaps, computers, and the public sector
by Eric Crampton in Offsetting Behaviour, 2014-04-06 19:00:00 UTC
The NZ EEO Commissioner, Jackie Blue, is unhappy about the gender wage gap in the public service .The woman in charge of equal employment opportunities is set to "crack the whip" on government departments for failing to close the gender pay gap. Women in the public sector are paid an average 14 per cent less than their male counterparts, despite making up 60 per cent of the sector's workforce, according to analysis by Equal Employment Opportunities Commissioner Jackie Blue. "I'm very unhappy with the public service. They should be doing much better than they are. They're not taking it seriousl [...]
- Troll e produttivitÃ : Minosse vs Daveri (e Travaglini)
by Alberto Bagnai in Goofynomics, 2014-04-06 10:19:00 UTC
anto ha lasciato un nuovo commento sul tuo post " Hanno capito che non possono piÃ¹ dire la qualunque... ": Gentile sig. Bagnai, faccio riferimento al suo post dal titolo "Declino, produttivitÃ , flessibilitÃ , euro: il mio primo maggio" in cui si riportano le conclusioni dello studio Daveri, F. e Parisi, M.L. (â€œTemporary workers and seasoned managers as causes of low productivityâ€, secondo cui la maggiore flessibilitÃ del lavoro determinerebbe una diminuzione della produttivitÃ perchÃ© scoraggerebbe la â€œcapacitÃ innovativaâ€ degli imprenditori (tes [...]
- Suburbanites Vote Against Carbon Pricing
by Matthew Kahn in Environmental and Urban Economics, 2014-04-05 18:40:00 UTC
Here is a sensible letter published in the Sacramento Bee that argues that a carbon tax bundled with a recycling of the revenue back to households would achieve the "win-win" of incentivizing behavioral change without penalizing suburbanites for their high fossil fuel use for driving and generating electricity. � The author glosses over the point that the refund of the revenue collected from a carbon tax would be likely to be a per-capita refund and so suburbanites would still be transferring income to their center-city counterparts. I would like to make a new point. �Folks should read my new [...]
- The Long Shadow of Spanish Colonialism
by Robin in Cherokee Gothic, 2014-04-04 12:50:17 UTC
William Maloney has a new paper with Felipe Valencia Caicedo called “Engineers, Innovative Capacity and Development in the Americas.” ÃÂ I’ve been a fan of Maloney’s work since I readÃÂ Ã¢â¬Å Missed Opportunities: Innovation and Resource Based Growth in Latin America Ã¢â¬Â in EconomÃÂa in 2002. ÃÂ (Wait, didn’t I show something similar in 1997? ÃÂ MaybeÃÂ the “fan” feeling doesn’t run both directions!)
Here’s the abstract of the new working paper:
Using newly collected national and sub-national data, and historical case studies, this paper argues that differences in innovative capac [...]
- Cash is the null
by Eric Crampton in Offsetting Behaviour, 2014-04-03 21:35:00 UTC
Straight cash transfers should always be the null against which in-kind transfers get assessed. More evidence that the null's pretty decent comes today from Cunha in the latest AEJ: Applied Economics. A randomised control trial of cash versus in-kind food benefits in Mexico's food assistance programme showed that the in-kind transfers didn't beat the null. Here's Cunha �[ ungated ]: Welfare programs are often implemented in-kind to promote outcomes that might not be realized under cash transfers. This paper tests whether such paternalistically motivated transfers are justified compared to cash [...]
- Coefplot for Stata
by Mark Egan in Economics, Psychology and Policy, 2014-04-03 19:43:00 UTC
A user-written command for Stata called coefplot was released by Ben Jann�recently . It is a very accessible program which can create nice graphs very easily. It is particularly good at working with margins output and seems superior to marginsplot based on my experience with it so far. A particularly nice feature is the ability to combine estimates from several different regressions (example below). The paper is full of examples of the kind of graphs the command can produce and is worth reading. [...]
- The past is the future we fear: notes from 1827
by Johan Fourie in Johan Fourie's Blog, 2014-04-03 13:00:56 UTC
One of the benefits of studyingÃÂ economics (and economic history) is that you’re a bit more resilient to the populist sentiments of politicians and policy-makers. Especially during election time, facts and fiction are often mixed together in one of those big, black pots, with a touch of fantasy added as special ingredient, and served to expectant ears. We all like to have our ideas about the world affirmed and politicians are good at exploiting this weakness. They tell us exactly what we want to hear. Never let the facts get in the way of a good story.
Lord Charles Somerset
Much has been sai [...]
- Whatâ€™s â€œupâ€ with the labor force participation rate?
by ? in FRED blog, 2014-04-03 13:00:28 UTC
The current economic recovery in the United States has featured an almost continuous decline in the labor force participation rate. While this decline is much discussed as a sign the economy may not be recovering, there has been a downward trend since the year 2000. So, the question is whether this decline has recently accelerated or not. Or, in other words, is it mostly cyclical or mostly structural? FRED offers plenty of more-detailed series to analyze this question. St. Louis Fed President James Bullard recently wrote a Review article about the labor force participation.
How this graph was [...]
- Logement locatif : une Clameur inquiÃ©tante â€¦
by Laurence Duboys Fresney in OFCE le blog, 2014-04-03 08:15:14 UTC
par Pierre Madec
Comme chaque semestre, lâ€™observatoire des loyers Clameur a publiÃ© dÃ©but mars ses chiffres de conjoncture du marchÃ© de lâ€™immobilier locatif  . Loyers de marchÃ© qui ralentissent, demandes de logement et offres locatives en baisse, mobilitÃ© rÃ©sidentielle au plus bas, voici quelques-uns des constats dressÃ©s par lâ€™observatoire. Des conclusions qui, selon leurs auteurs, Â«Â nâ€™engagent guÃ¨re Ã lâ€™optimisme Â Â». Ces rÃ©sultats sont-ils si Â«Â prÃ©occupants Â Â»? Pourquoi est-il important de les rela [...]
- â€œAt Least Do No Harm: The Use of Scarce Data,â€ A. Sandroni (2014)
by afinetheorem in A Fine Theorem, 2014-04-03 06:31:41 UTC
This paper by Alvaro Sandroni in the new issue of AEJ:Micro is only four pages long, and has only one theorem whose proof is completely straightforward. Nonetheless, you might find it surprising if you don’t know the literature on expert testing.
Here’s the problem. I have some belief p about which events (perhaps only one, perhaps many) will occur in the future, but this belief is relatively uninformed. You come up to me and say, hey, I actually *know* the distribution, and it is p*. How should I incentivize you to truthfully reveal your knowledge? This step is actually an old one: all [...]
- Quantifying Some of the Impacts of Economics Blogs
by UDADISI in UDADISI, 2014-04-02 22:28:00 UTC
The paper �by� McKenzie & Ã–zler� has b een around for sometime, and it was recently published . The abstract: Economics blogs represent a significant change in the way research on development economics is discussed and disseminated, yet little is known about the impact of this new medium. Using surveys of development researchers and practitioners, along with experimental and nonexperimental techniques, we try to quantify some of the blogsâ€™ effects. We find that links from blogs cause a striking increase in the number of abstract views and downloads of economics papers. Furthermore, [...]
- Quelle est lâ€™efficacitÃ© du forward guidance Ã la borne infÃ©rieure zÃ©ro ?
by ? in D'un champ l'autre, 2014-04-02 20:28:00 UTC
Avant la crise financiÃ¨re mondiale, les manuels de macroÃ©conomique dÃ©crivaient avec optimisme le rÃ´le de la
politique monÃ©taire dans la gestion de la demande globale : les banques centrales seraient Ã mÃªme de stabiliser lâ€™activitÃ© en faisant varier leur taux directeur ; nul besoin dâ€™une intervention
des autoritÃ©s budgÃ©taires pour cela. Une baisse des taux directeurs inciterait les entreprises et mÃ©nages Ã davantage investir, ce qui stimulerait lâ€™activitÃ©. Or la Grande RÃ©cession a Ã©tÃ© dâ€™une
- Microfoundations and the Phillips curve
by Mainly Macro in Mainly Macro, 2014-04-02 17:20:00 UTC
This is a rather long post that follows from my earlier one on Faustian bargains. Mainly for economists. Although the debate about microfoundations normally talks about models, it is possible in some cases to also talk about individual relationships. This has the advantage of simplicity. I think the Phillips curve is a nice illustration of many of the key issues in the debate - even for those who do not believe in it! (I make the more general argument here .) First, it illustrates for me why the debate is not, I repeat not , about whether the microfoundations approach is useful. Of course it i [...]
- Why Those Guys Won the Economics Nobels
by Justin Fox in HBR Blog Network, 2014-04-02 14:00:40 UTC
When the Riksbank Prizes in Economic Sciences (a.k.a. the economics Nobels) were announced last fall , the news was greeted with someÃÂ confusion and amusement. The Swedes had given the award to one guy, Eugene Fama , who is best known for originating something called the efficient market hypothesis, another guy, Robert Shiller , who once called the efficient market hypothesis Ã¢â¬Åone of the most remarkable errors in the history of economic thought,Ã¢â¬Â and a third guy, Lars Peter Hansen , whose work is so dense that even academic economists couldnÃ¢â¬â¢t satisfactorily explain i [...]
- Liberal Economists Are Caught in a Bind Trying to Sell Obama's Overtime Laws
by Patrick Brennan in The Corner, 2014-04-02 11:45:00 UTC
President Harry Truman once famously quipped: â€œGive me a one-handed economist! All my economists say, â€˜On the one hand, on the other . . .â€™â€Â
This probably isnâ€™t exactly quite what he meant, but some economists are earnestly taking both sides of a debate over President Obamaâ€™s new overtime regulations, which expand time-and-a-half requirements to certain jobs. In a recent NPR debate (with me) Ross Eisenbrey, vice president of the liberal Economic Policy Institute, argued that companies would not offset salary increases by cutting base pay (minutes 28: [...]