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- Accounting for Deception in the Industrial Revolution
by bbatiz in NEP-HIS blog, 2014-03-12 17:14:08 UTC
Creative accounting in the British Industrial Revolution: Cotton manufacturers and the â€˜Ten Hoursâ€™ Movement
The paper examines an early case of creative accounting, and how, during British industrialization, accounting was enlisted by the manufacturersâ€™ interest to resist demands, led by the â€˜Ten hoursâ€™ movement, for limiting the working day. In contrast to much of the prior literature, which argues that entrepreneurs made poor use of accounting techniques in the British industrial revolution, the paper shows that there was considerable sophisticatio [...]
- Quelles relations entre structure financiÃ¨re et croissance Ã©conomique ?
by ? in D'un champ l'autre, 2014-03-12 16:26:00 UTC
Leonardo Gambacorta, Jing Yang et Kostas Tsatsaronis
(2014) explorent dans une publication pour la Banque des rÃ¨glements internationaux les liens entre la structure financiÃ¨re dâ€™un pays et sa croissance Ã©conomique. Ils observent tout dâ€™abord
comment la structure financiÃ¨re dâ€™une Ã©conomie change avec les caractÃ©ristiques de cette derniÃ¨re. Pour cela, ils distinguent entre les Ã©conomies dominÃ©es par le financement de marchÃ© et celles
dominÃ©es par le financement bancaire. Plus le PIB par tÃªte sâ€™Ã©lÃ¨ve [...]
- Three New Economics Papers Related to Mitigating Climate Change
by Matthew E. Kahn in The Reality-Based Community, 2014-03-12 16:20:17 UTC
Below the fold, I discuss three of my new applied NBER economics papers focused on climate change mitigation.
I would like to preview my three new NBER papers. One is onÃÂ Walmart’s energy ÃÂ consumption. One is about ÃÂ public bus purchases and scrappage ÃÂ and the third is about learning aboutÃÂ California voter’s preferences for carbon mitigation ÃÂ based on voting on AB32 and High Speed Rail.
1. Walmart was kind enough to share its store level monthly electricity consumption for each of its over 200 stores in California for a 6 year period.ÃÂ ÃÂ Nils Kok ÃÂ and I used these [...]
- Arguning against immigration
by chris dillow in Stumbling and Mumbling, 2014-03-12 14:29:48 UTC
James Brokenshire's recent speech on immigration has been widely decried as one of the worst ever. This poses a question: is it possible to make an intelligent case against immigration? Here's how I would try.
The economic evidence tells us that immigration is good for the economy . But economics also tells us something else - that this doesn't much matter. As Andrew Clark says , "the rising trend in GDP per capita is certainly not matched by an analogous movement in average happiness". Whether the Easterlin paradox is really true or only roughly so needn't detain us. What matters is that the [...]
- My Three New NBER Papers
by Matthew Kahn in Environmental and Urban Economics, 2014-03-12 13:11:00 UTC
In this blog post, I would like to preview my three new NBER papers. One is on Walmart's energy consumption. One is about public bus purchases and scrappage and the third is about learning about California voter's preferences for carbon mitigation based on voting on AB32 and High Speed Rail. 1. Walmart was kind enough to share its store level monthly electricity consumption for each of its over 200 stores in California for a 6 year period. �Nils Kok and I used these data to test a variety of hypotheses. �Relative to a large sample of control stores, Walmart's stores exhibit a remarkable degree [...]
- Il Pil dell'Italia
by Alberto Bagnai in Goofynomics, 2014-03-11 20:34:00 UTC
Oggi @cigolo , che vi consiglio di seguire su Twitter, ha pubblicato questo grafico , che in qualche modo ci rinvia a questo post . Cigolo Ã¨ un bravo ragazzo, anche se ho qualche dubbio su alcune sue interpolazioni (le vedo un pochino "linkiestike", non so come spiegarvi, ma lui sicuramente Ã¨ in buona fede ed Ã¨ una fonte di utilissime informazioni). Poi mi Ã¨ passato del tutto di mente. Ora sono alla ricerca di soldi. Un modo per farseli dare Ã¨ spiegare a chi vuoi che te li dia perchÃ© dovrebbe farlo: sostanzialmente, perchÃ© lui ha da perdere piÃ¹ di te. A questo scopo mi [...]
- On compensating advantages
by chris dillow in Stumbling and Mumbling, 2014-03-11 14:45:46 UTC
Milena Kremakova asks :
Why is it that in our society, there seems a general rule that, the more obviously oneâ€™s work benefits other people, the less one is likely to be paid?
There's a perspective here that I feel is under-rated, and it's one that's consistent with both friendly (pdf ) and unfriendly explanations of the rising incomes of the rich. I'm thinking of Adam Smith's idea of compensating advantages.
This says that differences in pecuniary rewards are offset by non-pecuniary advantages. Smith gave the example of miners who were well-paid relative to other labourers, as compen [...]
- Carbon Politics and Economic Research
by Matthew Kahn in Environmental and Urban Economics, 2014-03-11 14:30:00 UTC
The NY Times reports that some Senators will be leading an all day �"teach-in" on reducing U.S greenhouse gas emissions. �While I support this effort, �the Senators' aids might want to consider some basic economic research. �In this 2013 paper published in Economic Inquiry , we document that three variables do a very good job predicting which Congressional Representatives vote against carbon mitigation legislation. � These 3 variables are; �1. the district's per-capita income (richer districts vote pro-carbon mitigation), �2. The district's per-capita carbon emissions �(low carbon districts vo [...]
- The Minimum Wage from a Two-Sided Perspective
by maximorossi in NEP-LTV blog, 2014-03-11 13:45:06 UTC
Alessio J. G. Brown Christian Merkl Dennis Snower
This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms’ job offer and workers’ job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that sufficiently low minimum wages may do no harm to employment, since their job-offer disincentives are countervailed by their job-acceptance incentives
Minimum wage, la [...]
- Biased Perceptions of Income Inequality and Redistribution
by maximorossi in NEP-LTV blog, 2014-03-11 13:43:19 UTC
Engelhardt, Carina Wagener, Andreas
When based on perceived rather than o n objective income distributions, the Meltzer- Richards hypothesis and the POUM hypothesis work quite well empirically: there exists a positive link between perceived inequality or perceived upward mobility and the extent of redistribution in democratic regimes – though such a link does not exist when objective measures of inequality and social mobility are used. These observations highlight that political preferences and choices might depend more on p [...]
- Economic Growth Evens-Out Happiness: Evidence from Six Surveys
by maximorossi in NEP-LTV blog, 2014-03-11 13:42:06 UTC
Andrew E. Clark (EEP-PSE – Ecole d’Ãâ°conomie de Paris – Paris School of Economics – Ecole d’Ãâ°conomie de Paris, PSE – Paris-Jourdan Sciences Economiques – CNRS : UMR8545 – Ãâ°cole des Hautes Ãâ°tudes en Sciences Sociales (EHESS) – Ãâ°cole des Ponts ParisTech (ENPC) – Ãâ°cole normale supÃÂ©rieure [ENS] – Paris – Institut national de la recherche agronomique (INRA)) Sarah FlÃÂ¨che (EEP-PSE – Ecole d’Ãâ°conomie de Paris – Paris School of Economics – Ecole d’Ãâ°conomie de Paris, PSE – Paris-Jourdan Sciences Economiques – CNRS : UMR8545 – Ãâ°cole des Hautes Ã [...]
- Human Well-being and In-Work Benefits: A Randomized Controlled Trial
by maximorossi in NEP-LTV blog, 2014-03-11 13:40:25 UTC
Dorsett, Richard (National Institute of Economic and Social Research (NIESR)) Oswald, Andrew J. (University of Warwick)
Many politicians believe they can intervene in the economy to improve people’s lives. But can they? In a social experiment carried out in the United Kingdom, extensive in-work support was randomly assigned among 16,000 disadvantaged people. We follow a sub-sample of 3,500 single parents for 5 ensuing years. The results reveal a remarkable, and troubling, finding. Long after eligibility had ceased, [...]
- Longitudinal Evidence for a Midlife Nadir in Human Well-being: Results from Four Data Sets
by maximorossi in NEP-LTV blog, 2014-03-11 13:38:51 UTC
Cheng, Terence Chai (Melbourne Institute of Applied Economic and Social Research) Powdthavee, Nattavudh (London School of Economics) Oswald, Andrew J. (University of Warwick)
There is a large amount of cross-sectional evidence for a midlife low in the life cycle of human happiness and well-being (a ‘U shape’). Yet no genuinely longitudinal inquiry has uncovered evidence for a U-shaped pattern. Thus some researchers believe the U is a statistical artefact. We re-examine this fundamental cross-disciplinary question. W [...]
- The Economics of Human Development and Social Mobility
by maximorossi in NEP-LTV blog, 2014-03-11 13:35:16 UTC
James J. Heckman Stefano Mosso
This paper distills and extends recent research on the economics of human development and social mobility. It summarizes the evidence from diverse literatures on the importance of early life conditions in shaping multiple life skills and the evidence on critical and sensitive investment periods for shaping different skills. It presents economic models that rationalize the evidence and unify the treatment effect and family influence literatures. The evidence on the empirical and policy importance [...]
- Why Is There No Income Gap Between the Hui Muslim Minority and the Han Majority in Rural Ningxia, China?
by maximorossi in NEP-LTV blog, 2014-03-11 13:34:19 UTC
Gustafsson, BjÃ¶rn Anders (University of Gothenburg) Sai, Ding (Chinese Academy of Social Sciences)
Using a household sample survey for 2006 we show that the Hui population in the rural part of Ningxia autonomous region of China is disadvantaged compared to the Han majority as regards length of education and household per capita wealth. Yet there is no gap in average disposable income between the two ethnic groups and poverty rates are very similar. This paradox is due to members of Hui households earning more [...]
- The power of the 1%
by chris dillow in Stumbling and Mumbling, 2014-03-10 14:35:26 UTC
Simon asks why there's so little outrage about the high incomes of the top 1%. Let me deepen this question.
I suspect that one reason is that people don't see top incomes as affecting them; they don't look at Euan Sutherland's pay and think "that's coming out of my pocket".
But this lack of reaction is contestable. It's quite possible that we would be better off if the top 1% were less well-paid.
Simple maths tells us that if the income share of the top 1% could be reduced from its current 12.9% to 9.9 per cent - its level in 1992 - then the incomes of the 99% would rise 3.4%, equivalent to a [...]
- Inequality and the media
by Mainly Macro in Mainly Macro, 2014-03-09 19:54:00 UTC
Kathleen Geier asks why there is not more outrage about growing inequality. Her starting point is an excellent piece by Justin Fox, in which he recounts the history of class warfare in the U.S. To quote: â€œWhatâ€™s been unique, or at least highly unusual, has been the environment in which entrepreneurs and business executives were able to operate from the late 1970s through the early 2000s. Taxes dropped, high-end incomes exploded, and hardly anybody complained at all. Far from complaining, in fact, the news media for the most part celebrated the recipients of those exploding incomes [...]
- How macro answered its critics
by Noah Smith in Noahpinion, 2014-03-08 03:20:00 UTC
I've spent a lot of time griping about modern macroeconomics, but I want to take a minute to point out how quickly and adroitly the profession (paradigm? research program? hive mind?) has responded to many of the major criticisms leveled at it since the 2008 financial crisis. Here are what I see as the attacks macro has more or less fended off: 1. "Macro didn't predict the crisis." This one never really seemed to stick in the first place. First of all, precious few people predicted the crisis, and a number of those that did have tended to be the type of people who predict crises every week. In [...]
- Advocates of Reason: 7 March 2014
by Jonathan Finegold in Economic Thought, 2014-03-07 19:37:41 UTC
Man has only one tool to fight error: reason.
Ã¢â¬â Ludwig von Mises
1.ÃÂ What’s gone wrong with democracy? , asks the Economist . (For political scientists: is there a difference between “top-down” democracy and, say, “grassroots” democracy? I mean that in the sense of a planned democracy v. one that was both, in ways, planned and spontaneously developed.)
2. How unconventional are large-scale asset purchases?
3. The myth of the great wages “decoupling,” Don Boudreaux and Liya Palagashvili.
4. Coordination and the demand for money , Nick Rowe. It reminds me of Hayek, and Hoffman’s and Ur [...]
- Ukip's strange "libertarianism"
by chris dillow in Stumbling and Mumbling, 2014-03-07 13:05:39 UTC
Ukip councillor Donna Edmunds has said that shop-owners should be free to refuse to serve women or gays: "I'm a libertarian so I don't think the state should have a role in who business owners serve."
As an expression of ultra-libertarianism this might just about be defensible in itself. But it runs into a problem. If you think people should be free to choose whom they sell to, shouldn't they also be free to choose to sell their labour to whichever willing buyer wants it?
But Ukip wants to deny them this right. It wants tough immigration controls . Not only are these curbs on the rights of sel [...]
- Why Is the Job-Finding Rate Still Low?
by Guest Author in The Big Picture, 2014-03-07 10:00:59 UTC
Why Is the Job-Finding Rate Still Low?
Liberty Street Economics
Victoria Gregory, Christina Patterson, AyÅŸegÃ¼l Åžahin, and Giorgio Topa
Fluctuations in unemployment are mostly driven by fluctuations in the job-finding prospects of unemployed workersâ€”except at the onset of recessions, according to various research papers (see, for example, Shimer [2005, 2012] and Elsby, Hobijn, and Sahin ). With job losses back to their pre-recession levels, the job-finding rate is arguably one of the most important indicators to watch. This rateâ€”defined as the fraction of unempl [...]
- Wanted: German Inflation
by Francesco Saraceno in Sparse Thoughts of a Gloomy European Economist, 2014-03-06 22:00:13 UTC
The latest Eurostat release on inflation shows that the Eurozone, and the EU at large, keep flirting with deflation. This happens mostly because peripheral countries have near-zero inflation rates. Strikingly, no EU country had, in January, annual inflation rates above the 2% ECB target (Finland and the UK stood at 1.9%). Deflation is a problem for debtors, who see the real value of their debt increase. It is a problem for macroeconomic policy (in particular monetary policy). But it is also a problem for rebalancing. The imbalances that built over the period 1999-2007 show up in diverging in [...]
- Las matemÃ¡ticas no son juego de muÃ±ecas
by Hugo Ã‘opo in La educación de calidad es posible, 2014-03-06 20:40:19 UTC
FotografÃÂa tomada del programa Tikichuela, MatemÃÂ¡ticas en mi Escuela, que enseÃÂ±a matemÃÂ¡ticas en preescolar ÃÂ
Piensa en un juego de muÃÂ±ecas ÃÂ¿te viene a la mente un niÃÂ±o o una niÃÂ±a? Piensa en alguien dedicado a la ingenierÃÂa. ÃÂ¿Te viene a la mente la imagen de un hombre o de una mujer? Ahora piensa en alguien dedicado a la psicologÃÂa. Misma pregunta, ÃÂ¿hombre o mujer? Ahora piensa en alguien en una posiciÃÂ³n gerencial. Luego piensa en su asistente. ÃÂ¿Y quiÃÂ©nes dirÃÂas tienen mejores salarios y condiciones laborales…?
ÃÂ¿Estereotipos de gÃÂ©nero, t [...]
- Central banks and public debt: dangerous liaisons?
by Laurence Duboys Fresney in OFCE le blog, 2014-03-06 13:56:31 UTC
By Christophe Blot
Since 2008, monetary policy has been in the forefront of efforts to preserve financial stability and stem the economic crisis. Though the Great Recession was not avoided, the lessons of the crisis of the 1930s were learned. The central banks quickly cut short-term interest rates and have kept them at a level close to zero, while developing new monetary policy instruments. These so-called unconventional measures led to an increase in the size of balance sheets, which exceed 20% of GDP in the United States, the United Kingdom and the euro zone and 45% in Japan. Among the range [...]
- â€œWall Street and Silicon Valley: A Delicate Interaction,â€ G.-M. Angeletos, G. Lorenzoni & A. Pavan (2012)
by afinetheorem in A Fine Theorem, 2014-03-06 11:22:41 UTC
The Keynesian Beauty Contest – is there any better example of an “old” concept in economics that, when read in its original form, is just screaming out for a modern analysis? You’ve got coordination problems, higher-order beliefs, signal extraction about underlying fundamentals, optimal policy response by a planner herself informationally constrained: all of these, of course, problems that have consumed micro theorists over the past few decades. The general problem of irrational exuberance when we start to model things formally, though, is that it turns out to be very difficult to generate “ [...]
- Can Intangible Capital Explain Cyclical Movements in the Labor Wedge?
by Christian Zimmermann in NEP-DGE blog, 2014-03-05 16:15:32 UTC
By Fran�ois Gourio and Leena Rudanko
Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production capacity. We focus on customer capital: the capital embodied in the relationships a firm has with its customers. Introducing customer capital into a standard real business cycle model generates a volatile and countercycl [...]
- The Unnatural Selection of Male Entrepreneurs
by Tomas Chamorro-Premuzic in HBR Blog Network, 2014-03-05 16:00:52 UTC
Although entrepreneurship rates vary from country to country, anywhere in the world there are many more male than female entrepreneurs.
First, women are financially more risk averse . The odds of success for start-ups are lower than 15% , so you need a fairly big appetite for risk to launch a new venture, especially when the economy is solid.
Second, women are typically more patient than men. As a consequence, they tend to tolerate incompetent, abusive, and bullish bosses for a longer time, instead of quitting their jobs to launch a business.
Third, there is yet to be a market t [...]
- Equality, growth & policy
by chris dillow in Stumbling and Mumbling, 2014-03-05 13:13:12 UTC
Some new IMF research (pdf) finds that " more unequal societies have slower and more fragile economic growth". Readers of Sam Bowles - and everyone should be - won't be surprised by this. But could it be that there's a mechanism here that is being overlooked - namely that egalitarianism helps to promote growth-enhancing policies?
Take immigration. There's decent evidence that immigration can foster economic growth by raising (pdf) innovation and productivity . Why, then, are people so hostile to it? One reason might be that they feel uncomfortable at icky foreigners talking funny. But another [...]
- The Macro Effects of Campâ€™s Tax Reform
by William Gale and Donald Marron in TaxVox, 2014-03-05 12:00:55 UTC
When House Ways & Means Chairman Dave Camp rolled out his tax reform last week, the Joint Committee on Taxation evaluated its macroeconomic impacts. Using two different models, the nonpartisan JCT found the plan would boost gross domestic product between 0.1 percent and 1.6 percent over the next ten years, which would increase federal revenue by between $50 billion and $700 billion.
Thatâ€™s an important finding, particularly since JCTâ€™s official estimate, ignoring macroeconomic effects, is that the plan would raise roughly the same amount of money as the current tax code (about $4 [...]
- Banques centrales et dette publique : les liaisons dangereuses ?
by Laurence Duboys Fresney in OFCE le blog, 2014-03-05 10:17:31 UTC
par Christophe Blot
Depuis 2008, la politique monÃÂ©taire est en premiÃÂ¨re ligne pour prÃÂ©server la stabilitÃÂ© financiÃÂ¨re et tenter dÃ¢â¬â¢endiguer la crise ÃÂ©conomique. La Grande RÃÂ©cession ne fut pas ÃÂ©vitÃÂ©e mais les leÃÂ§ons de la crise des annÃÂ©es 1930 ont ÃÂ©tÃÂ© retenues. Les banques centrales ont en effet rapidement baissÃÂ© les taux dÃ¢â¬â¢intÃÂ©rÃÂªt de court terme, qui sont maintenus ÃÂ un niveau proche de zÃÂ©ro, et dÃÂ©veloppÃÂ© de nouveaux instruments de politique monÃÂ©taire. Ces mesures, dites non conventionnelles, ont conduit ÃÂ une augmen [...]
- Why Is the Job-Finding Rate Still Low?
by Guest Author in The Big Picture, 2014-03-05 10:00:15 UTC
Why Is the Job-Finding Rate Still Low?
Victoria Gregory, Christina Patterson, AyÅŸegÃ¼l Åžahin, and Giorgio Topa
Liberty Street Economics Feburary 19, 2014
Fluctuations in unemployment are mostly driven by fluctuations in the job-finding prospects of unemployed workersâ€”except at the onset of recessions, according to various research papers (see, for example, Shimer [2005, 2012] and Elsby, Hobijn, and Sahin ). With job losses back to their pre-recession levels, the job-finding rate is arguably one of the most important indicators to watch. This rateâ€”defined as t [...]
- La politique budgÃ©taire est-elle efficace au Japon ?
by ? in D'un champ l'autre, 2014-03-04 23:48:00 UTC
La Grande RÃ©cession et la nÃ©cessitÃ© d'une intervention des autoritÃ©s publiques pour ramener l'Ã©conomie au plein
emploi ont renouvelÃ© l'intÃ©rÃªt pour les Ã©tudes En observant les Etats-Unis, Alan
Auerbach et Yuriy Gorodnichenko (2012) ont, parmi dâ€™autres, montrÃ© que la taille du multiplicateur budgÃ©taire
(câ€™est-Ã -dire la sensibilitÃ© de lâ€™activitÃ© Ã©conomique aux changements de politique budgÃ©taire) Ã©tait bien plus Ã©levÃ©e lors des pÃ©riodes de rÃ©cessions quâ€™en pÃ©riodes dâ€™e [...]
- Un dÃ©bat et un dialogue
by Alberto Bagnai in Goofynomics, 2014-03-04 21:11:00 UTC
( vous trouverez ci-dessous les vidÃ©os de ma confÃ©rence-dÃ©bat avec M. Jean Paul GauzÃ¨s et M. Bernard DeladerriÃ¨re, qui a eu lieu Ã lâ€™UniversitÃ© de Rouen le 21 fÃ©vrier dernier. Le dÃ©bat a Ã©tÃ© animÃ© par mon ami ArsÃ¨ne Rieber, que je remercie pour lâ€™organisation. Je remercie de mÃªme les intervenants pour leur extrÃªme disponibilitÃ© et honnÃªtetÃ© intellectuelle, qui a permis dâ€™avoir un dÃ©bat oÃ¹ des positions diffÃ©rentes ont eu une reprÃ©sentation Ã©quilibrÃ©e. Ceci a dâ€™ailleurs permis de mettre en valeu [...]
- Development that Works: Is innovation a threat to employment in Latin America?
by Alessandro Maffioli in Eval Central, 2014-03-04 11:25:56 UTC
Originally posted at Development that Works
Joint blog post with Gustavo Crespi
The relationship between innovation and employment has never been an easy one. For a long time innovation was seen as a potential threat to employment and economists got to the point of defining technological unemployment as a disease. The argument was that technological change could create unemployment through the substitution of capital for labor. The discussion has then evolved over time to take into account how different types of innovation under different market conditions may imply different effects on emplo [...]
- Briefer economic cycles
by Salil Mehta in Statistical Ideas, 2014-03-04 01:34:00 UTC
Nature may reach the same result in many ways. This was the quote repeatedly given by a Serbian physicist who, in the late 19th century, tried to make his mark in the U.S. � Criss-crossing the eastern part of the country, he delivered these hard-to-believe lectures at various professional society meetings. � Then 120 years later, another foreign-born businessman and revolutionary would himself try to make an indelible mark on the U.S., from the other side of the country. � Producing electric vehicles bearing the name of that same physicist inspiration: Nikola Tesla. The idea that Tesla ha [...]
- Slavery and the Modern World
by stephdeck1 in NEP-HIS blog, 2014-03-03 12:22:25 UTC
The transatlantic slave trade and the evolution of political authority in West Africa
by: Warren C. Whatley (firstname.lastname@example.org)
I trace the impact of the trans-Atlantic slave trade on the evolution of political authority in West Africa. I present econometric evidence showing that the trans-Atlantic slave trade increased absolutism in pre-colonial West Africa by approximately 17% to 35%, while reducing democracy and liberalism. I argue that this slavery-induced absolutism also influenced the structure of African political institutions in the colonial era and beyond. I present aggrega [...]
- Lecciones de las reformas Hartz. Â¿CÃ³mo curar al nuevo enfermo europeo?
by Marcel Jansen in Nada Es Gratis, 2014-03-03 07:00:56 UTC
Hace un mes publicamos una entrada ( aquÃ ) de Christian Dustmann y otros que explicÃ³ como Alemania consiguiÃ³ transformarse del enfermo de Europa en la superestrella. En ella se muestra que la mejora de la competitividad alemana fue el resultado de un proceso de descentralizaciÃ³n de la negociaciÃ³n colectiva que empezÃ³ en la segunda mitad de los aÃ±os 90, es decir mucho antes de la introducciÃ³n de las reformas Hartz. Esta observaciÃ³n lleva a los autores a sugerir que los demÃ¡s paÃses europeos deberÃan centrar sus esfuerzos en conseguir una descentralizaciÃ³n [...]
- Macrowars, economists' narratives, and my dreamed history of macro
by Beatrice Cherrier in History of Economics Playground, 2014-03-03 00:38:28 UTC
Economists' macro stories
The last straw in the enduring blog debate over microfoundations has taken a decisive historical turn. Last December already, Paul Krugman gave his own account of how microfoundations came to be the 70s, and why they unduly spread over subsequent decades, and so did Stephen Williamson . Economists' need to ground their methodological debates into self-made historical narratives is in itself an interesting feature for historians. But in a recent post dealing with the “Faustian bargain” New Keynesians may have sealed by endorsing of the New Classical microfoundational p [...]
- Womenâ€™s Education: Harbinger of Another Spring?
by pmakdissi in NEP-ARA blog, 2014-03-02 22:20:10 UTC
ByÃÂ Mehmet Alper DinÃÂ§er (Education Reform Initiative, Sabanci University),ÃÂ Neeraj Kaushal (Columbia University and National Bureau of Economic Research) andÃÂ Michael Grossman (City University of New York Graduate Center and National Bureau of Economic Research)
Economists argue that more educated individuals are more efficient producers of health and more educated parents are more efficient in producing healthy children.ÃÂ Knowledge helps parents make informed decisions on their childrenÃ¢â¬â¢s nutrition and heal [...]
- March Madness in the Reading Department
by Dave Giles in Econometrics Beat: Dave Giles' Blog, 2014-03-02 00:55:00 UTC
It's time for the monthly round-up of recommended reading material. Gan, L. and J. Jiang , 1999. A test for global maximum. Journal of the American Statistical Association , 94, 847-854. Nowak-Lehmann, F., D. Herzer, S. Vollmer, and I. Martinez-Zarzosa , 2006. Problems in applying dynamic panel data models: Theoretical and empirical findings. Discussion Paper Nr. 140, IAI,�Georg-August-UniversitÃ¤t GÃ¶ttingen. Olive, D. J. , 2004. Does the MLE maximize the likelihood? Mimeo., Department of Mathematics, Southern Illinois University.� Pollock, D. S. G. , 2014. Econometrics: An historical gui [...]
- Kernel Ridge Regression â€“ A Toy Example
by Clive Jones in Business Forecasting, 2014-03-01 21:10:25 UTC
Kernel ridge regression (KRR) is a promising technique in forecasting and other applications, when there are Ã¢â¬ÅfatÃ¢â¬Â databases. ItÃ¢â¬â¢s intrinsically Ã¢â¬ÅBig DataÃ¢â¬Â and can accommodate nonlinearity, in addition to many predictors.
Kernel ridge regression, however, is shrouded in mathematical complexity. While this is certainly not window-dressing, it can obscure the fact that the method is no different from ordinary ridge regression on transformations of regressors, except for an algebraic trick to improve computational efficiency.
This post develops a spreadsheet example [...]
- Happiness, age & class
by chris dillow in Stumbling and Mumbling, 2014-03-01 14:27:31 UTC
Jackart speaks for England here:
The fact is, for most people, the best time of your life is 15-25.
Happiness research corroborates this. On average, happiness does indeed fall after one's teens and early 20s.
One reason for this is that in one's youth one has high expectations, and as these are missed , one becomes melancholic. As J says:
the fact you're not PM, decorated war hero, racing driver, star of stage and screen, or billionaire entrepreneur you set out to be, is a itch at the back of your mind.
But there's good news here. The research also shows that happiness rises after one's m [...]
- Optimal Tax Progressivity: An Analytical Framework
by Christian Zimmermann in NEP-DGE blog, 2014-02-28 17:27:21 UTC
By Jonathan Heathcote, Kjetil Storesletten and Gianluca Violante
What shapes the optimal degree of progressivity of the tax and transfer system? On the one hand, a progressive tax system can counteract inequality in initial conditions and substitute for imperfect private insurance against idiosyncratic earnings risk. At the same time, progressivity reduces incentives to work and to invest in skills, and aggravates the externality associated with valued public expenditures. We develop a tractable equilibrium model that features all of these trad [...]
- Le (presunte) virtÃ¹ salvifiche della riduzione del cuneo fiscale
by keynesblog in Keynes Blog, 2014-02-28 15:55:37 UTC
diÃÂ Guglielmo Forges DavanzatiÃÂ
EÃ¢â¬â¢ da almeno un decennio che i Governi che si sono succeduti in Italia hanno ritenuto di poter creare le condizioni per la crescita economica riducendo il c.d. cuneo fiscale, ovvero la differenza fra salario lordo e salario netto. E, nellÃ¢â¬â¢ultimo Rapporto OCSE ( Going for growth ), questa misura ÃÂ¨ fortemente raccomandata per accrescere la competitivitÃÂ delle imprese italiane. Pare, insomma, che la riduzione del cuneo fiscale abbia virtÃÂ¹ salvifiche.
Occorre innanzitutto chiarire che il cuneo fiscale, in Italia, non ÃÂ¨ esageratament [...]
- Ambiguity on Audits and Cooperation in a Public Goods Game
by Alessandro Cerboni in Knowledge Team, 2014-02-28 15:53:38 UTC
See on Scoop.it – Bounded Rationality and Beyond
Abstract: We investigate the impact of various audit schemes on the future provision of public goods, when contributing less than the average of the group is sanctioned exogenously and the probability of an audit is unknown. We study how individuals update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find that when individuals have initially experienced systematic audits, they decrease both their beliefs and their contributions almost immediately after audits are withdrawn. In co [...]
- Two Additional Remarks on Conformism â€“ Ekkehart Schlicht
by Alessandro Cerboni in Knowledge Team, 2014-02-28 15:50:46 UTC
See on Scoop.it – Bounded Rationality and Beyond
Abstract: Abstract This note offers two comments on the article “Social Influences towards Conformism in Economic Experiments” by Hargreaves Heap that is to appear in the Economics e-Journal. One relates to the concept of conformism, the other lines out some phenomena where an explicit recognition of group processes, such as conformism, may be analytically helpful.
See on econpapers.repec.org [...]
- The Effect of Behavioral Codes and Gender on Honesty
by Alessandro Cerboni in Knowledge Team, 2014-02-28 15:48:08 UTC
See on Scoop.it – Bounded Rationality and Beyond
Abstract: We examine the effect of adherence to behavioral codes, as measured by the degree of religiosity, on the level of honesty by conducting under-the-cup die experiments. The findings suggest that behavioral codes, which prohibit lying, offset the monetary incentive to lie. The highest level of honesty is found among young religious females while the lowest is found among secular females. Moreover, when the monetary incentive to lie is removed, the tendency of secular subjects to lie disappears. Given the strict separation between the secu [...]
- Quels liens entre inÃ©galitÃ©s, redistribution et croissance ?
by ? in D'un champ l'autre, 2014-02-28 15:05:00 UTC
La littÃ©rature acadÃ©mique a retrouvÃ© un certain intÃ©rÃªt pour la question des inÃ©galitÃ©s Ã©conomiques depuis que
certains auteurs, suite Ã lâ€™ouvrage de Raghuram Rajan (2010), ont suggÃ©rÃ© que leur creusement multi-dÃ©cennal ait pu non seulement accroÃ®tre le risque de crise financiÃ¨re, mais rendu Ã©galement
lâ€™Ã©conomie plus vulnÃ©rable Ã un tel choc : en raison de la stagnation de leurs revenus, les mÃ©nages les plus pauvres aux Etats-Unis se sont endettÃ©s, notamment pour acquÃ©rir leur logement, mais
leur ende [...]
- Key research-oriented government agencies media members should know about
by ? in Journalist's Resource, 2014-02-28 02:12:08 UTC
2014 overview of U.S. government offices and agencies that produce publically available data and reports and the tools they provide for accessing research.The post Key research-oriented government agencies media members should know about appeared first on [...]
- Mas NiÃ±os, MÃ¡s Pensiones
by J. Ignacio Conde-Ruiz in Nada Es Gratis, 2014-02-27 07:00:04 UTC
La tasa de fecundidad de los paÃÂses desarrollados esta por debajo de la tasa de reemplazo. Es decir se necesita una tasa de fecundidad en el entorno de 2,1 hijos por mujer en edad fÃÂ©rtil para, en ausencia de inmigraciÃÂ³n, se mantenga constante la poblaciÃÂ³n. La tasa media de los paÃÂses desarrollados es de 1,7 hijos por mujer en edad fÃÂ©rtil, aunque en casos como el EspaÃÂ±a o Italia estamos por debajo del 1,4. En este sentido merece la pena hacer una reflexiÃÂ³n de por quÃÂ© las personas tomar la decisiÃÂ³n de tener hijos.
Para motivar este ÃÂ hecho nada mejor que tomar “pr [...]
- Power Couples in Urban China
by Matthew Kahn in Environmental and Urban Economics, 2014-02-27 01:35:00 UTC
Was China's One Child Policy a binding constraint? � The NY Times reports that for some households the answer is "no". �Consider a simple urban economics model where apartments are very expensive in Superstar Cities such as Beijing and Shanghai and where both university educated spouses work full time with ambitious career goals. �Such power couples may choose "quality" over "quantity" of children. �A household who has one child has more disposable income and spend more quality time with this child. �Given China's competitive school admissions process, the forward looking family might choose t [...]
- Manipulation of Choice Behavior
by Alessandro Cerboni in Knowledge Team, 2014-02-26 21:20:45 UTC
See on Scoop.it – Bounded Rationality and Beyond
Downloadable! We introduce and study the problem of manipulation of choice behavior. In a class of two-stage models of decision making, with the agent’s choices determined by three “psychological variables,” we imagine that a subset of these variables can be selected by a “manipulator.” To what extent does this confer control of the agent’s behavior? Within the specified framework, which overlaps with two existing models of choice under cognitive constraints, we provide a complete answer to this question.
See on ideas.repec.org [...]
- Bank Assets and Bank Runs
by Jonathan Finegold in Economic Thought, 2014-02-26 19:57:43 UTC
[ This is part one of a three part series on the financial crisis and banking. ]
An insolvent bank is not the same thing as an illiquid bank. Insolvency has to do with an imbalance between all assets and liabilities; illiquidity refers to the inability to meet short-term obligations, because the firm cannot quickly sell some of its relatively illiquid assets at par (to generate the sufficient liquidity). Systemic banking crises, such as the classic bank run , usually have more to do with illiquidity than insolvency. Noah Smith writes a bit about illiquidity versus insolvency in the context of [...]
- Forecasting and Data Analysis â€“ Principal Component Regression
by Clive Jones in Business Forecasting, 2014-02-26 17:29:37 UTC
I get excited that principal componentsÃÂ offer one solution to the problem of the curse of dimensionality Ã¢â¬â having fewer observations on the target variable to be predicted, than there are potential drivers or explanatory variables.
It seems we may have to revise the ideaÃÂ that simpler models typically outperform more complex models.
Principal component (PC) regression has seen a renaissance since 2000, in partÃÂ because of the work of James Stock and Mark Watson (see also ) and Bai ÃÂ in macroeconomic forecastingÃÂ (and also because of applications in image processing and text r [...]
- On happiness inequality
by chris dillow in Stumbling and Mumbling, 2014-02-26 13:41:44 UTC
Do we need policies to reduce inequality, or should we simply allow economic growth to do so? This is the question posed by a recent paper by Andrew Clark and colleagues. They find that, in the UK and elsewhere, economic growth reduces inequality of happiness.
This isn't simply because it reduces the amount of abject misery. Growth also reduces the number of people who say they are very happy. This might be because wealth increases our options and hence the opportunity cost of our preferred choice. For example, work isn't too bad if it gets you out of a joyless slum, but it can be a misery if [...]
- What Do People Have Against Retirement Income?
by Justin Fox in HBR Blog Network, 2014-02-25 16:00:49 UTC
Over the past few years, economists have expended a lot of time and energy attempting to explain what they call â€œ the annuity puzzle .â€ The puzzle is this: A guaranteed lifetime income is a valuable thing (especially if it comes with regular cost-of-living adjustments), and people who receive one through a traditional state or corporate pension are generally very happy with it. So why is it that those with the self-directed â€œdefined contributionâ€ retirement plans that have become standard in the U.S. â€” 401(k) s, 403(b) s, IRA s, and the like â€” so rare [...]
- Does educational stratification put toffs at the top?
by crowleymarkj in NEP-HIS blog, 2014-02-25 15:32:10 UTC
Social mobility at the top: Why are elites self-reproducing?
by Elise S. Brezis (Azrieli Center for Economic Policy, Israel) & JoÃÂ«l Hellier (EQUIPPE, Univ. de Lille, Bar-Ilan University, Israel and LEMNA, Univ. de Nantes, France)
This paper proposes an explanation for the decrease in social mobility that has occurred in the last two decades in number of advanced economies, as well as for the divergence in mobility dynamics across countries. Within an intergenerational framework, we show that a two-tier higher education sys [...]
- Lâ€™Unione bancaria europea, strumento di stabilitaâ€™ e di crescita
by Raoul Minetti in iMille, 2014-02-25 10:10:31 UTC
di Raoul Minetti e Alessandro GiovanniniÃÂ (Speciale “Noi Euro”).
BCE by santinet
Al contrario di quanto sostenuti dal fronte anti-europeista, lÃ¢â¬â¢Unione bancaria europea puoÃ¢â¬â¢ costituire uno strumento formidabile per la stabilizzazione dei sistemi finanziari europei e per la crescita economica del continente.
Un post sul blog di Beppe Grillo dello scorso dicembre sentenziava: Ã¢â¬ÅLÃ¢â¬â¢Euro ci ha sottratto sovranitÃÂ monetaria, lÃ¢â¬â¢Unione BancariaÃÂ ci sottrarrÃÂ sovranitÃÂ bancaria, la funzione primaria della banca, la tutela del risparmioÃ¢â¬Â.  E continu [...]
- Facciamo i conti
by Alberto Bagnai in Goofynomics, 2014-02-25 00:03:00 UTC
(... no, ma che avete capito! Facciamo i conti in senso buono. Nel senso, appunto, che ci facciamo due conti in tasca... ) Carissimi, finalmente possiamo parlare di soldi, il che, in un blog di economia, non dovrebbe essere strano. Posso darvi le cifre della gestione 2013, e il preventivo della 2014, ma prima di annoiarvi con i dettagli vorrei fare diverse premesse indispensabili per inquadrare lâ€™arida contabilitÃ nel contesto appropriato. Premesse Intanto voglio ringraziare tutti: quelli che hanno partecipato coi soldi, e anche quelli che hanno partecipato con una parola di incoragg [...]
- La trappe Ã sÃ»retÃ©
by ? in D'un champ l'autre, 2014-02-24 23:59:00 UTC
Lors de la Grande RÃ©cession, lâ€™Ã©conomie mondiale a subi une pÃ©nurie dâ€™actifs sÃ»rs ( safe asset shortage ). Avec la remontÃ©e brutale de
lâ€™aversion au risque, le taux dâ€™intÃ©rÃªt naturel (câ€™est-Ã -dire le taux dâ€™intÃ©rÃªt qui Ã©quilibre lâ€™offre et la demande globales dans la littÃ©rature nouvelle keynÃ©sienne) a fortement chutÃ©. Or, comme
la monnaie est un actif sans risque, les taux dâ€™intÃ©rÃªt nominaux ne peuvent descendre en dessous de zÃ©ro. Par consÃ©quent, si la chute d [...]
- 10 Monday PM Reads
by Barry Ritholtz in The Big Picture, 2014-02-24 21:30:46 UTC
My afternoon train reading:
Ã¢â¬Â¢ Harold Ramis, RIP : Annals of Hollywood: Comedy First ( New Yorker )
Ã¢â¬Â¢ÃÂ Five Myths of Bond Investing ( WSJ )
Ã¢â¬Â¢ÃÂ How To Effortlessly Earn A Riskless 90% On Your Bitcoins Through The Magic of Binary Options Trading, Or, The Nigerian Email Con Comes To Wall Street ( Sirf Online )
Ã¢â¬Â¢ÃÂ The forever elusive ÃÂ± ( Statistical Ideas )
Ã¢â¬Â¢ÃÂ For a glimpse at emerging market problems, follow the goldÃ¢â¬Â¦ ( WonkBlog )
Ã¢â¬Â¢ÃÂ Does Akerlof and Shiller’s Animal Spirits provide a helpful new approach for macroeconomics? ( Ideas )
- On the Great Recession
by ? in Confessions of a Supply-Side Liberal, 2014-02-24 02:00:00 UTC
Graph from “US Jobs Losses & Some Bad Omens for Europe…” on the True Economics blog
I am honored to have David Andolfatto discuss my proposal for eliminating the zero lower bound in his post “ Are negative interest rates really the solution? " David asks what model I have in mind when I write, for example, in " AmericaÃ¢â¬â¢s Big Monetary Policy Mistake: How Negative Interest Rates Could Have Stopped the Great Recession in Its Tracks ,”ÃÂ
Even without the ZLB [the zero lower bound on nominal interest rates], there would have been some hit from the financial crisis that ensued with theÃÂ [...]
- The Financial Crisis in Retrospect
by Stephen Williamson in Stephen Williamson: New Monetarist Economics, 2014-02-23 22:52:00 UTC
The release of FOMC transcripts from 2008 is an important event. These are key documents for anyone interested in understanding the role of policy in the financial crisis. Jim Bullard has written short piece on the events in the latter half of 2008. Bullard's view seems to be that the Lehman failure was widely anticipated, and perhaps beyond policymakers' control, though of course the resulting systemic events appear to have come as a surprise. Jeff Lacker gave what I think is an extremely important speech this past Friday on the crisis, the monetary policy response, and the role of economic t [...]
- Does Akerlof and Shillerâ€™s Animal Spirits provide a helpful new approach for macroeconomics?
by Alessandro Cerboni in Knowledge Team, 2014-02-23 21:08:14 UTC
See on Scoop.it – Bounded Rationality and Beyond
Downloadable (with restrictions)! Animal Spirits (2009) is a timely and widely appreciated work focusing on the need to incorporate behavioral factors in macroeconomic analysis that draws on a famous reference of John Maynard Keynes. Nonetheless, it has a number of limitations. Those in several chapters are noted. Most important, however, the book does not break down “animal spirits” into its components, and distinguish sufficiently between (1) cognitive, (2) emotional, (3) cultural, and (4) visceral factors, or (5) those emanating from neuroec [...]
- Les prÃ©visionnistes croient-ils en la loi dâ€™Okun ?
by ? in D'un champ l'autre, 2014-02-22 18:19:00 UTC
Avec la crise financiÃ¨re mondiale, les taux de chÃ´mage ont atteint des niveaux particuliÃ¨rement Ã©levÃ©s dans les
pays avancÃ©s. Ils ont poursuivi leur envolÃ©e dans les pays (comme ceux en pÃ©riphÃ©rie de la zone euro) qui ont adoptÃ© des plans dâ€™austÃ©ritÃ© massifs avant mÃªme de renouer avec la croissance. La
crÃ©ation nette dâ€™emplois reste aujourdâ€™hui particuliÃ¨rement faible dans les autres pays, mÃªme ceux (comme les Etats-Unis) qui poursuivent une reprise ininterrompue depuis cinq ans. Certains ont
- PCP, nel senso di...
by Alberto Bagnai in Goofynomics, 2014-02-21 21:16:00 UTC
Ok, allora visto che volete proprio mettermi nei guai, mi ci metto da solo. SÃ¬, il nuovo ministro dell'economia lo conosco. E se proprio volete saperlo, visto che siamo qui, fra quattro mura, a me Ã¨ sempre stato simpatico. Son fatto cosÃ¬: a me piacciono i burberi, e PCP indubbiamente lo nacque. Capita che io abbia iniziato la mia carriera nel dipartimento nel quale lui era ordinario. Ho lavorato molto, e molto volentieri, con un suo allievo, Stefano Manzocchi (ci ho scritto le mie prime pubblicazioni internazionali, sulla dinamica dell'indebitamento estero), poco con lui (mi ricordo c [...]
- Robert Gordon et la fin de la croissance amÃ©ricaine
by ? in D'un champ l'autre, 2014-02-20 15:38:00 UTC
Les thÃ©ories dominantes suggÃ¨rent que la croissance Ã©conomique est un phÃ©nomÃ¨ne cumulatif ; une fois amorcÃ©e,
elle tend Ã se perpÃ©tuer elle-mÃªme. Robert Gordon (2012) a suscitÃ© de nombreuses
rÃ©actions, pour la plupart hostiles, en prÃ©disant un ralentissement durable et significatif
de la croissance amÃ©ricaine . Ce faisant, il rappelle une vieille idÃ©e pertinente : rien nâ€™assure que la croissance Ã©conomique soit un phÃ©nomÃ¨ne illimitÃ© dans le temps. Le taux de croissance
annuel du PIB amÃ©ricain a en e [...]
- â€œAs in the modern world.â€ Foreign and Domestic Equities in the London Stock Exchange, 1869-1928
by Manuel Bautista in NEP-HIS blog, 2014-02-20 11:41:48 UTC
Interior of the London Exchange, The Illustrated London News, March 25, 1854.
Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928.
by Richard S. Grossman, Wesleyan University (email@example.com)
Abstract : This paper presents data on quantity, capital gains, dividend, and total returns for domestic and overseas equities listed on the London Stock Exchange during 1869-1928. Indices are presented for Africa, Asia, Europe, Latin America, North America, Australia/New Zealand and for the finance, transportation, raw materials, and utilities sectors in each region. R [...]
- Women can help bridge the 'valley of death' in science innovation
by Cathy Foley, President of Science and Technology Australia at CSIRO in The Conversation, 2014-02-19 19:26:37 UTC
As International Womenâ€™s Day approaches on March 8 and my time as NSW Premierâ€™s Woman of the Year draws to a close, I have been thinking about diversity in the workplace, and in particular, the relationship between diversity and innovation.
Science and technology that lead to innovation are critical for the changes that lead to a better quality of life, greater business opportunities and a happier, healthier and more equitable society.
We donâ€™t have to look far from our own backyard to see examples of this. The rapid global expansion of wireless communications is in part [...]
- Wal-Mart as a Leading Case of Energy Efficiency at Large Retail Chains
by Matthew Kahn in Environmental and Urban Economics, 2014-02-19 15:04:00 UTC
Nils Kok and I have released a new NBER Working Paper �studying the electricity consumption of Wal-Mart stores. � We received no funding from Walmart. � Walmart has made a concerted effort to be "sustainable". � The corporate social responsibility literature tends to have "mushy" benchmarks. �Our focus on electricity consumption per square foot has obvious implications for greenhouse gas production. Nils and I think we have identified an interesting piece of fixed cost and scale economics. �Consider the following thought experiment. �Imagine a suburban mall where 20 small retail businesses eac [...]
- The macroeconomic challenge
by chris dillow in Stumbling and Mumbling, 2014-02-19 14:07:50 UTC
In discussing macroeconomics' Faustian bargain , Simon asks :
By putting all our macroeconomic model building eggs in one microfounded basket, have we significantly slowed down the pace at which macroeconomists can say something helpful about the rapidly changing real world?
Let me deepen this question by pointing to five newish facts about the "real world" which any good, useful macro theory should be compatible with.
1. The unemployed are significantly less happy than those in work. This doesn't merely provide the justification for an interest in macroeconomics. It also casts grave doubt u [...]
- Why Is the Job-Finding Rate Still Low?
by Blog Author in Liberty Street Economics, 2014-02-19 12:00:00 UTC
Victoria Gregory, Christina Patterson, AyÅŸegÃ¼l Åžahin, and Giorgio Topa
Fluctuations in unemployment are mostly driven by fluctuations in the job-finding prospects of unemployed workersâ€”except at the onset of recessions, according to various research papers (see, for example, Shimer [2005, 2012] and Elsby, Hobijn, and Sahin ). With job losses back to their pre-recession levels, the job-finding rate is arguably one of the most important indicators to watch. This rateâ€”defined as the fraction of unemployed workers in a given month who find jobs in the consecutive [...]
- Mitchell and Wrayâ€™s flawed ideas on the Job Guarantee.
by Ralph Musgrave in Ralphonomics, 2014-02-19 11:50:00 UTC
Summary. Bill Mitchell and Randy Wray are producing a new text book: Modern Monetary Theory and Practiceâ€. Chapter 18 deals with what they call â€œJob Guaranteeâ€. JG is just a name a very simple idea which has been around for centuries (not that Iâ€™m condemning the idea for its age or simplicity). Itâ€™s an idea youâ€™ll have heard dozens of times, namely that there are an infinite number of relatively simple jobs which government could create for the unemployed: environmental clean ups, helping pensioners with their gardens, etc. Pay, of course, consists of th [...]
- Why Does The Climate Casino Play Down Adaptation?
by Matthew Kahn in Environmental and Urban Economics, 2014-02-18 20:41:00 UTC
Yale Press sent me a copy of Bill Nordhaus' The Climate Casino. � � Here is Paul Krugman's highly favorable review. �Here are glowing quotes from Larry Summers and Jeff Sachs. "Nordhaus is the worldâ€™s clearest, best informed and most serious thinker on climate change policy. There is more insight and good sense advice in this volume than in many libraries. This book should be as central to climate policy debates as climate change is to humanityâ€™s future."â€”Lawrence H. Summers, Charles W. Eliot University Professor and President Emeritus at Harvard University (Lawrence H. Su [...]
- The benefits of English
by chris dillow in Stumbling and Mumbling, 2014-02-18 14:10:48 UTC
Rick says that the spread of English as a, well, lingua franca might not benefit native English speakers. I agree, in the context he's writing. But in a wider sense, the spread is surely to our advantage.
What I mean is: why do non-US investors hold $5.7 trillion of low-returning US Treasuries? From a narrow economic perspective, the answer's not obvious. The country runs consistent external deficits (though there might be a good reason for this) and the CBO reckons public debt is on an " unsustainable " trajectory. This makes the country seem a poor safe haven.
However, the US has a massive [...]
- Money makes people right-wing and inegalitarian
by Blog Admin in British Politics and Policy at LSE, 2014-02-18 14:00:55 UTC
Rich people typically lean right politically. Are they motivated by deeply moral views or self-interest? Andrew J Oswald and Nick Powdthavee ÃÂ argue that money makes you right-wing. It shows that lottery winners in the UK are more likely to switch their allegiance from left to right.
Why are you right-wing, left-wing, or in the middle? You probably believe that you made a genuine, calm, and ethical choice. But what were the deep causal forces upon those political preferences?
The scientific roots of peopleÃ¢â¬â¢s political views are poorly understood. One possibility (View 1) is that indi [...]