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- The Economists of Tomorrow
by Alessandro Cerboni in Knowledge Team, 2014-09-20 08:11:30 UTC
Downloadable (with restrictions)! This article presents the case for “assertive pluralism” in economics education and proposes how to achieve it, illustrating the point with reference to the U.K. Subject Benchmark Statement in Economics (SBSE). It proposes a revision of the benchmark, prioritizing the role of “controversy” in the teaching of economics, combined with pluralistic principles that uphold and guarantee critical and independent thinking. This reform is a necessary response to what Colander et al. (2009 ) term the “systemic failure” of economics-the inability of the profession, take [...]
- Defending markets
by ? in Stumbling and Mumbling, 2014-09-19 14:20:00 UTC
I have often accused rightists of making a "small truths, big error" rhetorical trick - of using a small truth to disguise a big mistake. I fear, though, that this post by Richard Murphy shows that the left can do the same thing.
He points outthat the cond [...]
- Development that Works: Laptops, children and Darth Vader
by Francisco MejÃa in Eval Central, 2014-09-19 11:40:35 UTC
Originally posted at Development that Works
Remember the 2011 Superbowl Ã¢â¬Å Darth Vader Kid ad where a young boy attempts to use The Force to start a washer and wake up the dog? The Force only works on a Volkswagen Passat, after his father – hiding behind the kitchen window -uses the carÃ¢â¬â¢s remote to start it. We are fascinated that a little boyÃ¢â¬â¢s imagination can be triggered by a remote control: the video has over 60 million views.
That fascination is even more acute with machines that allow us to share, have fun and even learn macroeconomics . With a computer, you [...]
- Laptops, niÃ±os y Darth Vader
by Francisco MejÃa in Hacia el desarrollo efectivo, 2014-09-19 11:30:35 UTC
ÃÂ¿Recuerda el anuncio del Superbowl de 2011 con el niÃÂ±o disfrazado de Darth Vader , que intenta usar La Fuerza para encender una lavadora y despertar al perro? La Fuerza sÃÂ³lo le funciona al intentar encender un Volkswagen Passat, despuÃÂ©s de que su padre Ã¢â¬â escondido detrÃÂ¡s de una ventana- usa el control remoto. Nos fascina que la imaginaciÃÂ³n de un niÃÂ±o se pueda disparar desde un control remoto: el video tiene mÃÂ¡s de 60 millones de visitas.
Esa fascinaciÃÂ³n es aÃÂºn mÃÂ¡s aguda con las mÃÂ¡quinas que nos permiten compartir, divertirnos e incluso apre [...]
- Pourquoi la croissance a-t-elle accÃ©lÃ©rÃ©, puis ralenti dans les pays en dÃ©veloppement ?
by ? in D'un champ l'autre, 2014-09-19 10:44:00 UTC
Les pays en dÃ©veloppement ont connu une accÃ©lÃ©ration significative de leur croissance au cours de la derniÃ¨re
dÃ©cennie. Entre 2000 et 2012, leur taux de croissance annuel sâ€™est Ã©levÃ© en moyenne Ã 4,75 %, soit Ã un niveau supÃ©rieur dâ€™un point de pourcentage Ã celui observÃ© au cours des deux prÃ©cÃ©dentes
dÃ©cennies. Puisque la croissance des pays avancÃ©s est restÃ©e relativement stable au cours des annÃ©es deux mille, les pays en dÃ©veloppement ont connu une convergence rapide de leur niveau de vie
- Robert Ross and the voyages of discovery
by Johan Fourie in Johan Fourie's Blog, 2014-09-19 06:54:44 UTC
I was fortunate to attend a workshop on African history in Leiden this week. The workshop, organised to coincide with Robert Ross’ valedictory lecture tonight, brought together his students and colleagues from all over the world: Austin (Texas),ÃÂ Livingstone,ÃÂ London, Melbourne and seemingly everywhere in-between. It was a testament to the immense impact Robert Ross, who has been at Leiden’s Center for African Studies for nearly 40 years, has had on the field. Although I know him as one ofÃÂ the most prominentÃÂ historians of South Africa, the papers presented over the last two days refl [...]
- China heads for a price on carbon amid an energy market overhaul
by ? in ANU News, 2014-09-19 06:27:00 UTC
By Frank Jotzo, Australian National University
In the lead-up to the UN leaders’ summit on climate change, China is shifting up a gear in its drive towards national emissions trading. Yet for carbon pricing to be effective, market reform in China&rsq [...]
- China heads for a price on carbon amid an energy market overhaul
by Frank Jotzo, Director, Centre for Climate Economics and Policy at Australian National University in The Conversation, 2014-09-19 03:59:13 UTC
Economic reforms such as a national carbon price could usher in dramatic changes on China's energy landscape. Vmenkov/Wikimedia Commons , CC BY-SA In the lead-up to the UN leadersâ€™ summit on climate change , China is shifting up a gear in its drive towards national emissions trading. Yet for carbon pricing to be effective, market reform in Chinaâ€™s energy sector will be needed â€“ a big task that will bring benefits not only for the environment but also to the quality of Chinaâ€™s economic growth.
Chinaâ€™s National Development and Reform Commission last week state [...]
- Ex-Im's Defenders Are Now Making Delusional Arguments
by Vero de Rugy in The Corner, 2014-09-18 23:16:20 UTC
The arguments supporting Ex-Im reauthorization continue to quickly deteriorate: Now theyâ€™re claiming that ending Ex-ImÂ would just eliminate all the exports it currently finances.
In a recent blog post,Â Tony Fratto throws centuries of economic wisdom out the window and argues that ending Ex-Im would cut U.S. exports by 2 percent, because thatâ€™s the share of U.S. exports the bank currently supports. This would be one of the biggest drops in American export volumes in history.Â Sounds pretty scary, huh? The good news: This claim is nonsense.
Over at the Washington Examine [...]
- In Search of Better Credit Assessments
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-09-18 12:28:35 UTC
July 21, 2014 was the fourth birthday of the Doddâ€“Frank Act (DFA). It is maturing faster than a human, but slower than a dog. Of the nearly 400 rules that DFA requires regulators to write, just over half have been completed. At the end of August, the SEC finished another one â€“ regarding credit rating agencies (CRAs). The result makes us wonder what took so long. (A scoreboard tracking DFA rule-making progress is here .) The Commission issued two specific rules, one on conflicts of interest and the other on transparency. The text itself runs more than 700 pages . We read the 4,000 [...]
- Richard Serlin: In Theory (but Not in Practice) the Minnows Counter the Whale to Yield Wallace Neutrality
by ? in Confessions of a Supply-Side Liberal, 2014-09-18 00:30:26 UTC
white whale handbag with black minnow zipper pull
Wallace Neutrality says thatÃÂ in theory, quantitative easing (QE) should do almost nothing. (See "Wallace Neutrality Roundup: QE May Work in Practice, But Can It Work in Theory?" )ÃÂ InÃÂ the Twitter discussion I storified as "Noah Smith, Brad DeLong and Miles Kimball on Wallace Neutrality," ÃÂ Noah raised a question of how Wallace Neutrality works. Richard Serlin, who has made himself one of the world’s experts on Neil Wallace’s original paper, was good enough to ÃÂ agree to write a guest post giving his answer:
- Quel est lâ€™effet de la borne zÃ©ro sur les taux dâ€™intÃ©rÃªt Ã long terme ?
by ? in D'un champ l'autre, 2014-09-16 23:35:00 UTC
Avec la crise financiÃ¨re mondiale, la RÃ©serve fÃ©dÃ©rale des Etats-Unis (comme les banques centrales de plusieurs
autres pays avancÃ©s) a dÃ» puissamment assouplir sa politique monÃ©taire et notamment ramener son taux directeur au plus proche de zÃ©ro pour freiner la contraction de lâ€™activitÃ© et restaurer la
stabilitÃ© financiÃ¨re. Pourtant la chute de la demande globale a Ã©tÃ© si forte que seul un taux dâ€™intÃ©rÃªt nÃ©gatif aurait pu ramener lâ€™Ã©conomie amÃ©ricaine au plein emploi. Dans une telle situation
- Coping with complexity
by chris dillow in Stumbling and Mumbling, 2014-09-16 13:08:23 UTC
Martin Wolf says something that I'm in two minds about:
People have to understand, when they're being taught economics, how little we know, how limited our data are, and how unbelievably complex our economic and financial system is. I think people have to begin with profound humility and know an awful lot of economic history, as I've suggested. And they have to be told every day, "What I've just told you is almost certainly wrong."
I'll join him on the barricades in saying that the economy is a complex system which is inherently unforecastable and so we must be humble about some policy recom [...]
- Childcare not the only cost for working women in Japan
by Mark Fabian in East Asia Forum, 2014-09-16 12:00:03 UTC
Author: Mark Fabian, ANU
Japan has recently moved to increase its female labour force participation rate, with the government allocating significant resources to tackling Japanâ€™s longstanding shortage of child care places. Alongside this expansion in child care services, immigration laws are to be relaxed to allow for the recruitment of more foreign nannies. While these reforms are critical and long overdue, more must be done to increase female agency if Japan is to optimally utilise its female population.
In 2013, Japanâ€™s female labour force participation rate for 15â€“64 [...]
- The great housing boom of China
by Christian Zimmermann in NEP-DGE blog, 2014-09-15 15:08:08 UTC
By Kaiji Chen and Yi Wen
This paper provides a theory to explain the paradoxical features of the great housing boom in China â€”the persistently faster-than-GDP housing price growth, exceptionally high capital returns, and excessive vacancy rates. The expectation that high capital returns driven mainly by resource reallocation are not sustainable in the long run can induce the very productive entrepreneurs to speculate in housing during economic transition. This creates a self-fulfilling growing housing bubble, which can create severe [...]
- SteuersÃ¤tze und Wirtschaftswachstum
by Acemaxx-Analytics in Acemaxx-Analytics, 2014-09-15 14:37:00 UTC
In einer kÃ¼rzlich vorgelegten Studie untersuchen William Gale und Andy Samwick den Zusammenhang zwischen den SteuersÃ¤tzen und dem Wirtschaftswachstum in den USA. Dietz Vollrath , der die Analyse gelesen hat, fasst sie in seinem Blog zusammen: Es gibt keine Beziehung. Die Autoren ermitteln keine VerÃ¤nderung im Trend der Wachstumsrate der realen Wirtschaftsleistung (BIP) pro Kopf in Bezug auf die GrenzsteuersÃ¤tze, seien es Einkommen-, Ertrags- oder Bundessteuern. Gale und Samwick deuten auf eine Studie (â€ž Growth Effects of Flat-Rate Taxes â€œ) von Stokey und Rebelo aus dem [...]
- Who Will Get the Bill? Lessons from #EconHis on Scottish Independence #indyref
by missiaia in NEP-HIS blog, 2014-09-15 13:54:30 UTC
State dissolution, sovereign debt and default: Lessons from the UK and Ireland, 1920-1938
Nathan F OLEY-FISHER ÃÂ (email@example.com) ÃÂ Federal Reserve Board
Eoin MCLAUGHLIN ÃÂ ( firstname.lastname@example.org )ÃÂ University of St Andrews
We study IrelandÃÂ´s inheritance of debt following its secession from the United Kingdom at the beginning of the twentieth century. Exploiting structural differences in bonds guaranteed by the UK and Irish governments, we can identify perceived uncertainty about fiscal responsibility in the aftermath of the sovereign breaku [...]
- Liquidity Regulation
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-09-15 12:22:43 UTC
Ever since Bagehot, central banks acting as lenders of last resort have tried to distinguish banks that are illiquid, who should be eligible for a loan, from banks that are insolvent, who should not. The challenge persists. As one analyst put it recently: â€œLiquidity and solvency are the heavenly twins of banking, frequently indistinguishable. An illiquid bank can rapidly become insolvent, and an insolvent bank illiquid.â€ The lesson is that the appropriate level of a bankâ€™s capital and the liquidity of its assets are necessarily related. Forged in the crucible of the financia [...]
- Scotland now has more of a â€˜national economyâ€™ than ever before in its history
by Blog Admin in British Politics and Policy at LSE, 2014-09-15 07:00:30 UTC
Since the 1970s Scotland has become a significantly post-industrial economy with strong de-globalising elements, writes Jim Tomlinson . Political decisions made about public spending in Edinburgh, within some constraints imposed from London, matter a great deal.Â He argues, therefore, that there is now more of a â€˜national economyâ€™ than ever before in Scotlandâ€™s history.Â
Recent developments have made Scotland more of a â€˜national economyâ€™, imagined as an â€˜economic community of fateâ€™, than at any time in its modern history. This argument relies [...]
- Le vieillissement dÃ©mographique est-il dÃ©flationniste ?
by ? in D'un champ l'autre, 2014-09-14 22:55:00 UTC
La population vieillit rapidement dans plusieurs pays dÃ©veloppÃ©s, en particulier en Allemagne et au Japon. Or ce
vieillissement dÃ©mographique affecte plusieurs variables macroÃ©conomiques. Il rÃ©duit le taux dâ€™activitÃ© et par consÃ©quent la croissance potentielle. Il se traduit par une hausse des dÃ©penses
publiques dans les soins de santÃ© et dans le systÃ¨me de retraite, si bien qu'il dÃ©tÃ©riore les finances publiques et incite les autoritÃ©s publiques Ã resserrer la politique budgÃ©taire pour
prÃ©server la soutenabilit [...]
- Becchetti: un uomo, un perchÃ©.
by Alberto Bagnai in Goofynomics, 2014-09-14 22:16:00 UTC
Leonardo Becchetti mi affascina. Non riesco ad afferrare i contorni della sua personalitÃ . Mi direte anche che dovendo passare un'altra domenica all'IKEA ho ben altro di cui preoccuparmi. Concordo. Ma penso che a smontare Leonardo ci voglia meno che a montare la scrivania Micke (la mia ultima performance: 50 minuti con l'aiuto di Uga alle percussioni). Secondo il Miur Leonardo Ã¨: Secondo IDEAS Leonardo Ã¨ 746Â° nella classifica dei top 5% mondiali, nella quale io (ancora) non sono: e 12Â° nella classifica dei top 25% italiani (nella quale io sono, essendo top 17%): Voi mi direte ch [...]
- "Same policies work everywhere"
by chris dillow in Stumbling and Mumbling, 2014-09-14 11:51:30 UTC
Back in the day, a concatenation of circumstances led to me being alone in a room with a well-known economist who was then advising governments around the world. I thought I'd start the conversation with the anodyne remark "it must be a fascinating challenge to give policy advice in so many different places."
"No", he replied. "The same policies work everywhere."
I was surprised by this. One of us is wrong here, I thought, and if it's me, at least nobody is getting hurt.
I was reminded of this by this Venn diagram, reproduced by Tim .
The diagram's force rests upon the belief that the same po [...]
- 'Taxes and Growth'
by Mark Thoma in Economist's View, 2014-09-13 09:22:28 UTC
Taxes and Growth, The Growth Economics blog : William Gale and Andy Samwick have a new Brookings paper out on the relationship of tax rates and economic growth in the U.S. ... Short answer, there is no relationship. They do not identify any change in the trend growth rate of real GDP per capita with changes in marginal income tax rates, capital gains tax rates, or any changes in federal tax rules. ...
One of the first pieces of evidence they show is from a paper by Stokey and Rebelo (1995). ... You can see that the introduction of very high tax rates during WWII, which effec [...]
- Taxes and Growth
by dvollrath in The Growth Economics Blog, 2014-09-12 22:55:42 UTC
William Gale and Andy Samwick have a new Brookings paper out on the relationship of tax rates and economic growth in the U.S. [ Apologies to whichever blog/site led me to the paper, I can't remember .] Short answer, there is no relationship. They do not identify any change in the trend growth rate of real GDP per capita with changes in marginal income tax rates, capital gains tax rates, or any changes in federal tax rules.
One of the first pieces of evidence they show is from a paper by Stokey and Rebelo (1995). This plots taxes as a percent of GDP in the top panel, and the growth rate of GD [...]
- Unit Root tests and Seasonally Adjusted Data
by Dave Giles in Econometrics Beat: Dave Giles' Blog, 2014-09-12 20:03:00 UTC
We all know why it's common to "seasonally adjust" economic time series data that are recorded on a monthly, quarterly, etc . basis. Students are sometimes surprised to learn that in some countries certain such time series are reported only �in seasonally adjusted terms. You can't get the original (unadjusted data). This applies to some U.S. economic data, for example. Does this matter? Statistical agencies across the world typically use one of two statistical procedures to seasonally adjust their data. These are the TRAMO/SEATS method, or some version of the Census X method - e.g ., Census X- [...]
- The referendum, & risk attitudes
by chris dillow in Stumbling and Mumbling, 2014-09-12 12:27:19 UTC
To what extent is the Scottish referendum about the benefits of independence and to what extent is it about people's attitudes to risk?
To see my question, think of independence as an investment with a risky payoff - which is what it is. There are two reasons why one might reject such an investment. One, trivially, is simply that you expect a negative payoff. The other is that you expect a positive payoff but think the risks around it are too high.
It is perfectly possible for two people to agree upon payoffs and risks and yet one would accept the proposal and the other reject it because one i [...]
- Better abilities or stronger social ties? Drivers of social immobility across EU countries
by Laurence Duboys Fresney in OFCE le blog, 2014-09-11 08:57:26 UTC
par Francesco Vona
A high level of income inequality is commonly regarded to be more acceptable when associated with high social mobility. Empirical evidence has however shown that unequal countries are rarely able to ensure high social mobility to their citizens. On the contrary, countries that rank high in the level of inequality are also the worst in term of social mobility [i] . The simple reason is that a given level of social immobility is amplified when rewards to individual characteristics, which are transmitted from parents to child, are larger. For instance, when the earning advantag [...]
- News Driven Business Cycles: Insights and Challenges
by Christian Zimmermann in NEP-DGE blog, 2014-09-10 15:00:34 UTC
By Paul Beaudry and Franck Portier
There is a widespread belief that changes in expectations may be an important independent driver of economic fluctuations. The news view of business cycles offers a formalization of this perspective. In this paper we discuss mechanisms by which changes in agents’ information, due to the arrival of news, can cause business cycle fluctuations driven by expectational change, and we review the empirical evidence aimed at evaluating its relevance. In particular, we highlight how the literature on news and business [...]
- Uses of illiteracy
by chris dillow in Stumbling and Mumbling, 2014-09-10 13:58:00 UTC
The level of financial literacy in the UK, says Atul Shah, is "shockingly low". I wonder to what extent this can, for practical purposes, be corrected.
What I mean is that there's a big difference between knowing something and acting on it. We all know that if you consume more calories than you burn up, you'll get fatter. But this doesn't prevent obesity. In the same way, mere brain-knowledge about financial literacy might not prevent people making bad financial decisions. There are (at least) four reasons for this:
Â - Desperation. Even if you know that an APR of 4000% is a lousy deal, you [...]
- Elitist Britain: We need a better understanding of the routes through which those from more advantaged backgrounds access top careers
by Blog Admin in British Politics and Policy at LSE, 2014-09-10 07:00:00 UTC
A new report by the Social Mobility and Child Povery Commission finds that elitism is deeply embedded in Britain. Lindsey Macmillan ÃÂ looks at the reportÃÂ and discussesÃÂ her own research which explores the role of networks in perpetuating elitismÃÂ andÃÂ how weÃÂ can help in widening access to elite professions. Unfortunately,ÃÂ a common problem in this fieldÃÂ is aÃÂ lack of data quality and availability.ÃÂ
Some people feel Britain is ruled by a privileged few: the wealthy, the privately educated and the well-connected. A new report by the Social Mobility and Child Poverty commi [...]
- El dolar es el principal enemigo de la economÃa de Estados Unidos
by Marco Antonio Moreno in Elblogsalmon, 2014-09-10 03:14:45 UTC
La posiciÃ³n de dÃ³lar como moneda de reserva mundial es una de las principales causas del estancamiento econÃ³mico de Estados Unidos . La acumulaciÃ³n de dÃ³lares que hace el resto del mundo lleva al billete verde a una constante presiÃ³n revaluatoria que termina asfixiando sus exportaciones e incentivando las importaciones y destruyendo miles de empleos que debilitan la economia de Estados Unidos. Este es el lado mÃ¡s oscuro de la guerra de divisas, donde Estados Unidos siempre llevarÃ¡ las de perder, dado que al ser el dÃ³lar la moneda de reserva todos los paÃses busca [...]
- Preferences vs interests
by chris dillow in Stumbling and Mumbling, 2014-09-09 13:41:16 UTC
Matthew Parris's piece in the Times has become notorious . However, he is raising an important point about political psychology which demands more attention than it gets.
I am not arguing that we should be careless of the needs of struggling people and places such as Clacton. But I am arguingÂ - if I am honest - that we should be careless of their opinions.
This poses the old question: should politicians serve people's preferences or interests?
Parris is following a long bipartisan tradition which answers: the latter. This is what Edmund Burke meant when he said that MPs should [...]
- Theories of Inflation and the European Predicament
by Stephen Williamson in Stephen Williamson: New Monetarist Economics, 2014-09-09 00:51:00 UTC
How do macroeconomists think about inflation? To get a grip on this, it's useful to dig into the history of economic thought. Long ago, in the mid-1970s, when I had no idea what formal economics was about (and, you might say, nothing much has changed), I had heard about "wage-price spirals." A web search will give you plenty of descriptions of what we might charitably call the "wage-price spiral theory" of inflation. Here's one that's as good as any: When an economy is operating at near full employment and people have money to spend, demand for goods and services increases. To meet the demand, [...]
- Le secteur manufacturÃ© amÃ©ricain connaÃ®t-il une renaissance ?
by ? in D'un champ l'autre, 2014-09-08 22:34:00 UTC
Le secteur manufacturier amÃ©ricain a connu une chute sÃ©culaire de sa part dans le PIB des Etats-Unis, en
particuliers au cours des trois derniÃ¨res dÃ©cennies ( cf . graphique). Ce dÃ©clin sâ€™explique notamment par la substitution de la production domestique par des importations en provenance de
pays en dÃ©veloppement Ã bas coÃ»ts comme la Chine. A ce titre, la baisse de lâ€™emploi manufacturier dans lâ€™emploi total aux Etats-Unis est relativement similaire Ã celui observÃ© dans les autres
- Hoy no fÃo, maÃ±ana sÃ
by Blogoeconomia in La Silla Vacía, 2014-09-08 21:19:06 UTC
Por Leopoldo Fergusson ( @LeopoldoTweets )
Hay dos impuestos en Colombia condenados a la pena de muerte: el de las transacciones financieras y el de patrimonio. Desde que recuerdo son siempre los prÃ³ximos a desmontarse. Pero no este aÃ±o, el prÃ³ximo. Como en las tiendas: â€œHoy no fÃo, maÃ±ana sÃâ€.
No nos digamos mentiras. Estos impuestos llegaron para quedarse: el de las transacciones financieras desde que se introdujo en 1998, y el de patrimonio desde que se extendiÃ³ en el gobierno Uribe. AsÃ que dejemos de decir que el impuesto a las transacciones financieras [...]
- Could choppy markets see currency deal done before Scotland independence vote?
by Bruce Morley, Lecturer in Economics at University of Bath in The Conversation, 2014-09-08 16:14:17 UTC
Rough seas for the good ship UK. gopixa On the back of the rising prospects for a Scottish Yes vote to independence next week, the markets have taken a hit . The FTSE100 and FTSE250 posted drops that were markedly worse than performances in other stock markets. Sterling fell to its lowest level in 10 months , while UK gilts were affected too . One important question that needs to be asked is whether market uncertainty could reach a level where it affects how the Yes and No asides conduct their campaigns and any subsequent negotiations in the event of a Yes vote.
BBC/Digital Lo [...]
- Housework and Fiscal Expansions
by Christian Zimmermann in NEP-DGE blog, 2014-09-08 13:55:01 UTC
BY Stefano Gnocchi, Daniela Hauser and Evi Pappa
We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers. We show that if substitutability between home and market goods is calibrated on the empirically relevant range, consumption-hours complementarity is large and the model generates fiscal multipliers that agree with the evidence. Hence, our analysis supports the relevan [...]
- The Yin and the Yang of Shadow Banking in China
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-09-08 12:38:23 UTC
By almost any measure, China saves more than virtually any country in the world. Over the past decade, gross national savings has amounted to about one-half of GDP. � And that phenomenal rate continues: only Qatar and Macau save more � (see chart). There are many good reasons to save. At the top of list in China has been the high marginal return on capital that naturally accompanies rapid economic growth. Gross Savings Ratio (Percent of GDP) in 2012
Source: World Bank. Savings are calculated as gross national income less total consumption, plus net t [...]
- Think Tanks for Sale?
by Matthew Kahn in Environmental and Urban Economics, 2014-09-07 15:34:00 UTC
The NY Times has published a long data informed piece "naming names" and claiming that Washington's leading Think Tanks are taking too much international money and that a consequence of this is a type of self-censorship such that these Think Tanks supply slanted research that says nice things about the sponsors. �The Think Tanks defend themselves saying that their researchers have independence. � Can you bite the hand that feeds you? Economists have studied media slant starting with Groseclose and Milyo. � �Part of the Gentzkow and Shapiro research agenda further studies this issue. � Internat [...]
- Disuguaglianza e demografia: castriamo i poveri!
by Alberto Bagnai in Goofynomics, 2014-09-07 15:12:00 UTC
( il nostro ultimo arrivato ci sta dando tantissime soddisfazioni!... )rsr ha lasciato un nuovo commento sul tuo post " Disuguaglianza e sviluppo ": perÃ² dovete ammettere che Ã¨ strano Quando chiunque sostiene "L'Euro Ã¨ un bene per l'Italia perchÃ© sÃ¬!", Bagnai giustamente scatta "e la bilancia commerciale?" "e la deflazione salariale?" "in base a quali dati?" Quando Zingales se ne uscÃ¬ con la 'svalutazione strutturale continua', ricordate quante gliene disse? (scrisse) Poi me lo ritrovo a scrivere un post di quel tenore sugli USA. Che suona piÃ¹ o meno come: non esiston [...]
- Le talon dâ€™Achille du systÃ¨me monÃ©taire et financier international
by ? in D'un champ l'autre, 2014-09-06 22:51:00 UTC
Selon Claudio Borio (2014) , les rÃ©gimes de politiques
domestiques sont incapables de contenir lâ€™accumulation de dÃ©sÃ©quilibres financiers et dâ€™attÃ©nuer. Ils se caractÃ©risent par ce que Borio qualifie dâ€™une Â« Ã©lasticitÃ© financiÃ¨re excessive Â». Or le
systÃ¨me monÃ©taire et financier international tendrait Ã amplifier cette derniÃ¨re, entraÃ®nant de graves crises financiÃ¨res et une forte instabilitÃ© de la croissance.
Les perceptions des valeurs dâ€™actifs et des risques sont faiblement ancrÃ©es et fo [...]
- Will global population level off soon?
by nawmsayn in ZeeConomics, 2014-09-05 21:02:01 UTC
The Earth’s population has been growing steadily over the last century, and agricultural production could keep up with it. This means that there were no Malthusian constraints on population. The question in such a situation is for how long population can keep growing.
To answer this question, one has to make several assumptions. For instance, the UN’s calculations assuming a mid-level of fertility (meaning all countries converge to the replacement level of 2.1 births per woman) would imply that world population plateaus off around 11 billion by 2100. But how accurate is this prediction?
To in [...]
- Winner's Curse and The Nevada Payoff of Attracting the Tesla Factory
by Matthew Kahn in Environmental and Urban Economics, 2014-09-05 00:45:00 UTC
I have read t hat Tesla's new battery factory will open in the Greater Reno Nevada area. � As discussed by Tim Bartik more than 20 years ago, when a new factory opens up jobs (in this case 6000) are created. Most of the jobs go to people who move in to the area rather than to the local unemployed or to those out of the labor force. � �Now the work by Greenstone, Moretti and Hornbeck would counter that there is a local multiplier effect such that the new firm creates increased demand for intermediate input suppliers and this further stimulates the economy. In the case of Tesla is this correct? [...]
- Apples and oranges: comparing our education system with other countries doesn't always work
by Kevin Donnelly, Senior Research Fellow - School of Education at Australian Catholic University in The Conversation, 2014-09-04 01:46:02 UTC
Looking to other countries for success in education is like comparing apples to oranges. Shutterstock Itâ€™s known as the PISA /TIMSS travelling caravan. Each time international tests results are released with league tables showing winners and losers a gaggle of researchers, academics and assorted fellow travellers descend on the highest-performing country or education system to analyse and report on â€œworldâ€™s best practiceâ€.
US education scholar Henry Braun has noted :
Delegations from lagging jurisdictions have been routinely dispatched to such destinations as Finlan [...]
- Total Factor Productivity as a Measure of Welfare
by dvollrath in The Growth Economics Blog, 2014-09-03 21:02:47 UTC
In response to my post regarding innovation and GDP , Areendam Chanda left a comment that hit at a key question:
Interesting Ã¢â¬â but if innovation frees up resources, what are we doing with the extra resources? To follow MokyrÃ¢â¬â¢s own argument- driverless cars will reduce commuting times. What happens with that freed up time? I am presuming one could argue that it raises welfare by raising leisure time (unless we plan to spend that extra time working in which case it would show up in increased GDP). Furthermore, how would we actually figure out the effectiveness of R&D policy if we [...]
- Robert Gordon et le ralentissement de la croissance potentielle
by ? in D'un champ l'autre, 2014-09-03 19:18:00 UTC
Les Ã©conomistes tendent Ã sâ€™accorder que la croissance du PIB amÃ©ricain sera comprise entre 3 et 3,5 % au cours
des deux, voire trois prochaines annÃ©es, alors quâ€™elle nâ€™atteignait que 2,1 % sur la pÃ©riode comprise entre le milieu de lâ€™annÃ©e 2009 (marquant la fin de la Grande RÃ©cession) et aujourdâ€™hui. Si
Robert Gordon (2014b) est dâ€™accord avec lâ€™idÃ©e d'une amÃ©lioration du cÃ´tÃ© de la demande, il suggÃ¨re que lâ€™offre ne parviendra pas Ã suivre, si bien
que les prÃ©visions d [...]
- Has Paper Money Outlived Its Purpose?
by Stephen G. Cecchetti in Huffington Post Money, 2014-09-02 15:37:48 UTC
This post was co-authored by Kermit Schoenholtz , Professor of Management Practice in the Department of Economics of New York University's Leonard N. Stern School of Business
Serious people have been suggesting that we think hard about eliminating paper currency. Paper money facilitates criminality and creates the zero lower bound (ZLB) for nominal interest rates. So, why not just get rid of it and replace it with electronic money?
There is an enormous amount of currency out there. For dollars and euros, the value in circulation is in the range of $4000 per inhabitant. In the Japan, the numb [...]
- 271 â€“ 10 years of blogging
by David Pannell in Pannell Discussions, 2014-09-02 15:00:24 UTC
I just noticed (a few months late) that itÃ¢â¬â¢s been 10 years since I started writing Pannell Discussions. Time for some reflections on the benefits and costs of doing so.
In 2004 I decided I wanted to increase my outreach to non-economists and to people outside academia. I wanted to put out material that would be interesting and engaging, and would increase peopleÃ¢â¬â¢s understanding of economic issues in agriculture and natural resource management.
I decided to write brief articles on a range of topics, and put them on my web site. Initially I didnÃ¢â¬â¢t think of this as being a bl [...]
- Debt Dilution and Sovereign Default Risk
by Christian Zimmermann in NEP-DGE blog, 2014-09-02 14:56:09 UTC
Juan Carlos Hatchondo, Leonardo Martinez and Cesar Sosa-Padilla
In this study, we measure the effects of debt dilution on sovereign default risk and consider debt covenants that could mitigate these effects. First, we calibrate a baseline model of defaultable debt (in which debt can be diluted) with endogenous debt duration, using data from Spain. Secondly, we present a model in which sovereign bonds contain a covenant that eliminates debt dilution. We quantify the effects of dilution by comparing the simulations of the model with and witho [...]
- Due riforme strutturali a costo zero
by Alberto Bagnai in Goofynomics, 2014-09-02 13:23:00 UTC
Qualche giorno da parlavo con un medico, molto qualificato scientificamente e adirato (apprezzate il linguaggio aulico) con i suoi colleghi tanto quanto io lo sono coi miei, e per motivi sostanzialmente simili. Nel suo campo c'Ã¨ Big Pharma, e nel mio la troika, che prima di essere Bce-Fmi-CE Ã¨ stata CGIL-CISL-UIL. Cambiano le sigle, ma lo scopo del gioco, come sapete Ã¨ rimasto il solito.Questo: "Deflazionar e organizzar!", avrebbe detto quello che ha fatto una brutta fine... (sÃ¬, Ã¨ la Figura 38 del Tramonto dell'euro. Del resto, non sarÃ mica un caso se il comitato promotore [...]
- Who does macropru for nonbanks?
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-09-02 12:15:23 UTC
A central lesson of the 2007-09 financial crisis is that we should be much more worried about financial intermediation performed outside the banking system. Even if banks are resilient, with capital buffers sufficient to withstand all but the largest shocks, other parts of the financial system can make it fragile. Indeed, making the banks safe may simply shift risk-taking elsewhere. So, to reduce the frequency and severity of financial crises, we must contain systemic risk that comes both from banks and from outside the traditional banking system. To do so, we need regulation of market activit [...]
- Un parere...
by Alberto Bagnai in Goofynomics, 2014-09-01 20:25:00 UTC
Oggi, fra Egna e Trento, sono stato intervistato da RadioRadio insieme al presidente della Concommercio del Lazio . Alla fine attacco il telefono. Rockapasso mi fa: "Ma come fai dopo tre anni a rispondere ancora alle stesse domande?" Non Ã¨ facile. Non Ã¨ nemmeno facile sentirsi fare un'obiezione di questo tipo: da un collega alla cui attenzione hai sottoposto questo lavoro , e che dice di aver letto il tuo libro. Io, qual Ã¨ il problema, l'ho spiegato qui , e qui (se vi piacciono le riviste scientifiche), e qui , e qui (se preferite i quotidiani), e qui (se prediligete gli ebook), e da [...]
- False democracy
by ? in Stumbling and Mumbling, 2014-09-01 14:23:00 UTC
At the gym yesterday morning, I caught sight of a TV show discussing "is fracking the future?" Who might usefully discuss this question: geologists? energy economists? Nope. There was the ubiquitous vested interest; Vivienne Westwood, a frock designer; and [...]
- Citation Data for Citation Prediction Paper Now Available
by email@example.com (David Stern) in Stochastic Trend, 2014-09-01 05:58:00 UTC
The data underlying my recent working paper: " High-Ranked Social Science Journal Articles Can Be Identified from Early Citation Information " are now available from the ANU Data Repository . The data set includes most journal articles in economics and political science published in 2006 and included in the Web of Science and the number of citations that received each year through 2012. There is also a worksheet with all economics articles from 1999 too. That's not mentioned in the working paper but is mentioned in the revised version of the article I just resubmitted to the journal. The journ [...]
- A market for corporate votes
by JP Koning in Moneyness, 2014-08-30 14:39:00 UTC
Berkshire Hathaway annual general meeting When you purchase a share you're not only getting the opportunity to make some extra cash. You're also buying a vote. Put differently, a share offers two different features: a) a claim on earnings and b) the right to exercise partial control over the corporation.* Why not separate the two features and put each of them up for sale? Let's have one market for corporate votes, and a separate one for corporate returns. Here's how it would work. Imagine you want to buy some Microsoft shares but don't care to participate in the governance of Microsoft. The qu [...]
- What does Real GDP Measure?
by dvollrath in The Growth Economics Blog, 2014-08-29 18:32:39 UTC
Nearly all cross-country work on growth and development uses, if only for motivation, Penn World Table ( PWT ) estimates of real GDP for countries. And the PWT generates a single measure of “real GDP” for each country. How do they do this? Before I answer, let me say that much of what I’m going to say is said more thoroughly in Deaton and Heston (2010). So check that out if you’re into cross-national real GDP comparisons.
To start, let’s simplify and think just about two countries, A and B. To compare real GDP in the two countries, we’d want to value the quantities of goods they produce at so [...]
- Casey Mulligan's New Book "Side Effects" is Published
by Matthew Kahn in Environmental and Urban Economics, 2014-08-29 16:47:00 UTC
The University of Chicago's Professor Casey Mulligan has published a n ew $3 e-book titled "Side Effects" . �He provides an in depth examination of the future of health care in the United States. � �Building on some of the ideas discussed in his WSJ profile , �the book provides a nitty gritty analysis of the unintended consequences of the new health care law. �It offers a number of predictions about the medium term future that can be compared to data to see if his theory is correct. � At its core, this book focuses on incentives both of workers in terms of hours worked and on the supply side f [...]
by chris dillow in Stumbling and Mumbling, 2014-08-29 12:57:16 UTC
The Social Mobility and Child Poverty Commission this week reminded us of an old fact - that privately educated people are disproportionately represented among top jobs. Why is this?
It's not solely because prviate schools give people a better chance of going on to get good degrees. This paper shows that, even controlling for university, the privately educated have a slight advantage in their chances of getting top jobs. And this one shows that, controlling for degree, there's an earnings premium for the privately-schooled. This is consistent with anecdotal evidence. Sajid Javid's experience o [...]
- Fossil fuel review committee report: change rules to benefit fossil fuels
by John Quiggin in John Quiggin, 2014-08-29 00:47:55 UTC
That’s the unsurprising outcome of the Abbott government’s review of the Renewable Energy Target, undertaken by climate denialists associated with the fossil fuel industry. It’s hard to see why they bothered with the formality of holding an inquiry.
It now looks possible that the Climate Change Authority, of which I’m a member, will survive long enough to conduct a further review. The Authority is answerable to the Parliament, not the government, which makes for interesting times when the two are directly opposed, as at present.
I can certainly see some ways in which the RET could be improved [...]
- On the Provision of Insurance Against Search-Induced Wage Fluctuations
by Christian Zimmermann in NEP-DGE blog, 2014-08-29 00:02:16 UTC
By Jean-Baptiste Michau
This paper investigates the provision of insurance to workers against search-induced wage fluctuations. I rely on numerical simulations of a model of on-the-job search and precautionary savings. The model is calibrated to low skilled workers in the U.S.. The extent of insurance is determined by the degree of progressivity of a non-linear transfer schedule. The fundamental trade-off is that a more generous provision of insurance reduces incentives to search for better paying jobs, which is detrimental to the production ef [...]
- Anatomie de la tragÃ©die italienne
by ? in D'un champ l'autre, 2014-08-28 19:00:00 UTC
Lâ€™Ã©conomie italienne est officiellement entrÃ©e en rÃ©cession pour la troisiÃ¨me fois en six ans. Dâ€™aprÃ¨s les
estimations prÃ©liminaires, le PIB sâ€™est contractÃ© de 0,2 % au deuxiÃ¨me trimestre 2014, alors que les prÃ©visionnistes sâ€™attendaient Ã une hausse (bien modeste) de 0,1 %. Il sâ€™agit de la plus
mauvaise performance depuis 2000. Au cours du premier trimestre, le PIB avait dÃ©jÃ chutÃ© de 0,1 %. Puisque la croissance a Ã©tÃ© nÃ©gative sur deux trimestres successifs, la situation que traverse
- Who Owns the "Right to Recline?" The Airline, by David Henderson
by ? in Econlog, 2014-08-28 16:45:57 UTC
I wrote an article to that effect in 2011, noting that airline seats are an excellent case study for the Coase Theorem. This is an economic theory holding that it doesn't matter very much who is initially given a property right; so long as you clearly define it and transaction costs are low, people will trade the right so that it ends up in the hands of whoever values it most. That is, I own the right to recline, and if my reclining bothers you, you can pay me to stop. We could (but don't) have an alternative system in which the passenger sitting behind me owns the reclining rights. In that ci [...]
- China's Capital Controls and the Exchange Rate Regime
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-08-28 12:12:18 UTC
When the Chinese government wanted to damn the great Yangtze River, it moved more than a million people. When it wanted ring roads running through the 20 million people of Beijing, China built 270 miles in less than 30 years. So, when Chinese leaders say that they want Shanghai to be a global financial center and their currency the renminbi (RMB) to be an international leader, itâ€™s natural to ask how, when, and at what cost. In a recent post , we concluded that vast, politically sensitive reforms would be needed to make the RMB a key currency for global finance and central bank reserves [...]
- Filling the gap: monetary policy or tax cuts or government spending
by Mainly Macro in Mainly Macro, 2014-08-27 09:06:00 UTC
Suppose there is a shortfall in aggregate demand associated with a rise in involuntary unemployment in a simple closed economy with no capital. Do we try and raise private consumption (C) or government consumption (G)? If the former, why do we prefer to use monetary policy rather than tax cuts? If consumers have stable preferences over privately and publicly produced goods, then ideally we want to keep the ratio C/G at its optimal level. So if the aggregate demand gap is caused by a sudden fall in C, we will want to do something to raise C. As real interest rates are the price of current versu [...]
- Constraints, real & imagined
by chris dillow in Stumbling and Mumbling, 2014-08-26 13:14:00 UTC
Simon's post reminds me of Sidney Webb's reaction to Britain leaving the gold standard in 1931: "nobody told us we could do that."
The 1929-31 Labour government tore itself apart because it thought the gold standard was a binding constraint which demanded fiscal austerity. But in fact, the constraint was imaginary. Abandoning the gold standard had no great ill-effects.
European social democrats are in the same position Webb was. They are seeing binding constraints when in fact there are only illusory ones. In the euro area, a relaxation of the stability and growth pact to permit fiscal expans [...]
- Two papers on taxing the top x%
by Christian Zimmermann in NEP-DGE blog, 2014-08-26 13:03:08 UTC
Heterogeneity and Government Revenues: Higher Taxes at the Top?
By Nezih Guner, Martin Lopez-Daneri and Gustavo Ventura
We evaluate the effectiveness of a more progressive tax scheme in raising government revenues. We develop a life-cycle economy with heterogeneity and endogenous labor supply. Households face a progressive income tax schedule, mimicking the Federal Income tax, and flat-rate taxes that capture payroll, state and local taxes and the corporate income tax. We parameterize this model to reproduce aggregate and cross-sectional obs [...]
- La concurrence chinoise et le dÃ©clin de lâ€™emploi amÃ©ricain
by ? in D'un champ l'autre, 2014-08-25 19:08:00 UTC
Les conditions sur le marchÃ© du travail aux Etats-Unis se sont fortement dÃ©gradÃ©es avant mÃªme que lâ€™Ã©conomie ne
bascule dans la Grande RÃ©cession. Durant les annÃ©es quatre-vingt-dix, lâ€™emploi amÃ©ricain a connu une vigueur non vue depuis les annÃ©es soixante-dix, si bien que Krueger et Solow (2002) ont pu
parler de Â« roaring nineties Â». Entre 1991 et 2000, le ratio emploi sur population grimpa de 1,5 point de pourcentage pour les hommes et de plus de 3 points de pourcentage pour les femmes. La
seconde moitiÃ© de la dÃ© [...]
- Post hoc, ergo propter hoc?
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2014-08-25 12:24:22 UTC
On the occasion of the Fedâ€™s Jackson Hole Symposium, the New York Sun published an editorial attacking central banking and fiat money. Letâ€™s get this out of the way at the start: we are big fans of both. In our view, the world is a more stable and prosperous place with central banks than it was without them. And fiat money allows a central bank to stabilize the price of goods and services that would be quite volatile if, instead, we chose to steady the price of gold (the Sun â€™s apparent favorite). The result is higher growth from which we all benefit. We also like tabloids [...]
- Firm Exit and Exchange Rates: An Examination with Turkish Firm-Level Data
by pmakdissi in NEP-ARA blog, 2014-08-25 06:04:24 UTC
By NazlÃÂ± KaramollaoÃÅ¸lu (MEF University, Turkey) and M. Ege Yazgan (Istanbul Bilgi University)
Exchange rate movements have important implications for survival patterns, particularly for exporting firms in developing countries where exchange rates are more volatile compared to the developed world. Real exchange rate movements are thought to act like tariffs in how they affect survival behavior by altering firms’ competitive positions in both domestic and international markets. In this context, real exchange rate appreciation [...]
- A Whale Visits NYC or "Why Do Whales Now Swim Near Big Cities"?
by Matthew Kahn in Environmental and Urban Economics, 2014-08-24 22:09:00 UTC
You have to admit that this is an inspiring photo. I grabbed it from this news article discussing the 35 foot humpback whale who has been swimming very close to NYC. If Ed Glaeser was writing a paper on this, he might title it; �"Why Do Whales Now Swim Near Big Cities?" � Randy Walsh and I are finishing a paper on this broad subject (we don't explicitly discuss whales) but our paper instead focuses on the rise of environmental quality in major U.S cities over the last 30 years with a focus on the causes and consequences of this dynamic. �As this article suggests, one beneficial consequence of [...]
- Through what channels does personality operate?
by nawmsayn in ZeeConomics, 2014-08-24 12:22:15 UTC
The effects of noncognitive traits such as personality on various life outcomes are well-documented , though potentially different across cultures . In particular, personality traits have been found to have a significant effect on income.
A question that remains to be answered, however, is through what channels personality traits operate. Do they affect wages because they make people more productive, or do people with certain traits self-select into occupations with higher wages? Maybe, certain personality traits are just correlated with better bargaining skills?
Cubel et al. (2014) ran an ex [...]
- Forecasting National Inflation Rates
by Guest Author in The Big Picture, 2014-08-24 09:00:24 UTC
Forecasting National Inflation Rates
By Silvio Contessi , Economist
A recent line of research has established that global factors significantly correlate with national inflation rate movements, so much in fact that they can help forecast national inflation rates. 1
A forthcoming Federal Reserve Bank of St. Louis Review article 2 follows this literature and estimates a one-factor model for global inflation using headline inflation rates for nine advanced economies, using monthly data for the period January 2002 through June 2014. 3 The nine economies are from three gro [...]
- Marcone e dollaretto: 30 anni di politica valutaria
by Alberto Bagnai in Goofynomics, 2014-08-23 22:05:00 UTC
Silvia ha lasciato un nuovo commento sul tuo post " Debito pubblico e imprenditoria privata ": Nel testo di Graziani: "... cercando di tenere la lira tendenzialmente svalutata rispetto allâ€™area del marco, in maniera da favorire le esportazioni e cercando, invece, di ridurre la svalutazione nei confronti del dollaro, per ridurre il costo delle importazioni" Non ho capito come Ã¨ possibile farlo contemporaneamente. Qualcuno me lo saprebbe spiegare per favore? Postato da Silvia in Goofynomics alle 23 agosto 2014 22:37 UssignÃ¹r! E chi sei, Zingales? Lui, lo abbiamo visto, di [...]
- Les robots, lâ€™emploi et le paradoxe de Polanyi
by ? in D'un champ l'autre, 2014-08-23 12:26:00 UTC
Du soulÃ¨vement des luddites contre les machines Ã tisser jusquâ€™Ã aujourdâ€™hui, beaucoup ont craint que les
machines remplacent les Ãªtres humains pour rÃ©aliser les tÃ¢ches de production. Chaque innovation accroÃ®t lâ€™Ã©ventail de tÃ¢ches que les machines sont capables de rÃ©aliser, rendant obsolÃ¨tes tout un
ensemble de compÃ©tences et les emplois qui leur Ã©taient associÃ©s.�
Lors de la confÃ©rence tenue cette annÃ©e Ã Jackson Hole (portant prÃ©cisÃ©ment sur le thÃ¨me le marchÃ© du travail),
- â€œSeeking the Roots of Entrepreneurship: Insights from Behavioral Economics,â€ T. Astebro, H. Herz, R. Nanda & R. Weber (2014)
by afinetheorem in A Fine Theorem, 2014-08-22 21:37:36 UTC
Entrepreneurship is a strange thing. Entrepreneurs work longer hours, make less money in expectation, and have higher variance earnings than those working for firms; if anyone knows of solid evidence to the contrary, I would love to see the reference. The social value of entrepreneurship through greater product market competition, new goods, etc., is very high, so as a society the strange choice of entrepreneurs may be a net benefit. We even encourage it here at UT ! Given these facts, why does anyone start a company anyway?
Astebro and coauthors, as part of a new JEP symposium on entrepr [...]
- â€œDynamic Commercialization Strategies for Disruptive Technologies: Evidence from the Speech Recognition Industry,â€ M. Marx, J. Gans & D. Hsu (2014)
by afinetheorem in A Fine Theorem, 2014-08-22 19:57:27 UTC
Disruption. You can’t read a book about the tech industry without Clayton Christensen’s Innovator’s Dilemma coming up. Jobs loved it. Bezos loved it. Economists – well, they were a bit more confused. Here’s the story at its most elemental: in many industries, radical technologies are introduced. They perform very poorly initially, and so are ignored by the incumbent. These technologies rapidly improve, however, and the previously ignored entrants go on to dominate the industry. The lesson many tech industry folks take from this is that you ought to “disrupt yourself”. If there is a tec [...]