Economics

Pure Pedantry

Category archives for Economics

Razib and I on Bloggingheads.tv

Razib and I have a discussion up at Bloggingheads.tv about genetics and behavior as well as a brief discussion of neuroeconomics. Check it out below the fold:

I caught this interesting sentence over at Marginal Revolution: as consumption approaches satiation, workers reduce their hours of work to prevent themselves from actually reaching satiation. More technically, as workers approach satiation, their labor supply curves start to “bend backwards.” The result is that rising labor demand stemming from rising productivity raises wages yet reduces…

Many economists have egg on their face

Economic historian, Gregory Clark, details why times have changed for academic economists: The current recession has revealed the weaknesses in the structures of modern capitalism. But it also revealed as useless the mathematical contortions of academic economics. There is no totemic power. This for two reasons: (1) Almost no-one predicted the world wide downtown. Academic…

The Geithner Treasury plan for rescuing the banking system (more here) is getting panned on both sides of the aisle for being excessively vague. Megan McArdle: Tim Geithner reveals that the Treasury has a plan to fix the problems in our broken capital markets by . . . er . . . fixing them. ……

Stimulis: The Wonder Drug

Check out this video by reason.tv below the fold.

This guy has clearly not read about the broken window fallacy: Times were so tough for window repairman Timothy Carl Klenke, police say, that he decided to take proactive measures: He armed himself with a slingshot and began cruising around the city, shattering at least five windows and car windshields as he went. “The statements…

Robert Barro is interviewed in The Atlantic about his views of the stimulus plan (see also a recent WSJ piece here). All in all, he is not a fan: The Atlantic: And I take it from the Wall Street Journal piece you wrote last week… well, the piece is just specifically about measuring multipliers, but…

Here’s an idea I had never heard about. The government could use an alternative currency that loses value over time to encourage spending. You would spend it like it was burning a hole in your pocket. Apparently there is historical precedent: Based on the theories of Silvio Gesell, a German “quasi-economist”, one such currency, the…

Towards a global currency?

In an article reviewing the success of the Euro, the WSJ attributes at least some of the finiancial instability of recent months to currency volatility between the US and Europe.

How much is a Nobel worth?

Nobel laureates on the board bring in the bacon when it is time to capitalize a firm: WHAT is a Nobel prize really worth? The market values it at $34m, according to a new NBER paper by Matthew Higgins, Paula Stephan and Jerry Thursby. They studied the biotech industry during the 1990s. The industry, in…