The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. – F.A. Hayek
Posted in Economics Problems, Macroeconomics on Nov 23rd, 2009
This abstract says it all: Why are the 2000s so different from the 1970s? A structural interpretation of changes in the macroeconomic effects of oil prices … In the 1970s, large increases in the price of oil were associated with sharp decreases in output and large increases in inflation. In the 2000s, and at least [...]
Posted in Corporatism, Regulation on Nov 22nd, 2009
In this edition of Progressive Corporatism in Many Lessons: But as the business grew, so did its troubles. Hundreds of new bike operators arrived, pestering tourists and testing the city’s tolerance. Pedicab owners, alarmed at lax safety standards, began a push for regulation — an effort that stretched for years, encompassing a rare mayoral veto [...]
Posted in Politics on Nov 22nd, 2009
The virtue of Democracy for many is precisely because it is a “legitimate” way to exercise power over the majority by the few. It is really tiring to hear the defenses of democracy on the grounds that it offers some sort of protection of the minority from the tyranny of the majority. But how am [...]
Posted in Institutions on Nov 22nd, 2009
I wished we would do this more often. Given that I have an extreme revulsion of communism and socialism, I thought it would be useful to make myself consider conditions when I would accept these sorts of systems, or in fact, enjoy these sorts of systems. Here is the start of a list, but I [...]
Posted in Fun Facts, Health Care on Nov 21st, 2009
My employer is particularly “generous” in terms of the share of health insurance costs that they pay on my behalf versus the share I must contribute on my own. Our family chooses to “buy” a HSA Eligible High Deductible Health Plan. So for low premiums, we have high deductible insurance that kicks in when we [...]
Posted in incentives on Nov 20th, 2009
I have my students write papers on the intersection of markets and some sticky ethical questions. Should parents be permitted to sell their babies? If you allow a market in kidneys, would it be permissible for a purchaser to use it as wall decoration or a lawn ornament? And so on. Let’s be agnostic about [...]
Posted in Competition, Health Care on Nov 19th, 2009
Some in the current health insurance debate argue that you simply cannot introduce market forces into the health system and still hope the needy are served. Here is a little bit of evidence, so does increased competition across hospitals reduce charity care? Despite the pervasive belief that competition impedes a hospital’s ability to offer services [...]
Posted in Education, Health Care on Nov 19th, 2009
It is possible that doing things outside the public school classroom improves learning outcomes better than anything currently being done inside the classroom: This paper examines the impact of public health insurance expansions through both Medicaid and SCHIP on children’s educational outcomes, measured by 4th and 8th grade reading and math test scores, available from [...]
Posted in Politics on Nov 19th, 2009
Paul Jacob shares a story: I talked about the group last summer, when ABTL was little more than an idea. They were looking for candidates who would not only vow to limit their terms in office, but also agree to forfeit a big chunk of their assets if they break their word. … And now [...]
Posted in Resources on Nov 19th, 2009
I like to have my students engage in some simple back of the envelope calculations to put certain problems in perspective. One such problem is “our” ability to produce energy. It is perhaps the scariest bogeyman out there. However, here is one example (among dozens) of why we do not have an energy problem. We [...]
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