From Arnold Kling:
So, when you overbuild houses in Nevada or condos in Florida, you cannot lure very many people with lower prices. Most unoccupied houses have close to zero marginal value to the vast majority of consumers, just as most unemployed workers have zero marginal product to the vast majority of firms.
He was responding to the question of why there are still so many housing vacancies. While I’d like to excoriate policy (and I can) I find this very compelling – and it raises the question of why this recalculation story is not applied more broadly. Maybe it is, maybe everything is cast in a transactions cost framework. Thus, if you offered me the opportunity to “buy” my exact home in, say, Pittsfield, Massachusetts, for zero dollars, I would say no. But the same is true for lots of other goods and services. Perhaps sadly for me, the provision of an economics education is not one of those services!
726912 272092You need to join in a contest 1st with the greatest blogs on the internet. I will recommend this internet site! 237913
531822 412754Youre so cool! I dont suppose Ive learn something like this before. So excellent to search out any person with some distinctive thoughts on this topic. realy thanks for starting this up. this site is one thing thats wanted on the net, somebody with a bit originality. helpful job for bringing one thing new towards the internet! 178218
993887 881909This internet internet site is typically a walk-through its the info you wished about this and didnt know who ought to. Glimpse here, and youll undoubtedly discover it. 740252
142973 958603Hello! Ive been following your blog for a although now and lastly got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to mention maintain up the excellent work! 350980