LPL Financial analyzed 25 major geopolitical episodes, dating back to Japan’s 1941 attack on Pearl Harbor. “Total drawdowns around these events have been fairly limited,” Jeff Buchbinder, LPL’s chief equity strategist, wrote in a research note on Monday. (Full recoveries often “take only a few weeks to a couple of months,” he added.) Deutsche Bank analysts […]
Markets are forward-looking
Markets are forward-looking
18 Jun 2025 1 Comment
in applied price theory, defence economics, econometerics, economic growth, economic history, financial economics, macroeconomics, market efficiency, politics - USA, war and peace Tags: efficient markets hypothesis, World War II
What Explains Growing Gender and Racial Education Gaps?
16 Jun 2025 Leave a comment
in applied price theory, discrimination, econometerics, economic history, economics of love and marriage, gender, human capital, labour economics, labour supply, law and economics, occupational choice, poverty and inequality Tags: gender wage gap, racial discrimination, sex discrimination
In the 1960 cohort, American men and women graduated from college at similar rates, and this was true for Whites, Blacks and Hispanics. But in more recent cohorts, women graduate at much higher rates than men. Gaps between race/ethnic groups have also widened. To understand these patterns, we develop a model of individual and family […]
What Explains Growing Gender and Racial Education Gaps?
Effects of Zoning: when we restrict supply, prices go up.
14 Jun 2025 1 Comment
in applied price theory, econometerics, income redistribution, law and economics, property rights, Public Choice, public economics, rentseeking, urban economics Tags: housing affordability, land supply, zoning
What happened when Spain brought back the wealth tax?
13 Jun 2025 1 Comment
in applied price theory, Public Choice, public economics Tags: Spain, taxation and entrepreneurship, taxation and investment, taxation and savings
From the Journal of Public Economics Twitter feed: What happened when Spain brought back the Wealth Tax in 2011? Using variation in exposure, this paper finds: – No drop in savings, but drop in taxable wealth—mainly via legal avoidance – Asset shifting caused most revenue loss – Estimated revenue loss was 2.75x initial 2011 rev. […]
What happened when Spain brought back the wealth tax?
Very Expensive Affordable Housing
10 Jun 2025 1 Comment
in applied price theory, economics of regulation, law and economics, politics - USA, property rights, urban economics Tags: housing affordability, offsetting behavior, The fatal conceit, unintended consequences
In my post Affordable Housing is Almost Pointless, I highlighted how point systems for awarding tax credits prioritize DEI, environmental features, energy efficiency, and other secondary goals far more than low cost. A near-comic example comes from D.C., where so-called affordable housing units now cost between $800,000 and $1.3 million dollars each! One such unit […]
Very Expensive Affordable Housing
How America Built the World’s Most Successful Market for Generic Drugs
06 Jun 2025 1 Comment
in applied price theory, economics of regulation, entrepreneurship, health economics, industrial organisation Tags: drug lags
The United States has some of the lowest prices in the world for most drugs. The U.S. generic drug market is competitive and robust—but its success is not accidental. It is the result of a series of deliberate, well-designed policy interventions. The 1984 Hatch-Waxman Act allowed generic drug manufacturers to bypass costly safety and efficacy […]
How America Built the World’s Most Successful Market for Generic Drugs
An American Enterprise Institute Discussion of “The Triumph of Economic Freedom”
05 Jun 2025 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, growth disasters, growth miracles, history of economic thought, macroeconomics Tags: anticapitalist mentality, capitalism and freedom
Tweet The post An American Enterprise Institute Discussion of “The Triumph of Economic Freedom” appeared first on Cafe Hayek.
An American Enterprise Institute Discussion of “The Triumph of Economic Freedom”
No Exit, No Entry
05 Jun 2025 Leave a comment
in applied price theory, development economics, economics of bureaucracy, economics of regulation, growth disasters, growth miracles, industrial organisation, labour economics, labour supply, law and economics, property rights, Public Choice, survivor principle Tags: employment law, India
In our textbook, Modern Principles, Tyler and I contrast basic U.S. labor law, at-will employment—where employers may terminate workers for any reason not explicitly illegal (e.g., racial or sexual discrimination), without notice or severance—with Portugal’s “just cause” regime, which requires employers to prove a valid reason, give advance notice, pay severance, and endure extensive regulatory […]
No Exit, No Entry
Counting the Cost
01 Jun 2025 Leave a comment
in applied price theory, discrimination, gender, human capital, income redistribution, labour economics, labour supply, occupational choice, politics - New Zealand, poverty and inequality, Public Choice, rentseeking Tags: constitutional law, gender wage gap, sex discrimination
For all the gravitas which Dame Marilyn’s involvement has conferred upon PSCPE, it is important not to lose sight of the fact that it represents a deliberate attempt to morally overpower what is now the law of the land. Chris Trotter writes – The People’s Select Committee on Pay Equity (PSCPE) is looking for evidence. […]
Counting the Cost
Why the U.S. Produces More Unicorns Than China and the EU
01 Jun 2025 1 Comment
in applied price theory, comparative institutional analysis, development economics, economic history, economics of regulation, entrepreneurship, human capital, industrial organisation, labour economics, occupational choice, poverty and inequality, survivor principle Tags: creative destruction
The United States has produced about twice as many unicorns (private startups valued at $1B+) as China and more than four times as many as the European Union. These numbers reflect deep institutional and cultural advantages in the U.S. startup ecosystem. Table: Number of Unicorns Created Since ~1990 Region Cumulative Unicorns United States ~1,950 China…
Why the U.S. Produces More Unicorns Than China and the EU
Against Sociology
31 May 2025 1 Comment
in applied price theory, history of economic thought
An individualistic argument can be made that sociology is a “useless” subject, though such a claim is controversial and widely disputed. Here is how such an argument might be constructed from an individualistic or methodological individualist perspective: Individualistic Argument Against the Usefulness of Sociology Thesis:Sociology is a largely useless discipline because it focuses on abstract […]
Against Sociology
Irrationality As the Fountainhead of Market Failure
28 May 2025 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, economics of information, history of economic thought
An excerpt from Chapter 4 of *Unbeatable*
Irrationality As the Fountainhead of Market Failure
New medicine approvals plan an exercise in not solving the problem
28 May 2025 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, health economics, politics - New Zealand, Public Choice Tags: drug lags
Eric Crampton writes – New medicines are slow to be authorised for the New Zealand market. Even if a medicine has already been approved by many other trustworthy overseas regulators like those in Canada, the UK, Australia, and the EU, Medsafe can take a very long time to evaluate a medicine.
New medicine approvals plan an exercise in not solving the problem
One last post on Investment Boost
27 May 2025 Leave a comment
in applied price theory, economic growth, fiscal policy, macroeconomics, politics - New Zealand, public economics Tags: taxation and investment
After the discussion in my post yesterday on the Investment Boost subsidy scheme announced in the Budget I thought a bit more about who was likely to benefit the most from it. The general answer of course is the purchasers of the longest-lived assets. Why? Because if you have an asset which IRD estimates to […]
One last post on Investment Boost
Quotation of the Day…
25 May 2025 Leave a comment
in applied price theory, economic history, industrial organisation, labour economics, labour supply
Tweet… is from my late, great colleague Walter Williams’s January 6th, 2011, column, “Settled ‘facts’ that just ain’t so“: U.S. manufacturing is going through the same kind of labor-saving technological innovation as agriculture. In 1790, farmers were 90 percent of the U.S. labor force. By 1900, only about 41 percent of our labor force was…
Quotation of the Day…
Utopia, you are standing in it! 
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