TweetIdeally, every government would implement a policy of unilateral free trade. But governments, of course, by their nature testify that reality is very far from ideal. Here’s a letter to a long-time correspondent. Mr. B__: Thanks for your email in response to this blog post of mine in which I express support for the World…
Harnessing Mercantilist Idiocy for the Public Good
Harnessing Mercantilist Idiocy for the Public Good
17 Apr 2026 Leave a comment
in applied price theory, history of economic thought, industrial organisation, international economics
The Paramount Question Isn’t Paramount
17 Apr 2026 Leave a comment
in applied price theory, economics of media and culture, economics of regulation, entrepreneurship, industrial organisation, law and economics, managerial economics, market efficiency, movies, organisational economics, politics - USA, television Tags: competition law, creative destruction, merger law enforcement
Big mergers make headlines. They don’t always make antitrust problems. In a previous commentary, I explored the antitrust implications of a potential acquisition of Warner Bros. Discovery (WBD). That uncertainty is now resolved. On Feb. 27, Paramount Skydance Corp. agreed to acquire WBD for roughly $110 billion in enterprise value—$31 per share, all cash. The…
The Paramount Question Isn’t Paramount
Incentives matter, Mexican cartel edition
16 Apr 2026 Leave a comment
in applied price theory, development economics, economics of crime, economics of regulation, law and economics, transport economics, urban economics Tags: Mexico
But the cartel’s interests may prove just as important to security as government efforts, according to a dozen local and state officials and security experts. The CJNG has much to gain from the regional economic boost of a successful tournament in Guadalajara — akin to its administrative headquarters — and much to lose from drawing…
Incentives matter, Mexican cartel edition
A discussion about Anti-Capitalism and “Public Health”
15 Apr 2026 Leave a comment
in applied price theory, comparative institutional analysis, economics of regulation, health economics, liberalism, Marxist economics Tags: nanny state, regressive left
I spoke to my friends at the Sloavkian think tank INESS (the Institute of Economic and Social Studies) recently. We talked about my 2025 paper Anti-Capitalism and Public Health and you can watch the video below.
A discussion about Anti-Capitalism and “Public Health”
The economic value of eliminating cancer
14 Apr 2026 Leave a comment
in applied price theory, applied welfare economics, econometerics, economic history, health economics Tags: life expectancies
This paper estimates the economic value to the United States of eliminating cancer mortality over a 35-year horizon beginning in 2030, which would eliminate 30.7 million cancer deaths with a total mortality burden of 380 million life-years. We quantify the economic value of this substantial reduction in cancer mortality by incorporating the monetized value of…
The economic value of eliminating cancer
The Happiness Crash of 2020
13 Apr 2026 Leave a comment
in applied price theory, econometerics, economic history, technological progress
From the still-active Sam Peltzman: I document a sudden, sharp and historically unprecedented decline in self-reported happiness in the US population. It occurred during 2020, the year of the Covid pandemic, and mainly persists through 2024. This happiness crash spread across nearly all typical demographics and geographies. The happiest groups pre-Covid (e.g., whites, high income,…
The Happiness Crash of 2020
Oil and monetary policy
10 Apr 2026 Leave a comment
in applied price theory, defence economics, economic history, economics of bureaucracy, energy economics, financial economics, history of economic thought, labour economics, macroeconomics, monetary economics, politics - New Zealand, Public Choice, unemployment, war and peace Tags: 1973 oil crisis, monetary policy, oil shocks
I didn’t have too much problem with either the Reserve Bank Governor’s speech a couple of weeks ago on a framework for how monetary policy might deal with the oil shock, or with this week’s OCR review release from the Monetary Policy Committee. It was really all very orthodox stuff, much as any of the […]
Oil and monetary policy
The Fatal Conceit of Cheap Drugs
07 Apr 2026 1 Comment
in applied price theory, Austrian economics, economics of information, economics of regulation, health economics, law and economics, politics - USA, property rights Tags: copyrights and patents, intellectual property
The U.S. Supreme Court agreed to hear Hikma v. Amarin to answer a narrow question. It may end up saying far more about how policymakers misunderstand pharmaceutical markets. On its face, the case is narrow. It asks whether a generic drug manufacturer can face liability for inducing patent infringement based on how it markets a…
The Fatal Conceit of Cheap Drugs
Is there something about manufacturing that requires special policies to help it that other industries don’t get?
07 Apr 2026 Leave a comment
in applied price theory, entrepreneurship, industrial organisation, politics - USA, survivor principle
I have excerpts from posts or articles by three different economists. The answer seems to be no. Two are older and one is very recent by Harvard prof Jason Furman, who was once the chair of the Council of Economic Advisors under Obama. Then two older sources. One is from Tyler Cowen (2023), professor at…
Is there something about manufacturing that requires special policies to help it that other industries don’t get?
The CA Minimum Wage Increase: Summing Up
06 Apr 2026 1 Comment
in applied price theory, econometerics, economics of regulation, income redistribution, labour economics, labour supply, politics - USA, Public Choice, unemployment
Two recent joint-papers Did California’s Fast Food Minimum Wage Reduce Employment? by Clemens, Edwards and Meer and The Effects of California’s $20 Fast Food Minimum Wage on Prices by Clemens, Edwards, Meer and Nguyen give what I think is a plausible and consistent account of California’s $20 fast food minimum wage. California’s $20 fast food…
The CA Minimum Wage Increase: Summing Up
Does working from home raise lifetime fertility?
06 Apr 2026 Leave a comment
in applied price theory, economics of love and marriage, labour economics, labour supply, population economics Tags: economics of fertility, economics of pandemics
See Work from Home and Fertility by Steven J. Davis, Cevat Giray Aksoy, Jose Maria Barrero, Nicholas Bloom, Katelyn Cranney, Mathias Dolls & Pablo Zarate. Abstract”We investigate how fertility relates to work from home (WFH) in the post-pandemic era, drawing on original data from our Global Survey of Working Arrangements and U.S. Survey of Working Arrangements…
Does working from home raise lifetime fertility?
Quotation of the Day…
05 Apr 2026 Leave a comment
in applied price theory, economics of regulation, labour economics, labour supply, law and economics, Richard Epstein
Tweet… is from page 162 of Richard Epstein’s magnificent 1995 volume, Simple Rules for a Complex World: The entire regulatory process [of wrongful dismissal of workers] shows the constant preoccupation with the direct effects of decisions on named persons, without regard to the vastly greater indirect effects on other persons similarly situated. The effort to…
Quotation of the Day…
Bet On It Book Club: For a New Liberty, Chapter 8
04 Apr 2026 Leave a comment
in applied price theory, Austrian economics, economic history, history of economic thought, labour economics, labour supply, Murray Rothbard, welfare reform
SummaryThis chapter, on “Welfare and the Welfare State,” argues that the welfare state gives the poor perverse incentives. A superficial reader might say, “However original this was in 1973 when it was first written, it’s now old hat. Clinton made the same arguments for welfare reform.” However, on closer examination, Rothbard’s analysis remains distinctive both…
Bet On It Book Club: For a New Liberty, Chapter 8
*The Marginal Revolution: Rise and Decline, and the Pending AI Revolution*
03 Apr 2026 Leave a comment
in applied price theory, history of economic thought
I am offering a new piece of work — I do not quite call it a book — online and free. It has four chapters, is about 40,000 words, is fully written by me (not a word from the AIs), and it is attached to an AI with a dual page display, in this case…
*The Marginal Revolution: Rise and Decline, and the Pending AI Revolution*
Is financial economics still economics?
01 Apr 2026 Leave a comment
in applied price theory, econometerics, entrepreneurship, financial economics
That all sounded wonderful, and that core model and its offshoots dominated financial research for decades. The problem, however, was that it wasn’t true, or at least it wasn’t nearly as true as we had thought and hoped. When financial economists refined the models with more complete specifications, it turned out Beta didn’t predict stock…
Is financial economics still economics?
Utopia, you are standing in it! 
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