Milton Friedman used to advise researchers to focus on large policy changes rather than attempting to separate a small change’s signal from the noise. In this sense, the “ambitious” policy agenda of the Biden-Harris administration was expected to be a gift to the research community. Accepting this gift, since 2020 I have been making forecasts…
Biden-Harris policies and their consequences were no surprise to those paying attention
Biden-Harris policies and their consequences were no surprise to those paying attention
30 Oct 2024 Leave a comment
in applied price theory, applied welfare economics, budget deficits, business cycles, econometerics, economic growth, economic history, economics of bureaucracy, economics of regulation, energy economics, entrepreneurship, environmental economics, financial economics, fiscal policy, global warming, health economics, income redistribution, industrial organisation, law and economics, macroeconomics, monetary economics, politics - USA, property rights, Public Choice, public economics, rentseeking Tags: 2024 presidential election, drug lags, taxation and entrepreneurship, taxation and investment
The Shinkansen and Japan’s Lost Decades
30 Oct 2024 Leave a comment
in applied price theory, economic growth, economics of bureaucracy, industrial organisation, macroeconomics, Public Choice, public economics, survivor principle, transport economics, urban economics Tags: Japan
Japan is known for many things, but two of them are the Shinkansen high-speed trains and the nation’s three Lost Decades of slow economic growth. Unfortunately, most tourists who go to Japan see the former and don’t see the latter and especially don’t see the connection between the two. The … Continue reading →
The Shinkansen and Japan’s Lost Decades
Scott Alexander on the Progress Studies conference
25 Oct 2024 Leave a comment
in applied price theory, economic growth, economic history, economics of climate change, economics of regulation, energy economics, entrepreneurship, environmental economics, environmentalism, global warming, liberalism, macroeconomics Tags: creative destruction
Here is one excerpt: Over-regulation was the enemy at many presentations, but this wasn’t a libertarian conference. Everyone agreed that safety, quality, the environment, etc, were important and should be regulated for. They just thought existing regulations were colossally stupid, so much so that they made everything worse including safety, the environment, etc. With enough political will, […]
Scott Alexander on the Progress Studies conference
Reflections on United Arab Emirates
23 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic history, economics of bureaucracy, economics of crime, energy economics, growth miracles, income redistribution, labour economics, labour supply, law and economics, liberalism, libertarianism, property rights, Public Choice Tags: Dubai, economics of immigration
On my way to India, I connected through Abu Dhabi, capital city of the United Arab Emirates (UAE). During my one-day layover, I toured not only Abu Dhabi, but its more famous sister-city, Dubai. Here are my main thoughts.In Dubai, these are not empty words.Per-capita, UAE is the most amazing country I’ve ever seen. With…
Reflections on United Arab Emirates
WSJ Video on Trump-Biden-Trump Tariffs
22 Oct 2024 Leave a comment
in applied price theory, applied welfare economics, economic history, industrial organisation, international economics, politics - USA, survivor principle Tags: 2024 presidential election, tarrifs
TweetI can pick a few nits with this eight-minute-long video from the Wall Street Journal on tariffs – for example, for all of their many problems, tariffs do not (contrary to what’s reported in the video) cause any net, economy-wide loss of jobs. Nevertheless, this video is quite good, not least because it features the…
WSJ Video on Trump-Biden-Trump Tariffs
Incentives matter, the demand curve slopes downward, mental health edition
17 Oct 2024 Leave a comment
in applied price theory, economic history, health economics
Since 2000, pharmaceuticals for common psychiatric conditions aged out of patent protection. After generic entry, supply increases as more sellers enter the market, leading to lower prices – about 80-85% less! Cheaper prescriptions and more treatment are the stated goal of policies to improve affordability. …Drug prices definitely fell during this period. For the SSRI sertraline, consumer cost per month dropped from ~35 dollars in […]
Incentives matter, the demand curve slopes downward, mental health edition
Reflections on India
16 Oct 2024 1 Comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, economics of bureaucracy, growth disasters, growth miracles, history of economic thought, income redistribution, law and economics, macroeconomics, Marxist economics, property rights, Public Choice, public economics, regulation, rentseeking Tags: economics of colonialism, India
I’m back from my first trip to India, where I visited Mumbai, Delhi, Agra, and Amritsar. I enjoyed fine company in all four cities. In Mumbai, my new friend Sachin Aggarwal, head of the local EconTalk Club, rolled out the red carpet — and ACX Mumbai joined the festivities. (Thank you, Scott Alexander, for creating…
Reflections on India
Acemoglu, Johnson and Robinson Win Nobel Prize for Institutions and Prosperity
15 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, economics of bureaucracy, economics of regulation, growth disasters, growth miracles, history of economic thought, income redistribution, macroeconomics, Public Choice, public economics, rentseeking
The Nobel prize goes to Daron Acemoglu, Simon Johnson and James Robinson for their work on institutions, prosperity, and economic growth. Here is a key piece summarizing their work: Institutions as a Fundamental Cause of Long-Run Growth. This paper develops the empirical and theoretical case that differences in economic institutions are the fundamental cause of […]
Acemoglu, Johnson and Robinson Win Nobel Prize for Institutions and Prosperity
A Nobel for Acemoglu, Johnson, and Robinson: Institutions and Prosperity
15 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic history, growth disasters, growth miracles, history of economic thought
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2024 has been awarded to Daron Acemoglu, Simon Johnson and James Robinson “for studies of how institutions are formed and affect prosperity.” Each year, the Nobel Committee helpfully publishes both a “Popular information” overview of of the award and a “Scientific Background” essay that goes into greater depth.…
A Nobel for Acemoglu, Johnson, and Robinson: Institutions and Prosperity
‘Taxpayer Talk’ | Simon Court joins Jordan Williams to talk RMA reform
14 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, economics of bureaucracy, economics of regulation, environmental economics, income redistribution, law and economics, politics - New Zealand, property rights, Public Choice, public economics, rentseeking, resource economics, transport economics, urban economics Tags: zoning
Industrial Policy: The Triumph of Hope over Experience
13 Oct 2024 Leave a comment
in applied price theory, income redistribution, industrial organisation, Public Choice, public economics, rentseeking, survivor principle
Industrial policy is when politicians and bureaucrats use various combinations of tax, spending, and regulatory policies to steer the economy. In other words, they are putting their thumbs on the scale to pick winners and losers. It means replacing the “invisible hand” of the market with the “grabbing hand” of politics. I’m motivated to write […]
Industrial Policy: The Triumph of Hope over Experience
A concern not a catastrophe
12 Oct 2024 Leave a comment
in applied price theory, applied welfare economics, economics of climate change, energy economics, environmental economics, environmentalism, global warming
Bjørn Lomborg brings some much needed reason to counter the emotion in the climate change debate, saying it’s a concern not a catastrophe : Apropos of this, Lomborg writes of climate fictions: Whatever happened to polar bears? They used to be all climate campaigners could talk about, but now they’re essentially absent from headlines. Over […]
A concern not a catastrophe
The Economic Way of Thinking in a Pandemic
12 Oct 2024 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, economics of regulation, health economics Tags: economics of pandemics
During the pandemic, economists often found themselves at odds with politicians, physicians, epidemiologists and others. Some politicians, for example, were worried that the pharma companies might engage in profiteering while economists worried that the pharma companies were not nearly profitable enough. Physicians focused on maximizing the health of patients while economists focused on maximizing the […]
The Economic Way of Thinking in a Pandemic
Socialism in the 21st Century: A Regressive Ideology in Modern Times
10 Oct 2024 1 Comment
in applied price theory, comparative institutional analysis, constitutional political economy, economics of bureaucracy, economics of regulation, income redistribution, law and economics, Marxist economics, property rights, Public Choice, public economics, rentseeking
Socialism, once hailed as a visionary and revolutionary alternative to capitalism, has deep roots in the progressive movements of the 19th and early 20th centuries. Advocating for state control of the means of production and a more equitable distribution of wealth, socialism aimed to correct the injustices of industrial capitalism. However, as we navigate the […]
Socialism in the 21st Century: A Regressive Ideology in Modern Times
Addressing the Housing Crisis
10 Oct 2024 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, income redistribution, law and economics, politics - New Zealand, politics - USA, property rights, Public Choice, rentseeking, urban economics Tags: affordable housing, land supply, regressive left
Japan’s population is roughly equal to the five most-populous states of the U.S. — California, Florida, New York, Pennsylvania, and Texas — concentrated in a nation that has approximately the land area of Montana, which is only about a fourth as large as those five most-populous states. Moreover, well over … Continue reading →
Addressing the Housing Crisis
Utopia, you are standing in it! 
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