The case is straightforward: Google pays firms like Apple billions of dollars to make its search engine the default. (N.B. I would rephrase this as Apple charges Google billions of dollars to make its search engine the default–a phrasing which matters if you want to understand what is really going on. But set that aside […]
Some Simple Economics of the Google Antitrust Case
Some Simple Economics of the Google Antitrust Case
17 Dec 2024 1 Comment
in applied price theory, economics of information, entrepreneurship, industrial organisation, law and economics, politics - USA, Public Choice, survivor principle, theory of the firm Tags: competition law
Call in the Bailiffs: How the NZ Government’s Green Investment Fund Turned Itself Into an Unpleasant Predatory Lender and Debt Collection Agency.
16 Dec 2024 1 Comment
in applied price theory, comparative institutional analysis, energy economics, entrepreneurship, environmental economics, law and economics, politics - New Zealand, property rights Tags: solar power
The just resigned Chair of the NZ Green Investment Fund (NZGIF) and Chancellor of Auckland University, Cecilia Tarrant, previously worked at Morgan Stanley Bank in New York, starting in 1997 and finishing in 2009. She’s a very nice person, a lawyer by training, and Structured Products expert, in particular on Mortgage Backed Securities. The collapse of…
Call in the Bailiffs: How the NZ Government’s Green Investment Fund Turned Itself Into an Unpleasant Predatory Lender and Debt Collection Agency.
Health insurance companies are not the main villain
16 Dec 2024 1 Comment
in applied price theory, health economics, industrial organisation, survivor principle Tags: health insurance
First of all, insurance companies just don’t make that much profit. UnitedHealth Group, the company of which Brian Thompson’s UnitedHealthcare is a subsidiary, is the most valuable private health insurer in the country in terms of market capitalization, and the one with the largest market share. Its net profit margin is just 6.11%… That’s only about half of […]
Health insurance companies are not the main villain
New Study: Achieving A ‘Net Zero’ Emissions Policy Would Have A ‘Negligible’ 0.28°C Climate Effect
14 Dec 2024 1 Comment
in applied price theory, applied welfare economics, development economics, economics of climate change, energy economics, environmental economics, environmentalism, global warming, growth miracles, politics - Australia, politics - New Zealand, politics - USA
Cost-benefit analyses affirm it would be better to abandon Net Zero policy initiatives and instead “do nothing” about greenhouse gas emissions. New research finds CO2’s largest possible climate impact is “negligible.” The cumulative expected temperature change in doubling CO2 from 400 to 800 ppm is only 0.81°C at most, and this is “certainly not cause…
New Study: Achieving A ‘Net Zero’ Emissions Policy Would Have A ‘Negligible’ 0.28°C Climate Effect
The Nobel Prize lectures in economics
12 Dec 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economics of crime, economics of regulation, growth disasters, growth miracles, history of economic thought, law and economics, property rights, Public Choice
More on Business Dynamism
11 Dec 2024 Leave a comment
in applied price theory, economic history, economics of bureaucracy, economics of regulation, entrepreneurship, financial economics, income redistribution, industrial organisation, labour economics, labour supply, managerial economics, organisational economics, personnel economics, Public Choice, rentseeking, survivor principle, theory of the firm Tags: creative destruction, employment law
Over at the Geek Way, Andrew McAfee has created a startling visualization related to entrepreneurship in the US and EU. The Draghi Report on EU competitiveness is generating a small buzz among economists. One startling claim is thatthere is no EU company with a market capitalisation over EUR 100 billion that has been set up…
More on Business Dynamism
o1 explains why you should not dismiss Fischer Black on money and prices
08 Dec 2024 Leave a comment
in applied price theory, business cycles, economic growth, financial economics, fiscal policy, history of economic thought, macroeconomics, monetarism, monetary economics Tags: monetary policy
The prediction of inflation dynamics—how prices change over time—has increasingly confounded modern macroeconomists. Throughout much of the twentieth century, there seemed to be clear relationships linking the money supply, economic slack, and price levels. Monetarism, the school of thought that posits a stable connection between the growth rate of a money aggregate and the subsequent […]
o1 explains why you should not dismiss Fischer Black on money and prices
How is the Russian war economy doing?
08 Dec 2024 1 Comment
in applied price theory, defence economics, development economics, economic growth, economics of regulation, entrepreneurship, fiscal policy, growth disasters, income redistribution, industrial organisation, international economics, law and economics, macroeconomics, monetary economics, property rights, Public Choice, war and peace Tags: Russia, Ukraine
Here is a gloomy account from Vladimir Mirov: Ruble depreciation will contribute to inflation even further, as Russia is continued to be heavily reliant on imports – this is a kind of self-sustaining spiral. I also strongly disagree with those who say that cheaper ruble is “good” for exporters and the budget. Exporters have yet […]
How is the Russian war economy doing?
Why are no trillion dollar companies being created in Europe?
07 Dec 2024 1 Comment
in applied price theory, comparative institutional analysis, economics of regulation, entrepreneurship, human capital, industrial organisation, labour economics, labour supply, law and economics, occupational choice, poverty and inequality Tags: employment law
That is the theme of a new Substack by Pieter Garicano, here is one excerpt: These answers, according to a recent paper by Olivier Coste and Yann Coatanlem, two French investors, miss the point: the reason more capital doesn’t flow towards high-leverage ideas in Europe is because the price of failure is too high. Coste estimates that, […]
Why are no trillion dollar companies being created in Europe?
Why are no trillion dollar companies being created in Europe?
07 Dec 2024 Leave a comment
in applied price theory, economics of regulation, entrepreneurship, industrial organisation, labour economics, law and economics, property rights
That is the theme of a new Substack by Pieter Garicano, here is one excerpt: These answers, according to a recent paper by Olivier Coste and Yann Coatanlem, two French investors, miss the point: the reason more capital doesn’t flow towards high-leverage ideas in Europe is because the price of failure is too high. Coste estimates that, […]
Why are no trillion dollar companies being created in Europe?
The Kiwirail black hole
06 Dec 2024 Leave a comment
in applied price theory, economics of bureaucracy, financial economics, industrial organisation, law and economics, politics - New Zealand, Public Choice, survivor principle
Bronwyn Howell writes: KiwiRail is a state-owned enterprise, and so by law its principal objective is “to operate as a successful business”.1 Success in the business world means that you provide something that your customers are willing to pay for, at a price for that exceeds your cost of production, leaving something to reward your owners/investors…
The Kiwirail black hole
The end of oil?
05 Dec 2024 Leave a comment
in applied price theory, econometerics, economics of climate change, energy economics, environmental economics, environmentalism, global warming, law and economics, politics - USA, property rights, Public Choice, rentseeking, resource economics Tags: peak oil
It is now plausible to envision scenarios in which global demand for crude oil falls to essentially zero by the end of this century, driven by improvements in clean energy technologies, adoption of stringent climate policies, or both. This paper asks what such a demand decline, when anticipated, might mean for global oil supply. One […]
The end of oil?
The Missing Myths
04 Dec 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, discrimination, economic history, economics of climate change, economics of information, economics of media and culture, economics of regulation, energy economics, entrepreneurship, environmental economics, environmentalism, financial economics, gender, global warming, health economics, human capital, income redistribution, labour economics, labour supply, law and economics, liberalism, libertarianism, Marxist economics, occupational choice, politics - USA, poverty and inequality, property rights, Public Choice, rentseeking Tags: Age of Enlightenment, crime and punishment, criminal deterrence, free speech, gender wage gap, law and order, political correctness, racial discrimination, regressive left, sex discrimination
Michael Huemer’s Progressive Myths is the best book on wokeness. One of its many strengths is its focus on basic facts. As the author explains:I have selected beliefs that can be debunked fairly quickly and forcefully. Many other progressive beliefs require long argumentation and subjective judgment calls to assess. About these more difficult issues, I…
The Missing Myths
Paul Krugman Is Right…albeit Selectively and Hypocritically
04 Dec 2024 Leave a comment
in applied price theory, comparative institutional analysis, economic history, economics of bureaucracy, economics of regulation, entrepreneurship, income redistribution, industrial organisation, international economics, law and economics, politics - USA, property rights, Public Choice, public economics, rentseeking Tags: tarrifs
I like profits. But let me qualify that statement. I like profits that are the result of businesses providing goods and services that consumers value. Those profits are earned. By contrast, I don’t like it when businesses get in bed with government and get money via cronyism, bailouts, subsidies, protectionism, or industrial policy. Those profits […]
Paul Krugman Is Right…albeit Selectively and Hypocritically
Sabotaging productivity
03 Dec 2024 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, health economics, law and economics, politics - New Zealand, property rights, Public Choice, rentseeking, urban economics Tags: land supply, nanny state, zoning
Is there any better – or should that be worse? – example of how the consenting process sabotages productivity than the current hearings on McDonalds’ application to open in Wanaka? Public submissions were sought, and of the 366 made, 339 were opposed, 21 in support and six wanted changes to the plan. Among the submissions […]
Sabotaging productivity
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