Thomas Sowell – Black Lives and Social Policy
08 Dec 2016 Leave a comment
in applied price theory, discrimination, economics of education, human capital, labour economics, minimum wage, occupational choice, poverty and inequality, unemployment Tags: economics of families, racial discrimination, Thomas Sowell
Are We Better Off If We Buy Local?
07 Dec 2016 Leave a comment
in applied price theory, development economics, economic history, industrial organisation, international economics, labour economics Tags: buy local
Don’t Feed Business @TaxpayersUnion @JordNZ
06 Dec 2016 Leave a comment
in applied price theory, comparative institutional analysis, economic history, industrial organisation, Public Choice, rentseeking, survivor principle Tags: industry policy, picking winners
The old and new theories of monopsony have clashing predictions
06 Dec 2016 Leave a comment
in applied price theory, labour economics, minimum wage Tags: job search and matching, monopsony
Robinson’s (1933) theory of monopsony, of employer market power, is about fewness in the number of employers allow them to pay below-market wages. This means a minimum wage will raise wages, employment and, importantly, output. Her’s is a joint hypothesis. Employers will hire more workers and will produce more which means the firm must cut its prices to sell this additional output.
The new theories of monopsony such as in Manning’s Monopsony in Motion: Imperfect Competition in the Labour Market have ambiguous predictions about output and employment because they arise out of how the surplus from job matching is split. They acknowledge the possibility that some firms will close because they cannot afford the higher minimum wage rate.
The old monopoly monopsony theories are vindicated if output rises and prices fall as they must to sell the additional output. The new monopsony theories are vindicated if some firms close but employment does not fall much.
Because the new monopsony theories arise from a specific hypothesis about the labour market that it more difficult for larger employers to recruit, Kuhn (2005) argued that the title “Search Models with Ex-Ante Posted Wages in Motion, while considerably more accurate than Monopsony on Motion, is less catchy”.
Maximizing Profit Under Monopoly
05 Dec 2016 Leave a comment
in applied price theory, entrepreneurship, industrial organisation Tags: creative destruction, monopoly pricing
How to Sabotage Progress
03 Dec 2016 Leave a comment
in applied price theory, Austrian economics, development economics, economic history Tags: anti-market bias, The Great Fact
Why are ideas the new land? | Robert E. Lucas
03 Dec 2016 Leave a comment
in applied price theory, development economics, Robert E. Lucas
Fair Trade: Does It Help Poor Workers? Normative sociology alert
02 Dec 2016 Leave a comment
in applied price theory, development economics, international economics, labour economics, labour supply Tags: fair trade
Deirdre McCloskey on Equality and Greed and How To Be a Very Good Economist
02 Dec 2016 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic history, Marxist economics Tags: Deirdre McCloskey, The Great Enrichment, The Great Fact
Randall Kroszner’s advice for the next president
02 Dec 2016 Leave a comment
in applied price theory, economic growth, entrepreneurship, international economics, macroeconomics, politics - USA, public economics Tags: 2016 presidential election, company tax
Eugene Fama’s advice for the next president
01 Dec 2016 Leave a comment
in applied price theory, constitutional political economy, economics of regulation, entrepreneurship, financial economics Tags: 2016 presidential election, Eugene Fama
Women Working: What’s the Pill Got to Do With It?
01 Dec 2016 Leave a comment
in applied price theory, discrimination, economic history, economics of education, gender, health economics, human capital, labour economics, labour supply, occupational choice Tags: contraception, gender gap, gender wage gap
Thomas Sowell (former Marxist) Dismantles Leftist Ideology
01 Dec 2016 Leave a comment
in applied price theory, comparative institutional analysis, history of economic thought, labour economics, minimum wage Tags: Thomas Sowell
Deirdre McCloskey on the origins of the #minimumwage
01 Dec 2016 Leave a comment
in applied price theory, economic history, history of economic thought, labour economics, minimum wage Tags: Deirdre McCloskey, eugenics, Leftover Left, New Left, Old Left
Source: Liberalism, Neoliberalism, and the Literary Left Interview by W. Stockton and D. Gilson (forthcoming).
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