We estimate the causal impacts of GLP-1 treatment on labor market outcomes using linked Danish administrative data and a matched stacked difference-in-differences design. We compare patients who initiate GLP-1 treatment during the first two years of Semaglutide availability to observably similar patients who initiate four years later. We find that GLP-1 treatment reduces long-term sickness…
The economic effects of GLP-1s
The economic effects of GLP-1s
30 Jul 2026 Leave a comment
in applied price theory, entrepreneurship, industrial organisation, labour economics, labour supply, survivor principle
Hazlitt on Marx
29 Jul 2026 Leave a comment
in applied price theory, liberalism, libertarianism, Marxist economics
The Apples and Oranges Tribunal
28 Jul 2026 Leave a comment
in applied price theory, discrimination, economics of education, economics of regulation, gender, labour economics, labour supply, law and economics, liberalism, Marxist economics, poverty and inequality, property rights Tags: gender wage gap, sex discrimination
Suppose that apples sell for more than oranges and Parliament in it’s wisdom decides that, at last, apples and oranges must be compared. Not by shoppers — shoppers are biased, they merely reveal what they are willing to pay — but by a tribunal, which will determine whether apples and oranges are of truly equal…
The Apples and Oranges Tribunal
Occupational Licensing: US and International
25 Jul 2026 Leave a comment
in applied price theory, economics of information, economics of regulation, human capital, income redistribution, labour economics, labour supply, occupational choice, occupational regulation, politics - USA, Public Choice, rentseeking
The potential benefit of having the government require that certain jobs require an official license is quality control and protection. Personally, I rather like knowing that my nurse or doctor or dentist has gone through courses and training. The potential cost is that requirement to have a government license can become a way for those…
Occupational Licensing: US and International
Cataloging Growth: A Re-Evaluation of 1900–1990
25 Jul 2026 Leave a comment
in applied price theory, economic growth, economic history, entrepreneurship, macroeconomics
From Verónica Bäcker-Peral and Benjamin Wittenbrink of MIT: Measuring real GDP growth requires distinguishing changes in prices from changes in product quality and composition, yet systematic quality adjustment of price indexes is unavailable for much of the twentieth century. We construct a new quality-adjusted price index for U.S. consumer goods using 5.1 million product listings…
Cataloging Growth: A Re-Evaluation of 1900–1990
The Case Against a Universal Basic Income
23 Jul 2026 1 Comment
in applied price theory, fiscal policy, income redistribution, labour economics, labour supply, macroeconomics, politics - New Zealand, poverty and inequality, Public Choice, welfare reform
A Universal Basic Income, or UBI, is a superficially attractive idea. Under such a scheme, every adult would receive a regular payment from the government, regardless of income, employment or need. Supporters argue that it would reduce poverty, simplify welfare, provide security in an uncertain labour market and give people greater freedom to choose how […]
The Case Against a Universal Basic Income
“Start Spreadin’ the News”: New York Losing Billions as Millionaires Flee the Big Apple
23 Jul 2026 Leave a comment
in applied price theory, economic growth, fiscal policy, macroeconomics
Below is my column in the New York Post on the sharp decline in millionaires in New York, costing the…
“Start Spreadin’ the News”: New York Losing Billions as Millionaires Flee the Big Apple
Pronatal policies
21 Jul 2026 Leave a comment
in applied price theory, labour economics, labour supply, population economics Tags: economics of fertility
The Institute for Family Studies puts up a pro-natal proposal that I’d not seen before.Most of the literature I’ve seen on baby bonuses suggests that the amount on offer would have to be hefty to have substantive effects. This version could harness a bit of loss aversion:President Trump launched a small savings account seeded with…
Pronatal policies
Fixing Argentina’s Punitive Tax System
20 Jul 2026 1 Comment
in applied price theory, Austrian economics, development economics, economic growth, economic history, fiscal policy, growth disasters, macroeconomics Tags: Argentina
Almost exactly one year ago, the Center for Freedom and Prosperity released this short video as part of a series on the additional reforms Javier Milei should implement to maximize Argentinian prosperity. Let’s take a closer look at the country’s tax policy, and I’ll start today’s column with an analogy. When Milei took office, Argentina […]
Fixing Argentina’s Punitive Tax System
Is Progress Sustainable? Mokyr’s Nobel Lecture
18 Jul 2026 1 Comment
in applied price theory, development economics, economic growth, economic history, entrepreneurship, history of economic thought, macroeconomics
“Progress” is a word that often generates both a lot of positive vibes, and also a lot of pushback? Progress toward what? At what cost? So it’s perhaps useful to specify that when I refer to “progress,” I’m referring to an overall movement toward good things of life: in no particular order, longer and healthier…
Is Progress Sustainable? Mokyr’s Nobel Lecture
Some Links
17 Jul 2026 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, history of economic thought, industrial organisation
TweetMarian Tupy disabuses American socialists of their economically ignorant belief that successful entrepreneurs steal their wealth from workers and consumers. Two slices: Early economists, such as James Mill and David Ricardo, theorized that the physical labor exerted to create a good is the real measure of its value. Karl Marx took the concept to its…
Some Links
The Equal Pay Madness Just Got Madder
17 Jul 2026 1 Comment
in applied price theory, discrimination, economics of regulation, gender, human capital, labour economics, labour supply, occupational choice Tags: gender wage gap
In my post Equality Act 2010 I discussed the UK’s absolutely insane wage policy: In short, supply and demand have been replaced by judges and labor boards with the authority to deem which jobs are “equal” and therefore should be paid equally….No one is alleging that male and female warehouse workers were paid unequally or…
The Equal Pay Madness Just Got Madder
Does Costco Follow The Efficiency Wage Theory?
13 Jul 2026 1 Comment
in applied price theory, entrepreneurship, industrial organisation, labour economics, labour supply, managerial economics, organisational economics, personnel economics
See He Earns $33 an Hour as a Costco Cashier, Now He’s a Millionaire: Long-tenured workers like cashier Tony Barzar are reliable, experienced and able to speed shoppers through a checkout line-Costco is willing to pay to keep them around by Sarah Nassauer of The WSJ. I explain The Efficiency Wage Theory below after article excerpts:”Costco has…
Does Costco Follow The Efficiency Wage Theory?
The Supply And Demand Game
12 Jul 2026 Leave a comment
in applied price theory, economics of information, history of economic thought Tags: experimental economics
I played it in each class I taught. A former colleague taught it to me many years ago. As far as I know, I use the game invented by Edward Chamberlin and refined by Vernon Smith. Click here to see the Lessons From the Supply and Demand Game. Or just read it all here. Part…
The Supply And Demand Game
Capital Gains Can Be Labor Income
10 Jul 2026 Leave a comment
in applied price theory, fiscal policy, macroeconomics, Public Choice, public economics Tags: taxation and entrepreneurship, taxation and investment, top 1%
Zwick and Zidar argue that a substantial share of the decline in labor share can be accounted for by changing forms of pay, including pass-throughs and equtiy compensation. In particular, if an employee is paid in stock and that stock increases in value then the tax rules tend to count some of that as capital…
Capital Gains Can Be Labor Income
Recent Comments