HT: http://www.vox.com/2014/5/19/5727712/the-three-deadliest-drugs-in-america-are-all-totally-legal
The 3 deadliest drugs in America are all totally legal – Vox
30 Jan 2015 1 Comment
in applied welfare economics, economics of regulation, health economics Tags: marijuana decriminalisation
Robert D. Tollison on the main positive contribution of economists to public policy
30 Jan 2015 Leave a comment

I, Smartphone
28 Jan 2015 Leave a comment
in applied price theory, applied welfare economics, economics of media and culture, industrial organisation, survivor principle Tags: IPencil, Iphone
Based on Leonard Read’s famous essay “I, Pencil,” this short video beautifully illustrates the vast complexity that we carry in our pockets.
No one person could ever make a smartphone. It required the spontaneous cooperation of millions across all countries. The world could never be reinvented by a single mind, but rather requires the coordination of plans made possible only through private property and the price system.
HT: http://tucker.liberty.me/2015/01/27/15-great-lessons-on-commerce-and-entrepreneurship/#.VMfl-ZUvGGA.facebook
Postwar vs. New Gilded Age: How did the middle class do?
28 Jan 2015 Leave a comment
in applied welfare economics, economic growth, income redistribution, politics - USA, poverty and inequality Tags: middle class stagnation
Thanks to capitalism the world’s poor are getting richer
26 Jan 2015 Leave a comment
in applied welfare economics, development economics, growth disasters, growth miracles Tags: The Great Fact
Robert Lucas interview in Brazil, 2nd November 2012
24 Jan 2015 Leave a comment
in applied welfare economics, business cycles, comparative institutional analysis, development economics, economic growth, global financial crisis (GFC), great recession, growth disasters, growth miracles, inflation targeting, macroeconomics, monetarism, Robert E. Lucas Tags: Robert E. Lucas
Hsieh and Moretti on Allocations across Cities
23 Jan 2015 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, geography, law and economics, politics - New Zealand, politics - USA, rentseeking, urban economics Tags: agglomeration, green rent seeking, land supply, zoning
the implied cost of housing restrictions across the whole U.S., and Chang and Enrico find that aggregate output is lower by about 10-14% because of them.
Last post on the NBER growth session. Chang-Tai Hsieh (Chicago) and Enrico Moretti (Berkeley) presented a paper on wage dispersion across cities in the U.S. Wage dispersion (New Yorkers earn more than people in Cleveland) either represents compensation for living costs (housing in New York is more expensive than in Cleveland), a real difference in productivity (New Yorkers are more productive than Clevelanders), or some combination of the two.
What Chang and Enrico find is that the increase in wage dispersion across cities in the U.S. over the last thirty-ish years is due almost entirely to rising house prices in six cities: NY, DC, Boston, San Fran, San Jose, and Seattle. Wages have gone up rapidly in those cities, but that is basically just compensating their citizens for the higher costs of living.
Now, given the costs of living, the allocation of population across cities in the U.S. is…
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Robert Lucas on the defining belief of the Left over Left and the Greens
23 Jan 2015 Leave a comment

Voter profiles – utilitarian/instrumental, swinging and expressive | Alex White
23 Jan 2015 Leave a comment
in applied welfare economics, Public Choice Tags: expressive voting, rational ignorance, rational irrationality, voter demographics
I just came across this great blog by Alex White on the three types of voters: utilitarian/instrumental, swinging and expressive. His diagrammatic expressions of them are superb. Most enlightening.

His first diagram above shows three consumer types of engagement with a brand: utilitarian, low involvement and expressive.
- Utilitarian decision making is one that is typically high involvement, but are partly price sensitive;
- Low involvement buyers do not spend a lot of time researching the features of the product or service, beyond a cursory glance; and
- Expressive consumers are ones who make in depth purchases where there is a high engagement. Their decision to purchase precedes research. The research itself serves to rationalise the purchase decision. Often, they will feel a relationship with the brand and identify with the brand’s values.
White then overlaps these brand engagement profiles on voter profiles in the next diagram made up of utilitarian/instrumental, swinging and expressive and then fleshes out these voter types depending on whether they are rusted or swinging.

- The rusted-on utilitarian voter votes on a specific issue and are loyal to the party that represents the best fit with that issue. For example, the Greens and forestry, or Labor and education. So long as they view the party as best fitting or addressing their issue, they’ll vote for that party.
- A swinging utilitarian voter listens to announcements during campaigns, and tries to make a decision based on what is best for them. These swinging voters are susceptible to the pork barrel promises. Utilitarian voters are sensitive to their expectations being met.
- The swinging low engagement voter has no party familiarity, no interest in politics, and do not do any assessment of party policies; they make up their mind based on availability of the party on Election Day (so the presence of people handing out how-to-votes is important). They see no difference between parties; they are completely switchable, so there is no brand loyalty. A low involvement voter is really looking at the absence of negatives.
- The rusted on expressive voter votes to convey their values or beliefs, and often strongly identify with the party, or with a party leader. They are partisans who seek out research or information to justify their support for that party. The have a strong emotional connection to the party, or they may be ideologues and identify with a political philosophy rather than the party.
- The swinging expressive voter is an ideologue whose voting decision is based on their political ideology. For example, strong environmentalists who support the Greens Party because of their commitment to conservation rather than to the Party itself. The swinging expressive voter may change their vote if they feel a party ceases to represent their value set or beliefs. The expressive voter expectations align with their values or ideology. Their relationship to the party can be very committed, but also very critical. They may tolerate or forgive lapses on policy areas outside the voter’s core values — and they can be passionate advocates.
Alex White has set out a great topology of voters, and how a political party or lobby group should appeal to different types of voters based on their engagement and information needs. White is secretary of UnionsACT, the peak body for 33 unionists Unions in Canberra.
Organic yield gap shrinking? Study actually shows it’s less sustainable than conventional agriculture
22 Jan 2015 Leave a comment
in applied price theory, applied welfare economics, health economics, industrial organisation, survivor principle Tags: activists, Anti-Science left, food snobs, Leftover Left, organic farming, Quacks
Global Warming Was Worth It
22 Jan 2015 Leave a comment
in applied welfare economics, climate change, development economics, growth disasters, growth miracles, liberalism Tags: modernity, The Great Enrichment, The Great Fact

- Higher incomes that allow people to make livings that afford them more than merely survival or avoiding starvation.
- A low poverty rate.
- High quality and diversity of employment opportunities. Rather than the choice of being a farmer or being a blacksmith, the average citizen should have an array of careers to choose from, and the ability to be industrious and take risks for profit.
- The availability of housing. On an average night in the United States, a country with a population of somewhere around 350 million, fewer than one million people are homeless.
- Consistent GDP growth.
- Access to quality health care.
- The availability of quality education. (I suppose we could quibble over the word “quality,” but certainly there is widespread free education availability.)
- High life expectancy. Worldwide life expectancy has more than doubled from 1750 to 2007.
- Low frequency of deadly disease.
- Affordable goods and services.
- Infrastructure that bolsters economic growth.
- Political stability.
- Air conditioning.
- Freedom from slavery, torture and discrimination.
- Freedom of movement, religion and thought.
- The presumption of innocence under the law.
- Equality under the law regardless of gender or race.
- The right to have a family – as large as one can support. Maybe even larger.
- The right to enjoy the fruits of labor without government – or anyone else – stealing it.
We are the 1%: You need $34k income to be in the global elite… and half the world’s richest live in the U.S. | Daily Mail Online
22 Jan 2015 Leave a comment
in applied welfare economics Tags: Leftover Left, Oxfam, top 1%
The top one per cent comprises anyone with an income over $34,000 after tax, meaning a family of four must earn $136,000 to make it in the category, according to CNN.
One quarter of the group’s members live in Europe, with 4million in Germany and 3million in each of the UK, France and Italy. Other countries with large numbers of ‘the 1%’ include Canada, Japan and Brazil.

I didn’t know that we were in the top 1%. They are yet to update the mailing list of the ruling class to include us in any of the Wellington-based meetings to decide the direction of capitalism and the next steps in the immiseration of the proletariat.





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