More on the scourge of neoliberalism
18 Nov 2016 Leave a comment
in economic history, politics - USA, poverty and inequality, welfare reform
How did the industrial revolution impact family planning? | Robert E. Lucas
17 Nov 2016 Leave a comment
in applied welfare economics, development economics, economic history, history of economic thought, labour economics, macroeconomics, Robert E. Lucas Tags: economics of fertility, industrial revolution
The key role of housing costs in disaster recovery @ericcrampton @JordNZ #nzeq
16 Nov 2016 Leave a comment
in applied price theory, economic history, economics of natural disasters, economics of regulation, politics - New Zealand, politics - USA, urban economics Tags: land supply, land use planning, NYMBYs, RMA, zoning
The evidence abroad after earthquakes, hurricanes, flooding, tornados, and wartime bombing is that for growing cities, disasters, including carpet bombing and atomic bombs, are only temporary set-backs with few long-run economic and population consequences. A few years after a disaster, these cities even recover the industries they had before their calamities.
For growing cites, the loss of housing and other destruction does not affect the underlying demand from workers and businesses to be at the location. Florida has prospered despite over twenty hurricanes striking since 1988 and five of the six most damaging Atlantic hurricanes of all time striking since 1988.
Cities that are already in decline drop down onto an even faster downward population and economic trend after a major natural disaster. A large scale destruction of housing takes away the one compensating feature of these declining cities, which was cheap housing.
Housing prices in declining cities are usually well below construction costs. Low living costs partly offset the relative lack of local economic opportunity in these cities. New Orleans is an example of a declining city that did not recover fully from a disaster for this reason.
After Hurricane Katrina, New Orleans had much higher costs of housing because of flood damage but there were limited local economic opportunities to attract back old and new residents. About 20 per cent of the Katrina evacuees did not return.
Natural disasters be they earthquakes or hurricanes turn declining cities and towns from a dump with cheap housing to a dump with expensive housing. They can be a killer blow.
The main policy enabler of growing cities in the USA has been the avoidance of land use regulations that raise housing costs. Over the past 20 years, the fastest growing U.S. regions have not been those with the highest income or most attractive climates.
Flexible housing supply is the key determinant of regional growth. Land use regulations drive housing supply and determine which regions are growing. A regional approach to enabling increases in land and housing supply might reduce the tendency of many localities to block new construction.
Premio Bruno Leoni 2016 Deirdre McCloskey
16 Nov 2016 Leave a comment
in development economics, economic history, history of economic thought Tags: The Great Enrichment, The Great Fact
Rise and Fall of the British Empire: Every year
12 Nov 2016 Leave a comment
in economic history Tags: British empire
The American Civil War: Every Day
11 Nov 2016 Leave a comment
in economic history Tags: American Civil War
1988 East German Map Which Shows West Berlin
10 Nov 2016 Leave a comment
in economic history, economics of media and culture Tags: Berlin, Berlin wall, East Germany, fall of communism, Germany, West Germany
Eugene Fama Why Small Caps and Value Stocks Outperform
09 Nov 2016 Leave a comment
in applied price theory, economic history, entrepreneurship, financial economics Tags: efficient market hypothesis, Eugene Fama
Utopia, you are standing in it! 
Recent Comments