Matthew E. Kahn on California Voter Support for Low Carbon Policies
18 May 2017 Leave a comment
in applied price theory, energy economics, environmental economics, global warming, politics - USA, Public Choice, public economics, rentseeking Tags: carbon tax, carbon trading, expressive voting, global warming, voter demographics
An introduction to Public Choice with Mike Munger
11 May 2017 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, economics of bureaucracy, income redistribution, Public Choice, rentseeking
The one and only reason for the fall of the Celtic Tiger
11 May 2017 Leave a comment
in fiscal policy, macroeconomics, monetary economics, Public Choice, rentseeking
The Apartment – Seinfeld – rent control
07 May 2017 Leave a comment
in applied price theory, economics of regulation, Public Choice, rentseeking, television, urban economics Tags: rent control, Seinfeld
Johan Norberg – Picking Winners or Losers
06 May 2017 Leave a comment
in applied price theory, economics of bureaucracy, industrial organisation, politics - New Zealand, Public Choice, rentseeking, survivor principle Tags: industry policy, picking winners
Causes of Corruption
29 Apr 2017 Leave a comment
in applied price theory, development economics, economic history, economics of bureaucracy, economics of regulation, growth disasters, Public Choice, rentseeking Tags: bribery and corruption
Trailblazers: The New Zealand Story – Full Video
29 Apr 2017 Leave a comment
in economic history, economics of regulation, industrial organisation, politics - New Zealand, Public Choice, public economics, rentseeking, survivor principle
#GarethMorgan wants sitting tenant laws
28 Apr 2017 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, income redistribution, politics - New Zealand, Public Choice, rentseeking Tags: 2017 New Zealand election, offsetting behaviour, rent control, unintended consequences
Morgan wants to restrict the ability to evict tenants for reasons other than damage to the property and non-payment of rent. This includes not been able to evict a tenant on sale of the property.
We intend to change the regulations around residential tenancy law so leases make it far easier for a tenant to remain in the premises long term…
This will be achieved by restricting the conditions under which a landlord can evict a tenant to those of non-payment of rent or property damage. Sale of a property is not necessarily a legitimate reason for eviction. Tenants will be able to give 90 days notice.
That policy will make winding up of estates difficult. Houses will be have to be left vacant rather than rented while affairs are put in order. That is to name one of many flaws in a policy announced by a party that prioritises being different over been useful and right.
Source: RENTING Werner Z. Hirsch at encyclopedia of law and economics.
Australian global warming policies are well near optimal
24 Apr 2017 Leave a comment
in applied price theory, applied welfare economics, energy economics, environmental economics, global warming, politics - Australia, Public Choice, rentseeking Tags: climate alarmism, global warming
The UN Climate Panel Report found that the cost of not doing something is less than 2% of GDP in about 2070. The cost of doing something will likely be higher than 6% of GDP.
Making trouble again for @stevenljoyce for @TaxpayersUnion
21 Apr 2017 Leave a comment
in applied price theory, applied welfare economics, industrial organisation, international economics, politics - New Zealand, Public Choice, rentseeking, survivor principle Tags: picking winners
The Dutch disease for the benefit of #GarethMorgan @stevenljoyce
18 Apr 2017 1 Comment
in applied price theory, applied welfare economics, economic history, industrial organisation, international economics, politics - New Zealand, Public Choice, rentseeking, survivor principle Tags: Dutch disease, export subsidies, picking winners
I am putting in a Official Information Act request to see if anyone advise ministers that a export promotion target results in a matching increase in imports along with a large appreciation in the New Zealand dollar. Did New Zealand dodge the Dutch disease from this foolhardy export promotion policy? The Dutch Disease story is one of sectoral shifts.
In the 1960s, with fixed exchange rates under the Bretton Woods system, the Netherlands discovered off-shore natural gas. As natural gas was extracted, it increased domestic income and spending. Investment was redirected toward the natural gas sector. Dutch wages and prices began to rise gradually. The Dutch guilder became overvalued in real terms, their industrial products became uncompetitive, and the manufacturing sector shrunk. This phenomenon of de-industrialization in the presence of rich natural resources was called the Dutch disease. They got natural gas but lost manufacturing.
In the late 1970s and early 80s, the UK experienced similar de-industrialization under a floating exchange rate regime. They discovered and exploited the North Sea oil fields. Since the global oil price was rising, the UK was expected to earn a great amount of foreign exchange in the future. But even before these earnings were realized, the British pound appreciated suddenly in both nominal and real terms. This damaged the British manufacturing sector.
Source: MF model – float
If there is an increasing demand for New Zealand exports if the Business Growth Agenda target of increasing New Zealand exports was successful, there is an increase in demand for New Zealand dollars to pay for these exports. This will result in an appreciation of the New Zealand dollar making imports cheaper. This will switch demand for New Zealand competing industries to these imports.
This process of currency appreciation and expenditure switching will continue until export match exports again. There is nothing wrong with an export boom as long as it is based on comparative advantage rather than subsidies.
Here Comes Supersonic Flight: The Rebirth of a Former White Elephant
14 Apr 2017 Leave a comment
in applied price theory, economic history, industrial organisation, politics - USA, rentseeking, survivor principle, transport economics Tags: corporate welfare, picking winners
Corruption, Rent Seeking and Multiple Equilibria
19 Mar 2017 Leave a comment
in applied price theory, constitutional political economy, development economics, economics of bureaucracy, growth disasters, growth miracles, income redistribution, law and economics, Public Choice, rentseeking Tags: The Great Escape
Utopia, you are standing in it! 
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