Japan is known for many things, but two of them are the Shinkansen high-speed trains and the nation’s three Lost Decades of slow economic growth. Unfortunately, most tourists who go to Japan see the former and don’t see the latter and especially don’t see the connection between the two. The … Continue reading →
The Shinkansen and Japan’s Lost Decades
The Shinkansen and Japan’s Lost Decades
30 Oct 2024 Leave a comment
in applied price theory, economic growth, economics of bureaucracy, industrial organisation, macroeconomics, Public Choice, public economics, survivor principle, transport economics, urban economics Tags: Japan
Reflections on India
16 Oct 2024 1 Comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, economics of bureaucracy, growth disasters, growth miracles, history of economic thought, income redistribution, law and economics, macroeconomics, Marxist economics, property rights, Public Choice, public economics, regulation, rentseeking Tags: economics of colonialism, India
I’m back from my first trip to India, where I visited Mumbai, Delhi, Agra, and Amritsar. I enjoyed fine company in all four cities. In Mumbai, my new friend Sachin Aggarwal, head of the local EconTalk Club, rolled out the red carpet — and ACX Mumbai joined the festivities. (Thank you, Scott Alexander, for creating…
Reflections on India
Acemoglu, Johnson and Robinson Win Nobel Prize for Institutions and Prosperity
15 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, economics of bureaucracy, economics of regulation, growth disasters, growth miracles, history of economic thought, income redistribution, macroeconomics, Public Choice, public economics, rentseeking
The Nobel prize goes to Daron Acemoglu, Simon Johnson and James Robinson for their work on institutions, prosperity, and economic growth. Here is a key piece summarizing their work: Institutions as a Fundamental Cause of Long-Run Growth. This paper develops the empirical and theoretical case that differences in economic institutions are the fundamental cause of […]
Acemoglu, Johnson and Robinson Win Nobel Prize for Institutions and Prosperity
‘Taxpayer Talk’ | Simon Court joins Jordan Williams to talk RMA reform
14 Oct 2024 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, economics of bureaucracy, economics of regulation, environmental economics, income redistribution, law and economics, politics - New Zealand, property rights, Public Choice, public economics, rentseeking, resource economics, transport economics, urban economics Tags: zoning
Industrial Policy: The Triumph of Hope over Experience
13 Oct 2024 Leave a comment
in applied price theory, income redistribution, industrial organisation, Public Choice, public economics, rentseeking, survivor principle
Industrial policy is when politicians and bureaucrats use various combinations of tax, spending, and regulatory policies to steer the economy. In other words, they are putting their thumbs on the scale to pick winners and losers. It means replacing the “invisible hand” of the market with the “grabbing hand” of politics. I’m motivated to write […]
Industrial Policy: The Triumph of Hope over Experience
Socialism in the 21st Century: A Regressive Ideology in Modern Times
10 Oct 2024 1 Comment
in applied price theory, comparative institutional analysis, constitutional political economy, economics of bureaucracy, economics of regulation, income redistribution, law and economics, Marxist economics, property rights, Public Choice, public economics, rentseeking
Socialism, once hailed as a visionary and revolutionary alternative to capitalism, has deep roots in the progressive movements of the 19th and early 20th centuries. Advocating for state control of the means of production and a more equitable distribution of wealth, socialism aimed to correct the injustices of industrial capitalism. However, as we navigate the […]
Socialism in the 21st Century: A Regressive Ideology in Modern Times
The NZ Treasury’s Lack of Imagination Threatens our Future. It has no faith in Economic Magic (Einstein did).
07 Oct 2024 Leave a comment
in applied price theory, health economics, labour economics, labour supply, poverty and inequality, public economics, welfare reform Tags: retirement savings
Our Treasury is at it again. Telling Kiwis a bleak future awaits them, especially in retirement. Its latest report about how NZ Demographic Change will affect the Country’s Finances is enough make the PM’s eyes glaze over, Finance Minister Willis fall asleep, NZ First leader Peters to press Delete on his laptop & everyone else…
The NZ Treasury’s Lack of Imagination Threatens our Future. It has no faith in Economic Magic (Einstein did).
Enhancing democracy – the case for a second chamber in New Zealand’s Parliament
04 Oct 2024 Leave a comment
in comparative institutional analysis, constitutional political economy, politics - New Zealand, Public Choice, public economics
New Zealand did once have an upper house known as the Legislative Council. Is there are argument that it should be re-introduced? Philip Crump writes – New Zealand’s parliamentary system has long been admired for its democratic principles and progressive governance although it has increasingly come under strain and criticism over recent years. In […]
Enhancing democracy – the case for a second chamber in New Zealand’s Parliament
Another zero lower bound prediction bites the dust
28 Sep 2024 Leave a comment
in applied price theory, budget deficits, business cycles, economic growth, fiscal policy, history of economic thought, labour economics, macroeconomics, monetary economics, public economics, unemployment Tags: New Keynesian macroeconomics
Popular New Keynesian macroeconomic models predict that cuts in various types of distortionary taxes are contractionary when monetary policy is constrained at the zero lower bound. We turn to a long span of history in the United Kingdom to test this hypothesis. Using a new long-run dataset of narrative-identified tax changes from 1918to 2020, we […]
Another zero lower bound prediction bites the dust
Debunking Hate-and-Envy Tax Policy
27 Sep 2024 Leave a comment
in applied price theory, economic growth, economic history, entrepreneurship, financial economics, fiscal policy, health and safety, income redistribution, labour economics, labour supply, law and economics, macroeconomics, occupational choice, politics - USA, poverty and inequality, property rights, Public Choice, public economics Tags: envy, regressive left, taxation and entrepreneurship, taxation and investment
On tax policy, our friends on the left are motivated by envy and hatred. As shown in this Stossel video, Robert Reich is a sad example of this mindset. John Stossel understates his argument. It’s not that Reich is wrong. He’s wildly wrong. There are four points in the video that deserve attention. It is […]
Debunking Hate-and-Envy Tax Policy
The high cost of free insurance
24 Sep 2024 Leave a comment
in applied price theory, economics of bureaucracy, economics of information, economics of regulation, environmental economics, politics - New Zealand, Public Choice, public economics, urban economics Tags: unintended consequences
Eric Crampton writes – Government sometimes cannot stop itself from providing bailouts when risk-taking goes wrong. This kind of ‘free’ insurance policy leads to no end of bad outcomes.
The high cost of free insurance
Tax-Motivated International Migration
18 Sep 2024 Leave a comment
in applied price theory, entrepreneurship, labour economics, labour supply, poverty and inequality, public economics Tags: taxation and entrepreneurship, taxation and investment, taxation and labour supply
I wrote a few days ago about how Americans are moving from high-tax states to lower-tax states (mostly to states with no income taxes or flat taxes). Today, let’s look at international tax migration. I’ve addressed this issue before, but generally in the context of individual countries that are attracting or repelling entrepreneurs, investors, business […]
Tax-Motivated International Migration
The Economic Consequences of the French Wealth Tax
17 Sep 2024 Leave a comment
in applied price theory, econometerics, economic history, entrepreneurship, fiscal policy, human capital, income redistribution, labour economics, labour supply, macroeconomics, occupational choice, poverty and inequality, Public Choice, public economics Tags: taxation and entrepreneurship, taxation and investment, taxation and labour supply
By Eric Pichet, here is the abstract: Despite attempts to ‘unwind’ the Impôt de Solidarité sur la Fortune (‘Solidarity Wealth Tax,’ the French wealth tax) during the last legislature (2002-2007), ISF yields had soared by 2006, jumping from €2.5 billion in 2002 to €3.6 billion. Analysis of the economic consequences of this ISF wealth tax […]
The Economic Consequences of the French Wealth Tax
Tax-Motivated Domestic Migration
17 Sep 2024 Leave a comment
in applied price theory, economic growth, entrepreneurship, Federalism, fiscal policy, human capital, income redistribution, labour economics, labour supply, macroeconomics, occupational choice, politics - USA, poverty and inequality, Public Choice, public economics Tags: capital gains tax, taxation and investment taxation and entrepreneurship, taxation and labour supply
I’m a big fan of tax competition. I cheer when jobs, investment, and people (or even booze) move from high-tax jurisdictions to low-tax jurisdictions. This increases the rewards for good policy and also increases the punishment for bad policy. Given my interest in the topic, I obviously can’t resist sharing this chart, which shows the […]
Tax-Motivated Domestic Migration
Utopia, you are standing in it! 
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