Chris Bishop and Simon Court announced principles for the RMA replacement, and they generally look very good (but not perfect). Some key aspects: The new system will be based on the economic concept of “externalities”. Effects that are borne solely by the party undertaking the activity will not be controlled by the new system (for […]
Good principles for RMA reform
Good principles for RMA reform
05 Apr 2025 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, environmental economics, law and economics, politics - New Zealand, property rights, Public Choice, regulation, rentseeking, resource economics, urban economics Tags: housing affordability, land supply
People Barely Care About Equality
27 Mar 2025 Leave a comment
in applied price theory, economics of education, human capital, income redistribution, labour economics, labour supply, poverty and inequality, Public Choice, rentseeking, urban economics Tags: regressive left
Another simple proof.
People Barely Care About Equality
The importance of the chronometer
24 Mar 2025 1 Comment
in applied price theory, econometerics, economic history, industrial organisation, transport economics, urban economics Tags: Age of Discovery
The chronometer, one of the greatest inventions of the modern era, allowed for the first time for the precise measurement of longitude at sea. We examine the impact of this innovation on navigation and urbanization. Our identification strategy leverages the fact that the navigational benefits provided by the chronometer varied across different sea regions depending […]
The importance of the chronometer
Institutional ownership of single-family housing
16 Mar 2025 Leave a comment
in applied price theory, applied welfare economics, econometerics, urban economics Tags: housing affordability
In the last decade, large financial institutions in the United States have purchased hundreds of thousands of homes and converted them to rentals. This paper studies the welfare consequences of institutional ownership of single-family housing. We build an equilibrium model of the housing market with two sectors: rental and homeownership. The model captures two key…
Institutional ownership of single-family housing
Why the RMA must go
13 Feb 2025 Leave a comment
in economics of bureaucracy, economics of regulation, environmental economics, environmentalism, politics - New Zealand, Public Choice, urban economics
Stuff reports: The small town of Wānaka will not have a McDonald’s restaurant after a resource consent application was declined. Independent commissioners released their decision on the proposed McDonald’s restaurant on Wednesday. They said the adverse effects of the proposed restaurant on the environment would be more than minor on the approach to Wānaka, the landscape character […]
Why the RMA must go
Cordon Pricing Makes New York Congestion Worse
13 Feb 2025 Leave a comment
in applied price theory, transport economics, urban economics Tags: cordon pricing
Early reports claim that New York City’s so-called congestion pricing program is a great success, reducing the number of vehicles driving into lower Manhattan by 5 to 6 percent. However, because it really isn’t congestion pricing — that is, it doesn’t price roads by how much congestion there is but … Continue reading →
Cordon Pricing Makes New York Congestion Worse
The long road to housing affordability
11 Feb 2025 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, income redistribution, law and economics, politics - New Zealand, property rights, Public Choice, rentseeking, transport economics, urban economics Tags: housing affordability, land supply, zoning
There is much work yet to be done in New Zealand to improve housing affordability, despite recent declines in valuations. Eric Crampton writes – It wasn’t that long ago that New Zealand’s housing market made international news because of its insanity. In 2016, The Guardian tagged Auckland as the “hottest property market in the world” […]
The long road to housing affordability
Here Lies the Systematic Racism
28 Jan 2025 Leave a comment
in discrimination, economic history, economics of education, labour economics, law and economics, liberalism, Marxist economics, politics - USA, urban economics Tags: political correctness. regressive left, racial discrimination. free speech
I pretty much hate the term “systematic racism,” which is a clever rebranding by the DEI folks of the Christian concept of “original sin.” Try to tell the Church that you have behaved ethically? Doesn’t matter, you still need us to remove the stain of your original sin. Try to tell the DEI trainer you…
Here Lies the Systematic Racism
One early report on congestion pricing in NYC
16 Jan 2025 1 Comment
in applied price theory, applied welfare economics, comparative institutional analysis, market efficiency, politics - USA, public economics, transport economics, urban economics Tags: road pricing
That is my latest Bloomberg column, here is one bit: The core version of the plan stipulates a $9 toll for drivers entering Manhattan below and including 60th Street. Implementation is by E-Z Pass, and the tolls can vary in complex ways. But if you don’t cross the line, you don’t pay. So residents below 60th Street are exempt, […]
One early report on congestion pricing in NYC
Assigning Responsibility for the Tragic Los Angeles Fires
15 Jan 2025 1 Comment
in economics of natural disasters, economics of regulation, environmental economics, environmentalism, law and economics, politics - USA, property rights, urban economics
Blaming climate change for these disasters only deflects attention away from actual causes. Fabrications linking rising CO2 to wildfires should be ignored. Governments must employ solutions that will truly protect people and their property from the unstoppable, natural conditions enabling devastating fires.
Assigning Responsibility for the Tragic Los Angeles Fires
Horse Manure, Climate Change, and Nuclear Energy
14 Jan 2025 Leave a comment
in economic history, economics of climate change, energy economics, environmental economics, environmentalism, global warming, health economics, politics - USA, transport economics, urban economics Tags: climate alarmism
The “Great Manure Crisis” of the late 19th century offers some serious lessons for those worried about the “existential threat” of global warming from CO2 emissions.
Horse Manure, Climate Change, and Nuclear Energy
Noah Smith on L.A: fire lessons
13 Jan 2025 Leave a comment
in applied price theory, economics of bureaucracy, economics of natural disasters, environmental economics, environmentalism, income redistribution, law and economics, politics - USA, property rights, Public Choice, rentseeking, urban economics Tags: unintended consequences
The best piece I have seen so far, here is one bit: Basically, the lessons I take away from the horrific L.A. fires are: The insurance industry as we know it is in big trouble. Climate change is making wildfires worse, but there’s not much we can do about that right now. Forest management needs […]
Noah Smith on L.A: fire lessons
Price controls destroy wealth: California Fire Insurance
11 Jan 2025 Leave a comment
in economics of natural disasters, economics of regulation, environmentalism, financial economics, income redistribution, law and economics, politics - USA, property rights, Public Choice, regulation, rentseeking, urban economics Tags: price controls
Noah Smith via Marginal Revolution, and Kim Mai Cutler. The CA insurance regulator is elected, and is reluctant to allow higher rates for fire insurance, despite the big risks, lest she be voted out of office. As a consequence, expected profits are low, so a majority of top insurers have stopped issuing fire insurance in CA.…
Price controls destroy wealth: California Fire Insurance
Smart Growth Burns Thousands of Homes
11 Jan 2025 1 Comment
in economics of bureaucracy, economics of natural disasters, economics of regulation, environmental economics, law and economics, property rights, Public Choice, urban economics Tags: land use planning, unintended consequences, zoning
Los Angeles city and regional planners are just as responsible for the Palisades, Eaton, and other fires that have burned in the past few days as if they had poured gasoline on the homes and lit the matches. The destruction of these homes, including, for what it is worth, homes … Continue reading →
Smart Growth Burns Thousands of Homes
Sabotaging productivity
03 Dec 2024 Leave a comment
in applied price theory, economics of bureaucracy, economics of regulation, health economics, law and economics, politics - New Zealand, property rights, Public Choice, rentseeking, urban economics Tags: land supply, nanny state, zoning
Is there any better – or should that be worse? – example of how the consenting process sabotages productivity than the current hearings on McDonalds’ application to open in Wanaka? Public submissions were sought, and of the 366 made, 339 were opposed, 21 in support and six wanted changes to the plan. Among the submissions […]
Sabotaging productivity
Utopia, you are standing in it! 
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