Solow versus Mankiw on the 1%ers

Bob Solow comments on Greg Mankiw’s defence of the “1%” ers and Mankiw replies. I think Solow wins the day – most of the big fortunes these days stem from the finance sector and from trading. It is not from super-marketing, deal-making types like Steve Jobs (Mankiw’s hero) although even there are spivy oh so [...]

Too much finance

I like this piece by Robert Shiller on the excessive allocation of resources to finance. About 7.4% of all US output goes here and between 25-50% of graduates from top business schools pursue finance careers – much of it pure rent-seeking activity that adds nothing net to national output. The same trends are evident in [...]

How much should we give as foreign aid?

(Preliminary thoughts. Comments welcome).

I don’t know the exact answer to this but who could? We should give something on the basis of deontology (Kant’s ”helping a stranger” problem – the imperative is to give at least a “little” where “little” is defined as that amount that creates “low” costs to us). This sets a [...]

Gladwell glibness

I find Malcolm Gladwell’s economic reasoning to be uninspired, glib, piffle*. But it is immensely fashionable and, I have read, he commands huge consulting fees. He is successfully taken to pieces here over his recent David and Goliath claims. Those who are disadvantaged can win. Err…yeah.

*To be fair I haven’t read any of his [...]

Privatizing Australia Post

Julie Novac is one of the more thoughtful IPA-Catallaxy people but she still can’t see past ideological blinkers in promoting the case for privatizing Australia Post. Why? Well because in many respects Australia Post is a natural monopoly – a firm that has technological advantages in the sense that its costs are sub-additive. It would [...]

Merits & demerits of markets.

This is a nice piece on the merits and demerits of markets.

It is a discussion by Thomas Wells of Michael Sandel’s, What Money Can’t Buy: The Moral Limits of Markets. The claim by Sandler is that markets degrade certain relationships and “products”.

Wells points out that conventional economics criticises markets strongly whenever natural [...]

Bruni & Sugden defend capitalism

J. King referred me to this piece by Luigino Bruni and Robert Sugden that defends capitalism from the perspective of virtue ethics. Poor old capitalism gets a rubbishing from many undergraduate Arts students because of its imperfections and outright corruption. The undergraduates note this on their iPads just before they drive off to that new [...]

Inside Job

I watched the movie with this title on a blu-ray tonight. A fascinating tele-documentary on the GFC. Some of the prominent macroeconomists* that I had learnt to respect reveal themselves to be utter s***s who would say or do anything for a moderately large cash pay-out. A word from the wise guy: There is more [...]

Professional ethics for economists: Notes on DeMartino

I am teaching a new course on “Economics and Ethics” this semester. It is oriented towards students doing joint degrees in philosophy, politics and economics – a strand of work that follows a famous degree offered at Oxford University. It came at a convenient time given that, for the last year, I have been reading [...]

Why Keynes angers conservatives

Conservatives have long linked Keynes’ economic theories to his claimed homosexuality. But Keynes was was one these reasonable people who didn’t like to see people suffer unnecessarily.

Keynes endorsed love. Quote:

“John Maynard Keynes was the sexiest economist who ever lived. This might seem like half-hearted praise since in our mind’s eye the typical economist [...]

Superannuation reforms

I’ve tried to be generous to the Gillard Government because of the overly critical reaction to it by the Murdoch press – by Ergas, Sloan and the hired lackeys of the IPA etc. But the way the superannuation issue has been dealt with leaves me with substantial doubts about the political nous of the Government’s [...]

Bleg on happiness research

The preceding post is on the economics of happiness (EOH) literature. Econometrics is not a particular strength of mine but I do have a (possibly) naive query.

EOH identifies relationships between a self-described measure of happiness for individuals (in the studies I discuss it is often a ranking on a scale from 0-10) which is [...]

What makes us happy?

I am attending a conference on The Economics of Happiness in a couple of weeks. It will be held in Byron Bay NSW where I spent some time in my surfing youth. Given the location, I should at least emerge from the conference very happy indeed. I posted once before on this topic when I [...]

Economics & business PhD conference

I have just returned from the 25th annual PhD Conference in Economics and Business held at the University of Western Australia. There were parallel sessions in economics and in finance – I attended only the 16 economics student presentations. This Conference – organized by UWA’s Professor Ken Clements – is one of the most-focused and [...]

The Whipstick

I gave an economics class today at La Trobe University, Bendigo – to a highly motivated group of students – on carbon pricing. I felt a reasonable compensation for this assignment was the opportunity to head out into the Whipstick Forest around Bendigo. They were in great condition given the recent rains – wildflowers everywhere [...]

Comments on economics research 1

John Quiggin writes that academic prestige (and academic employment) these days go mostly to those who publish a small number of high-quality articles in highly-ranked journals. Moreover, as a general proposition, the narrower the field of specialization of this research, the better the ranking. For such researchers second-tier, more generalist publications are worse than valueless [...]

The boy & the fire-engine

A favourite quote from Adam Smith’s Wealth of Nations:

“Men are much more likely to discover easier and readier methods of attaining any object, when the whole attention of their minds is directed towards that single object, than when it is dissipated among a great variety of things. But in consequence of the division of [...]

Henry Ergas on Ken Henry on the RSPT

This piece in The Australian today is unfortunately behind a pay wall. If you insert the title of Henry Ergas’s piece in a Google search you will get the whole article. Henry Ergas is a professional economist who has some very sensible things to say on other issues but who evidently he doesn’t understand the [...]

Elinor Ostrom dead

An amazing economist who didn’t make a lot of noise. She looked, she measured and she thought. None of the inconsequential, high-tech nonsense that plagues the economics profession, just a great social scientist whose work on common property will drive the profession forwards. She drove experimental and institutional economics and (on a personal level) made [...]

Ostrom & Williamson

I have been teaching undergraduate courses in microeconomics and environmental economics for more years than I will admit to. In microeconomics my thinking, in the main, is a refined version of what I learnt as an undergraduate. The main distinctive new feature of the theory for me stemmed from the work of Ronald Coase and [...]