Saturday, October 31, 2015

Wrap Up for October '15

Currently, non tradable sectors tend to organize as though a single, government defined equilibrium actually exists for everyone. Perhaps this suggests why society seems more divisive and tribal, these days?

Fortunately, since tradable sectors (mostly, not always) need to compete at international levels, much of their product does not cater to any single idea of equilibrium. Non tradable sectors need to take a page from tradable sectors. Until they do, family formation and its associated housing are likely to remain weak. Even prosperous areas which are normally thought of as "open to all comers", may seek to restrict apartment building due to overcrowded schools which are already in high demand.

Also, from the initial link: "...subsidies to production are miscalculated if the representative agent approach is used...Thus to infer society's preferences from those of the representative individual, and to use these to make policy choices, is illegitimate."

Even though the concept of GDP as a war invention is a bit disheartening, the measure nonetheless contributed to "government building" on these terms. We've come a long way from GDP for war, to GDP for happiness. Just the same, readers know I will ask: wouldn't accurate monetary and economic representation for all, be a lot more fruitful?

In 2011, Venkatesh Rao wrote A Brief History of the Corporation: 1600 to 2100

Emily Washington at Market Urbanism notes the systemic bias against small scale development. My hope is that local corporations can eventually provide means for the small scale development, which prosperous regions do not feel they need.

Dani Rodrik notes some of the problems that nations have experienced with structural reform.

Scott Sumner touches on some of the fallacies which confuse people re monetary policy, in this Econlog post:

Max Eden of AEI considers education's current supply side problems:

Matthew Yglesias takes Ben Bernanke to task for a most obvious exclusion in Ben Bernanke's new book - the potential of NGDP targeting.

Simply stated, from Ramesh Ponnuru:

"...two-thirds of the decline in unemployment since 2009 is due, not to the unemployed finding jobs, but to their giving up. Bernanke presumably doesn't want us to thank the Fed for that." (George Selgin)

Ryan Avent (also) tells it like it is.

Sometimes, economists offer practical advice!

Scott Sumner takes a look at the Fed's performance - first 100 years:

Something about tight money in particular, generally means more schooling is "needed"...

More than money is involved:

And...more than NGDP is involved. An informative post from Scott Sumner:
"Scholars believe that around 300 B.C. the Library of Alexandria may have housed three-quarters of humanity's texts. Today three quarters of humanity's books are abandoned, out of print and housed only in libraries, if at all. The existence of a resource, unfortunately, has little to do with access to it."

As the labor force participation rate continues to decline...

Edward Glaeser took part in this paper on urban networks:

One reason may be the fact that the gig economy is mostly limited to the margins of productive cities and regions.

Marcus Nunes suggests a better form of "experimentation".

There's good reason:

A Matt Ridley article in the WSJ for his new book:

John Cochrane spent plenty of time putting this post together, re economic growth:

A well considered response from James Alexander to the twitterati...

Lars Christensen highlights a recent paper from Ryan Murphy in this post:

The New York Times provides some helpful graphics in this article:

There were plenty of interesting links this month! A few of these I still need to finish reading. Hope everyone has a great Halloween.

No comments:

Post a Comment