Category Archives: Economics

PRICING TRAFFIC JAMS.

Posted on February 13, 2011 by Philip

PRICING TRAFFIC JAMS. Joseph B. White had an article in the Wall Street Journal (February 2) on the costs of traffic congestion. He gives figures on an annual basis. It works out nationally to the average commuter being delayed 34 … Continue reading →

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THE TURBO SNAKE’S PITCHMAN.

Posted on February 10, 2011 by Philip

THE TURBO SNAKE’S PITCHMAN. I posted here that Mary Jane had bought a Turbo Snake and that it was “pitchman approved.” Philip Delves Broughton had an article in the Financial Times (February 7) about Anthony Sullivan, the pitchman behind a … Continue reading →

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THE ECONOMICS OF “TEMPESTUOUS SEASONS.”

Posted on February 9, 2011 by Philip

THE ECONOMICS OF “TEMPESTUOUS SEASONS.” One famous phrase from John Maynard Keynes is “In the long run we are all dead.” A letter from Paul Rayment in the Financial Times (January 4) pointed out that Keynes’s next sentence is important: … Continue reading →

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“THE PERIPHERY”—LESS AMBITIOUS.

Posted on February 8, 2011 by Philip

“THE PERIPHERY”—LESS AMBITIOUS. Caballero defines the “Periphery” by a methodological decision not to provide “comprehensive answers—let alone quantitative answers.” Caballero says that financial crises provide an extreme case of an increase in complexity and lack of knowledge. He gives the … Continue reading →

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THE “CORE”—THE DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM APPROACH.

Posted on February 7, 2011 by Philip

“THE CORE”—THE DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM APPROACH. Caballero describes the core of current macroeconomics as the construction of dynamic stochastic general equilibrium models (Kids, you can treat “dynamic” as referring to changes over time, “stochastic” as referring to the incorporation … Continue reading →

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“THE PRETENSE-OF-KNOWLEDGE SYNDROME.”

Posted on February 6, 2011 by Philip

“THE PRETENSE-OF-KNOWLEDGE SYNDROME.” The caption of this post comes from an article in the Fall 2010 Journal of Economic Perspectives by Professor Ricardo J. Caballero of MIT which has the title: Macroeconomics after the Crisis: “Time to Deal with the … Continue reading →

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DEBATING THE SIZE OF THE STIMULUS PROGRAM TWO YEARS LATER.

Posted on January 31, 2011 by Philip

DEBATING THE SIZE OF THE STIMULUS PROGRAM TWO YEARS LATER. I’d like to make two points about today’s other post. First, there are Republican economists who use Keynesian analysis. Professor Cogan served in the Reagan administration and Professor Taylor served … Continue reading →

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WAS THE STIMULUS TOO SMALL?

Posted on January 31, 2011 by Philip

WAS THE STIMULUS TOO SMALL? I am a Keynesian, and I think that the stimulus packages to deal with what now seems to be called the Great Recession are being unfairly judged as a test of Keynesianism —and as a … Continue reading →

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PREDICTIONS—THE JULIAN SIMON BET REPEATED.

Posted on January 10, 2011 by Philip

PREDICTIONS—THE JULIAN SIMON BET REPEATED. John Tierney had an article in the New York Times (December 27, 2010) about how he won a $5000 bet on the price of crude oil that was modeled on the Julian Simon Bet. In … Continue reading →

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DIFFERENT WAYS OF MEASURING PRICES.

Posted on December 29, 2010 by Philip

DIFFERENT WAYS OF MEASURING PRICES. Kids, whenever you see economic numbers, you have to think about how they are constructed before you use them. (Occasionally, but rarely, a writer will help you with this.) Consider the prices in measures of … Continue reading →

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