Bryan Caplan and David Henderson

Arnold Kling: June 2005

An Author Archive by Month (30 entries)

Energy Legislation

Energy, Environment, Resources
Arnold Kling
Alan Reynolds writes, Ethanol already gets an indefensible tax break at the pump of 51 to 71 cents a gallon, but Congress now wants to compel everyone to add it to their tanks. But doing so would leave us with... MORE

Too many smart people?

Labor Market
Arnold Kling
In a comment on the preceding post, Andrew Whitacre, who wrote the original rant, speculates, There are too many smart people for too few smarts-required jobs, just like there've never been enough English professorships for all the English majors who... MORE

Over-qualified?

Economics of Education
Arnold Kling
This rant struck me, mostly because it is strikingly consistent with my 22-year-old's experience. Dear current Management-Generation of Cubicle Land, please understand that: 1. My generation was misinformed—by elders and fortune—about the value of our college degrees. $120,000 of your/our... MORE

Vertical Supply, Vertical Demand?

Labor Market
Arnold Kling
Michael Mandel points to a blog post that claims we will face a severe nursing shortage. As usual, there is a government study supporting such a claim. In Learning Economics, I derided the notion of a labor shortage (in this... MORE

Personal Saving and Corporate Saving

Macroeconomics
Arnold Kling
Perhaps Jan Loeys and others at J.P. Morgan have the solution to some macroeconomics puzzles. The real driver of this saving glut in recent years has been the corporate sector. Between 2000 and 2004, the switch from corporate dis-saving to... MORE

Eminent Domain

Regulation and Subsidies
Arnold Kling
Both Gary Becker and Richard Posner weigh in. Becker writes, Is eminent domain a desirable principle in the 21st century? In the 18th, 19th, and early 20th centuries, governments did rather little, so there was not much to fear from... MORE

Libertarian Credo

Politics and Economics
Arnold Kling
In reaction to the Supreme Court's decision backing city seizure of property, Don Boudreaux writes libertarians reject the notion that the state is something other than a human institution deserving more credence, respect, deference, and trust than is commonly given... MORE

Who has Socialized Medicine?

Economics of Health Care
Arnold Kling
Nick Weininger wonders In debates about health care it is often assumed by all sides that the US has the least socialist, most free-market health care system of any modern developed country... But is that premise true? ...It seems clear... MORE

Heckman interview

Economics of Education
Arnold Kling
I strongly second Don Boudreaux' recommendation to read this interview with James Heckman. A few excerpts (but do go read the whole thing): what do the GEDs earn? They earn what high school dropouts who do not get GEDs earn,... MORE

Rent Vs. Buy Calculation

Finance: stocks, options, etc.
Arnold Kling
James Hamilton writes, Let's look at a particular property in such a community whose rental income nets the owner $4,000 per year after expenses. If the property price is determined by the condition that the owner must earn a 3%... MORE

Measuring Health Care Effectiveness

Economics of Health Care
Arnold Kling
Co-blogger Bryan and I have been arguing over two issues, one substantive and one methodological Substantive issue: I say that health care probably is effective. He says that there is no evidence that it is effective on average. Incidentally, Paul... MORE

Health Care Administrative Costs

Economics of Health Care
Arnold Kling
In this essay, I argue that improving cost-effectiveness of health care may require higher administrative expenses. How can suppliers be incented to balance costs and benefits in choosing treatment plans? One solution is to study the results of different treatment... MORE

Power of Productivity

Growth: Causal Factors
Arnold Kling
I strongly recommend an interview with William Lewis, author of The Power of Productivity. Lewis discusses how the McKinsey Global Institute set about examining productivity across countries. They wound up looking at what I call the new paradigm in economics.... MORE

Krugman Comes Out

Economics of Health Care
Arnold Kling
Paul Krugman writes, I like Ted Kennedy's slogan "Medicare for all." It reminds voters that America already has a highly successful, popular single-payer program, albeit only for the elderly. So that is Paul Krugman's health care plan. Medicare for all.... MORE

Benefits of Health Care

Economics of Health Care
Arnold Kling
Kevin Murphy and Robert Topel write, From 1970 to 2000 gains in life expectancy added about $3.2 trillion per year to national wealth, with half of these gains due to progress against heart disease alone. Looking ahead, we estimate that... MORE

Economics of New York City

Information Goods, Intellectual Property
Arnold Kling
The prolific Edward Glaeser writes, 28 percent of Manhattan’s payroll goes to workers in a single three-digit industry. 56 percent of Manhattan’s payroll goes to workers in four three-digit industries. New York’s 20th century success primarily reflects its ability to... MORE

Economic Growth Gauntlet

Growth: Causal Factors
Arnold Kling
Fredrik Erixon tosses down the gauntlet. The reason countries are poor is not that they lack infrastructure – be it roads, railways, dams, pylons, schools or health clinics. Rather, it is because they lack the institutions of the free society:... MORE

Book Tag

Austrian Economics
Arnold Kling
Nobody has tagged me (this reminds me of high school dances, somehow), but I'll have a go at it anyway: First, restricting to economic topics. Number of books I own: I would guess around two hundred. Last book I bought:... MORE

In the New York Times, Robin Roner and David E. Rosenbaum write, The average retirement age in 1940 was 68. As recently as 1965, about two-thirds of workers did not begin drawing Social Security benefits until they were 65 or... MORE

Savings, Capital Gains, and Income

Finance: stocks, options, etc.
Arnold Kling
Tyler asks many commentators argue that capital gains on homes and equities, as well as expenditures on education, should count toward the national savings rate. But are those savings "as good" -- from a macroeconomic point of view -- as... MORE

Health Care Commentaries

Economics of Health Care
Arnold Kling
Steven Pearlstein writes, For most Americans, providing health care ought to be different from selling soap; they won't tolerate doctors acting like commissioned salesmen and investment bankers. And if that means having less market competition and more regulation in the... MORE

The Latest Oil Shock

Energy, Environment, Resources
Arnold Kling
According to James Hamilton, The sustained run-up in oil prices has coincided with a large increase, not decrease, in world oil production. World oil production had previously fallen off in response to the lower demand brought about by the recession... MORE

Thinking vs. Feeling

Politics and Economics
Arnold Kling
In a rambling essay, I write I view economics as training in thinking. That does not mean that you lose your empathy with people. It means, however, that you pay attention to the consequences of policies, regardless of their motives.... MORE

France and Germany

Institutional Economics
Arnold Kling
Anthony de Jasay argues that French and German welfare state policies are based on a belief that the distribution of the national income is the government's business as well as its natural prerogative, and that whatever it happens to be,... MORE

Stat Fight, Con't

Economic Methods
Arnold Kling
Bryan says, a fair number of papers have a lot of data points. So rejecting the null hypothesis of no effect is pretty easy. Moreover, it is fairly common in both literatures to discuss the magnitude of the effect, not... MORE

Libertarians and Blogging

Politics and Economics
Arnold Kling
Warren Meyer answers the question of why so many libertarians blog. Finally, since libertarianism is really about celebrating dynamism and going in a thousand different directions as each individual chooses, in some sense the Internet and blogging are not only... MORE

Real News in Neuroeconomics

Behavioral Economics and Rationality
Arnold Kling
While the press is back to wallowing in Watergate, the big news in economics was a small experiment. In the game, investors were allotted 12 monetary credits, each worth 40 Swiss centimes (32 US cents), and asked to decide how... MORE

Medical Guidelines Commission?

Economics of Health Care
Arnold Kling
In this essay, I write the effectiveness of activist medicine can only be judged in a statistical sense. To know whether the procedures were appropriate, you have to know the distribution of outcomes that occurred when those procedures were used... MORE

Deadly Chicago Econometrics

Economic Methods
Arnold Kling
Bryan's post on the statistical findings about parenting and health care reminds me of what we at MIT used to call "Chicago econometrics." A fundamental fallacy in classical statistics is to say, "Therefore, we accept the null hypothesis." The classical... MORE

Macro Reading List

Macroeconomics
Arnold Kling
Tyler Cowen writes, I will be teaching Ph.d. macro this fall. Here is a draft of my reading list. Comments are open and further suggestions are welcome I think that macro tends to get too buried in theory. I like... MORE

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