Bryan Caplan and David Henderson

Arnold Kling: August 2012

An Author Archive by Month (32 entries)

My Last Post

Econlog Administrative Issues
Arnold Kling
Sorry for being abrupt, but this is something I have been thinking about for months. In the future, I plan to do my writing in essay format. As far as blogging goes, I am opting for exit rather than voice,... MORE

Changing the Corporate Form of Organization

Political Economy
Arnold Kling
Concerning U.S. corporate law, Kent Greenfield writes, Compare this to the European model of corporate governance, which requires much more robust social obligation on the part of corporations, embodied not only in cultural norms but also in law. The duty... MORE

Hardline Libertarians?

Political Economy
Arnold Kling
Daron Acemoglu and James Robinson write, Central planning maximizes the extent of control that the state, and the people running the state, exercise. The desire to control others is a constant in history and is part and parcel of the... MORE

Lee Ohanian on the Great Recession

Macroeconomics
Arnold Kling
He talks with Russ Roberts. A few excerpts: typically in U.S. business cycles, productivity, measured either as total factor productivity or labor productivity--output per hour or output per worker--typically falls significantly during substantial recessions such as those in the 1970s... MORE

The Latest Batch from the NBER

Cross-country Comparisons
Arnold Kling
1. Robert J. Barro writes, Convergence at a 2% rate implies that it takes 35 years for half of an initial gap to vanish and 115 years for 90% to disappear. Convergence-rate parameters are important to pin down because they... MORE

Living in Bubbles

Politics and Economics
Arnold Kling
David Warsh writes, I expect the Democrats to dominate this election (and probably the next), the Tea Party to slowly shrink, the caucus of Republican pragmatists to grow, until one day the GOP credibly offers to take over and improve... MORE

The Great Factor Substitution

Growth: Causal Factors
Arnold Kling
The New York Times reports, Even as Foxconn, Apple's iPhone manufacturer, continues to build new plants and hire thousands of additional workers to make smartphones, it plans to install more than a million robots within a few years to supplement... MORE

Coming Apart Watch

Income Distribution
Arnold Kling
Timothy Taylor points to a Pew study of housing segregation by income class. Not surprisingly, it is on the rise. the authors calculate what they call a Residential Income Segregation Index, which comes from "adding together the share of lower-income... MORE

Civil War Watch: Sentences to Ponder

Social Security
Arnold Kling
John Mauldin writes, some people get so angry when you challenge their beliefs. You are literally taking away the source of their good feeling, like drugs from a junkie or a boyfriend from a teenage girl. Keep that in mind... MORE

Think Tank Rumors

Politics and Economics
Arnold Kling
Kauffman Foundation seems to be shutting down its DC operations. I wish I knew more about the goings-on there. I have nothing against Kansas City, but I hope there is no general contraction taking place at Kauffman. Meanwhile, there is... MORE

The 1960s and Today

Politics and Economics
Arnold Kling
In response to my post on Civil War Scenarios, some commenters brought up the 1960s. I actually do not have to read a history of the 1960s--I can remember them. One thing people forget about the 1960s is how many... MORE

The Great Unmentionable

IQ in Economics
Arnold Kling
Richard Lynn and Tatu Vanhanen write (large .pdf) We do not assume that national IQ is the only factor capable to explain global disparities in access to clean water and sanitation facilities; we only assume that it is probably the... MORE

Atul Gawande on Health Care Administration

Economics of Health Care
Arnold Kling
He writes, The theory the country is about to test is that chains will make us better and more efficient. The question is how. To most of us who work in health care, throwing a bunch of administrators and accountants... MORE

The Mind and the Market

Behavioral Economics and Rationality
Arnold Kling
Pascal Boyer writes, I am surprized, nay flabbergasted that there is no study of folk-economics in the social science literature. No-one (except Caplan and a few others) seems to study what makes people's economic modules tick. In psychology we have... MORE

Civil War Scenarios

Politics and Economics
Arnold Kling
Peggy Noonan writes, I suspect some conservative used the Romney campaign's listless response as a stand-in for what they'd really like to say to Mr. Romney himself, which is, "Wake up, get mad, be human, we're fighting for our country... MORE

GMU vs. Chicago

Economic Methods
Arnold Kling
Gary Becker and James Heckman argue for more government support for economic research. In the other corner are Don Boudreaux and Tyler Cowen. Indeed, Tyler was in really good form in writing his post. There is not much left of... MORE

Paul Krugman Chooses a Word Carelessly

Social Security
Arnold Kling
He wrote, Your federal government is basically an insurance company with an army. You and I would read that as an insurance company backed by coercion. Frances Woolley took it that way, and started into the pros and cons of... MORE

Can America Learn?

Economics of Education
Arnold Kling
Timothy Taylor, the economics blogger with by far the highest signal-noise ratio, has another valuable post, this time spotlighting a piece by Martin West on Global Lessons for Improving U.S. Education. I'll snip from Taylor's excerpt: [T]here are three broad... MORE

Speaking of Foreign Languages

Eurozone crisis
Arnold Kling
How do you say "Have a nice day" in Japanese or French?... MORE

Competitive Government

Political Economy
Arnold Kling
The Economist reports, This experiment in radical outsourcing began back in December 2005, when Sandy Springs went from being merely a part of Fulton County--which also includes most of Atlanta, Georgia's capital and largest city--to an incorporated city itself. CH2M... MORE

Price Discrimination Explains Everything

Microeconomics
Arnold Kling
I've said this many times. I was reminded of it by this story from John Scalzi about tortillas priced higher when priced as "wraps," which Matt Yglesias suggests provides a means for price discrimination. In terms of efficient pricing, one... MORE

Randal O'Toole on Housing

Books: Reviews and Suggested Readings
Arnold Kling
The book is American Nightmare, and it is iconoclastic. Some excerpts: Glaeser and Avent each profess to oppose coercive policies aimed at forcing people to live in higher densities than they wish. Yet their often-erroneous arguments lend credence to those... MORE

The President's Roanoke Speech

Politics and Economics
Arnold Kling
Reihan Salam points to two of the strongest reactions to President Obama's Roanake speech ("You did not build that"). Virginia Postrel writes, The president's sermon struck a nerve in part because it marked a sharp departure from the traditional Democratic... MORE

Why Repo Exists

Finance: stocks, options, etc.
Arnold Kling
Nick Rowe asks the question. My answer is based on Marcia Stigum's Money Market, a book that more economists need to read. Securities dealers are dealers, sort of like auto dealers. If you go to an auto dealer, you expect... MORE

Brink Lindsey, in case you missed it

Books: Reviews and Suggested Readings
Arnold Kling
Bryan's comments on Brink Lindsey's new book are valuable. I am just annoyed that nobody seems to have noticed my own review.... MORE

Was Roosevelt the real Hoover?

Economic History
Arnold Kling
Price V. Fishback and John Joseph Wallis write, Federal budget outlays in real dollars rose 88 percent under Hoover between 1929 and 1932, faster than the growth in the first three years under Roosevelt (although starting from a lower base).... MORE

Austro-Keynesianism

Austrian Economics
Arnold Kling
About four years ago, I described myself as an Austro-Keynesian. Recently, I have been asked about that concept. One way to put it is that I accept and reject some major tenets of each camp. From the Keynes camp, I... MORE

The Rip Van Winkle Effect

Growth: Consequences
Arnold Kling
I have been working on some educational software--nothing revolutionary,, and nothing ready to show just yet. It is interesting to see how different the software world is from when I left it in 1999. I'll put the rest of this... MORE

Fed Forecasting Errors

Macroeconomics
Arnold Kling
Evan Soltas writes, A disparaging but not unfair comparison would be to little orphan Annie. "The sun'll come out tomorrow," Annie sang. "Bet your bottom dollar that tomorrow there'll be sun." The 3-to-4 percent recovery growth we've been long promising... MORE

Stocks: the Long-Term Outlook

Finance: stocks, options, etc.
Arnold Kling
Michael Mandel writes, an investment in the stock market becomes a bet on innovation. Do you think that the U.S. or the global economy has another wave of disruptive innovation coming? Then buy stocks. But if you think that we... MORE

Steve Randy Waldman writes, Idle unemployment is a problem in societies that are highly productive but very unequal. Here basic goods (food, clothing) can be produced efficiently by the wealthy via capital-intensive production processes. The poor do not employ one... MORE

The Case for Government

Politics and Economics
Arnold Kling
A new publication from the Boston Fed informs us. Time will tell. But universal public education still stands as one of America's most successful government programs. America's public schools have taken their share of criticism, and some of it may... MORE

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