Bryan Caplan and David Henderson

David Henderson: November 2009

An Author Archive by Month (23 entries)

CBS's Propaganda on Gold

Labor Market
David Henderson
In the lead segment of "60 Minutes" last night, CBS did the unusual: it presented an incoherent story. The topic was gold being mined in the Congo, many of the proceeds of which are used for war. That was how... MORE

Bob Murphy on EMH

Finance
David Henderson
Ever since I was an assistant professor at the University of Rochester's B-school (now called the Simon School) in the late 1970s, I have believed in the Efficient Markets Hypothesis. The basic idea is that market prices reflect all available... MORE

Accountability and the Web

Business Economics
David Henderson
Musician Dave Carroll recently posted a video on YouTube after United Airlines refused to take responsibility for one of its employees' having wrecked his Taylor guitar. In his last conversation with the United Airlines Customer Relations Manager, Carroll said he... MORE

Price Discrimination: Illegal or Not?

Business Economics
David Henderson
In his excellent post on price discrimination and how pervasive it seems to be, Arnold states: The manufacturer would like to charge $400 to JS and $200 to BZ. However, to do so blatantly would be illegal. One commenter challenged... MORE

SuperFreakonomics, III

Books: Reviews and Suggested Readings
David Henderson
This is my third post (see the first two here and here) on Levitt and Dubner's SuperFreakonomics. Chapter 3 is one of my favorite chapters in the book, for one main reason: the way it deals with the Kitty Genovese... MORE

UC Tuition: The Revolt of the Will-Haves

Economics of Education
David Henderson
Taxpayer funding of higher education is a forced transfer to the relatively wealthy Socialist author Robert Kuttner once called Proposition 13, California's 1978 property-tax-cut initiative, the revolt of the haves. The latest opposition by UC students to a 32% increase... MORE

The Right Minimum Wage Question

Labor Market
David Henderson
Like Bryan, I received the same request from the same friend: what question(s) would I want to put on a survey of economists. My response was that I would want the question on the minimum wage asked accurately instead of... MORE

Me on Market Wrap

Upcoming Events
David Henderson
I just completed an interview with Moe Ansari of Market Wrap. We talked about the current recession, the health care bill, and various other things. If you want to listen (I think you'll hear an edited version but they might... MORE

International Trade Economists are Bayesians

International Trade
David Henderson
In Bryan's excellent recent post on why most economists aren't Bayesians, he writes that the position of economic theorists is: If no one has proven that Comparative Advantage still holds with imperfect competition, transportation costs, and indivisibilities, only an ignoramus... MORE

An Apology

Econlog Administrative Issues
David Henderson
In my post yesterday, which I wrote in haste--generally a bad idea--I called former President Bush "a joke." I was expressing my frustration at his willingness to talk a good game but not to play a good game. But we... MORE

Bush Admits His Errors

Politics and Economics
David Henderson
In a speech last week, former President George W. Bush admitted that he had erred in imposing new layers of regulation on the U.S. economy. Here's the news story: Former President George W. Bush, outlining plans for a new public... MORE

FDA May Decide to Raise Transactions Costs

Regulation
David Henderson
That's not the headline, of course. The headline in the New York Times is, "F.D.A. Says It May Ban Alcoholic Drinks With Caffeine." When I read it, I thought, "Oh, no. The FDA is about to ban rum and coke."... MORE

Mankiw's Text Hints at Yes, But The Answer is No One of the standard claims made about the 1970s is that a major contributor to inflation and low growth was OPEC. In his excellent textbook, Macroeconomics, 6th ed., for example,... MORE

Maine's Pelosi/Baucus Care

Economics of Health Care
David Henderson
An excellent news story in today's New York Times highlights the problems with government regulation of health insurance in Maine, problems that, the reporter notes, would likely occur if the U.S. Senate's and the U.S. House of Representatives' versions of... MORE

Israel's Nasty Minimum Wage

Labor Market
David Henderson
The government is considering establishing work camps in the south of the country, where illegal migrant workers will receive shelter, food and medical care, Army Radio reported Wednesday. In exchange, illegal migrants would perform manual labor outside the camps, but... MORE

Mises in the Wall Street Journal

Austrian Economics
David Henderson
Mark Spitznagel has a piece in the Wall Street Journal on Ludwig von Mises' classic book, The Theory of Money and Credit. It's good that Spitznagel is calling our attention to this classic, which is still worth reading. But he... MORE

Stiglitz and Orszags on Fannie Mae

Finance
David Henderson
The paper concludes that the probability of default by the GSEs is extremely small. Given this, the expected monetary costs of exposure to GSE insolvency are relatively small -- even given very large levels of outstanding GSE debt and even... MORE

A Child Understands the Fall of the Wall

Regulation
David Henderson
As Bryan has mentioned, Monday, November 9 will be the 20th anniversary of the fall of the Berlin Wall. In Chapter 3 of my book, The Joy of Freedom: An Economist's Odyssey, I tell that story and integrate it with... MORE

Arnold Kling on Money

Money
David Henderson
In his post today on money, Arnold writes: However, as you know, I prefer to think of money as designed top down, to serve the needs of government. But shouldn't what you "prefer to think" count for literally zero? What... MORE

The Broward Sherriff's Office is engaging in entrapment operations to catch unlicensed contractors. On this tape, at about the minus 1:45 point, Detective Daniel Belyeu explains that right now many people are desperate for work. His solution? Make them more... MORE

Law and Order's Economics

Economics of Health Care
David Henderson
My student, Mike Williams, sent me the following last night: I don't know if you watch Law and Order Special Victims Unit but they had a rather frustrating take on the pharmacutical companies tonight. In the episode one of their... MORE

Armen Alchian

Efficient Markets Hypothesis
David Henderson
In this month's Featured Article, Fred McChesney pays tribute to the work of Armen Alchian and makes the case that he deserves the Nobel prize in economics. I already knew most of what McChesney writes because, after all, I studied... MORE

I Optimized

Cost-benefit Analysis
David Henderson
One of the conclusions that emerges from "thinking on the margin," one of the Ten Pillars of Economic Wisdom that I teach my students, is that just as you shouldn't underinvest in something, so also you shouldn't overinvest. In fighting... MORE

Return to top