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David Henderson: November 2015

An Author Archive by Month (27 entries)

Krugman: Deregulate Housing

Regulation
David Henderson
Rising demand for urban living by the elite could be met largely by increasing supply. There's still room to build, even in New York, especially upward. Yet while there is something of a building boom in the city, it's far... MORE

The Federal Funds Target

Monetary Policy
David Henderson
When I posted last week about monetary economist Bill Poole's incorrect claim that the Fed Reserve sets the Federal Funds rate, a number of commenters objected that my claim was trivial. Most argued that Poole's usage was close enough to... MORE

False Externalities

Political Economy
David Henderson
However, increased consumption among youths leads to negative externalities. Raising the share of adults registered as medical marijuana patients by one percentage point increases the prevalence of recent marijuana use among adolescents and young adults by 5-6% and generates negative... MORE

Externality

Economic Education
David Henderson
In my Executive MBA economics class a little over a week ago, I presented the following definition of a negative externality: A cost borne by someone who is not party to the decision that caused the cost. Then I asked... MORE

Noah Smith's Unpersuasive Case

Economic Education
David Henderson
Economist Noah Smith has a recent article titled "Most of What You Learned in Econ 101 Is Wrong." He doesn't actually make the case that would support that title. But he also probably didn't choose the title. However, he did... MORE

Giving Thanks

Books: Reviews and Suggested Readings
David Henderson
Here's a Thanksgiving message from my 2001 book, The Joy of Freedom: An Economist's Odyssey, from a chapter titled "The Joy of Capitalism." I pointed out in Chapter 1 that British author Thomas Carlyle called economics "the dismal science" because... MORE

The Fed does set the federal-funds rate--the overnight interest banks charge to lend to each other--and surely affects the timing of rate changes, but not the longer-run level. This is the second sentence of an op/ed in this morning's Wall... MORE

Douglass North, RIP

Obituaries
David Henderson
My Hoover colleague Doug North died yesterday at age 95. Here's his bio in The Concise Encyclopedia of Economics. And here's a statement issued by the Hoover Institution: STATEMENT BY TOM GILLIGAN DIRECTOR, HOOVER INSTITUTION, STANFORD UNIVERSITY FOR IMMEDIATE RELEASE... MORE

More Data or Less?

Income Distribution
David Henderson
My friend and Hoover colleague John Cochrane has signed a letter to four members of Congress that calls on Congress to spend more money on getting better economic data. John argues at his blog: Few public goods are as cheap... MORE

Thinking on the Margin About Work

Behavioral Economics and Rationality
David Henderson
I was talking on the phone Saturday with a friend who called to wish me happy birthday on my 65th birthday. (See what I did there? :-)) This friend is a doctor, not an economist, but I think he would... MORE

Using Economics to Make Judgement Calls

Behavioral Economics and Rationality
David Henderson
There are few student species more nakedly ambitious, focused, and future-oriented than the average Harvard law student. Having likely spent his undergraduate years planning admissions maximization strategies, he now has the Holy Grail almost within his grasp. Let him but... MORE

Megan McArdle on How to Win Friends and Influence Policy

Behavioral Economics and Rationality
David Henderson
Megan McArdle has written an excellent, pithy post titled "How to Win Friends and Influence Refugee Policy." I won't summarize it here because it's so good and, as I said, pithy, that it repays your small effort in reading it.... MORE

Highlights from the Asness Interview

Finance: stocks, options, etc.
David Henderson
Tyler Cowen has posted the video and transcript of his interview with famous investor Cliff Asness. Here are some highlights from the transcript, with my occasional comments. On future returns: Asness: So you invest half your money in stocks, half... MORE

Brad DeLong on Cornucopia

Growth: Consequences
David Henderson
I'm sitting in a United Red Carpet Club at LAX, having just used my last coupon that expires next year. That, in itself, is evidence of Cornucopia. I'm able to get on line, get "free" booze (although I opted for... MORE

Heyne, Boettke, and Prychitko on Congestion Pricing

Books: Reviews and Suggested Readings
David Henderson
I'm using my favorite textbook for my Executive MBA economics course: The Economic Way of Thinking by the late Paul Heyne, Peter Boettke, and David Prychitko. I'm using the 11th edition, which I prefer to the 12th edition. I haven't... MORE

Krugman, Mueller, and McCain on Terrorism

Behavioral Economics and Rationality
David Henderson
I don't say this much, but Paul Krugman has a very good column in today's New York Times. It's on the horrible events in France and is titled "Fearing Fear Itself." The title is, of course, a takeoff on the... MORE

Thoughts on the Caplan/Jones Debate

Labor Mobility, Immigration, Outsourcing
David Henderson
I've long believed that the most interesting conflicts are not between good and evil, but between good and good. For that reason, I found the Caplan/Jones debate on immigration quite interesting. I know Bryan Caplan pretty well, though mainly at... MORE

Live Tweeting the Republican Debate

Political Economy
David Henderson
Well, gulp, here goes. I've decided to live tweet the Republican debate tonight. I don't promise not to be snarky. I do promise not to be mainly snarky. I also promise not to fill space. So if someone says something... MORE

Presidential Resignation: Good Move, Wrong President

Economics of Health Care
David Henderson
University of Missouri president Tim Wolfe announced today that he is resigning effective immediately. The incident that got much national coverage was a strike by many of the football players on the college team. But one of the earlier incidents,... MORE

Overconfidence: Category Missing?

Central Planning vs. Local Knowledge
David Henderson
Timothy Taylor, over at Conversable Economist, has a post today titled "Overconfidence: Ancient Evil." It's about a 3-article symposium in the latest issue of the Journal of Economic Perspectives. In their introduction to the section, he and his co-author, Ulrike... MORE

At a conference I was at on Friday, we discussed the late Pierre Goodrich's Liberty Fund Basic Memorandum. Goodrich is the person who started Liberty Fund and devoted his sizable fortune to it. I feel grateful to him whenever I... MORE

Alvin Rabushka on the New Bias in Polling

Public Choice Theory
David Henderson
The "Shy Tory Voter" phenomenon has come to America. So writes my Hoover colleague Alvin Rabushka. Alvin goes on to explain as follows: The universality of political correctness, which means that you cannot speak the truth on any controversial topic,... MORE

Lord Acton's Humor

Books: Reviews and Suggested Readings
David Henderson
Yesterday I posted about what a treat it was to read two essays by Lord Acton. Here are some of his more-humorous lines. On Heraclitus: Heraclitus is, unfortunately, so obscure that Socrates could not understand him, and I won't pretend... MORE

In Praise of Lord Acton

Liberty
David Henderson
In preparing for a conference I'm attending in Indianapolis, I read two chapters from Lord Acton's book of essays titled Essays in the History of Liberty. What a treat! Like most people who have heard of Lord Acton, I knew... MORE

Hummel on Recessions and Banking Crises

Monetary Policy
David Henderson
Monetary economist and economic historian Jeffrey R. Hummel has done a real service by putting together a table, with surrounding discussion, that gives the dates of major recessions. He also gives, for each recession, whether it was accompanied by a... MORE

Did Gabriel Kolko Make His Case Well?

Business Economics
David Henderson
Our authors say no. Murray Rothbard's estimate of Kolko's business-government historiography was too hasty, perhaps because its anti-Big Business conclusions were simple and congenial for a libertarian worldview. Subsequent classical-liberal praise of Gabriel Kolko as "a socialist but nonetheless an... MORE

Lynch and Freiman on Open Borders

Labor Mobility, Immigration, Outsourcing
David Henderson
Over at the our sister site, the Library of Law and Liberty, my friend Patrick Lynch wrote a post titled "Libertarians Can Believe in Borders." While I can conceive of good arguments against completely unrestricted immigration, and while some of... MORE

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