Bryan Caplan and David Henderson

Garett Jones: September 2012

An Author Archive by Month (18 entries)

The Wisdom of Commenter Greg G

Finance
Garett Jones
On Speed Bankruptcy: Of course this would raise capital costs. That is a feature, not a bug. We have seen the results of underpricing credit risk.... MORE

About 1%.  Bill Dickens, Bryan's first economics professor, writing in the Milken Institute Review:[A] number of estimates suggest that we have paid a price for the extended unemployment benefits adopted by Washington in response to the recession - somewhere between... MORE

When a corporation's assets appear to be worth less than its liabilities--for whatever reason--the economists' normal solution (as discussed last week) is for the bankruptcy judge to legally convert the bank's rigid debt claims into flexible equity claims.  That's corporate bankruptcy in... MORE

Tim seemed to view his job as protecting Citigroup from me, when he should have been worried about protecting the taxpayers from Citi....That's from her new book, profiled in the Financial Times. You already know that countries whose banking sectors... MORE

On the question of how progressive a tax system can be if people can exit, Alexei Sadeski writes:Interesting theory, Garett. A supporting piece of evidence is that the US has a more progressive national taxation system - far more progressive -... MORE

Will ACA's cost-cutters outcut private insurers?

Economics of Health Care
Garett Jones
Earlier this month, health experts from the Obama Administration wrote up some advice on the next steps for health reform in the New England Journal of Medicine.  I recommend reading it: Not too technical, about 2500 words, it gives you... MORE

Can Progressive Taxation Survive Exit?

Public Choice Theory
Garett Jones
The other day I tweeted:Under a Tiebout federal government, I posit the rich would pay more in dollars than the middle class, less as a percentage Tiebout is shorthand for "voting with your feet," and it's a way to think about... MORE

Net Worth Makes You Trustworthy

Macroeconomics
Garett Jones
Eli Dourado has a great post on whether we can believe we're still in the short run (see Bryan's critique here). Along the way, Dourado calls into question the sticky debt channel, correctly noting that according to official estimates, household... MORE

How to bet on bad futures

Finance
Garett Jones
Some people think the world will end this year, some think the US is bound to default or inflate its way out of debt, some suspect the Singularity will end in a John Connor scenario.  How can these prophets of... MORE

I'm still shocked at the speed with which bipartisan elites coalesced around TARP.  A key reason: The proffered alternatives were incredibly painful. No bailouts would have meant bankruptcies much bigger and more complicated than Lehman--and that bankruptcy ostensibly threatened short... MORE

Bad balance sheets: Awful for retail demand

Macroeconomics
Garett Jones
Mian and Sufi (who showed that cash for clunkers failed) have written a batch of papers on leverage and the financial crisis. This one may be my favorite: They check to see whether counties with the highest leverage before the crisis... MORE

Questions I've asked

Fiscal Policy
Garett Jones
1.  Will Treasury bondholders run our government? Follow-up questions:a. Will they run it better than we did?b. Do they run it already, as if by an invisible hand? I often ask myself, WWBD? And then I ask whether that's close to... MORE

Future money and today's NGDP

Monetary Policy
Garett Jones
In times of trouble, I often turn for comfort to the Cagan money demand model.  Philip Cagan, who passed away in June of this year, was a monetarist who moved the ball down the court.  Back in the 50's, he... MORE

Degree Pollution: Why subsidize it?

Economics of Education
Garett Jones
People who drive heavier cars are more likely to survive accidents.  Since life is the most valuable commodity of all, shouldn't governments give out grants or loans to help the poor buy bigger cars?  Even leaving the issue of pollution... MORE

Bubbles: Who to blame?

Finance
Garett Jones
I believe in bubbles.  They turn up in theory, in the lab, in history. We are a bubbly species, prone to waves of enthusiasm that crash upon the shore.Our financial crisis is often told as a story of a housing... MORE

Debt: The Stickiest Price of All

Macroeconomics
Garett Jones
Economists tell a lot of stories about how a fall in dollar spending can hurt the real economy.  And we should be forced to tell these stories--we shouldn't take it for granted that a fall in spending causes a fall... MORE

Trustworthiness > Trust

Cross-country Comparisons
Garett Jones
The academic literature is filled with research into the importance of trust.  High-trust societies are richer, safer, just better. But I suspect that it's not trust that's valuable: it's trustworthiness.  When people are trustworthy, when cultures and laws make honorable... MORE

First Things

Econlog Administrative Issues
Garett Jones
Many thanks to Bryan for such a warm welcome.  I want to thank him and David for inviting me to join EconLog as a guest blogger, and to Liberty Fund for making this all possible. But most of all, my thanks... MORE

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