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A vegetable vendor in a marketplace.
Economists study trade, production and consumption decisions, such as those that occur in a traditional marketplace.
For a topical guide to this subject, see Outline of economics.
.Economics is the social science that studies the production, distribution, and consumption of goods and services.^ And this suggests something that you would expect a Professor of Economics to know- the consumption pattern looks suspiciously like that of Giffen goods .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ He also wrote on production and distribution, capital, money, and the history of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thus, Mises presents economics—not as a study of material goods, services, and products—but as a study of human actions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". [1] Current economic models developed out of the broader field of political economy in the late 19th century, owing to a desire to use an empirical approach more akin to the physical sciences.^ Topics covered are the history of the relationship between media and the state, media and democracy today, laws governing the media and its practice, legal and political pressures on the media, media as an economic object, ownership of media and its effects, media coverage on elections and in developing countries, competition and truth in the market for news, the current mainstream media, and journalistic ethics.

^ And those who are more effective, including Roemer and fellow Council of Economic Advisers member Austan Goolsbee, sometimes are cut out of the action...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ EXAM GROUP: 16, 17, 18 Discusses several research areas in political economy, including the origins of the state, comparative political systems, theories of economic reform, fiscal problems in democracies, rule of law, privatization, and regulation.

[2]
A definition that captures much of modern economics is that of Lionel Robbins in a 1932 essay:
"... the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." [3]
Scarcity means that available resources are insufficient to satisfy all wants and needs. .Absent of scarcity and alternative uses of available resources there is no economic problem.^ "Well, there'd be no problem, because the Bank of Warsaw is insured by the National Bank of Poland."
  • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

^ Formulate economic problems in computationally tractable form and use techniques from numerical analysis to solve them.

^ The Packing Problem: The Behavioral Economics of Scarcity - (New Course) Catalog Number: 48309 Sendhil Mullainathan Half course (spring term).

The subject thus defined involves the study of choices as they are affected by incentives and resources.
.Economics aims to explain how economies work and how economic agents interact.^ Keith Chen is doing economic research with monkeys; teaching them how money works .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ In particular, the prize committee lauded his work for “having shown the effects of economies of scale on trade patterns and on the location of economic activity.” .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The World Bank has a comprehensive package on World Cup 2006 and its relation to economics , including an economic analysis of who's gonna win and how the Cup influences economies in the winning/losing countries.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Economic analysis is applied throughout society, in business, finance and government, but also in crime,[4] education,[5] the family, health, law, politics, religion,[6] social institutions, war,[7] and science.^ A massive 3 volume, 3,000 page compendium of nearly every aspect of 19th century American economics and political institutions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ American economics and political institutions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[8] .The expanding domain of economics in the social sciences has been described as economic imperialism.^ By Jason Kottke • May 30, 2006 • economics language money science statistics stock market Social, political, economic, cultural, historical, and technological .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Examples will come from many disciplines: economics, education, other social sciences, epidemiology, and biomedical science.

[9][10]
.Common distinctions are drawn between various dimensions of economics: between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; and between mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social structure nexus"[11]).^ Mises applies his theory of methodological individualism to an analysis of history.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Much of the rest of his life was spent working on an all-encompassing theory of human development based upon the ideas of individualism, utilitarian moral theory, social and biological evolution, limited government, and laissez-faire economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He is known as the founder of the “UCLA tradition” in economics, which emphasizes that individual behavior is self-seeking and rational and that this can have many unanticipated consequences.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.However the primary textbook distinction is between microeconomics, which examines the economic behavior of agents (including individuals and firms, consumers and producers), and macroeconomics, addressing issues of unemployment, inflation, economic growth, and monetary and fiscal policy for an entire economy.^ This course addresses applied issues in macroeconomics, especially topics related to inflation and monetary policy.

^ Roles of fiscal and monetary policies.

^ EXAM GROUP: 7, 8 Seminar speakers present papers on macroeconomic topics, including issues relating to monetary and fiscal policies, economic growth, the role of institutions, and other research issues in the field.

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History of economic thought

A stele depicting a man sitting down
The upper part of the stele of Hammurabi's code of laws
.The city states of Sumer developed a trade and market economy based originally on the commodity money of the Shekel which was a certain weight measure of barley, while the Babylonians and their city state neighbors later developed the earliest system of economics using a metric of various commodities, that was fixed in a legal code.^ John Bates Clark, American economist, was the first to develop marginal productivity theory, using it to explore the distribution of income between returns to labor and capital in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Brad DeLong on January 04, 2010 at 01:04 PM in Books , Economics , Economics: International Finance , Economics: International Trade , Political Economy .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ It contains articles by leading economists on basic concepts, economic systems, schools of economic thought, macroeconomics, economic policy, taxes, money and banking, economic regulation, environmental regulation, discrimination, labor issues, international economics, corporations, financial markets, the marketplace, the economics of special markets, economies outside the U.S., and biographies of famous economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[12] .The early law codes from Sumer could be considered the first (written) economic formula, and had many attributes still in use in the current price system today...^ One of the first textbooks ever written on the subject, and still eminently readable, with clear organization, definitions and explanations.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The first comprehensive treatise on economics written by a leading member of the modern Austrian school of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The first of many anti-slavery tracts written by the Quaker Thomas Clarkson.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

such as codified amounts of .money for business deals (interest rates), fines in money for 'wrong doing', inheritance rules, laws concerning how private property is to be taxed or divided, etc.^ These missives concern the aspects of Ricardo’s life that surround his character, his amiable and generous nature, his successful business dealings, and his personal relationships.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In The Natural Law of Money, <\/i> William Brough argues forcefully that privately-supplied money offers benefits not offered by government-supplied money.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He had a particular interest in central banks, interest rates, and the money supply.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[13][14] .For a summary of the laws, see Babylonian law and Ancient economic thought.^ Leube is a historian of economic thought, with an emphasis on Austrian economics, and a scholar of law and economics and economic philosophy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ A history of the so-called “Manchester School” of economic thought which emerged in the 19th century in order to challenge protectionism, especially the corn laws in Britain.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This work is a summary statement of the nature of economic thought by one of the leading theorists of the English classical school in the mid-19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Economic thought dates from earlier Mesopotamian, Greek, Roman, Indian, Chinese, Persian and Arab civilizations. Notable writers include Aristotle, Chanakya (also known as Kautilya), Qin Shi Huang, Thomas Aquinas and Ibn Khaldun through to the 14th century. .Joseph Schumpeter initially considered the late scholastics of the 14th to 17th centuries as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary, interest, and value theory within a natural-law perspective.^ His clarifications of monetary issues coincided with concurrent national interests in the gold\/silver\/bimetallism parity controversies of the late 1800s, and the meaning of money for an economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was a member of the “Austrian school of economics”, taught at the London School of Economics, wrote extensively on banking and monetary theory, the socialist calculation debate, and the theory of spontaneous orders.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Interviewer Edward L. Glaeser is Professor of Economics at Harvard University, where he specializes in urban and social economics, law and economics, and microeconomic theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[15] .After discovering Ibn Khaldun's Muqaddimah, however, Schumpeter later viewed Ibn Khaldun as being the closest forerunner of modern economics,[16] as many of his economic theories were not known in Europe until relatively modern times.^ By Jason Kottke • Sep 16, 2008 • economics food The McDonald's theory of war .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Say replies to Malthus’s negative views about the impact of population on the well-being of workers, and provides a popularization of his economic views.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He is known as the founder of the “UCLA tradition” in economics, which emphasizes that individual behavior is self-seeking and rational and that this can have many unanticipated consequences.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[17]
Nonetheless, recent research indicates that the Indian scholar-philosopher Chanakya (c. .340-293 BCE) predates Ibn Khaldun by a millennium and a half as the forerunner of modern economics,[18][19][20][21] and has written more expansively on this subject, particularly on political economy.^ By Jason Kottke • Nov 20, 2006 • economics energy Global Warming James Surowiecki oil politics Surprising factoid from an article on legalizing .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ EXAM GROUP: 18 Discusses several research areas in political economy, including the origins of the state, comparative political systems, theories of economic reform, fiscal problems in democracies, rule of law, privatization, regulation, and elections and the economy.

^ A 2 volume textbook on classical liberal political economy written by one of the leaders of the French laissez-faire school.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.His magnum opus, the Arthashastra (The Science of Wealth and Welfare),[22] is the genesis of economic concepts that include the opportunity cost, the demand-supply framework, diminishing returns, marginal analysis, public goods, the distinction between the short run and the long run, asymmetric information and the producer surplus.^ Topics include game theory, economics of information, incentive theory, and welfare economics.

^ Voting theory, social choice, mechanism design, bargaining theory, cooperative game theory, equitable cost allocation, fair division, welfare analysis of taxation, public expenditures and risk bearing.

^ He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[23] .In his capacity as an advisor to the throne of the Maurya Empire of ancient India, he has also advised on the sources and prerequisites of economic growth, obstacles to it and on tax incentives to encourage economic growth.^ EXAM GROUP: 12, 13 Comparative economic history emphasizing sources of economic growth and development.

^ Studies the main theories of economic growth and the main potential sources of economic development, from physical capital accumulation, to education, to technology, to the role of government.

^ Instead of looking outside for economic growth, this is a story of internally sourced, created, and most importantly executed growth.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[24]
A seaport with a ship arriving
1638 painting of a French seaport during the heyday of mercantilism
.Two other groups, later called 'mercantilists' and 'physiocrats', more directly influenced the subsequent development of the subject.^ Her subsequent expositions of economics, among other subjects, were equally inspiring and widely-read.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ There is one encouraging development: an almost ad hoc political action group called Americans for Financial Reform...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The course will emphasize how these and other historical factors continue to influence development prospects in the region today.

.Both groups were associated with the rise of economic nationalism and modern capitalism in Europe.^ EXAM GROUP: 6, 7 An introduction to formal models of decision making in economics, including both classical and psychologically-motivated approaches.

^ And the political, economic and cultural differences among Asian nations are greater than those within Western Europe.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Examines the emergence of modern economic growth in Europe after 1500, and the forces that led to the great divergence in prosperity in the 19th century.

.Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen.^ One of the few historical accounts of the development of the idea of individualism from its origins in the 18th century opposition to mercantilism to the radical individualists of the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Readings draw on economic theory, empirical analyses, and historical works and literature from the 19th century to the present.

^ His later and better known work in a similar vein was his 2 volume study of the system of economic regulation in the 18th century known as Mercantilism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It held that a nation's wealth depended on its accumulation of gold and silver.^ His clarifications of monetary issues coincided with concurrent national interests in the gold\/silver\/bimetallism parity controversies of the late 1800s, and the meaning of money for an economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was ultimately inspired by Smith’s The Nature and Causes of the Wealth of Nations, and, using his background static/in the stock market and his natural incisive ability, actively disagreed with the mercantilist views on gold accumulation and the pricing of gold.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver.^ His clarifications of monetary issues coincided with concurrent national interests in the gold\/silver\/bimetallism parity controversies of the late 1800s, and the meaning of money for an economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The strengthening of the dollar abroad means that American made goods aren't selling and the ships hauling them are unable to leave the port.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ When people demand more money, rather than consumer or investment goods, it increases the demand for labor to mine, move and monetize gold....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The doctrine called for importing cheap raw materials to be used in manufacturing goods, which could be exported, and for state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in the colonies.^ India, like the United States, uses a “basket of goods” approach to define its poverty threshold.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Their pain was outweighed by the gain to American consumers and manufacturers, who could now order and ship goods essentially free.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ And America's ambient culture is being enriched by foreign imports ranging from soccer to sushi, not to mention energetic Ph.D.'s in material and biological sciences.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[25][26]
.Physiocrats, a group of 18th century French thinkers and writers, developed the idea of the economy as a circular flow of income and output.^ One of the twentieth century’s leading thinkers on the relationship between free trade and the economics of developing countries, Lord Peter Thomas Bauer discusses his clear ideas on the effectiveness of government aid and intervention in the Third World.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The English historian of economic thought Higgs discusses iin a series of lectures given at the London School of Economics in 1896 the 18th century free market Physiocratic school, its origins, ideas, political and intellectual influence.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ EXAM GROUP: 6, 7 Financial aspects of growth and income determination in open economies.

.Adam Smith described their system "with all its imperfections" as "perhaps the purest approximation to the truth that has yet been published" on the subject.^ His basic point seems to be that Adam Smith was right, though perhaps hardcore free market types today tend to misread Smith as advocating unregulated free markets.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Treatises and Essays on Subjects connected with Economic Policy with Biographical Sketches of Quesnay, Adam Smith & Ricardo .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth.^ His teaching covered marginal utility, elasticity of demand, production costs, and consumer surplus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The excise tax on generous insurance plans would simply offset this bias for the most expensive health insurance plans -- and only on a partial basis.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Thus, they opposed the mercantilist policy of promoting manufacturing and trade at the expense of agriculture, including import tariffs.^ They cover foreign policy, free trade, the repeal of the corn laws, war, colonial policy, education , and social reform.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His interests included money and tariff policy, critiques of socialism, social classes, and anti-imperialism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Jacob Viner was an economist who wrote on international trade, tariff policy, commercial treaties, the role of the U.S. international trade, and the history of economic thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Physiocrats advocated replacing administratively costly tax collections with a single tax on income of land owners.^ A prolific author who was a strong defender of free trade and an advocate of the idea of a single tax on land.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ George believed that a single tax on land would be sufficient to fund government activities.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ George was not just an advocate of the single tax on the unimproved value of land, but also a strong defender of free trade, as this work demonstrates.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Variations on such a land tax were taken up by subsequent economists (including Henry George a century later) as a relatively non-distortionary source of tax revenue.^ Perhaps Henry George’s best known work in which he examines the casuses of poverty and, among other things, blames it on the monopoly of land ownership.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ George believed that a single tax on land would be sufficient to fund government activities.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thomas Hodgskin, an officer in the British Navy who left and subsequently worked for The Economist, <\/em> was one of the earliest popularizers of economics for audiences of non-economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.In reaction against copious mercantilist trade regulations, the physiocrats advocated a policy of laissez-faire, which called for minimal government intervention in the economy.^ He is a consistent advocate of laissez-faire economic policy and limited government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ A 2 volume textbook on classical liberal political economy written by one of the leaders of the French laissez-faire school.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ While a member of the Senate, he opposed Napoleon, and also spoke out against the subsequent constitutional monarchy, and in support of American-style laissez-faire republicanism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[27][28]

Classical political economy

Publication of Adam Smith's The Wealth of Nations in 1776, has been described as "the effective birth of economics as a separate discipline."[29] The book identified land, labor, and capital as the three factors of production and the major contributors to a nation's wealth.
.In Smith's view, the ideal economy is a self-regulating market system that automatically satisfies the economic needs of the populace.^ It contains articles by leading economists on basic concepts, economic systems, schools of economic thought, macroeconomics, economic policy, taxes, money and banking, economic regulation, environmental regulation, discrimination, labor issues, international economics, corporations, financial markets, the marketplace, the economics of special markets, economies outside the U.S., and biographies of famous economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ EXAM GROUP: 18 Discusses several research areas in political economy, including the origins of the state, comparative political systems, theories of economic reform, fiscal problems in democracies, rule of law, privatization, regulation, and elections and the economy.

^ His later and better known work in a similar vein was his 2 volume study of the system of economic regulation in the 18th century known as Mercantilism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.He described the market mechanism as an "invisible hand" that leads all individuals, in pursuit of their own self-interests, to produce the greatest benefit for society as a whole.^ Mandeville is a witty satirist who used a poem to make the profound economic point that “private vices” \(or self-interest\) lead to “publick benefits” \(such as orderly social structures like law, language, and markets\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ So now the villagers have decided to take the grasp the problem firmly with their own two hands, and are laboring furiously to produce a solution.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The fifth lesson is that not all innovation leads to a more efficient and productive economy - let alone a better society.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Smith incorporated some of the Physiocrats' ideas, including laissez-faire, into his own economic theories, but rejected the idea that only agriculture was productive.^ Much of the rest of his life was spent working on an all-encompassing theory of human development based upon the ideas of individualism, utilitarian moral theory, social and biological evolution, limited government, and laissez-faire economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In 1912, when Mises, at age thirty-one, wrote this landmark book, no monetary theory could be described as both securely founded on economic reality and properly incorporated into an analysis of the entire economic system.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of three seminal works published in 1871 \(along with Walras and Menger\) which introduced the idea of the marginal theory of utility and thus a revolution in economic thinking.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.In his famous invisible-hand analogy, Smith argued for the seemingly paradoxical notion that competitive markets tended to advance broader social interests, although driven by narrower self-interest.^ His basic point seems to be that Adam Smith was right, though perhaps hardcore free market types today tend to misread Smith as advocating unregulated free markets.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Smith also studied the social forces giving rise to competition, trade, and markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The economic phrase for which he is most famous, the “invisible hand” of economic incentives, was only one of his many contributions to the modern-day teaching of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The general approach that Smith helped initiate was called political economy and later classical economics.^ This period saw the development and initial defense of his most influential work On the Principles of Political Economy and Taxation.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ A 2 volume textbook on classical liberal political economy written by one of the leaders of the French laissez-faire school.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Higgs was an English economist who wrote on the history of economic thought \(he rediscovered the importance of Richard Cantillon\) and was the editor of Palgrave’s Dictionary of Political Economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

It included such notables as Thomas Malthus, David Ricardo, and John Stuart Mill writing from about 1770 to 1870.[30]
.While Adam Smith emphasized the production of income, David Ricardo focused on the distribution of income among landowners, workers, and capitalists.^ In language less difficult than that of Smith, Ricardo, Malthus, and Mill, she illustrates such topics as the economics of wages and income distribution.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ On the Principles of Political Economy and Taxation <\/em> provides analysis of the allocation of money between capitalists, landowners, and agricultural workers in Britain.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The exchange of ideas found within this volume of letters helped shape and refine Ricardo’s thoughts on the allocation of money between capitalists, landowners, and agricultural workers.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Ricardo saw an inherent conflict between landowners on the one hand and labor and capital on the other.^ Capitalism, on the other hand, thrives because people have a dollar, a dream, and the inability to calculate odds correctly.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Yes, at the peak of the bubble we had three million extra houses between Los Angeles and Albuquerque--capital that would have been more usefully deployed in other forms.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ That finding the point of balance for all these conflicting issues and concerns is very difficult, and keeping the point of balance is almost impossible, is very clear in Kindleberger's "on the one hand...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits.^ Big Three continually agreed to deals with the unions that added legacy costs--in exchange for keeping current wages down, and hence [reported] profits up....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The taxation of income, capital, imports, consumption goods, etc., and the effects on wages, rents, profits, production, and consumption are major topics, along with the government’s budget constraints.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His interest in the nature of the firm contributed to Frank H. Knight’s work by clearly describing the factors of production and how to categorize their rewards into wages, rent, and profits.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

A man facing the viewer
Malthus cautioned law makers on the effects of poverty reduction policies
.Thomas Robert Malthus used the idea of diminishing returns to explain low living standards.^ There are two versions of Thomas Robert Malthus’s Essay on the Principle of Population.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ It helps explain why the Soviet Union, after decades of state fascism/communism, slid into a living standard higher than that of much of Latin America.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His views of Thomas Robert Malthus’s writings may have been the source of the popular subsequent mis-association of Carlyle’s 1849 term, the “dismal science,” with Malthus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Population, he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically.^ The rapid economic expansion in countries like China, India and Vietnam tends to sharply increase the demand for food.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The Malthusian trap is "a return to subsistence-level conditions as a result of agricultural production being eventually outstripped by growth in population".
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

The force of a rapidly growing population against a limited amount of land meant diminishing returns to labor. .The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level.^ The Malthusian trap is "a return to subsistence-level conditions as a result of agricultural production being eventually outstripped by growth in population".
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

Malthus also questioned the automatic tendency of a market economy to produce full employment. .He blamed unemployment upon the economy's tendency to limit its spending by saving too much, a theme that lay forgotten until John Maynard Keynes revived it in the 1930s.^ He elaborated on ideas from economists as broad-based as Jevons, Böhm-Bawerk, and Clark, and influenced economists from Irving Fisher to John Maynard Keynes to James Buchanan.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ An attempt to decode the sex diaries of noted economist John Maynard Keynes .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ It lay forgotten for over 100 years until Jevons rediscovered it in the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Coming at the end of the Classical tradition, John Stuart Mill parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system.^ John Bates Clark, American economist, was the first to develop marginal productivity theory, using it to explore the distribution of income between returns to labor and capital in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He influenced the thinking of James Mill and his son John Stuart Mill.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ John Elliot Cairnes, Irish economist, Professor of Political Economy at the University of Oxford, was a follower of Ricardo and Mill.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Mill pointed to a distinct difference between the market's two roles: allocation of resources and distribution of income.^ John Bates Clark, American economist, was the first to develop marginal productivity theory, using it to explore the distribution of income between returns to labor and capital in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Studies the relationship between economic growth, poverty, and income distribution.

^ In language less difficult than that of Smith, Ricardo, Malthus, and Mill, she illustrates such topics as the economics of wages and income distribution.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene.
Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it" as influenced by its scarcity. .Smith maintained that, with rent and profit, other costs besides wages also enter the price of a commodity.^ Big Three continually agreed to deals with the unions that added legacy costs--in exchange for keeping current wages down, and hence [reported] profits up....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The taxation of income, capital, imports, consumption goods, etc., and the effects on wages, rents, profits, production, and consumption are major topics, along with the government’s budget constraints.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His interest in the nature of the firm contributed to Frank H. Knight’s work by clearly describing the factors of production and how to categorize their rewards into wages, rent, and profits.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[31] .Other classical economists presented variations on Smith, termed the 'labour theory of value'. Classical economics focused on the tendency of markets to move to long-run equilibrium.^ Presents an introduction to the modern game theory, focusing on its use in economics.

^ It runs as follows; Gujarati economists place faith in the market, while Bengali economists are prone to trust the state.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Marxism

A man facing the viewer
The Marxist school of economic thought comes from the work of German economist Karl Marx.
Marxist (later, Marxian) economics descends from classical economics. It derives from the work of Karl Marx. .The first volume of Marx's major work, Das Kapital, was published in German in 1867. In it, Marx focused on the labour theory of value and what he considered to be the exploitation of labour by capital.^ Many of the essays in this volume are published here for the first time.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The second volume of Boehm-Bawerk’s monumental three volume work on Capital and Interest.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ A research seminar for students considering work in economic theory.

[32][33] .The labour theory of value held that the value of a thing was determined by the labor that went into its production.^ His discussions of the labor theory of value followed up on David Ricardo and pre-dated John Stuart Mill’s expositions on similar themes.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Neoclassical economics

.A body of theory later termed 'neoclassical economics' or 'marginalism' formed from about 1870 to 1910. The term 'economics' was popularized by such neoclassical economists as Alfred Marshall as a concise synonym for 'economic science' and a substitute for the earlier, broader term 'political economy'.[34][35] This corresponded to the influence on the subject of mathematical methods used in the natural sciences.^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Say replies to Malthus’s negative views about the impact of population on the well-being of workers, and provides a popularization of his economic views.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Lalor is best known as the editor of the mammoth three volume cyclopedia of economics and political science which he published in the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[2]
.Neoclassical economics systematized supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income.^ We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Focuses on the determinants of growth and income inequality, volatile financial markets, and rapid urbanization.

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.It dispensed with the labour theory of value inherited from classical economics in favor of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side.^ Taussig, a professor of economics at Harvard, wrote what has become a classic work on modern trade theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The theory of marginal utility and new ways of thinking about marginal value and price theory help found the Austrian School of economics, whose later theorists included Ludwig von Mises and Friedrich Hayek, and Murray Rothbard.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of three seminal works published in 1871 \(along with Walras and Menger\) which introduced the idea of the marginal theory of utility and thus a revolution in economic thinking.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[36]
.In microeconomics, neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making.^ EXAM GROUP: 6, 7 An introduction to formal models of decision making in economics, including both classical and psychologically-motivated approaches.

^ "Michael Lewis talks about the economics of sports -- the financial and decision-making side of baseball and football -- using the insights from his bestselling books on baseball and football: Moneyball and The Blind Side.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Buchanan has devoted himself to the study of the contractural and constitutional basis for the theory of economic and political decision making.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.An immediate example of this is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded.^ We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His teaching covered marginal utility, elasticity of demand, production costs, and consumer surplus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of Hayek’s most important contributions to economic theory is his demonstration of the part prices play in disseminating widely diffused knowledge about consumer demand and the availablility of economic resources in order to make rational economic calculation possible.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

In macroeconomics it is reflected in an early and lasting neoclassical synthesis with Keynesian macroeconomics.[37][38]
Neoclassical economics is occasionally referred as orthodox economics whether by its critics or sympathizers. .Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalize earlier analysis, such as econometrics, game theory, analysis of market failure and imperfect competition, and the neoclassical model of economic growth for analyzing long-run variables affecting national income.^ This is the 8th edition of what is regarded to be the first “modern” economics textbook, leading in various editions from the 19th into the 20th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Or perhaps a long run of good fortune has left the financial market dominated by cockeyed optimists, who have finally figured that out.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ I found a number of such places: Kindleberger's declaration that in the last analysis the making of international economic policy under such circumstances "is an art" and that that "says nothing--and everything."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Keynesian economics

Two men in suits converse with each other
John Maynard Keynes (above, right), widely considered a key theorist in economics.
.Keynesian economics derives from John Maynard Keynes, in particular his book The General Theory of Employment, Interest and Money (1936), which ushered in contemporary macroeconomics as a distinct field.^ An attempt to decode the sex diaries of noted economist John Maynard Keynes .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ EXAM GROUP: 18 For students with an interest in economic theory.

^ Emphasis on general methods applicable to both econometrics and economic theory.

[39][40] .The book focused on determinants of national income in the short run when prices are relatively inflexible.^ His work focused on real and nominal interest rates, the marginal productivity of capital, and determinants of the price level.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Focuses on the determinants of growth and income inequality, volatile financial markets, and rapid urbanization.

^ Bush’s assessment for why food prices are higher is econ centered and consequentialist — more demand, relatively static short run supply = higher prices as an emergent property of a world where millions are making independent decisions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low "effective demand" and why even price flexibility and monetary policy might be unavailing.^ A withdrawal of government support, combined with high unemployment and rising mortgage foreclosures, could push home prices down 20%, he said...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Alchian has become recognized as one of the most influential voices in the areas of market structure, the theory of the firm, law and economics, resource unemployment, monetary theory and monetary policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Such terms as "revolutionary" have been applied to the book in its impact on economic analysis.^ I found a number of such places: Kindleberger's declaration that in the last analysis the making of international economic policy under such circumstances "is an art" and that that "says nothing--and everything."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Develops and applies to climate change such economic topics as modeling, externalities, discounting, uncertainty, cost-benefit analysis, dynamics, and other relevant themes.

^ Prerequisite: Both terms of Social Analysis 10 (or equivalent); Statistics 100, 104, or 110; Economics 1010a or 1011a and current enrollment in Economics 1010b or 1011b.

[41][42][43]
Keynesian economics has two successors. .Post-Keynesian economics also concentrates on macroeconomic rigidities and adjustment processes.^ Note: Economics 1011b fulfills the intermediate macroeconomic theory requirement for Economics concentrators.

^ Note: Economics 1010b fulfills the intermediate macroeconomic theory requirement for Economics concentrators.

^ The following phrases seem no connote nothing to such students: "Cambridge Capital Controversy", "Neoclassical Economics", and "Post Keynesian Economics".
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Research on micro foundations for their models is represented as based on real-life practices rather than simple optimizing models.^ Written toward the end of Mises’s life, his last monograph, The Ultimate Foundation of Economic Science, <\/em> returned to economics as a science based on human action.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ But Gates donates through a personal foundation, rather than through Microsoft itself.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ As a practical matter, I think we must rely on creditors rather than potential debtors to differentiate between wise and unwise loans.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

It is generally associated with the University of Cambridge and the work of Joan Robinson.[44]
New-Keynesian economics is also associated with developments in the Keynesian fashion. .Within this group researchers tend to share with other economists the emphasis on models employing micro foundations and optimizing behavior but with a narrower focus on standard Keynesian themes such as price and wage rigidity.^ As we said back then, for Mutineers Clark is definitely an economist to watch relative to others due to his outsized focus on Indian economic history.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.These are usually made to be endogenous features of the models, rather than simply assumed as in older Keynesian-style ones.^ His use of mathematics and graphical analysis, coupled with a lively writing style, made these tools more accessible to students.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ (The idea that one might write checks to rather than receive checks from universities is now strange to me.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Traditionally, these farmers have sold their rice to local middlemen rather than developing relationships with exporters.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Chicago School of economics

.The Chicago School of economics is best known for its free market advocacy and monetarist ideas.^ In his best known work, Self-Help <\/i> he combines Victorian morality with sound free market ideas into moral tales showing the benefits of thrift, hard work, education, perseverance, and a sound moral character.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Lalor is best known as the editor of the mammoth three volume cyclopedia of economics and political science which he published in the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Pigou is best known for his work on welfare economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.According to Milton Friedman and monetarists, market economies are inherently stable if left to themselves and depressions result only from government intervention.^ Mises consistently argues that the solution to government intervention is free markets and free enterprise, which call for reforming government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The companion volume to A Plea for Liberty <\/em> which continued the argument against the Fabian Socialists and for a policy of strict non-intervention in the economy by the government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ On monetary policy, Mr Bernanke was true to the word he gave to Milton Friedman on the occasion of his 90th birthday: “Regarding the Great Depression.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[45] .Friedman, for example, argued that the Great Depression was result of a contraction of the money supply, controlled by the Federal Reserve, and not by the lack of investment as Keynes had argued.^ In The Natural Law of Money, <\/i> William Brough argues forcefully that privately-supplied money offers benefits not offered by government-supplied money.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ On October 30, 2007, Benn Steil argued that the Federal Reserve needed not to cut but to raise interest rates to avoid an imminent looming inflationary spiral: .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ On monetary policy, Mr Bernanke was true to the word he gave to Milton Friedman on the occasion of his 90th birthday: “Regarding the Great Depression.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Ben Bernanke, current Chairman of the Federal Reserve, is among the economists today generally accepting Friedman's analysis of the causes of the Great Depression.^ Brad DeLong on January 06, 2010 at 11:21 AM in Economics , Economics: Economists , Economics: Federal Reserve .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ It has influenced generations of economists, including Milton Friedman, through its charm and clarity.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ On monetary policy, Mr Bernanke was true to the word he gave to Milton Friedman on the occasion of his 90th birthday: “Regarding the Great Depression.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[46]
.Milton Friedman effectively took many of the basic principles set forth by Adam Smith and the classical economists and modernized them.^ His basic point seems to be that Adam Smith was right, though perhaps hardcore free market types today tend to misread Smith as advocating unregulated free markets.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The book consists of lectures Cairnes gave to explain the basic principles behind classical economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thinking like an economist has been a point of pride since Adam Smith.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.One example of this is his article in the September 1970 issue of The New York Times Magazine, where he claims that the social responsibility of business should be “to use its resources and engage in activities designed to increase its profits...^ The discussion centers around Friedman's assertion that "the social responsibility of business is to increase its profits".
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ I’m sure many readers saw the article in the New York Times on the coming skills gap in the IT sector in India.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Two quick reviews of Elizabeth Currid's book, The Warhol Economy , which argues that New York's "vibrant creative social scene" is what makes the city go.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

(through) open and free competition without deception or fraud.” [47]

Other schools and approaches

.Other well-known schools or trends of thought referring to a particular style of economics practiced at and disseminated from well-defined groups of academicians that have become known worldwide, include the Austrian School, the Freiburg School, the School of Lausanne, post-Keynesian economics and the Stockholm school.^ One of the founders of the Austrian School of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was a supporter of the marginal school of economic thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was a member of the “Austrian school of economics”, taught at the London School of Economics, wrote extensively on banking and monetary theory, the socialist calculation debate, and the theory of spontaneous orders.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Contemporary mainstream economics is sometimes separated into the Saltwater approach of those universities along the Eastern and Western coasts of the US, and the Freshwater, or Chicago-school approach.^ And those who are more effective, including Roemer and fellow Council of Economic Advisers member Austan Goolsbee, sometimes are cut out of the action...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ He was a member of the “Austrian school of economics”, taught at the London School of Economics and the University of Chicago, wrote extensively on banking and monetary theory, the socialist calculation debate, and the theory of spontaneous orders.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Laughlin was head of the University of Chicago Economics Department, founder of its Graduate School of Business, and founder of the Journal of Political Economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Within macroeconomics there is, in general order of their appearance in the literature; classical economics, Keynesian economics, the neoclassical synthesis, post-Keynesian economics, monetarism, new classical economics, and supply-side economics.^ Peter Hooper (2009), "Drivers and Drags: US Macroeconomic Setting for 2010," Global Economic Perspectives (New York: Deutsche Bank; December 18) : .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Overturning classic economic wisdom, new research shows that it's not how much you have that matters, it's how you spend it.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Despite the neoclassicals admitting that the Post-Keynesians were right, why has the impact of heterogeneous capital on an economy left out of the macro models?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Alternative developments include ecological economics, institutional economics, evolutionary economics, dependency theory, structuralist economics, world systems theory, econophysics, and biophysical economics.^ Correspondingly, in financial systems, risk managers are able to assess their own institutions' exposure, but only on the assumption that the rest of the world obeys certain conditions.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ I find Bangalore to be one of the most exciting places in the world,” says Dan Scheinman, Cisco Systems Inc.’s senior vice-president for corporate development.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[48]

Microeconomics

.Microeconomics looks at interactions through individual markets, given scarcity and government regulation.^ Although governments may presume to set “prices,” it is individuals who, by their actions and choices through competitive bidding for money, products, and services, actually determine “prices”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In India, the interaction between state regulators and the recently liberalized market is particularly complex: .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

A given market might be for a product, say fresh corn, or the services of a factor of production, say bricklaying. .The theory considers aggregates of quantity demanded by buyers and quantity supplied by sellers at each possible price per unit.^ One of Hayek’s most important contributions to economic theory is his demonstration of the part prices play in disseminating widely diffused knowledge about consumer demand and the availablility of economic resources in order to make rational economic calculation possible.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The Application of the Theoretical Apparatus of Supply and Demand to Units of Currency” .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond to market changes over time.^ We find that a $1 increase in gasoline price changes the market shares of the most and least fuel-efficient quartiles of new cars by +20% and -24%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Galenson demonstrates these differences through analysis of how often artists' works are reproduced in textbooks, auction prices, and museum shows.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

This is broadly termed supply and demand analysis. .Market structures, such as perfect competition and monopoly, are examined as to implications for behavior and economic efficiency.^ Mandeville is a witty satirist who used a poem to make the profound economic point that “private vices” \(or self-interest\) lead to “publick benefits” \(such as orderly social structures like law, language, and markets\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Alchian has become recognized as one of the most influential voices in the areas of market structure, the theory of the firm, law and economics, resource unemployment, monetary theory and monetary policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Analysis of change in a single market often proceeds from the simplifying assumption that behavioral relations in other markets remain unchanged, that is, partial-equilibrium analysis.^ His interest in the way the forces of the market evolve toward an equilibrium without \(and often in opposition to\) government influence runs throughout the book.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.General-equilibrium theory allows for changes in different markets and aggregates across all markets, including their movements and interactions toward equilibrium.^ His interest in the way the forces of the market evolve toward an equilibrium without \(and often in opposition to\) government influence runs throughout the book.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The transition to capitalism entailed a mutually supporting movement across all seven moments.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[49][50]

Markets

In microeconomics, production is the conversion of inputs into outputs. .It is an economic process that uses resources to create a commodity that is suitable for exchange.^ I, Pencil is a 1958 ode to mass production, industrial specialization, commodity economics, and the invisible hand using the manufacture of a simple graphite pencil as an example.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ This law combined with a subsidy for this use has created a flourishing corn market in the United States, but has also diverted agricultural resources from food to fuel.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In the process, his administration created a new economic sector.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

This can include manufacturing, warehousing, shipping, and packaging. .Some economists define production broadly as all economic activity other than consumption.^ In some early work, you wondered why workers in British cotton mills were so much more productive than workers in Indian cotton mills.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ All the others who might have obtained some benefit from the bill refrained for fear of being ostracized....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ An important lesson in economics & statistics - not all products rise monotonically in consumption or production given increasing incomes & productivity - .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.They see every commercial activity other than the final purchase as some form of production.^ These groups appear to be reinforcing rather than canceling each other politically even though they are upset about opposite things....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ "Other studies have shown that unattractive men and women are less likely to be hired, and that they earn less money, than the better-looking.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ There is no need to leave China to see skyscrapers; there are more of them in Shanghai than in New York, and they are newer, taller and bolder.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Production is a process, and as such it occurs through time and space. Because it is a flow concept, production is measured as a "rate of output per period of time".
.There are three aspects to production processes, including the quantity of the commodity produced, the form of the good created and the temporal and spatial distribution of the commodity produced.^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ There are three licensed west coast distributors of this fair trade rice , including this supplier of organic basmati rice .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ GDP is defined as the total value of final goods and services produced within a territory during a specified period (or, if not specified, annually, so that “the UK GDP” is the UK’s annual product).
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Opportunity cost expresses the idea that for every choice, the true economic cost is the next best opportunity. Choices must be made between desirable yet mutually exclusive actions. .It has been described as expressing "the basic relationship between scarcity and choice.".[51] The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.^ This is a collection of essays written in the LSE opportunity cost tradition by scholars associated with the London School of Economics between 1937 and 1960.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[52] .Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered.^ What cannot be accepted are financial rescue operations that benefit the unworthy and cause losses to other important groups – like taxpayers and wage earners.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Taking the form of a letter to President Bush, the article explores the opportunity costs of the war and then offers the real reason why the war has been disastrous: .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ But each time the United States tries to do so and fails to restore order, it incurs a high -- albeit unseen -- opportunity cost in the future.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.The inputs or resources used in the production process are called factors of production.^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Possible inputs are typically grouped into six categories. .These factors are raw materials, machinery, labour services, capital goods, land, and enterprise.^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thus, Mises presents economics—not as a study of material goods, services, and products—but as a study of human actions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Another factor is that northern Mexican norms are (partially) geared to support American multinationals and these norms have spread more generally, including to Mexican enterprises in the region.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In the short-run, as opposed to the long-run, at least one of these factors of production is fixed.^ "These trends do not appear reversible in the short run.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ These ones are designed to run on the thorium fuel cycle.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Examples include major pieces of equipment, suitable factory space, and key personnel.
.A variable factor of production is one whose usage rate can be changed easily.^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Examples include electrical power consumption, transportation services, and most raw material inputs. In the "long-run", all of these factors of production can be adjusted by management. .In the short run, a firm's "scale of operations" determines the maximum number of outputs that can be produced, but in the long run, there are no scale limitations.^ There’s no doubt that microfinance does a tremendous amount of good, yet there are also real limits to what it can accomplish.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Long-run and short-run changes play an important part in economic models.^ One of Hayek’s most important contributions to economic theory is his demonstration of the part prices play in disseminating widely diffused knowledge about consumer demand and the availablility of economic resources in order to make rational economic calculation possible.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Economic efficiency describes how well a system generates the maximum desired output a with a given set of inputs and available technology. .Efficiency is improved if more output is generated without changing inputs, or in other words, the amount of "friction" or "waste" is reduced.^ As more corn gets used for making automotive fuel, that reduces the amount of grain available for food production.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ More and more, "production" -- that word my fellow economists have worked over for generations -- has become interior to the human mind rather than set on a factory floor.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ In other words, the Nobel skipped a generation in the scholarly lineage, something that must really sting.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Economists look for Pareto efficiency, which is reached when a change cannot make someone better off without making someone else worse off.^ To make things worse, it was hot in Amritsar that year, over 100 degrees, and we were in an old house without air conditioning.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Microloans make poor borrowers better off.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Better to “make” beef sacrilegious lest you fall up hard times like these and be without.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Economic efficiency is used to refer to a number of related concepts.^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.A system can be called economically efficient if: No one can be made better off without making someone else worse off, more output cannot be obtained without increasing the amount of inputs, and production ensures the lowest possible per unit cost.^ These aspects of the proposed legislation make it far more likely that health care providers will have the tools and incentives to deliver better health outcomes.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ You see, Bhagwati and Dixit are the scholars whose work immediately preceded Krugman’s, the ones who made Krugman’s (admittedly important) contributions possible.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ When a paper mill dumps dioxin-laden wastes into a river, the paper-making boosts the GDP, but no deduction is made for the costs associated with the water pollution.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

These definitions of efficiency are not exactly equivalent. .However, they are all encompassed by the idea that nothing more can be achieved given the resources available.^ A commentor @ Marginal Revolution notes that the “spoilage” rate in the US is 1/10 of this - or nearly 30% more food available en toto for a given amount of production.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Specialization

Specialization is considered key to economic efficiency because different individuals or countries have different comparative advantages. .While one country may have an absolute advantage in every area over other countries, it could nonetheless specialize in the area which it has a relative comparative advantage, and thereby gain from trading with countries which have no absolute advantages.^ The theory stated that no two countries with McDonald's restaurants would ever go to war with each other.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ He eventually took on some of Smith’s inconsistencies, and in the process developed the role of comparative advantage in international trade.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Least developed countries and small island developing states may undertake actions voluntarily and on the basis of support (from other countries).
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.For example, a country may specialize in the production of high-tech knowledge products, as developed countries do, and trade with developing nations for goods produced in factories, where labor is cheap and plentiful.^ He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Least developed countries and small island developing states may undertake actions voluntarily and on the basis of support (from other countries).
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.According to theory, in this way more total products and utility can be achieved than if countries produced their own high-tech and low-tech products.^ My own theory about Indian economists is more specific and hopefully less facetious.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ It's always so weird to see these types of lists where the US has more in common with Third World and non-democratic countries than with Europe, Japan, etc.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Illegal immigrants from India more than doubled in the last five years, the fastest growth of all source countries; and it’s not a trivial number, since India ranks fourth, ahead of China, in total number of illegals.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.The theory of comparative advantage is largely the basis for the typical economist's belief in the benefits of free trade.^ Chevalier was a Saint-Simonian economist and supporter of free trade.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He worked for the free trade magazine The Economist <\/em> and wrote and lectured on laissez-faire economic ideas to working men’s institutes.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He eventually took on some of Smith’s inconsistencies, and in the process developed the role of comparative advantage in international trade.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

This concept applies to individuals, farms, manufacturers, service providers, and economies. .Among each of these production systems, there may be a corresponding division of labour with each worker having a distinct occupation or doing a specialized task as part of the production effort, or correspondingly different types of capital equipment and differentiated land uses.^ While there are a lot of Indians, those actually qualified to hold these jobs are fewer in number and competition for these workers is increasing: .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ But of course if you’ve got an information processing system that’s conscious, the part where it’s working to the conclusion will seem “gappy” or “open” because it hasn’t gotten there yet.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ If the Great Depression had not happened 80 years before, there may not have been a “natural experiment” to draw upon, and perhaps 2009 might have turned out differently.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[53][54][55]
Adam Smith's Wealth of Nations (1776) discusses the benefits of the division of labour. Smith noted that an individual should invest a resource, for example, land or labour, so as to earn the highest possible return on it. Consequently, all uses of the resource should yield an equal rate of return (adjusted for the relative riskiness of each enterprise). Otherwise reallocation would result. .This idea, wrote George Stigler, is the central proposition of economic theory, and is today called the marginal productivity theory of income distribution.^ He also wrote on production and distribution, capital, money, and the history of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was a member of the “Austrian school of economics”, taught at the London School of Economics, wrote extensively on banking and monetary theory, the socialist calculation debate, and the theory of spontaneous orders.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Taussig, a professor of economics at Harvard, wrote what has become a classic work on modern trade theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

French economist Turgot had made the same point in 1766.[56]
.In more general terms, it is theorized that market incentives, including prices of outputs and productive inputs, select the allocation of factors of production by comparative advantage, that is, so that (relatively) low-cost inputs are employed to keep down the opportunity cost of a given type of output.^ That’s more stuff like finding ways to replicate Brazil’s food production miracle in other countries and bring down prices via the market so even the extremely poor can afford food.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ More and more, "production" -- that word my fellow economists have worked over for generations -- has become interior to the human mind rather than set on a factory floor.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ The low prices they receive often do not cover their costs of production, leaving them unable to repay the loans they need to buy seeds and fertilizer and further impoverishing their families.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

In the process, aggregate output increases as a by product or by design.[57] .Such specialization of production creates opportunities for gains from trade whereby resource owners benefit from trade in the sale of one type of output for other, more highly-valued goods.^ This creates a positive externality because a user may purchase their phone without intending to create value for other users, but does so in any case.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ An example of one of Hodgskin’s popular lectures to a working class audience, this time on the benefits of free trade.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The more people own telephones, the more valuable the telephone is to each owner.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.A measure of gains from trade is the increased output (formally, the sum of increased consumer surplus and producer profits) from specialization in production and resulting trade.^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His teaching covered marginal utility, elasticity of demand, production costs, and consumer surplus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[58][59][60]

Supply and demand

A graph depicting Quantity on the X-axis and Price on the Y-axis
.
The supply and demand model describes how prices vary as a result of a balance between product availability and demand.
^ His interest in the nature of the firm contributed to Frank H. Knight’s work by clearly describing the factors of production and how to categorize their rewards into wages, rent, and profits.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).
.The theory of demand and supply is an organizing principle to explain prices and quantities of goods sold and changes thereof in a market economy.^ We find that a $1 increase in gasoline price changes the market shares of the most and least fuel-efficient quartiles of new cars by +20% and -24%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

In microeconomic theory, it refers to price and output determination in a perfectly competitive market. This has served as a building block for modeling other market structures and for other theoretical approaches.
.For a given market of a commodity, demand shows the quantity that all prospective buyers would be prepared to purchase at each unit price of the good.^ "European and United Nations carbon prices fell the most since February after the Copenhagen climate accord didn’t set targets that would boost demand for permits.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ They had it all figured out, showing me on a crude cardboard map where the new facilities would be installed.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ I'm sure banks would have given me all kinds of stupid mortgage loans in 2004, but I didn't avail myself of the opportunity.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Demand is often represented using a table or a graph relating price and quantity demanded (see boxed figure).^ As demand rises, so will the price...no matter what people are using the corn for, be it fuel or food.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Demand theory describes individual consumers as rationally choosing the most preferred quantity of each good, given income, prices, tastes, etc.^ The Fed's economists have traditionally personified the technical, evidence-based, progressive school of economics which holds that individuals are mostly rational, innovation is mostly good, and given sufficient examination and enlightened action, recessions can be avoided.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Prices on typically expensive goods are coming down so that companies can make a play for the disposable income of the world’s vast middle class.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ But as the authors themselves note, "The weak economy is far and away the most prevalent reason given for why the next few months is 'not a good time' to expand."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

A term for this is 'constrained utility maximization' (with income as the constraint on demand). Here, utility refers to the (hypothesized) preference relation for individual consumers. .Utility and income are then used to model hypothesized properties about the effect of a price change on the quantity demanded.^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In contrast, the same gasoline price increase changes the market shares of the most and least fuel-efficient quartiles of used cars by only +3% and -7%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Competitors are skeptical about the price and quality of the car, which the group says will have a 600-cubic-centimeter engine and come in a range of models.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.The law of demand states that, in general, price and quantity demanded in a given market are inversely related.^ Laughlin brought his interest in monetary systems and the practical workings of free markets to general academic attention in the United States.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This law combined with a subsidy for this use has created a flourishing corn market in the United States, but has also diverted agricultural resources from food to fuel.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The other half is the imperative, in the biggest markets for Chinese exports, that demands ever-lower prices for everything .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.In other words, the higher the price of a product, the less of it people would be able and willing to buy of it (other things unchanged).^ An opportunity, in other words, for people to see their president fighting hard.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Between $20-40,000 per year , those subsidies are less available, which makes it difficult for people to cross the gap between one and the other.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Lots of new people buy the stock of a company just added to the index and the stock sale would make that inventory available.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.As the price of a commodity rises, overall purchasing power decreases (the income effect) and consumers move toward relatively less expensive goods (the substitution effect).^ An indicator based on the theory that a consumer turns to less expensive indulgences, such as lipstick, when she (or he) feels less than confident about the future.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Has the housing downturn had a more-or-less direct effect on the rising price of milk ?
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ The taxation of income, capital, imports, consumption goods, etc., and the effects on wages, rents, profits, production, and consumption are major topics, along with the government’s budget constraints.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Other factors can also affect demand; for example an increase in income will shift the demand curve outward relative to the origin, as in the figure.
.Supply is the relation between the price of a good and the quantity available for sale from suppliers (such as producers) at that price.^ He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Supply is often represented using a table or graph relating price and quantity supplied. Producers are hypothesized to be profit-maximizers, meaning that they attempt to produce the amount of goods that will bring them the highest profit. Supply is typically represented as a directly proportional relation between price and quantity supplied (other things unchanged).
.In other words, the higher the price at which the good can be sold, the more of it producers will supply.^ That means a lot of Indian rice that was once sold domestically is instead sold abroad for higher prices — which in turn drives up domestic prices.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Bush’s assessment for why food prices are higher is econ centered and consequentialist — more demand, relatively static short run supply = higher prices as an emergent property of a world where millions are making independent decisions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ By Jason Kottke • Jun 30, 2005 • economics eu Europe globalization Ireland With higher rents (and other factors), good .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.The higher price makes it profitable to increase production.^ What this probably implies is that the increase in share prices today reflects an expectation of higher volumes -- but probably not higher profit margins, which are likely to remain fairly low in the industry...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ For reference, here's what increasing ethanol production has done to the price of corn over the past three months: .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.At a price below equilibrium, there is a shortage of quantity supplied compared to quantity demanded.^ Chinese A-list women get screwed because they are in high demand (since there is an overall shortage of women), but only have B and C-list men to choose from.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

This pulls the price up. .At a price above equilibrium, there is a surplus of quantity supplied compared to quantity demanded.^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.This pushes the price down.^ A withdrawal of government support, combined with high unemployment and rising mortgage foreclosures, could push home prices down 20%, he said...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The model of supply and demand predicts that for given supply and demand curves, price and quantity will stabilize at the price that makes quantity supplied equal to quantity demanded.^ Bush’s assessment for why food prices are higher is econ centered and consequentialist — more demand, relatively static short run supply = higher prices as an emergent property of a world where millions are making independent decisions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In “The Wal-Mart Effect,” Charles Fishman makes a compelling argument that Wal-Mart’s market power inevitably forces its suppliers to cut corners on quality in order to deliver the lower and lower prices that Wal-Mart demands .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

This is at the intersection of the two curves in the graph above, market equilibrium.
.For a given quantity of a good, the price point on the demand curve indicates the value, or marginal utility[61] to consumers for that unit of output.^ The theory of marginal utility and new ways of thinking about marginal value and price theory help found the Austrian School of economics, whose later theorists included Ludwig von Mises and Friedrich Hayek, and Murray Rothbard.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Menger, along with Jevons and Walras, published a work in 1871 which revolutionized the way economists viewed value and price theory by introducing innovations in the theory of marginal utility.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His teaching covered marginal utility, elasticity of demand, production costs, and consumer surplus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

It measures what the consumer would be prepared to pay for the corresponding unit of the good. .The price point on the supply curve measures marginal cost, the increase in total cost to the supplier for the corresponding unit of the good.^ What this probably implies is that the increase in share prices today reflects an expectation of higher volumes -- but probably not higher profit margins, which are likely to remain fairly low in the industry...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The price in equilibrium is determined by supply and demand.^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In a perfectly competitive market, supply and demand equate cost and value at equilibrium.^ We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[62]
.Demand and supply can also be used to model the distribution of income to the factors of production, including labour and capital, through factor markets.^ To waste time modeling heterogeneous capital when you should be modelling the credit channel and the effect of asset deflation on market risk tolerance is, with a high probability, to waste your time.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In a labour market for example, the quantity of labour employed and the price of labour (the wage rate) are modeled as set by the demand for labour (from business firms etc.^ Given the level of spending, is the configuration of interest rates and asset prices such that the flow of savings into financial markets matches net uses of funds by businesses seeking to expand?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ She spent her professional life in a variety of research positions and wrote many articles on money, banking, the theory of the firm, economic development, and the labour market.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

for production) and supply of labour (from workers).
.Demand and supply are used to explain the behavior of perfectly competitive markets, but their usefulness as a standard of performance extends to any type of market.^ Rather, the global demand simply seems to be rising faster than the supply, and many individual nations have been banning rice exports, destabilizing the market.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Demand and supply can also be generalized to explain variables applying to the whole economy, for example, quantity of total output and the general price level, studied in macroeconomics.^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Thanks to the bulk purchase, the Indian generic manufacturers Cipla and Ranbaxy can sell single-pill tri-therapy drugs at 460 for a whole year’s supply.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ He was very influenced by Jeremy Bentham’s ideas about utilitarianism which he applied to the study of British India, political economy, and electoral reform.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.In supply-and-demand analysis, the price of a good coordinates production and consumption quantities.^ The taxation of income, capital, imports, consumption goods, etc., and the effects on wages, rents, profits, production, and consumption are major topics, along with the government’s budget constraints.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ (The Demand and Supply of Public Goods) .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Price and quantity have been described as the most directly observable characteristics of a good produced for the market.[63] .Supply, demand, and market equilibrium are theoretical constructs linking price and quantity.^ We have to supply each and every store; we have limited quantity to supply…” [ Link ] Because of my blogging duties I knew about this looming crisis before most in the media and public.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.But tracing the effects of factors predicted to change supply and demand—and through them, price and quantity—is a standard exercise in applied microeconomics and macroeconomics.^ In “The Wal-Mart Effect,” Charles Fishman makes a compelling argument that Wal-Mart’s market power inevitably forces its suppliers to cut corners on quality in order to deliver the lower and lower prices that Wal-Mart demands .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Economic theory can specify under what circumstances price serves as an efficient communication device to regulate quantity.^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ I found a number of such places: Kindleberger's declaration that in the last analysis the making of international economic policy under such circumstances "is an art" and that that "says nothing--and everything."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ He served as a member of the President’s Council of Economic Advisors under President Eisenhower and as its Chairman under President Nixon.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[64] .A real-world application might attempt to measure how much variables that increase supply or demand change price and quantity.^ To say that demand for food in India is causing increase in global food prices is completely wrong,” Ramesh said.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Bush’s assessment for why food prices are higher is econ centered and consequentialist — more demand, relatively static short run supply = higher prices as an emergent property of a world where millions are making independent decisions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Longer term (new wealth = increased demand; the argument that got dubya in so much trouble with the Indian Press & Politicians) - .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Marginalism is the use of marginal concepts within economics.^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Marginal concepts are associated with a specific change in the quantity used of a good or of a service, as opposed to some notion of the over-all significance of that class of good or service, or of some total quantity thereof.^ Still, what well designed systems do is dispel the notion that teachers are just in it for the greater good and - like all other professions - are actually motivated by pocketbook issues as well.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Specifically, Seldon focuses on the varied use of vouchers and the choices people have regarding purchasing or receiving such public services as health care and education.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In all this, the United States used the leverage of having the money exclusively for the global greater good.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The central concept of marginalism proper is that of marginal utility, but marginalists following the lead of Alfred Marshall were further heavily dependent upon the concept of marginal physical productivity in their explanation of cost; and the neoclassical tradition that emerged from British marginalism generally abandoned the concept of utility and gave marginal rates of substitution a more fundamental rôle in analysis.^ Similarly in the field of economics: since its "utilitarian" revolution about a century ago, this discipline has also abandoned its analysis of the objective world and its political, economic productive relations in favor of more introverted, utilitarian and welfare-oriented norms.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ A commentor @ Marginal Revolution notes that the “spoilage” rate in the US is 1/10 of this - or nearly 30% more food available en toto for a given amount of production.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The staff analysis comparing unconventional operations to interest rate cuts suggests more might be needed anyway...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Market failure

A smokestack releasing smoke
Pollution can be a simple example of market failure. If costs of production are not borne by producers but are by the environment, accident victims or others, then prices are distorted.
.The term "market failure" encompasses several problems which may undermine standard economic assumptions.^ The term “over-government” was coined by Seldon and is defined as the failure of governments to govern well, leading the public to avoid government programs in favor of markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ By Jason Kottke • May 30, 2006 • economics language money science statistics stock market Social, political, economic, cultural, historical, and technological .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ By Jason Kottke • May 19, 2006 • economics games micropayments secondlife video games Absurd luxury markets..."some khaki pants are .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Although economists categorise market failures differently,[65] the following categories emerge in the main texts.^ It runs as follows; Gujarati economists place faith in the market, while Bengali economists are prone to trust the state.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[66]
.Natural monopoly, or the overlapping concepts of "practical" and "technical" monopoly, involves a failure of competition as a restraint on producers.^ New technologies could not be identified and practices without new mental conceptions of the world (including that of the relation to nature and social relations).
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The problem is described as one where the more of a product is made, the greater the returns are.^ Here's one of the more succinct descriptions I found of the problem that green accounting aims to address: .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ The safety of Chinese-made products is in the news again today, as China’s government announced that a whopping one-fifth of the products on the shelves of Chinese stores were found to be substandard or tainted .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ During one particularly productive month, he made almost US$4000.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.This means it only makes economic sense to have one producer.^ The economic phrase for which he is most famous, the “invisible hand” of economic incentives, was only one of his many contributions to the modern-day teaching of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Information asymmetries arise where one party has more or better information than the other.^ A quick study shows that stocks of simply named companies do better than those of more complexly named companies .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ The authors also noted that a prostitute was "more likely to have sex with a police officer than to get officially arrested by one".
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ And Americans do all those things, more than other people.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The existence of information asymmetry gives rise to problems such as moral hazard, and adverse selection, studied in contract theory.^ Smith also studied the social forces giving rise to competition, trade, and markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The economics of information has relevance in many fields, including finance, insurance, contract law, and decision-making under risk and uncertainty.^ All written information, provisions, and terms in or on any application, solicitation, contract, or agreement for any credit card account under an open end consumer credit plan, and all written information included in or on any disclosure required under this chapter with respect to any such account, shall appear- .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ I found a number of such places: Kindleberger's declaration that in the last analysis the making of international economic policy under such circumstances "is an art" and that that "says nothing--and everything."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Considering that there are so many Indians of poker age in this country who thrive in finance, computer science, engineering, and other fields that incorporate math, probability, risk, etc.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[67]
.Incomplete markets is a term used for a situation where buyers and sellers do not know enough about each other's positions to price goods and services properly.^ I suppose before we get into any other details about these schools, question #1 is - "so how good are they?"
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In contrast, the same gasoline price increase changes the market shares of the most and least fuel-efficient quartiles of used cars by only +3% and -7%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ "The cluster effect is the effect of buyers and sellers of a particular good or service congregating in a certain place and hence inducing other buyers and sellers to relocate there as well."
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

Based on George Akerlof's Market for Lemons article, the paradigm example is of a dodgy second hand car market. .Customers without the possibility to know for certain whether they are buying a "lemon" will push the average price down below what a good quality second hand car would be.^ In this paper we investigate whether consumers have adjusted to gasoline price changes by altering what automobiles they purchase and what prices they pay.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Many will be forced to buy poor-quality insurance they can’t afford to use, with $11,900 in annual out-of-pocket expenses over and above their annual premiums.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ A withdrawal of government support, combined with high unemployment and rising mortgage foreclosures, could push home prices down 20%, he said...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In this way, prices may not reflect true values.^ Menger, along with Jevons and Walras, published a work in 1871 which revolutionized the way economists viewed value and price theory by introducing innovations in the theory of marginal utility.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In Whoppernomics terms, Facebook may well be worth the $15 billion that the Microsoft deal suggested, but there are obviously problems for Facebook in thinking about their value in this way.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

Public goods are goods which are undersupplied in a typical market. .The defining features are that people can consume public goods without having to pay for them and that more than one person can consume the good at the same time.^ You might be able to get someone to part with 10 "junk" friends for $2.40 but could you pay them $22 more to essentially shut down their Facebook account for good?
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Almost all of us, for example, are "loss averse" -- it hurts more to lose £50 than it feels good to win £50.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ This is the argument that the Economist uses for not having bylines--that the institution works better when people write as instantiations of the hive-mind that is the Economist rather than in their own individual personae.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Externalities occur where there are significant social costs or benefits from production or consumption that are not reflected in market prices.^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ He has written influential articles on public sector pricing, economic statistics, and cost-benefit analysis, and has taught at the University of Birmingham, the London School of Economics, and Johns Hopkins University.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Somewhere there was a room full of marketers that decided that $2,467 was the exactly right price for this car!
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.For example, air pollution may generate a negative externality, and education may generate a positive externality (less crime, etc.^ This creates a positive externality because a user may purchase their phone without intending to create value for other users, but does so in any case.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ For example, firms with older employees may have higher insurance costs not because their plans are more generous but because the employees themselves are more expensive to insure.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

). .Governments often tax and otherwise restrict the sale of goods that have negative externalities and subsidize or otherwise promote the purchase of goods that have positive externalities in an effort to correct the price distortions caused by these externalities.^ Galenson demonstrates these differences through analysis of how often artists' works are reproduced in textbooks, auction prices, and museum shows.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ This creates a positive externality because a user may purchase their phone without intending to create value for other users, but does so in any case.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ The government, in an effort to keep as much rice as possible at home to quell inflation, has banned exports of nonbasmati rice and adjusted price controls to discourage exports of aromatic basmati rice.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[68] .Elementary demand-and-supply theory predicts equilibrium but not the speed of adjustment for changes of equilibrium due to a shift in demand or supply.^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[69]
.In many areas, some form of price stickiness is postulated to account for quantities, rather than prices, adjusting in the short run to changes on the demand side or the supply side.^ In this paper we investigate whether consumers have adjusted to gasoline price changes by altering what automobiles they purchase and what prices they pay.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ As we all recall, it was just a short time ago that Joe Lieberman held the health reform process hostage to some idiosyncratic demands.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

This includes standard analysis of the business cycle in macroeconomics. .Analysis often revolves around causes of such price stickiness and their implications for reaching a hypothesized long-run equilibrium.^ His interest in the way the forces of the market evolve toward an equilibrium without \(and often in opposition to\) government influence runs throughout the book.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Galenson demonstrates these differences through analysis of how often artists' works are reproduced in textbooks, auction prices, and museum shows.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Examples of such price stickiness in particular markets include wage rates in labour markets and posted prices in markets deviating from perfect competition.^ Given the level of spending, is the configuration of interest rates and asset prices such that the flow of savings into financial markets matches net uses of funds by businesses seeking to expand?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Macroeconomic instability, addressed below, is a prime source of market failure, whereby a general loss of business confidence or external shock can grind production and distribution to a halt, undermining ordinary markets that are otherwise sound.^ The financial crisis-induced collapse of confidence in the neoliberal order--that is, in the presumption that in general one should try to shrink the state because government failures are more pernicious than market failures.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

A woman takes samples of water from a river
Environmental scientist sampling water
.Some specialised fields of economics deal in market failure more than others.^ Reliance Industries, the largest publicly traded company in India, reached a market cap of more than $85 billion this week, up from $6.5 billion in January 2003.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ I've wondered for awhile whether Moore's Law didn't have more to do with the economics of the semiconductor industry than with engineering limits.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ It's going to cost much more than that...and for some intense users of the site, the "buyout" amount might be surprisingly high.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.The economics of the public sector is one example, since where markets fail, some kind of regulatory or government programme is the remedy.^ By Jason Kottke • May 19, 2006 • economics games micropayments secondlife video games Absurd luxury markets..."some khaki pants are .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ One of Marcet’s earlier efforts at popularizing free market economic ideas for ordinary working people.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of the leading free market theorists of economic development in the “Third World”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Much environmental economics concerns externalities or "public bads".
.Policy options include regulations that reflect cost-benefit analysis or market solutions that change incentives, such as emission fees or redefinition of property rights.^ The United States needs a more honest immigration policy, one that includes neither support for law-breaking nor animus toward immigrants, and as long as employers win on the cost benefit analysis — F x P < S, where F= cost of fines, P= probability of getting caught, and S= saved money from using undocumented labor — we never will have such reforms.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ He writes and speaks on such diverse topics as trade, foreign aid, the International Monetary Fund, and property rights.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ With a group of other late Victorian classical liberals he was active in such organizations as the Personal Rights and Self-Help Association and the Liberty and Property Defense League.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[70][71]

Firms

Two men sit at computer monitors with financial information
In Virtual Markets, buyer and seller are not present and trade via intermediates and electronic information. Pictured: São Paulo Stock Exchange.
.One of the assumptions of perfectly competitive markets is that there are many producers, none of whom can influence prices or act independently of market forces.^ Many investors were lured to the stock market by the bull market that began in the early 1980s and gained force through the 1990s.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His interest in the way the forces of the market evolve toward an equilibrium without \(and often in opposition to\) government influence runs throughout the book.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Smith also studied the social forces giving rise to competition, trade, and markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.In reality, however, people do not simply trade on markets, they work and produce through firms.^ They create through the painstaking process of doing, making incremental improvements to their art until they're capable of real masterpiece.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ North ’s Discourses upon Trade <\/i> is one of the earliest attempts to theorize as a whole the workings of a market economy in England.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Although doctors love to tell you that they work out of a sense of seva , and that the quality of care has little to do with the fee structure, it simply isn’t true.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

The most obvious kinds of firms are corporations, partnerships and trusts. .According to Ronald Coase people begin to organise their production in firms when the costs of doing business becomes lower than doing it on the market.^ According to a report by research firm ValueNotes, the industry will employ about 24,000 people and earn revenue of $640 million by 2010 .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The people who get by on less than $2 don’t even qualify as being in poverty , according to the Indian government’s own definition… .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Research shows that the lifetime earnings of graduates who enter the job market during recessions are lower than their boom-time colleagues .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

[72] .Firms combine labour and capital, and can achieve far greater economies of scale (when producing two or more things is cheaper than one thing) than individual market trading.^ One has since achieved even greater fame than anticipated.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ A firm with a new technology wants to wait until a boom to implement it because its technology will be quickly copied--its edge is temporary--and it is more profitable to implement when the economy is booming and demand is high than when the economy is not booming and demand is low.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Two thirds of the practices were adopted and the majority seem to have lasted more than the first few months.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Labour economics seeks to understand the functioning of the market and dynamics for labour.^ She spent her professional life in a variety of research positions and wrote many articles on money, banking, the theory of the firm, economic development, and the labour market.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Labour markets function through the interaction of workers and employers. .Labour economics looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting patterns of wages and other labour income and of employment and unemployment, Practical uses include assisting the formulation of full employment of policies.^ In many ways, it’s a more energetic / invasive version of the goal pursued by “ living wage ” advocates in the US. While our economic interventionalists wish to push incomes higher by raising the cost to employers ( invisible unemployment be damned ), Indian politicians go many steps further, take the nasty employers out of the question altogether, and directly (attempt to) provide 100 days of government employment a year.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ And this suggests something that you would expect a Professor of Economics to know- the consumption pattern looks suspiciously like that of Giffen goods .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Rural India is facing an employment crisis * This is because of the economic policies pursued in the past fifteen years.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[73]
.Industrial organization studies the strategic behavior of firms, the structure of markets and their interactions.^ Alchian has become recognized as one of the most influential voices in the areas of market structure, the theory of the firm, law and economics, resource unemployment, monetary theory and monetary policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The common market structures studied include perfect competition, monopolistic competition, various forms of oligopoly, and monopoly.^ Smith also studied the social forces giving rise to competition, trade, and markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Her books include Italy, a Study in Economic Development <\/em> \(1962\) and Central Planning for the Market Economy <\/em> \(1969\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[74]
.Financial economics, often simply referred to as finance, is concerned with the allocation of financial resources in an uncertain (or risky) environment.^ We must set growth limits that will allow the automobile and oil industries to maintain economic stability while conserving our resources and preserving our environment.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Malthus’s contributions to political economics generally concern his bleak forecast that a geometrically growing population would surpass the arithmetically growing capacity of essential natural resources.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This crash in prices of risky financial assets would not overly concern the rest of us were it not for the havoc that it has wrought on the price system.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Thus, its focus is on the operation of financial markets, the pricing of financial instruments, and the financial structure of companies.[75]
.Managerial economics applies microeconomic analysis to specific decisions in business firms or other management units.^ The fragments in his Ethics and Politics that economists like Joseph Schumpeter point to are, mostly, concerned with other things than economic analysis.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In economics and business, a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other users.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Managerial Economics & Decisions Sciences (MEDS) .
  • Econjobmarket 27 January 2010 23:48 UTC bluwiki.com [Source type: Academic]

It draws heavily from quantitative methods such as operations research and programming and from statistical methods such as regression analysis in the absence of certainty and perfect knowledge. A unifying theme is the attempt to optimize business decisions, including unit-cost minimization and profit maximization, given the firm's objectives and constraints imposed by technology and market conditions.[76][77]

Public sector

.Public finance is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government.^ Universally respected as one of the founders of the “public choice” school of economics, he is the author of numerous books and hundreds of articles in the areas of public finance, public choice, constitutional economics and economic philosophy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In the fifth volume of The Collected Works of Arthur Seldon, <\/em> Arthur Seldon uses public choice economics research to support his theory of over-government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He has written influential articles on public sector pricing, economic statistics, and cost-benefit analysis, and has taught at the University of Birmingham, the London School of Economics, and Johns Hopkins University.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The subject addresses such matters as tax incidence (who really pays a particular tax), cost-benefit analysis of government programs, effects on economic efficiency and income distribution of different kinds of spending and taxes, and fiscal politics.^ Nobody pays income tax.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ There are only 75,000 to 85,000 people with an income of one million rupees ($22,140) who pay taxes,” Finance Minister P Chidambaram told journalists.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Bill Clinton's administration was largely constrained by a pay-as-you-go law, requiring most tax cuts or program expansions to be offset elsewhere with tax increases and/or spending cuts.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The latter, an aspect of public choice theory, models public-sector behavior analogously to microeconomics, involving interactions of self-interested voters, politicians, and bureaucrats.^ The problem of incentives in the absence of profits, the free rider problem, the public choice insight about the vested interests of bureaucrats and politicians, the connection between economic liberty and political liberty, were all wittily addressed by Richter, much to the annoyance of his socialist opponents.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Democracy in Deficit <\/em> is one of the early comprehensive attempts to apply the basic principles of public-choice analysis to macroeconomic theory and policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[78]
Much of economics is positive, seeking to describe and predict economic phenomena. Normative economics seeks to identify what is economically good and bad.
.Welfare economics is a normative branch of economics that uses microeconomic techniques to simultaneously determine the allocative efficiency within an economy and the income distribution associated with it.^ In language less difficult than that of Smith, Ricardo, Malthus, and Mill, she illustrates such topics as the economics of wages and income distribution.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ John Bates Clark, American economist, was the first to develop marginal productivity theory, using it to explore the distribution of income between returns to labor and capital in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It attempts to measure social welfare by examining the economic activities of the individuals that comprise society.^ To view a change in GDP from negative to positive as signifying the end of a depression (by which criterion the Great Depression ended in 1933 and again in 1938) is to misunderstand the utility of GDP as a measure of economic activity...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Micro-credit has proved to be an important liberating force in societies where women in particular have to struggle against repressive social and economic conditions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ That it afforded a measure of justification to the free activities of the individual capitalist, attracted to it the support of the dominant social force behind authority.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[79]

Macroeconomics

A graph depicting "Circulation in Microeconomics"
A depiction of the circular flow of income
Macroeconomics examines the economy as a whole to explain broad aggregates and their interactions "top down," that is, using a simplified form of general-equilibrium theory.[80] .Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components.^ A plot of Japan's Phillips curve ("a historical inverse relation and tradeoff between the rate of unemployment and the rate of inflation in an economy") looks like Japan itself .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ High unemployment rates in many cases—coupled with anemic income growth—are limiting consumption gains.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Given the level of spending, is the configuration of interest rates and asset prices such that the flow of savings into financial markets matches net uses of funds by businesses seeking to expand?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.It also studies effects of monetary policy and fiscal policy.^ In the field of monetary and credit policy, precautionary actions to prevent infltionary excesses is bound to have some onerous effects--if it did not it would be ineffective and futile.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ What is striking about the influence of economics is that similar policy responses in the fiscal and monetary areas, and non-responses in relation to competitive devaluations and protectionism, were crafted across the globe...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Let me predict that if we see a double-dip recession in 2010, it won't be accompanied by rising inflationary pressures produced by over-stimulative fiscal and monetary policy.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Since at least the 1960s, macroeconomics has been characterized by further integration as to micro-based modeling of sectors, including rationality of players, efficient use of market information, and imperfect competition.^ We find that a $1 increase in gasoline price changes the market shares of the most and least fuel-efficient quartiles of new cars by +20% and -24%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In contrast, the same gasoline price increase changes the market shares of the most and least fuel-efficient quartiles of used cars by only +3% and -7%, respectively.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ This is most easily seen using the model of a commodity money system, such as one based on gold.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[81] This has addressed a long-standing concern about inconsistent developments of the same subject.[82]
.Macroeconomic analysis also considers factors affecting the long-term level and growth of national income.^ Even this seemingly cataclysmic event, he argues, had no real impact on long term American growth.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Such factors include capital accumulation, technological change and labor force growth.^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Wage rates in Bangalore are starting to rise dramatically, and India has bottlenecks in its educational infrastructure that will limit the growth of the labor force.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ It will be from two powerful, long-standing price distortions that have distorted the composition of our labor force and the mix of human capital within it.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[83][84]

Growth

A world map with countries colored in different shades of orange
World map showing GDP real growth rates for 2008
.Growth economics studies factors that explain economic growth – the increase in output per capita of a country over a long period of time.^ The rapid economic expansion in countries like China, India and Vietnam tends to sharply increase the demand for food.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Therefore, lipstick sales tend to increase during times of economic uncertainty or a recession.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ For America, this will be a shock: American has not been a normal country for a long, long time...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The same factors are used to explain differences in the level of output per capita between countries, in particular why some countries grow faster than others, and whether countries converge at the same rates of growth.^ But their economies grew at an impressive 8 per cent, whereas ours stayed stuck at 3.5 per cent, also known as the “Hindu” rate of growth.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Whether you average a broad based GDP inflation index over the past year, as I originally suggested, or whether you use core inflation rates, the inflation rate is not less than 1 percent at this time; it is closer to 2 percent, but let’s suppose the Fed takes it as 1 percent.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Well, since 1980, the original 15 members of the European Union saw their real per capita income grow by 58%.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Much-studied factors include the rate of investment, population growth, and technological change.^ In this work Malthus argues that there is a disparity between the rate of growth of population \(which increases geometrically\) and the rate of growth of agriculture \(which increases only arithmetically\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

These are represented in theoretical and empirical forms (as in the neoclassical and endogenous growth models) and in growth accounting.[85][86]

The Business Cycle

The economics of a depression were the spur for the creation of "macroeconomics" as a separate discipline field of study. .During the Great Depression of the 1930s, John Maynard Keynes authored a book entitled The General Theory of Employment, Interest and Money outlining the key theories of Keynesian economics.^ The General Theory of Employment, Interest and Money : The idea that we can safely neglect the aggregate demand function is fundamental to the Ricardian economics, which underlie what we have been taught for more than a century.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His contributions to economic theory include important clarifications on the quantity theory of money, the theory of the trade cycle, the integration of monetary theory with economic theory in general, and a demonstration that socialism must fail because it cannot solve the problem of economic calculation.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He elaborated on ideas from economists as broad-based as Jevons, Böhm-Bawerk, and Clark, and influenced economists from Irving Fisher to John Maynard Keynes to James Buchanan.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Keynes contended that aggregate demand for goods might be insufficient during economic downturns, leading to unnecessarily high unemployment and losses of potential output.^ BANGALORE, India — After years of being blamed for job losses in America and elsewhere, India’s high-tech companies and outsourcing firms are going through a downturn of their own.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ One thing I’ve learned is that economic downturns can be boom times for high-end sex workers.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ (This is a good thing—at its worst, it leads to more frictional unemployment as those dreams fade or are restructured.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.He therefore advocated active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle[87] Thus, a central conclusion of Keynesian economics is that, in some situations, no strong automatic mechanism moves output and employment towards full employment levels.^ He is a consistent advocate of laissez-faire economic policy and limited government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ And those who are more effective, including Roemer and fellow Council of Economic Advisers member Austan Goolsbee, sometimes are cut out of the action...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ These are important steps toward assuring that health care reform will significantly reduce health care inflation in both the public and private sectors.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.John Hicks' IS/LM model has been the most influential interpretation of The General Theory.^ Alchian has become recognized as one of the most influential voices in the areas of market structure, the theory of the firm, law and economics, resource unemployment, monetary theory and monetary policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Over the years, the understanding of the business cycle has branched into various schools, related to or opposed to Keynesianism. .The neoclassical synthesis refers to the reconciliation of Keynesian economics with neoclassical economics, stating that Keynesianism is correct in the short run, with the economy following neoclassical theory in the long run.^ It runs as follows; Gujarati economists place faith in the market, while Bengali economists are prone to trust the state.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Despite the neoclassicals admitting that the Post-Keynesians were right, why has the impact of heterogeneous capital on an economy left out of the macro models?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ [Only somebody who knows neither the economics of Ricardo, the writings of Marx, or Samuelson's neoclassical synthesis could possibly write that paragraph with a straight face] .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The New classical school critiques the Keynesian view of the business cycle.^ She wants to take a group loan to expand her business and buy new machines because she wants to send her children to good schools to be educated .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ A collection of speeches and articles illustrating the broad range of views of the British classical liberals and free traders of the 19th century known as the Manchester School.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It includes Friedman's permanent income hypothesis view on consumption, the "rational expectations revolution"[88] spearheaded by Robert Lucas, and real business cycle theory.^ Does holding money really mean that part of the income required for the absorption of the production associated with it is permanently lost, which is what is required to create a permanent state of under-employment?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Paint me a cynic but the piece takes a simplistic view of 1) what really happens in business or 2) what’s really uniquely desi philosophy or 3) both.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

In contrast, the New Keynesian school retains the rational expectations assumption, however it assumes a variety of market failures. .In particular, New Keynesians assume prices and wages are "sticky", which means they do not adjust instantaneously to changes in economic conditions.^ Food economics: adjusted for inflation, the price of a luxury meal in Paris has risen by 216% since 1950, but nonluxury food prices have fallen .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ By Jason Kottke • Feb 17, 2006 • crime economics science People are changing how they spend their .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ By Jason Kottke • May 5, 2009 • 2009 New Yorker Summit conferences economics finance Raising prices and gaining readers .
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

.Thus, the new classicals assume that prices and wages adjust automatically to attain full employment, whereas the new Keynesians see full employment as being automatically achieved only in the long run, and hence government and central-bank policies are needed because the "long run" may be very long.^ See also an interview in New Scientist , a NY Times op-ed , and a long piece on the Edge site about the black swan idea.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Link ] You run into this problem regularly with government-mandated price caps — the price doesn’t keep pace with real-world costs, and you’re stuck waiting for slow bureaucrats to recognize the new cost structure.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Inflation and monetary policy

.
The front and back of a coin.</span><span class=^ His contributions to economic theory include important clarifications on the quantity theory of money, the theory of the trade cycle, the integration of monetary theory with economic theory in general, and a demonstration that socialism must fail because it cannot solve the problem of economic calculation.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Let me predict that if we see a double-dip recession in 2010, it won't be accompanied by rising inflationary pressures produced by over-stimulative fiscal and monetary policy.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In these essays, the genesis of Ricardo’s theory of "hard money" emerges as a tool to hedge against inflation using metallic currency.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

A creature's head is on the front." src="http://images-mediawiki-sites.thefullwiki.org/07/4/2/8/37885552505110252.jpg" width="220" height="89" class="thumbimage" />
A 640 BCE one-third stater electrum coin from Lydia, shown larger. One of the first standardized coins.
.Money is a means of final payment for goods in most price system economies and the unit of account in which prices are typically stated.^ His clarifications of monetary issues coincided with concurrent national interests in the gold\/silver\/bimetallism parity controversies of the late 1800s, and the meaning of money for an economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Does holding money really mean that part of the income required for the absorption of the production associated with it is permanently lost, which is what is required to create a permanent state of under-employment?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Laughlin brought his interest in monetary systems and the practical workings of free markets to general academic attention in the United States.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

It includes currency held by the nonbank public and checkable deposits. .It has been described as a social convention, like language, useful to one largely because it is useful to others.^ Mandeville is a witty satirist who used a poem to make the profound economic point that “private vices” \(or self-interest\) lead to “publick benefits” \(such as orderly social structures like law, language, and markets\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ So according to Welch, Obama "lied" because he used the word "report" to describe what the CBO does and because he suggested the CBO's projections are reliable.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Hilsenrath: One could argue that using a forecast is right because you want policy to be forward looking.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

As a medium of exchange, money facilitates trade. .Its economic function can be contrasted with barter (non-monetary exchange).^ What is striking about the influence of economics is that similar policy responses in the fiscal and monetary areas, and non-responses in relation to competitive devaluations and protectionism, were crafted across the globe...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Given a diverse array of produced goods and specialized producers, barter may entail a hard-to-locate double coincidence of wants as to what is exchanged, say apples and a book. Money can reduce the transaction cost of exchange because of its ready acceptability. .Then it is less costly for the seller to accept money in exchange, rather than what the buyer produces.^ When people demand more money, rather than consumer or investment goods, it increases the demand for labor to mine, move and monetize gold....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Educators spurring students to think more deeply rather than accept trivialized views of human society would help.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[89]
.At the level of an economy, theory and evidence are consistent with a positive relationship running from the total money supply to the nominal value of total output and to the general price level.^ Given the price of liquidity--the difference between the return on cash and the return on short-term safe nominal bonds--is the flow of nominal spending at the right level to make businesses and households happy holding all of the economy's cash?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His work focused on real and nominal interest rates, the marginal productivity of capital, and determinants of the price level.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ It integrated monetary theory into the main body of economic analysis for the first time, providing fresh new insights into the nature of money and its role in the economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.For this reason, management of the money supply is a key aspect of monetary policy.^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[90][91]

Fiscal policy and regulation

National accounting is a method for summarizing aggregate economic activity of a nation. The national accounts are double-entry accounting systems that provide detailed underlying measures of such information. These include the national income and product accounts (NIPA), which provide estimates for the money value of output and income per year or quarter.
NIPA allows for tracking the performance of an economy and its components through business cycles or over longer periods. .Price data may permit distinguishing nominal from real amounts, that is, correcting money totals for price changes over time.^ His work focused on real and nominal interest rates, the marginal productivity of capital, and determinants of the price level.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Although governments may presume to set “prices,” it is individuals who, by their actions and choices through competitive bidding for money, products, and services, actually determine “prices”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[92][93] .The national accounts also include measurement of the capital stock, wealth of a nation, and international capital flows.^ In the past two years the wealth that is the global capital stock has fallen in value from $80 trillion to $60 trillion.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Basic international macro says that there is a "natural" level of the real exchange rate, determined by trade competitiveness and international capital flows.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[94]

International economics

.International trade studies determinants of goods-and-services flows across international boundaries.^ Thus, Mises presents economics—not as a study of material goods, services, and products—but as a study of human actions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Basic international macro says that there is a "natural" level of the real exchange rate, determined by trade competitiveness and international capital flows.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Studies in the Theory of International Trade .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

It also concerns the size and distribution of gains from trade. .Policy applications include estimating the effects of changing tariff rates and trade quotas.^ In normal circumstances the Wicksellian flow-of-funds is an annoyance: it induces changes in interest rates that shift velocity to partially crowd-out effects of conventional monetary policy.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The assessment that the US central bank needs to provide stimulus equivalent to a substantially negative interest rate is unlikely to have changed ahead of this week's policy meeting....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Jacob Viner was an economist who wrote on international trade, tariff policy, commercial treaties, the role of the U.S. international trade, and the history of economic thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

International finance is a macroeconomic field which examines the flow of capital across international borders, and the effects of these movements on exchange rates. .Increased trade in goods, services and capital between countries is a major effect of contemporary globalization.^ He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Heckscher was a Swedish economist who, along with his student, Bertil Ohlin, explored trade in goods along with the factors of production - labor and capital - used to produce them.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The taxation of income, capital, imports, consumption goods, etc., and the effects on wages, rents, profits, production, and consumption are major topics, along with the government’s budget constraints.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[95][96][97]
A world map with countries colored in different colors.
World map showing GDP (PPP) per capita.
.The distinct field of development economics examines economic aspects of the development process in relatively low-income countries focussing on structural change, poverty, and economic growth.^ In addition to boosting economic activity and preserving or creating jobs, the recovery act is softening the recession’s impact on poverty by directly lifting family incomes.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In five concise chapters, he traces the causation of the misunderstandings and resultant fears that cause resistance to economic development and social change.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The structure of the academic system and the place of economics education and research within it are particularly relevant to understanding the nature of economic knowledge production in each country.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Approaches in development economics frequently incorporate social and political factors.^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Brad DeLong on December 24, 2009 at 05:12 AM in Economics , Economics: Health , Obama Administration , Political Economy , Political Economy: Social Democracy .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ II of a two volume work in which Hodgskin describes in great detail the economic, political, legal, and social conditions he observed in his travels across northern Germany.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[98][99]
.Economic systems is the branch of economics that studies the methods and institutions by which societies determine the ownership, direction, and allocaton of economic resources.^ A volume in the collection Studies in Economic Theory first published by the Institute for Humane Studies.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His later and better known work in a similar vein was his 2 volume study of the system of economic regulation in the 18th century known as Mercantilism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He began with this 1918 study of Napoleon’s effort to wage economic warfare against the British known as The Continental System.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

An economic system of a society is the unit of analysis.
.Among contemporary systems at different ends of the organizational spectrum are socialist systems and capitalist systems, in which most production occurs in respectively state-run and private enterprises.^ It explains why, Seldon believes, “private enterprise is imperfect but redeemable,” but the “state economy promises the earth, and ends in coercion to conceal its incurable failure.” The second part, Capitalism <\/em> , is widely considered to be Seldon’s finest work.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ It was only in the liberal political environment of London that Marx was able to write his most famous critique of the capitalist system.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Liberty and Liberalism: A Protest against the Growing Tendency toward undue Interference by the State, with Individual Liberty, Private Enterprise and the Rights of Property .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

In between are mixed economies. .A common element is the interaction of economic and political influences, broadly described as political economy.^ He also wrote his own primer of political economy and translated works on musical biography, law, and economics from the German; most notably Roscher’s Principles of Political Economy <\/i> and Ihering’s The Struggle for Law.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ II of a two volume work in which Hodgskin describes in great detail the economic, political, legal, and social conditions he observed in his travels across northern Germany.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Conversations on Political Economy; in which the elements of that science are familiarly explained .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Comparative economic systems studies the relative performance and behavior of different economies or systems.^ This week Alex Tabarrok points out a great study that cuts into the economics of teaching from a different angle - teacher incentives.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ His later and better known work in a similar vein was his 2 volume study of the system of economic regulation in the 18th century known as Mercantilism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He began with this 1918 study of Napoleon’s effort to wage economic warfare against the British known as The Continental System.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[100][101]

Economics in practice

.Contemporary mainstream economics, as a formal mathematical modeling field, could also be called mathematical economics.^ Although he damaged his reputation by insisting throughout the Great Depression that recovery was imminent, contemporary economic models of interest and capital are based on Fisherian principles.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[102] It draws on the tools of calculus, linear algebra, statistics, game theory, and computer science.[103] .Professional economists are expected to be familiar with these tools, although all economists specialize, and some specialize in econometrics and mathematical methods while others specialize in less quantitative areas.^ The first distortion is the past diversion of some our best technical and mathematical minds away from physics, engineering, biology, chemistry, and, yes, even economics, to financial modeling, risk analysis, and all the other marvelous tools of speculation and gaming.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Irving Fisher was one of America’s greatest mathematical economists and one of the clearest economics writers of all time.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Alan Blinder, Marty Feldstein, Jacob Frenkel, I am talking to you: get some real economists onto the staff of the CFR. This is not doing anybody any good at all.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Heterodox economists place less emphasis upon mathematics, and several important historical economists, including Adam Smith and Joseph Schumpeter, have not been mathematicians.^ Stewart was a Scottish philosopher who studied at Edinburgh University, becoming first professor of mathematics and then later succeeding Adam Smith as professor of moral philosophy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thinking like an economist has been a point of pride since Adam Smith.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The fragments in his Ethics and Politics that economists like Joseph Schumpeter point to are, mostly, concerned with other things than economic analysis.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Economic reasoning involves intuition regarding economic concepts, and economists attempt to analyze to the point of discovering unintended consequences.^ The fragments in his Ethics and Politics that economists like Joseph Schumpeter point to are, mostly, concerned with other things than economic analysis.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Theory

.Mainstream economic theory relies upon a priori quantitative economic models, which employ a variety of concepts.^ She spent her professional life in a variety of research positions and wrote many articles on money, banking, the theory of the firm, economic development, and the labour market.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Theory typically proceeds with an assumption of ceteris paribus, which means holding constant explanatory variables other than the one under consideration. .When creating theories, the objective is to find ones which are at least as simple in information requirements, more precise in predictions, and more fruitful in generating additional research than prior theories.^ Companies are finding that despite India’s one-billion population, the effective employable pool for white-collar workers is smaller than anticipated.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Although Marshall’s Principles generally receives more attention, Wicksteed’s explanations are sometimes clearer, more precise, and more modern.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ India generates more foreign exchange from sending its workers abroad than it does from software exports.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[104]
.In microeconomics, principal concepts include supply and demand, marginalism, rational choice theory, opportunity cost, budget constraints, utility, and the theory of the firm.^ One of three seminal works published in 1871 \(along with Walras and Menger\) which introduced the idea of the marginal theory of utility and thus a revolution in economic thinking.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Menger, along with Jevons and Walras, published a work in 1871 which revolutionized the way economists viewed value and price theory by introducing innovations in the theory of marginal utility.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His teaching covered marginal utility, elasticity of demand, production costs, and consumer surplus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[105][106] .Early macroeconomic models focused on modeling the relationships between aggregate variables, but as the relationships appeared to change over time macroeconomists were pressured to base their models in microfoundations.^ Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The aforementioned microeconomic concepts play a major part in macroeconomic models – for instance, in monetary theory, the quantity theory of money predicts that increases in the money supply increase inflation, and inflation is assumed to be influenced by rational expectations.^ It integrated monetary theory into the main body of economic analysis for the first time, providing fresh new insights into the nature of money and its role in the economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Normal monetary policy by altering the quantity of money changes the equilibrium level of spending conditional on the price of liquidity.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His contributions to the economics of rent, monetary theory, and the theory of value influenced economists of his day and since.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.In development economics, slower growth in developed nations has been sometimes predicted because of the declining marginal returns of investment and capital, and this has been observed in the Four Asian Tigers.^ Mike Mandel has four nominees for his “Economic Statistic of the Decade” award, including home prices (obvs), Chinese growth, and global trade.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The extraordinary growth elsewhere in the world of asset pools that are under the control not of return-seeking market actors but of national governments.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ John Bates Clark, American economist, was the first to develop marginal productivity theory, using it to explore the distribution of income between returns to labor and capital in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Sometimes an economic hypothesis is only qualitative, not quantitative.[107]
Expositions of economic reasoning often use two-dimensional graphs to illustrate theoretical relationships. .At a higher level of generality, Paul Samuelson's treatise Foundations of Economic Analysis (1947) used mathematical methods to represent the theory, particularly as to maximizing behavioral relations of agents reaching equilibrium.^ As the well-known “Austrian” economist Rothbard writes in his new foreword: “This book performed the mighty feat of integrating monetary with micro theory, of building monetary theory upon the individualistic foundations of general economic analysis.” <\/p> ');" onmouseout="return nd();" title=""> The Theory of Money and Credit .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Philip Wicksteed, English philosopher, theologian, and economist, made important advances in economic method and in the theory of marginal productivity.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ It integrated monetary theory into the main body of economic analysis for the first time, providing fresh new insights into the nature of money and its role in the economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

The book focused on examining the class of statements called operationally meaningful theorems in economics, which are theorems that can conceivably be refuted by empirical data.[108]

Empirical investigation

.Economic theories are frequently tested empirically, largely through the use of econometrics using economic data.^ In the fifth volume of The Collected Works of Arthur Seldon, <\/em> Arthur Seldon uses public choice economics research to support his theory of over-government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This book is one of her works of popularizing economic theory, as seen through the eyes of honest John Hopkins, a poor laborer on low wages.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This book is still used a textbook and is an outstanding example of clearly written economic theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[109] .The controlled experiments common to the physical sciences are difficult and uncommon in economics[110] , and instead broad data is observationally studied; this type of testing is typically regarded as less rigorous than controlled experimentation, and the conclusions typically more tentative.^ This is more difficult than rocket science.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ More than two-thirds of those residents welcomed higher taxes and more services, while less than 30 percent called for less government .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Mises believed that, since the publication of Human Action, <\/em> economists and scientists alike had misinterpreted the idea of economics as a science by deeming it epistemological positivism—that they believed that the “science” basis was still more rooted in philosophy than in actual science.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The number of laws discovered by the discipline of economics is relatively very low compared to the physical sciences.^ Titles (by Subject) Art Economics History Law Literature Music Philosophy Political Theory Religion Science Sociology War and Peace .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[citation needed]
Statistical methods such as regression analysis are common. .Practitioners use such methods to estimate the size, economic significance, and statistical significance ("signal strength") of the hypothesized relation(s) and to adjust for noise from other variables.^ Explaining the methodology for the study, Rao said CMS used a perception, experience and estimation method to arrive at its conclusions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Specifically, Seldon focuses on the varied use of vouchers and the choices people have regarding purchasing or receiving such public services as health care and education.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In other countries (such as Lebanon), cash dollars are widely used.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.By such means, a hypothesis may gain acceptance, although in a probabilistic, rather than certain, sense.^ Good leaders are selfless, take initiative, and focus on their duty rather than obsessing over outcomes or financial gain.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ History in this sense didn't mean an "end to events" but rather, the (potential) end of a type of dialectical debate about political systems.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Acceptance is dependent upon the falsifiable hypothesis surviving tests. .Use of commonly accepted methods need not produce a final conclusion or even a consensus on a particular question, given different tests, data sets, and prior beliefs.^ Explaining the methodology for the study, Rao said CMS used a perception, experience and estimation method to arrive at its conclusions.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ The European Union uses a different method, based on relative income: The poverty line is set at a certain percentage of median income.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Criticism based on professional standards and non-replicability of results serve as further checks against bias, errors, and over-generalization,[106][111] although much economic research has been accused of being non-replicable, and prestigious journals have been accused of not facilitating replication through the provision of the code and data.^ Although he damaged his reputation by insisting throughout the Great Depression that recovery was imminent, contemporary economic models of interest and capital are based on Fisherian principles.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ She spent her professional life in a variety of research positions and wrote many articles on money, banking, the theory of the firm, economic development, and the labour market.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ And that newfound interest in their own story is being replicated across much of the world.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[112] .Like theories, uses of test statistics are themselves open to critical analysis,[113][114][115] although critical commentary on papers in economics in prestigious journals such as the American Economic Review has declined precipitously in the past 40 years.^ I found a number of such places: Kindleberger's declaration that in the last analysis the making of international economic policy under such circumstances "is an art" and that that "says nothing--and everything."
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Mandeville is a witty satirist who used a poem to make the profound economic point that “private vices” \(or self-interest\) lead to “publick benefits” \(such as orderly social structures like law, language, and markets\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was active in classical liberal economic circles as editor of the Journal des Économistes, president of the Paris Société des Économistes, a member of the British Cobden Club and the Royal Statistical Society, and also a member of the American Academy of Political and Social Sciences.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[116] This has been attributed to journals' incentives to maximize citations in order to rank higher on the Social Science Citation Index (SSCI).[117]
In applied economics, input-output models employing linear programming methods are quite common. .Large amounts of data are run through computer programs to analyze the impact of certain policies; IMPLAN is one well-known example.^ If you can make α small, then indeed the desirable amount of monetary accomodation is large--and our social welfare function also goes with 1/α as well.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ One might argue that China's policy of keeping the renminbi cheap amounts to an export subsidy that has been an important factor fueling its growth.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The large initial impact of the move on markets is no longer visible, but officials think the policy was reasonably successful.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Experimental economics has promoted the use of scientifically controlled experiments. .This has reduced long-noted distinction of economics from natural sciences allowed direct tests of what were previously taken as axioms.^ In this volume, Mises argued that economics is a science because human action is a natural order of life and that it is the actions of humans that determine markets and capital decisions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[118][119] In some cases these have found that the axioms are not entirely correct; for example, the ultimatum game has revealed that people reject unequal offers.
.In behavioral economics, psychologists Daniel Kahneman and Amos Tversky have won Nobel Prizes in economics for their empirical discovery of several cognitive biases and heuristics.^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ An first full-length assessment of the contributions to economics of Friedrich Hayek \(Nobel Prize 1974\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Amit Varma recently won the Bastiat prize in economics at a ceremony in New York.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

Similar empirical testing occurs in neuroeconomics. Another example is the assumption of narrowly selfish preferences versus a model that tests for selfish, altruistic, and cooperative preferences.[120][121] These techniques have led some to argue that economics is a "genuine science.".[9]

Game theory

Game theory is a branch of applied mathematics that studies strategic interactions between agents. In strategic games, agents choose strategies that will maximize their payoff, given the strategies the other agents choose. It provides a formal modeling approach to social situations in which decision makers interact with other agents.
.Game theory generalizes maximization approaches developed to analyze markets such as the supply and demand model.^ Irving Fisher, you see, focuses on one equilibrium condition: supply-and-demand in the money market.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ She spent her professional life in a variety of research positions and wrote many articles on money, banking, the theory of the firm, economic development, and the labour market.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ With leftist governments here in the state capital spending heavily on health and schools, a generation of scholars has celebrated the "Kerala model" as a humane alternative to market-driven development, a vision of social equality in an unequal capitalist world.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.The field dates from the 1944 classic Theory of Games and Economic Behavior by John von Neumann and Oskar Morgenstern.^ Taussig, a professor of economics at Harvard, wrote what has become a classic work on modern trade theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Ludwig von Mises described this as a “monumental work” which “is the most eminent contribution to economic theory”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Ludwig von Mises was the acknowledged leader of the Austrian School of economic thought, a prodigious originator in economic theory, and a prolific author.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It has found significant applications in many areas outside economics as usually construed, including formulation of nuclear strategies, ethics, political science, and evolutionary theory.^ Lalor is best known as the editor of the mammoth three volume cyclopedia of economics and political science which he published in the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Mises’ writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The theory of marginal utility and new ways of thinking about marginal value and price theory help found the Austrian School of economics, whose later theorists included Ludwig von Mises and Friedrich Hayek, and Murray Rothbard.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[122]

Profession

.The professionalization of economics, reflected in the growth of graduate programs on the subject, has been described as "the main change in economics since around 1900".[123] Most major universities and many colleges have a major, school, or department in which academic degrees are awarded in the subject, whether in the liberal arts, business, or for professional study.^ Mike Mandel has four nominees for his “Economic Statistic of the Decade” award, including home prices (obvs), Chinese growth, and global trade.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The best and most selective universities generate too few graduates, and new private colleges are producing graduates of uneven quality.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Laughlin was head of the University of Chicago Economics Department, founder of its Graduate School of Business, and founder of the Journal of Political Economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The Nobel Memorial Prize in Economic Sciences (commonly known as the Nobel Prize in Economics) is a prize awarded to economists each year for outstanding intellectual contributions in the field.^ Coase received the Nobel Prize in Economic Science in 1991.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Friedman was awarded the Presidential Medal of Freedom in 1988 and received the National Medal of Science the same year.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

In the private sector, professional economists are employed as consultants and in industry, including banking and finance. .Economists also work for various government departments and agencies, for example, the national Treasury, Central Bank or Bureau of Statistics.^ His work on Commerce and Government <\/em> appeared in the same year as Adam Smith’s Wealth of Nations <\/em> .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ The edition has been widely acclaimed as the best example, prior to the Glasgow edition of Adam Smith’s writings, of scholarly editing applied to the work of an economist.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Federal Reserve, the European Central Bank, and the Bank of England have flooded the market with massive amounts of high-quality liquid claims on governments’ treasuries, and so have reduced the liquidity discount — not increased it — by an amount that I estimate to be roughly $3 trillion.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Economics and other subjects

.Economics is one social science among several and has fields bordering on other areas, including economic geography, economic history, public choice, energy economics, cultural economics, and institutional economics.^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Armen A. Alchian is one of the 20th century’s great teachers of economic science, and the co-author, with William R. Allen, of the classic textbook University Economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Collected Works contains a number of Mill’s essays on economic topics, including the Chapters on Socialism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Law and economics, or economic analysis of law, is an approach to legal theory that applies methods of economics to law.^ Interviewer Edward L. Glaeser is Professor of Economics at Harvard University, where he specializes in urban and social economics, law and economics, and microeconomic theory.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Democracy in Deficit <\/em> is one of the early comprehensive attempts to apply the basic principles of public-choice analysis to macroeconomic theory and policy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Tullock and his 1962 coauthor, Nobel laureate James M. Buchanan, are widely recognized as cofounders of public choice, a field that systematically applies the rational choice approach of economics to the analysis of political markets.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It includes the use of economic concepts to explain the effects of legal rules, to assess which legal rules are economically efficient, and to predict what the legal rules will be.^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[124][125] .A seminal article by Ronald Coase published in 1961 suggested that well-defined property rights could overcome the problems of externalities.^ The BBC article describes some of the details of the problem — touts who buy coins operate with impunity right in front of the Reserve Bank where new coins are issued.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In 1914, he published his seminal article on the subject in the JPE, around which he also based a subsequent book.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[126]
.Political economy is the interdisciplinary study that combines economics, law, and political science in explaining how political institutions, the political environment, and the economic system (capitalist, socialist, mixed) influence each other.^ Brad DeLong on December 21, 2009 at 05:34 PM in Economics , Economics: Health , Obama Administration , Political Economy , Political Economy: Social Security , Politics .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Brad DeLong on January 04, 2010 at 01:04 PM in Books , Economics , Economics: International Finance , Economics: International Trade , Political Economy .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ The blogs are sorted into different categories: politics, right partisans, left partisans, science, economics, pop culture, and so on....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.It studies questions such as how monopoly, rent seeking behavior, and externalities should impact government policy.^ The Christian Science Monitor had an article last week that hinted at how owners of such a cheap car might immediately seek to pimp their ride: .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ Paul W. McCracken’s influence on how we think about economic policy has reached from the academy to the popular press to the highest reaches of government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[127][128] .Historians have employed political economy to explore the ways in the past that persons and groups with common economic interests have used politics to effect changes beneficial to their interests.^ Higgs was an English economist who wrote on the history of economic thought \(he rediscovered the importance of Richard Cantillon\) and was the editor of Palgrave’s Dictionary of Political Economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He also wrote his own primer of political economy and translated works on musical biography, law, and economics from the German; most notably Roscher’s Principles of Political Economy <\/i> and Ihering’s The Struggle for Law.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This 1908 edition is the third reprinting of Clark’s path-breaking, yet widely under-read, 1899 textbook, in which he developed marginal productivity theory and used it to explore the way income is distributed between wages, interest, and rents in a market economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[129]
.Energy economics is a broad scientific subject area which includes topics related to energy supply and energy demand.^ What is striking about the influence of economics is that similar policy responses in the fiscal and monetary areas, and non-responses in relation to competitive devaluations and protectionism, were crafted across the globe...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ See the books published by Liberty Fund in this subject area ( Economics ).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Front Page Titles (by Subject) Economics Search this Subject Area: .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Georgescu-Roegen reintroduced the concept of entropy in relation to economics and energy from thermodynamics, as distinguished from what he viewed as the mechanistic foundation of neoclassical economics drawn from Newtonian physics.^ Alfred Marshall, English economist at the University of Cambridge, reconciled many neoclassical economic concepts and introduced many of the modern terms and diagrams used today by economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.His work contributed significantly to thermoeconomics and to ecological economics.^ Ludwig von Mises described this as a “monumental work” which “is the most eminent contribution to economic theory”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Coase talks about his life work, his contributions to economics, and the “law and economics” movement which he helped create as editor of the Journal of law of Economics <\/i> from 1964 to 1982.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.He also did foundational work which later developed into evolutionary economics.^ His later and better known work in a similar vein was his 2 volume study of the system of economic regulation in the 18th century known as Mercantilism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His works on risk and uncertainty created a foundation for economic theory while repeatedly drawing on evidence and the everyday experiences of business owners, families, and ethical considerations.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of the most influential works on Political Economy in the 19thC. It set the stage for the development of the study of political economy in France and an early translation into English helped make it become the most used economics textbook in the United States.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[130][131][132][133][134]
The sociological subfield of economic sociology arose, primarily through the work of Émile Durkheim, Max Weber and Georg Simmel, as an approach to analysing the effects of economic phenomena in relation to the overarching social paradigm (i.e. modernity).[135] .Classic works include Max Weber's The Protestant Ethic and the Spirit of Capitalism (1905) and Georg Simmel's The Philosophy of Money (1900).^ A reprint of Lachmann’s 1956 classic of Austrian capital theory in which he draws upon the work of Carl Menger, Frank Knight and Friedrich Hayek.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

More recently, the works of Mark Granovetter, Peter Hedstrom and Richard Swedberg have been influential in this field.

Criticisms of economics

."The dismal science" is a derogatory alternative name for economics devised by the Victorian historian Thomas Carlyle in the 19th century.^ A massive 3 volume, 3,000 page compendium of nearly every aspect of 19th century American economics and political institutions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Lalor is best known as the editor of the mammoth three volume cyclopedia of economics and political science which he published in the late 19th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This is the 8th edition of what is regarded to be the first “modern” economics textbook, leading in various editions from the 19th into the 20th century.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It is often stated that Carlyle gave economics the nickname "the dismal science" as a response to the late 18th century writings of The Reverend Thomas Robert Malthus, who grimly predicted that starvation would result, as projected population growth exceeded the rate of increase in the food supply.^ His views of Thomas Robert Malthus’s writings may have been the source of the popular subsequent mis-association of Carlyle’s 1849 term, the “dismal science,” with Malthus.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ I would right now be optimistically predicting the return of seasonally-adjusted job growth to the U.S. economy by March: .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Clarkson was the leading opponent of the slave trade and slavery in England in the late 18th and early 19th centuries.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The teachings of Malthus eventually became known under the umbrella phrase "Malthus' Dismal Theorem". His predictions were forestalled by unanticipated dramatic improvements in the efficiency of food production in the 20th century; yet the bleak end he proposed remains as a disputed future possibility, assuming human innovation fails to keep up with population growth.^ The fifth lesson is that not all innovation leads to a more efficient and productive economy - let alone a better society.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[136]
.Some economists, like John Stuart Mill or Leon Walras, have maintained that the production of wealth should not be tied to its distribution.^ He influenced the thinking of James Mill and his son John Stuart Mill.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ John Elliot Cairnes, Irish economist, Professor of Political Economy at the University of Oxford, was a follower of Ricardo and Mill.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ John Stuart Mill originally wrote the Principles of Political Economy, with some of their Applications to Social Philosophy <\/em> very quickly, having studied economics under the rigorous tutelage of his father, James, since his youth.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The former is in the field of "applied economics" while the latter belongs to "social economics" and is largely a matter of power and politics.^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ II of a two volume work in which Hodgskin describes in great detail the economic, political, legal, and social conditions he observed in his travels across northern Germany.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His broad interests ranged beyond religion and economics into logic, politics, social rights, and literary reviews.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[137]
.In The Wealth of Nations, Adam Smith addressed many issues that are currently also the subject of debate and dispute.^ His work on Commerce and Government <\/em> appeared in the same year as Adam Smith’s Wealth of Nations <\/em> .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Sen has an essay re-appraising of the works of Adam Smith in light of the current global economic recession in a recent New York Review of Books .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In this Liberty Fund book the editor has compiled some of the more important writings on economics before the appearance of Smith’s Wealth of Nations <\/i> in 1776.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Smith repeatedly attacks groups of politically aligned individuals who attempt to use their collective influence to manipulate a government into doing their bidding.^ Although governments may presume to set “prices,” it is individuals who, by their actions and choices through competitive bidding for money, products, and services, actually determine “prices”.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In the fifth volume of The Collected Works of Arthur Seldon, <\/em> Arthur Seldon uses public choice economics research to support his theory of over-government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ We have always been among those who attempted to offer resistance to this use of the term.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In Smith's day, these were referred to as factions, but are now more commonly called special interests, a term which can comprise international bankers, corporate conglomerations, outright oligopolies, monopolies, trade unions and other groups.^ Now, software or application markets show us entirely different characteristics, those of Extremistan, where rapidly evolving monopolies and duopolies are much more common....
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Today, not only are there other options, but they are pretty close to the call centers [in terms of salaries].” .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ In game-theory terms, you would call the first group “strong bidders” and the second “weak bidders.” Your first thought might be that the “strong bidders”—women who (whether because of looks, social ability, or any other reason) are conventionally deemed more of a catch—would consistently win this kind of auction.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[138]
.Economics per se, as a social science, is independent of the political acts of any government or other decision-making organization, however, many policymakers or individuals holding highly ranked positions that can influence other people's lives are known for arbitrarily using a plethora of economic concepts and rhetoric as vehicles to legitimize agendas and value systems, and do not limit their remarks to matters relevant to their responsibilities.^ Brad DeLong on December 21, 2009 at 05:34 PM in Economics , Economics: Health , Obama Administration , Political Economy , Political Economy: Social Security , Politics .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Instead of focusing--in Foucault's manner-- on what makes particular sorts of knowledge possible at a given historical moement, I have thus tried to analyze interactions between forms of political organization and forms of knowledge making within specific social contexts...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ I’m sure many U.S. academics in the social sciences and humanities would jump at the chance to have rich, lively intellectual exchanges with Indian students and researchers — without having to go through a lot of bureaucracy.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.July 2009" style="white-space:nowrap;">[citation needed] The close relation of economic theory and practice with politics[139] is a focus of contention that may shade or distort the most unpretentious original tenets of economics, and is often confused with specific social agendas and value systems.^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Mises’ writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He also wrote his own primer of political economy and translated works on musical biography, law, and economics from the German; most notably Roscher’s Principles of Political Economy <\/i> and Ihering’s The Struggle for Law.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[140] .Notwithstanding, economics legitimately has a role in informing government policy.^ He is a consistent advocate of laissez-faire economic policy and limited government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His influential work on economic freedoms, their causes and consequences, brought him to highlight the interrelationships between economic and non-economic freedoms in societies, and the appropriate role for government.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Jacob Viner was an economist who wrote on international trade, tariff policy, commercial treaties, the role of the U.S. international trade, and the history of economic thought.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.It is, indeed, in some ways an outgrowth of the older field of political economy.^ Principles of Political Economy with some of their Applications to Social Philosophy (Ashley ed.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Collected Works contains a number of Mill’s essays on economic topics, including the collection Essays on Some Unsettled Questions of Political Economy.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Some Problems of Logical Method in Political Economy” .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Some academic economic journals are currently focusing increased efforts on gauging the consensus of economists regarding certain policy issues in hopes of effecting a more informed political environment.^ In the field of monetary and credit policy, precautionary actions to prevent infltionary excesses is bound to have some onerous effects--if it did not it would be ineffective and futile.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In joining Capital Gains and Games, I want to track these issues as Washington tries to overhaul economic policy and financial regulation.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Just this week, Mr. Bernanke went to the annual meeting of academic economists in Atlanta to offer his own history of Fed policy during the bubble.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.Currently, there exists a low approval rate from professional economists regarding many public policies.^ Adam Smith \(1723-1790\) is commonly regarded as the first modern economist with the publication in 1776 of The Wealth of Nations <\/em> .
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.Policy issues featured in a recent survey of AEA economists include trade restrictions, social insurance for those put out of work by international competition, genetically modified foods, curbside recycling, health insurance (several questions), medical malpractice, barriers to entering the medical profession, organ donations, unhealthy foods, mortgage deductions, taxing internet sales, Wal-Mart, casinos, ethanol subsidies, and inflation targeting.^ He influenced many 20th century economists, particularly those working in the Austrian tradition.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ It contains articles by leading economists on basic concepts, economic systems, schools of economic thought, macroeconomics, economic policy, taxes, money and banking, economic regulation, environmental regulation, discrimination, labor issues, international economics, corporations, financial markets, the marketplace, the economics of special markets, economies outside the U.S., and biographies of famous economists.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ They cover foreign policy, free trade, the repeal of the corn laws, war, colonial policy, education , and social reform.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[141]
.In Steady State Economics 1977, Herman Daly argues that there exist logical inconsistencies between the emphasis placed on economic growth and the limited availability of natural resources.^ Malthus’s contributions to political economics generally concern his bleak forecast that a geometrically growing population would surpass the arithmetically growing capacity of essential natural resources.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ For there would obviously be a natural tendency towards the optimum employment of resources in a Society which was functioning after the manner of the classical postulates.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In this work Malthus argues that there is a disparity between the rate of growth of population \(which increases geometrically\) and the rate of growth of agriculture \(which increases only arithmetically\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[142]
.Issues like central bank independence, central bank policies and rhetoric in central bank governors discourse or the premises of macroeconomic policies[143] (monetary and fiscal policy) of the States, are focus of contention and criticism.^ The book serves to bolster Buchanan’s central beliefs in the necessity of a balanced-budget amendment to the U.S. Constitution and in monetary rules rather than central bank discretion.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[144][145][146][147]
.Deirdre McCloskey has argued that many empirical economic studies are poorly reported, and while her critique has been well-received, she and Stephen Ziliak argue that practice has not improved.^ After earning a master’s degree at Cornell University, Fetter pursued his studies abroad and received a doctorate in economics in 1894 from the University of Halle in Germany.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This volume contains various essays on Smith, Disraeli, Arnold, and Senior, as well as the Economic Studies.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[148] This latter contention is controversial.[149]
.A 2002 International Monetary Fund study looked at “consensus forecasts” (the forecasts of large groups of economists) that were made in advance of 60 different national recessions in the ’90s: in 97% of the cases the economists did not predict the contraction a year in advance.^ Philip Wicksteed, English philosopher, theologian, and economist, made important advances in economic method and in the theory of marginal productivity.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ After the war he taught economics at Cambridge and later represented Britain at the Bretton Woods Conference which established the International Monetary Fund.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This year, 2 economists of mutinous importance made the cut.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

On those rare occasions when economists did successfully predict recessions, they significantly underestimated their severity.[150].

Criticism of assumptions

.Economics has been subject to criticism that it relies on unrealistic, unverifiable, or highly simplified assumptions, in some cases because these assumptions lend themselves to elegant mathematics.^ GEITHNER: I've got lots of weaknesses and failures of communication, but I always tried to say that the capacity to lend will be much stronger because of these [rescue] efforts.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Examples include perfect information, profit maximization and rational choices.[151] .[152][153] Some contemporary economic theory has focused on addressing these problems through the emerging subdisciplines of information economics, behavioral economics, and complexity economics, with Geoffrey Hodgson forecasting a major shift in the mainstream approach to economics.^ Sino-American partnership, in managing the complex mess of their imbalanced economic codependency, can constitute a good beginning for managing the utterly unhinged problems of world balance and order.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In these essays, the genesis of Ricardo’s theory of "hard money" emerges as a tool to hedge against inflation using metallic currency.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ His studies have yielded fresh perspectives on the central problems in these areas, as well as new approaches to solving those problems.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[154] .Nevertheless, prominent mainstream economists such as Keynes[155] and Joskow, along with heterodox economists, have observed that much of economics is conceptual rather than quantitative, and difficult to model and formalize quantitatively.^ This is the argument that the Economist uses for not having bylines--that the institution works better when people write as instantiations of the hive-mind that is the Economist rather than in their own individual personae.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ In language less difficult than that of Smith, Ricardo, Malthus, and Mill, she illustrates such topics as the economics of wages and income distribution.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Following the counter-revolution, the motive force of economic behavior came to be viewed as stemming from man's wants rather than from his productive capacities...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.In a discussion on oligopoly research, Paul Joskow pointed out in 1975 that in practice, serious students of actual economies tended to use "informal models" based upon qualitative factors specific to particular industries.^ There are some models that can justify quantitative easing, but I don’t think those models fully capture the factors that caused this particular crisis.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ By pointing out this relatively straightforward economic model, Bush was somehow turning the issue into a Morality Play and personally “blaming” the racial other.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ (She suggested that Indian business news analysts might be channeling the gloom of their western counterparts, rather than using actual data particular to the Indian economy.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

.Joskow had a strong feeling that the important work in oligopoly was done through informal observations while formal models were "trotted out ex post". He argued that formal models were largely not important in the empirical work, either, and that the fundamental factor behind the theory of the firm, behavior, was neglected.^ In the 1990s, the US – working closely with the IMF – insisted that crisis countries fundamentally restructure their financial systems, which involved forcing out top bank executives.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ His interest in the nature of the firm contributed to Frank H. Knight’s work by clearly describing the factors of production and how to categorize their rewards into wages, rent, and profits.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Despite the neoclassicals admitting that the Post-Keynesians were right, why has the impact of heterogeneous capital on an economy left out of the macro models?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

[156]
.Despite these concerns, mainstream graduate programs have become increasingly technical and mathematical.^ He brought this refreshing skill repeatedly to economics, which was in the process of becoming increasingly mathematical during his academic years.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[157] .Although much of the most groundbreaking economic research in history involved concepts rather than math, today it is nearly impossible to publish a non-mathematical paper in top economic journals.^ Some of the best, most snarky comments are by Pradeep Mehta, who works for a private economic research organization in India: .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[158] Disillusionment on the part of some students with the abstract and technical focus of economics led to the post-autistic economics movement, which began in France in 2000.
.David Colander, an advocate of complexity economics, has also commented critically on the mathematical methods of economics, which he associates with the MIT approach to economics, as opposed to the Chicago approach (although he also states that the Chicago school can no longer be called intuitive).^ He is a research fellow with Stanford University’s Hoover Institution and an associate professor of economics at the Naval Postgraduate School in Monterey, California.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ He was a member of the “Austrian school of economics”, taught at the London School of Economics and the University of Chicago, wrote extensively on banking and monetary theory, the socialist calculation debate, and the theory of spontaneous orders.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ This is a collection of essays written in the LSE opportunity cost tradition by scholars associated with the London School of Economics between 1937 and 1960.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

He believes that the policy recommendations following from Chicago's intuitive approach had something to do with the decline of intuitive economics. .He notes that he has encountered colleagues who have outright refused to discuss interesting economics without a formal model, and he believes that the models can sometimes restrict intuition.^ Although he damaged his reputation by insisting throughout the Great Depression that recovery was imminent, contemporary economic models of interest and capital are based on Fisherian principles.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ In a discussion of the possible role that reforming health care might play in government-supported economic recovery programs, Sen makes an interesting side-note about health care in Kerala as compared to China: .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

[159] More recently, however, he has written that heterodox economics, which generally takes a more intuitive approach, needs to ally with mathematicians and become more mathematical.[102] "Mainstream economics is a formal modeling field", he writes, and what is needed is not less math but higher levels of math. .He notes that some of the topics highlighted by heterodox economists, such as the importance of institutions or uncertainty, are now being studied in the mainstream through mathematical models without mention of the work done by the heterodox economists.^ What were the institutional failures that prevented these steps from being taken when it might have done some good?
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ If you’re sitting out waiting for a job that’s now being done by a slumdog in India, and you’re waiting for that job to be canceled, for the slumdog to be thrown out of work, and you to get the job, it ain’t going to happen.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ This is the argument that the Economist uses for not having bylines--that the institution works better when people write as instantiations of the hive-mind that is the Economist rather than in their own individual personae.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.New institutional economics, for example, examines institutions mathematically without much relation to the largely heterodox field of institutional economics.^ New technologies could not be identified and practices without new mental conceptions of the world (including that of the relation to nature and social relations).
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ A free and user-contributed database collecting all job openings for PhDs in economics and related fields.
  • Econjobmarket 27 January 2010 23:48 UTC bluwiki.com [Source type: Academic]

.In his 1974 Nobel Prize lecture, Friedrich Hayek, known for his close association to the heterodox school of Austrian economics, attributed policy failures in economic advising to an uncritical and unscientific propensity to imitate mathematical procedures used in the physical sciences.^ An first full-length assessment of the contributions to economics of Friedrich Hayek \(Nobel Prize 1974\).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Coase received the Nobel Prize in Economic Science in 1991.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ One of the founders of the Austrian School of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.He argued that even much-studied economic phenomena, such as labor-market unemployment, are inherently more complex than their counterparts in the physical sciences where such methods were earlier formed.^ This is more difficult than rocket science.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Simon Johnson believes that the Obama administration is much more powerful than I do: .
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

^ Republicans to get their views on important issues from Hollywood science fiction is much better than the alternative.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Similarly, theory and data are often very imprecise and lend themselves only to the direction of a change needed, not its size.[160] .In part because of criticism, economics has undergone a thorough cumulative formalization and elaboration of concepts and methods since the 1940s, some of which have been toward application of the hypothetico-deductive method to explain real-world phenomena.^ John Stuart Mill originally wrote the Principles of Political Economy, with some of their Applications to Social Philosophy <\/em> very quickly, having studied economics under the rigorous tutelage of his father, James, since his youth.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Neither of these methods works on a global scale, though, which explains why the World Bank has its own system.
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ His exposure to formal economic training was limited to one course taught by Henry Simons as part of the law curriculum at the University of Chicago.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

[161]

See also


Notes

  1. ^ Harper, Douglas (November 2001). "Online Etymology Dictionary — Economy". http://www.etymonline.com/index.php?term=economy. Retrieved October 27 2007. 
  2. ^ a b Clark, B. (1998). Political-economy: A comparative approach. Westport, CT: Preager.
  3. ^ Robbins, Lionel (1945) (PDF). An Essay on the Nature and Significance of Economic Science. London: Macmillan and Co., Limited. http://www.mises.org/books/robbinsessay2.pdf. , p. 16
  4. ^ Friedman, David D. (2002). "Crime," The Concise Encyclopedia of Economics. Accessed October 21, 2007.
  5. ^ The World Bank (2007). "Economics of Education." Accessed October 21, 2007.
  6. ^ Iannaccone, Laurence R. (1998). "Introduction to the Economics of Religion," Journal of Economic Literature, 36(3), pp. 1465–1495..
  7. ^ Nordhaus, William D. (2002). "The Economic Consequences of a War with Iraq", in War with Iraq: Costs, Consequences, and Alternatives, pp. 51–85. American Academy of Arts and Sciences. Cambridge, MA. Accessed October 21, 2007.
  8. ^ Arthur M. Diamond, Jr. (2008). "science, economics of," The New Palgrave Dictionary of Economics, 2nd Edition, Basingstoke and New York: Palgrave Macmillan. Pre-publication cached ccpy.
  9. ^ a b Lazear, Edward P. (2000|. "Economic Imperialism," Quarterly Journal Economics, 115(1)|, p p. 99–146. Cached copy. Pre-publication copy(larger print.)
  10. ^ Becker, Gary S. (1976). The Economic Approach to Human Behavior. Links to arrow-page viewable chapter. University of Chicago Press.
  11. ^ Davis, John B. (2006). "Heterodox Economics, the Fragmentation of the Mainstream, and Embedded Individual Analysis,” in Future Directions in Heterodox Economics. Ann Arbor: University of Michigan Press.
  12. ^ Kramer, History Begins at Sumer, pp. 52–55.
  13. ^ Charles F. Horne, Ph.D. (1915). "The Code of Hammurabi : Introduction". Yale University. http://www.yale.edu/lawweb/avalon/medieval/hammint.htm. Retrieved September 14 2007. 
  14. ^ http://history-world.org/reforms_of_urukagina.htm
  15. ^ Schumpeter, Joseph A. (1954). History of Economic Analysis, pp. 97–115. Oxford.
  16. ^ I. M. Oweiss (1988), "Ibn Khaldun, the Father of Economics", Arab Civilization: Challenges and Responses, New York University Press, ISBN 0-88706-698-4.
  17. ^ Boulakia, Jean David C. (1971). "Ibn Khaldun: A Fourteenth-Century Economist". The Journal of Political Economy 79 (5): 1105–1118. 
  18. ^ L. K. Jha, K. N. Jha (1998). "Chanakya: the pioneer economist of the world", International Journal of Social Economics 25(2–4): 267–282.
  19. ^ Waldauer, C., Zahka, W.J. and Pal, S. (1996) Kautilya's Arthashastra: A neglected precursor to classical economics. Indian Economic Review Vol. 31(1): 101–108.
  20. ^ Tisdell, C. (2003) A Western perspective of Kautilya's Arthasastra: does it provide a basis for economic science? Economic Theory, Applications and Issues Working Paper No. 18. Brisbane: School of Economics, The University of Queensland.
  21. ^ Sihag, B.S. (2007) Kautilya on institutions, governance, knowledge, ethics and prosperity. Humanomics 23 (1): 5–28.
  22. ^ Sihag, B.S. (2005) Kautilya on public goods and taxation. History of Political Economy 37 (4): 723–753.
  23. ^ Sihag, B.S. (2009) An introduction to Kautilya and his Arthashastra. Humanomics 25(1).
  24. ^ Sihag, B.S. (2007) Kautilya on institutions, governance, knowledge, ethics and prosperity. Humanomics 23(1): 5–28.
  25. ^ NA (2007). "mercantilism," The New Encyclopædia Britannica. pp. v. 8, p. 26. 
  26. ^ Blaug, Mark (2007). "The Social Sciences: Economics". The New Encyclopædia Britannica, v. 27, p. 343.
  27. ^ NA (2007). "physiocrat," The New Encyclopædia Britannica. pp. v. 9, p. 414.. 
  28. ^ Blaug, Mark (1997, 5th ed.) Economic Theory in Retrospect, pp, 24–29, 82–84. Cambridge.
  29. ^ Blaug, Mark (2007). "The Social Sciences: Economics". The New Encyclopædia Britannica, v. 27, p. 343.
  30. ^ Blaug, Mark (1987). "Classical Economics", The New Palgrave: A Dictionary of Economics, v. 1, pp. 434–35. Blaug notes less widely used datings and uses of 'classical economics', including those of Marx and Keynes.
  31. ^ Smith, Adam (1776). The Wealth of Nations, Bk. 1, Ch. 5, 6.
  32. ^ Roemer, J.E. (1987). "Marxian Value Analysis". The New Palgrave: A Dictionary of Economics, v. 3, 383.
  33. ^ Mandel, Ernest (1987). "Marx, Karl Heinrich", The New Palgrave: A Dictionary of Economicsv. 3, pp. 372, 376.
  34. ^ Marshall, Alfred, and Mary Paley Marshall (1879). The Economics of Industry, p. 2.
  35. ^ W. Stanley Jevons (1879, 2nd ed.) The Theory of Political Economy, p. xiv.
  36. ^ Campos, Antonietta (1987). "Marginalist Economics", The New Palgrave: A Dictionary of Economics, v. 3, p. 320
  37. ^ Hicks, J.R. (1937). "Mr. Keynes and the 'Classics': A Suggested Interpretation," Econometrica, 5(2), p p. 147–159.
  38. ^ Blanchard, Olivier Jean (1987). "Neoclassical Synthesis", The New Palgrave: A Dictionary of Economics, v. 3, pp. 634–36.
  39. ^ Keynes, John Maynard (1936). The General Theory of Employment, Interest and Money. London: Macmillan. ISBN 1-57392-139-4. 
  40. ^ Blaug, Mark (2007). "The Social Sciences: Economics," The New Encyclopædia Britannica, v. 27, p. 347. Chicago.
  41. ^ Tarshis, L. (1987). "Keynesian Revolution", The New Palgrave: A Dictionary of Economics, v. 3, pp. 47–50.
  42. ^ Samuelson, Paul A., and William D. Nordhaus (2004). Economics, p. 5.
  43. ^ Blaug, Mark (2007). "The Social Sciences: Economics," The New Encyclopædia Britannica, v. 27, p. 346. Chicago.
  44. ^ Harcourt, G.C.(1987). "Post-Keynesian Economics", The New Palgrave: A Dictionary of Economics, v. 3, pp. 47–50.
  45. ^ Felderer, Bernhard. Macroeconomics and New Macroeconomics. 
  46. ^ Ben Bernanke (2002-11-08). "Remarks by Governor Ben S. Bernanke". The Federal Reserve Board. http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm. Retrieved 2008-02-26. 
  47. ^ Friedman, Milton. "The Social Responsibility of Business is to Increase its Profits." The New York Times Magazine 13 Sep. 1970.
  48. ^ New School of Thought Brings Energy to 'the Dismal Science' New York Times Retrieved Oct-26-09
  49. ^ Blaug, Mark (2007). "The Social Sciences: Economics," Microeconomics, The New Encyclopædia Britannica, v. 27, pp. 347–49. Chicago. ISBN 0-85229-423-9
  50. ^ Varian, Hal R. (1987). "Microeconomics", The New Palgrave: A Dictionary of Economics, v. 3, pp. 461–63. London and New York: Macmillan and Stockton. ISBN 0-333-37235-2
  51. ^ James M. Buchanan (1987). "Opportunity Cost", The New Palgrave: A Dictionary of Economics, v. 3, pp. 718–21.
  52. ^ The Economist's definition of Opportunity Cost
  53. ^ Groenewegen, Peter (1987). "Division of Labour", The New Palgrave: A Dictionary of Economics, v. 1, pp. 901–05.
  54. ^ Johnson, Paul M. (2005)."Specialization," A Glossary of Political Economy Terms.
  55. ^ Yang, Xiaokai, and Yew-Kwang Ng (1993). Specialization and Economic Organization. Amsterdam: North-Holland.
  56. ^ Adam Smith, Biography: The Concise Encyclopedia of Economics: Library of Economics and Liberty
  57. ^ Cameron, Rondo (1993, 2nd ed.). A Concise Economic History of the World: From Paleolithic Times to the Present, Oxford, pp. 25, 32, 276–80.
  58. ^ Samuelson, Paul A., and William D. Nordhaus (2004). Economics,ch. 2, "Trade, Specialization, and Division of Labor" section, ch. 12, 15, "Comparative Advantage among Nations" section," "Glossary of Terms," Gains from trade.
  59. ^ Findlay, Ronald (1987). "Comparative Advantage", The New Palgrave: A Dictionary of Economics, v. 1, pp. 514–17.
  60. ^ Kemp, Murray C. (1987). "Gains from Trade", The New Palgrave: A Dictionary of Economics, v. 2, pp. 453–54.
  61. ^ Baumol, William J. (2007). "Economic Theory" (Measurement and ordinal utility). The New Encyclopædia Britannica, v. 17, p. 719.
  62. ^ Hicks, John Richard (1939). Value and Capital. London: Oxford University Press. 2nd ed., paper, 2001. ISBN 978–0198282693. 
  63. ^ Brody, A. (1987). "Prices and Quantities", The New Palgrave: A Dictionary of Economics, v. 3, p. 957.
  64. ^ Jordan, J.S. (1982). "The Competitive Allocation Process Is Informationally Efficient Uniquely." Journal of Economic Theory, 28(1), p. 1–18.
  65. ^ Cf. Barr (2004) pp. 72–79, whose list of market failures is melded with failures of economic assumptions, which are (1) producers as price takers (i.e. presence of oligopoly or monopoly; but why is this not a product of the following?) (2) equal power of consumers (what labour lawyers call an imbalance of bargaining power) (3) complete markets (4) public goods (5) external effects (i.e. externalities?) (6) increasing returns to scale (i.e. practical monopoly) (7) perfect information.
  66. ^ Stiglitz (2000) Ch.4, states the sources of market failure can be enumerated as natural monopolies, information asymmetries, incomplete markets, externalities, public good situations and macroeconomic disturbances.
  67. ^ Lippman, S. S., and J. J. McCall (2001). "Information, Economics of," International Encyclopedia of the Social & Behavioral Sciences, pp. 7480–7486. Abstract.
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  71. ^ Samuelson, Paul A., and William D. Nordhaus (2004). Economics, ch. 18, "Protecting the Environment." McGraw-Hill.
  72. ^ Coase, The Nature of the Firm (1937)
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References

  • Barr, Nicholas (2004) Economics of the Welfare State, 4th ed., Oxford University Press
  • Stiglitz, Joseph (2000) Economics of the Public Sector, 3rd ed., Norton Press

External links

General information
Institutions and organizations
Study resources

Quotes

Up to date as of January 14, 2010

From Wikiquote

.
Face-to-face trading interactions on the New York Stock Exchange trading floor.
^ To exaggerate a bit, if New York suddenly disappeared, stock markets could keep functioning, but we would not be able to dress ourselves or find art to put on the wall.
  • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

Financial decisions can be one of many economic choices people make.
.Economics is the social science that studies the production, distribution, and consumption of goods and services.^ And this suggests something that you would expect a Professor of Economics to know- the consumption pattern looks suspiciously like that of Giffen goods .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ He also wrote on production and distribution, capital, money, and the history of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ Thus, Mises presents economics—not as a study of material goods, services, and products—but as a study of human actions.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

.The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).^ Law and Economics] Catalog Number: 5995 Instructor to be determined Half course (spring term).

Sourced

Alphabetized by author
.
  • In fact, without any exaggeration, the current mechanism of money creation through credit is certainly the "cancer" that's irretrievably eroding market economies of private property.^ [T]he Obama administration and the Federal Reserve are plowing forward with Plan B: Nationalize credit creation and "stimulate" the private sector by spending in its stead.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Refreshingly written, widely quoted, and authoritatively researched, the book begins with the origins of money and works its way through to international banking and credit.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Karl Polanyi thought that Aristotle's naivete was the result of the fact that a mercantile, market, commercial economy was something very new.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    • Maurice Allais, in La Crise mondiale d’aujourd’hui. Pour de profondes réformes des institutions financières et monétaires (1999), p. .74
  • The more opportunities there are in a Society for some persons to live upon the toil of others, and the less those others may enjoy the fruits of their work themselves, the more is diligence killed, the former become insolent, the latter despairing, and both negligent.^ In this auction, some women will be more confident of their prospects, others less so.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    ^ Those in the middle and upper middle classes are working harder and longer, trying to keep up with the Joneses who are growing more wealthy at an even faster pace.
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    ^ There are some models that can justify quantitative easing, but I don’t think those models fully capture the factors that caused this particular crisis.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • So-called macroeconomics has never been real economics but rather an endless series of engineering-type models purporting to guide politicians in centrally planning an economy.^ A series of small seminars focusing on applications of economic theory to real problems.

    ^ Government controls and economic planning never accomplish what their proponents intend.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Martineau continues her popularization of economic ideas which began with the Illustrations of Political Economy <\/em> in this series of “Tales” addressed to the working class.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .In the bizarro world of macroeconomics all capital is the same, and all workers are the same, as one big lump, expressed as 'K' and 'L' in the models.^ The next day, the mathematicians decided to use the same strategy- they bought only one ticket, but economists did not buy tickets at all!
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ Not a big deal Boris, I'm stuck with a hundred economists I have to listen to all the time before any policy decision, and only one tells the truth but it's never the same one.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ When capitalism itself undergoes one of its phases of renewal, it does so precisely by co-evolving all moments, obviously not without tensions, struggles, fights and contradictions.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .Relative prices and their role in allocating resources in a market economy are mostly ignored, while 'economic aggregates' are said to influence 'the' price level.^ It integrated monetary theory into the main body of economic analysis for the first time, providing fresh new insights into the nature of money and its role in the economy.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Alchian has become recognized as one of the most influential voices in the areas of market structure, the theory of the firm, law and economics, resource unemployment, monetary theory and monetary policy.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Walters discusses his role in the transformation of the British economy during the 1980s as economic advisor to British Prime Minister Margaret Thatcher.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]


    .In macroeconomics it is taken as a given that markets are incapable of allocating resources in an acceptable way; that’s why there is supposedly a need for macroeconomic central planning in the first place.^ They're places where suckers, many of them people without much in the way of resources, throng to engage in rigged games in which the odds are always -- always -- against them.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Also, Economics 1123 may not be taken for credit if taken after Economics 1126, but credit will be given for both courses if Economics 1123 is taken first.

    ^ So did the deficit scolds, the people who preach the need to rein in entitlements and start paying our way, rally behind the cost-containment plans?
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .No such 'failures' are assumed on the part of the macroeconomic central planners.^ In such a world, there are no welfare costs of a bursting bubble, at least as long as the central bank acts nimbly....
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • The calculations and models are every day a confirmation, beyond the academic libraries and government dossiers, of the utopia of political reaction.
  • Economics is more disciplinary than any other discipline, and it has been ever since its origins.^ Economics is to be found in the library -- beyond fiction.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ Mises’ writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Brad DeLong on December 21, 2009 at 04:30 AM in Economics , Information: Internet .
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

  • Economics is, at root, the study of incentives: how people get what they want, or need, especially when other people want or need the same thing.^ If that's what they need to get things done, they will become too passive and others will overtake them.
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    ^ But some of them don’t want to say he’s doing the right thing because that might make Dick Cheney mad and they’re timid, gutless careerists?
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Kirzner’s The Economic Point of View <\/em> is a thoughtful study of how and why economists are successful at sorting out certain issues but less successful at others, issues from welfare to wealth to human actions.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .
    • Steven D. Levitt and Stephen J. Dubner, Freakonomics (2005), p.^ By Jason Kottke • May 13, 2005 • creditcards economics finance wealth Freakonomists Levitt and Dubner on how your .
      • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

      ^ By Jason Kottke • May 13, 2006 • economics politics Stephen Dubner Steven Levitt weblogs Design: e2 is an upcoming 6-part PBS .
      • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

      ^ By Jason Kottke • Nov 10, 2009 • books economics Elizabeth Kolbert global warming science Stephen Dubner Steven Levitt SuperFreakonomics Airlines nickel and diming themselves to death .
      • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

      20 ISBN 0-06-073132-X
  • To have peace and not war, the drift toward a war economy, as facilitated by the moves and the demands of the sophisticated conservatives, must be stopped; to have peace without slump, the tactics and policies of the practical right must be overcome. .The political and economic power of both must be broken.^ The Political Power of Economic Ideas: Keynesianism across Nations.
    • Princeton University Press Books in Economics 27 January 2010 23:48 UTC press.princeton.edu [Source type: Academic]

    .The power of these giants of main drift is both economically and politically anchored; both unions and an independent labor party are needed to struggle effective.^ Main ideas of game theory are introduced and illustrated using examples from industrial organization, labor economics, and macroeconomics.

    .
  • In the United States… a handful of corporations centralize decisions and responsibilities that are relevant for military and political as well as economic developments of global significance.^ Topics covered are the history of the relationship between media and the state, media and democracy today, laws governing the media and its practice, legal and political pressures on the media, media as an economic object, ownership of media and its effects, media coverage on elections and in developing countries, competition and truth in the market for news, the current mainstream media, and journalistic ethics.

    ^ By Jason Kottke • Nov 20, 2006 • economics energy Global Warming James Surowiecki oil politics Surprising factoid from an article on legalizing .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    ^ Empirical applications include international investment, savings, occupational choices, ethical norms, economic development, fertility decisions.

    .For nowadays the military and the political cannot be separated from economic considerations of power.^ It soothed the abrasiveness of military and economic power and made the wielders of such power feel good.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .We now live not in an economic order or a political order, but in a political economy that is closely linked with military institutions and decisions.^ American economics and political institutions.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Brad DeLong on January 04, 2010 at 01:04 PM in Books , Economics , Economics: International Finance , Economics: International Trade , Political Economy .
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ A massive 3 volume, 3,000 page compendium of nearly every aspect of 19th century American economics and political institutions.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .This is obvious in the repeated “oil crisis” in the Middle East, or in the relevance of Southeast Asia and African resources for the Western powers…
  • What the main drift of the twentieth century has revealed is that the economy has become concentrated and incorporated in the great hierarchies, the military has become enlarged and decisive to the shape of the entire economic structure; and moreover the economic and the military have become structurally and deeply interrelated, as the economy has become a seemingly permanent war economy; and military men and policies have increasingly penetrated the corporate economy.^ Environmental and Resource Economics and Policy Catalog Number: 2115 Robert N. Stavins (Kennedy School) Half course (spring term).

    ^ Armen A. Alchian is one of the 20th century’s great teachers of economic science, and the co-author, with William R. Allen, of the classic textbook University Economics.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Analyses the libertarian perspective on economic and social policy.

    .
  • For the corporation executives, the military metaphysic often coincides with their interest in a stable and planned flow of profit; it enables them to have their risk underwritten by public money; it enables them reasonably to expect that they can exploit for private profit now and later, the risky research developments paid for by public money.^ His clarifications of monetary issues coincided with concurrent national interests in the gold\/silver\/bimetallism parity controversies of the late 1800s, and the meaning of money for an economy.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ EXAM GROUP: 9 Development research is fascinating in part because it has a direct impact on public policy.

    ^ For now, I want to focus on two of them: (1) Forces you to pay up to 8% of your income to private insurance corporations — whether you want to or not.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .It is, in brief, a mask of the subsidized capitalism from which they extract profit and upon which their power is based.^ And when senators have that much individual power, they can take a strong stand on things other senators don't care about in order to extract concessions on something they themselves do care about.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.'^ However, if there's one thing economists of all stripes agree on, there's no such thing as a free lunch.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    ^ By Jason Kottke • Feb 17, 2006 • crime economics science People are changing how they spend their .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    ^ By Jason Kottke • Jul 9, 2008 • economics World War II Rising oil price consequences .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance. .
  • Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.^ And those who are more effective, including Roemer and fellow Council of Economic Advisers member Austan Goolsbee, sometimes are cut out of the action...
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Those who have the task of making such policy don't expect you to applaud.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Still, it gave me some compassion for those who have to drink water far worse, such as the 2 million children who die each year for want of proper water and sanitation.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    .
  • The only function of economic forecasting is to make astrology look respectable.^ A:In order to make weather forecasters look good.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ Sen has an essay re-appraising of the works of Adam Smith in light of the current global economic recession in a recent New York Review of Books .
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    .
    • Ezra Solomon, as quoted in Psychology Today (March 1984); also attributed to John Kenneth Galbraith in U.S. News & World Report (7 March 1988), p.^ By any other red ribbon or name, today is December 1, World AIDS Day, and much of the day’s significant news on the topic comes, for better or worse, from India.
      • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

      ^ John Cochrane is quoted in the New Yorker piece attributing the financial crisis to a speech by President Bush acknowledging that financial markets were in trouble, and not the problems generated by insolvency at the nation's largest banks.
      • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

      ^ John Kenneth Galbraith .
      • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

      64
  • Another difference between Milton and myself is that everything reminds Milton of the money supply. Well, everything reminds me of sex, but I keep it out of the paper. .
    • Robert Solow, on Milton Friedman's ideas and his own, in a series of papers at a 1966 conference, also published in ‪Price Controls‬ (1992) by Hugh Rockoff; also widely paraphrased as "Everything reminds Milton Friedman of the money supply.^ Milton Friedman discusses his economic ideas with Gary S. Becker.
      • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

      ^ A collection of papers which explores methodoogy, econometrics, social cost, monopoly theory, the supply of money, interest theory, and macroeconomics.
      • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

      ^ The Intellectual Portrait Series: A Conversation with Milton Friedman .
      • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

      Everything reminds me of sex, but I try to keep it out of my papers."

  • [Hacker has just had a stormy cabinet meeting over a sudden financial crisis]
Jim Hacker: Bernard, Humphrey should have seen this coming and warned me.
.Bernard: I don't think Sir Humphrey understands economics, Prime Minister; he did read Classics, you know.^ Economics-everything we know in a language we don't understand.
  • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

^ How did you know?"
  • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

^ I don’t think it’s correct to say you have to put forecasts in...
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

Hacker: What about Sir Frank? He's head of the Treasury!
Bernard: Well I'm afraid he's at an even greater disadvantage in understanding economics: he's an economist.

Unsourced

.
  • See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it.^ They backed that worldview with money and, until it crashed, this American outlook was willingly adopted by more and more people and governments around the globe.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ [W]hat we're left with is the type of government-sponsored orgy of spending and money creation that Washington used to condemn with all-knowing righteousness when undertaken south of the border....
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Gallatin was Secretary of the Treasury and in this Report urged that Congress spend over $16 million of taxpayer money on building road works and canals.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    Bake it into pies, probably. Anything to avoid creating jobs. .
  • Most of the presidential candidates' economic packages involve 'tax breaks,' which is when the government, amid great fanfare, generously decides not to take quite so much of your income.^ For the next three decades, Great Britain (like much of the Western world) was governed in the light of Keynes's concerns.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Then your ulcer becomes even more serious because you remember that 40 percent of your income is taken for social tax.  .
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ It would also be progressive, in that it would take from those with the most generous insurance to finance the expansion of coverage to those without insurance.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .In other words, these candidates are trying to buy your votes with your own money.^ These penetrate deep down into other cultures as well as its own; they become part of daily life.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ In other words, when we get a raise, instead of using that hard-won money to buy "the good life," we feel even more pressure to work since the shadow costs of not working are all the greater.
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    ^ In other words, the guy you bought the land from might not have owned it in a legally clear manner to begin with.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

  • Life, liberty, and property do not exist because men have made laws. .On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.^ The First Law of Economists: For every economist, there exists an equal and opposite economist.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ "If, as Holmes said and as CLS reiterated, what the law "is" is what the courts will do in fact, the thing to do is to figure out which side of the argument can count to five first.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Besides issues such as torts, property, litigation, and law enforcement, will also focus on judicial decision-making and cross-country comparisons of the effects of laws and legal systems.

  • How is property given? By restraining liberty; that is, by taking it away so far as necessary for the purpose. .How is your house made yours?^ Freakonomists Levitt and Dubner on how your real estate agent may not have your best interests at heart when selling your house .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    By debarring every one else from the liberty of entering it without your leave. .
  • These guys believe that a 350 billion dollar tax cut will stimulate the economy, and they are full of shit.^ With the economy still struggling, it's premature to cut spending or raise taxes now.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ But it soon was wiped out by a sagging economy, the Iraq war, GOP tax cuts and the lapsing of the pay-as-you-go restrictions....
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ But they are going to notice the cuts in Medicare and, specifically, the increased taxes which go into effect the day that this bill is signed into law."...
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .Because they don't know what stimulates the economy.^ But some of them don’t want to say he’s doing the right thing because that might make Dick Cheney mad and they’re timid, gutless careerists?
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ They are able to judge a person’s character better than regular American banks, who don’t know their clients as well.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    ^ Chinese A-list men date B-list women because they don’t want someone as smart as them.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    .The economy goes up, it goes down, it goes up, it goes down, it goes up, it goes down, nobody knows why the fuck it happens.^ An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ By Jason Kottke • Feb 3, 2009 • cliffkuang economics groundhogday movies Things that go up in a down economy .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    And I know this because I took economics, and I'd explain it to yea'... but I flunked that course. Not my fault. They taught it at 8 o'clock in the morning. .And there is absolute nothing that you can learn out of one bloodshot eye.^ I would like to point out that there is one group that is especially deserving of a holiday: the CBO analysts who have been scoring this bill.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Soon you have to kill one of them because in the Netherlands there is an overproduction of milk and the European Union rules say so.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ A boy was crossing a road one day when a frog called out to him and said, "If you kiss me, I'll turn into a beautiful princess."
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    .After I failed my second test, I grabbed my teacher by the front of the shirt and said 'Are you *trying* to keep this shit a secret?'^ "Thank you, Amy" said the teacher.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ My daughters keep saying, ‘Nothing yellow, nothing yellow.’ For them, gold is old,” Bhardwaj said in her living room while sporting three gold rings, bangles, a chain and earrings.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    .
  • Anyone who says minimum wage laws decrease unemployment disavows the law of demand and is therefore unqualified to speak as an economist.^ Economists are people who are too smart for their own good and not smart enough for anyone else's.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ I disagree with economists who say the “recession” ended in the third quarter.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • Don't expect to build up the weak by pulling down the strong.^ The Nobel Prize winning economist, James M. Buchanan, discusses in part 1 of a two part conversation, the theory of public choice, his exchange theory of economics, and constitutional thought.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Tullock and his 1962 coauthor, Nobel laureate James M. Buchanan, are widely recognized as cofounders of public choice, a field that systematically applies the rational choice approach of economics to the analysis of political markets.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ The Calculus of Consent, <\/em> is a reprint edition of the ground-breaking economic classic written by two of the world’s preeminent economists - Gordon Tullock and Nobel Laureate James M. Buchanan.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .
  • Ultimately, property rights and personal rights are the same thing.^ With a group of other late Victorian classical liberals he was active in such organizations as the Personal Rights and Self-Help Association and the Liberty and Property Defense League.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    The one cannot be preserved if the other be violated. .
  • If economists wished to study the horse, they wouldn't go and look at horses.^ The National Institute of Health (NIH) announced that they were going to start using economists instead of rats in their experiments.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ A pair of economists looked at the number of parking tickets accrued by diplomats at the UN (tickets for which they are not charged) to determine each country's corruption level .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    .They'd sit in their studies and say to themselves, "what would I do if I were a horse?"^ And whatever they want in cap-and-trade or financial reform they can have--but they would rather just say "no" to everything.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ Indeed, while the world peeks in, the two countries are realizing that they have thrown themselves into an intimate economic embrace with, to say the least, very mixed feelings.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ But for this program they would be in even more dire straits.” But others say the lack of cash support shows the safety net is torn.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • Nothing is particularly hard if you divide it into small jobs.^ INTEREST GROUP ECONOMIST VIRUS - Divides your hard disk into hundreds of little units, each of which does practically nothing, but all of which claim to be the most important part of the computer.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    .
  • The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy.^ We came to free markets and now you’re telling us, “Stop, don’t come…” [ Link ] This guy is better at jawboning than the politicians.
    • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

    ^ The next day, the mathematicians decided to use the same strategy- they bought only one ticket, but economists did not buy tickets at all!
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ This is the peculiar thing about financial markets: if you know something bad is going to happen (you know, like the global collapse of the financial markets), you can either sound the alarm and save a lot of people a lot of grief or you can make a billion dollars.
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    .It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.^ During the third day of the convention, one of the bellhops at the convention hotel asked me who the people attending the convention were and what we did for a living.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ There seems to be universal dissatisfaction with the process for helping people who are facing foreclosure.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    ^ He's an economist, one of those people who turn random numbers into mathematical laws."
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

  • Under capitalism, man exploits man. .Under communism, it's just the opposite.^ Sirc draws upon his experiences of fighting in the Resistance and the Yugoslav Army, his political opposition and arrest under communism to discuss the economics of socialism and life under communism.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .
  • The prosperity we have known up to the present is the consequence of rapidly spending the planet's irreplaceable capital.^ This tale is said to be told by John Kenneth Galbraith on himself.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ John Kenneth Galbraith .
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    .
  • Things may come to those who wait.^ Good luck will come to those who dig around in the archives .
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    But only the things left by those who hustle. .
  • That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise.^ Those responsible should now show some humility, she said.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

  • Economics is the science of greed. .
    • F. V. Meyer
  • Since the state must necessarily provide subsistence for the criminal poor while undergoing punishment, not to do the same for the poor who have not offended is to give a premium on crime.^ Selling everything from condos to premium vodka is enhanced by proximity to pretty young people (of both sexes) who get paid for providing this service.
    • economics (kottke.org) 27 January 2010 23:48 UTC www.kottke.org [Source type: General]

    .
  • The body of economic knowledge is an essential element in the structure of human civilization; it is the foundation upon which modern industrialism and all the moral, intellectual, technological, and therapeutical achievements of the last centuries have been built.^ Much of the rest of his life was spent working on an all-encompassing theory of human development based upon the ideas of individualism, utilitarian moral theory, social and biological evolution, limited government, and laissez-faire economics.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ He influenced the thinking of James Mill and his son John Stuart Mill.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ These papers are essential reading for students of economic freedom and the science of human action.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .
  • All people, however fanatical they may be in their zeal to disparage and to fight capitalism, implicitly pay homage to it by passionately clamoring for the products it turns out.^ Ludwig von Mises .
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Ludwig von Mises (1881-1973) .
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ What percentage of all this turned out to be true?
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • An economist is a man who states the obvious in terms of the incomprehensible.^ Ludwig von Mises .
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Ludwig von Mises (1881-1973) .
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    ^ Ludwig von Mises , foreword: Louis M. Spadaro , translator: Ralph Raico .
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

  • Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds. .
  • Ordinary human concern for human distress does not manifest itself ordinarily in the form of a gun aimed at the wallets and earnings of one's neighbors.^ When capitalism itself undergoes one of its phases of renewal, it does so precisely by co-evolving all moments, obviously not without tensions, struggles, fights and contradictions.
    • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

    .
  • While, politically, a mixed economy preserves the semblance of an organized society with a semblance of law and order, economically it is the equivalent of the chaos that had ruled China for centuries: a chaos of robber gangs looting--and draining--the productive elements of the country.^ EXAM GROUP: 16, 17, 18 Discusses several research areas in political economy, including the origins of the state, comparative political systems, theories of economic reform, fiscal problems in democracies, rule of law, privatization, and regulation.

    ^ EXAM GROUP: 18 Discusses several research areas in political economy, including the origins of the state, comparative political systems, theories of economic reform, fiscal problems in democracies, rule of law, privatization, regulation, and elections and the economy.

    ^ He also wrote his own primer of political economy and translated works on musical biography, law, and economics from the German; most notably Roscher’s Principles of Political Economy <\/i> and Ihering’s The Struggle for Law.
    • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

    .
  • No matter how worthy the cause, it is robbery, theft, and injustice to confiscate the property of one person and give it to another to whom it does not belong.^ If all economists were laid end to end they would not reach a conclusion.
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ If all the economists were laid end to end they would be an orgy, of mathematics.  .
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

    ^ If all the economists were laid end to end a) it would be a good thing b) they would be more comfortable c) they would never reach conclusion d) all of the above e) none of the above f) they would point in different directions  .
    • Economist Jokes 27 January 2010 23:48 UTC netec.wustl.edu [Source type: Original source]

See also

Wikipedia
Wikipedia has an article about:

Study guide

Up to date as of January 14, 2010
(Redirected to School:Economics article)

From Wikiversity

Welcome to the Wikiversity School of Economics
.Economics is a social science that deals with the production and distribution of goods and services based on scarce resources and commodities.^ Economics is the social science that studies the production , distribution , and consumption of goods and services .
  • Top20Economics.com - Online Directory for Economics Education. 27 January 2010 23:48 UTC top20economics.com [Source type: Academic]

^ They look at a society's financial, industrial, and labor organizations; its distribution of income and ownership rights; its governmental activities; and its political and economic philosophies, and analyze how these and other factors influence the goods an economy produces, the resources it uses in production, and the distribution of its output.
  • Economics - School of Economic, Political and Policy Sciences - 2009 UT Dallas Undergraduate Catalog Supplement 27 January 2010 23:48 UTC www.utdallas.edu [Source type: Academic]

^ The fundamental aim of that movement is to assume social command over both the production and distribution of surpluses.
  • Grasping Reality with Opposable Thumbs: Economics 27 January 2010 23:48 UTC delong.typepad.com [Source type: FILTERED WITH BAYES]

.The Wikiversity School of Economics is currently seeking both motivated students as well as economists and instructors to contribute to the school's development and to define its major areas of research and study.^ Economics faculty present current research.
  • Economics 27 January 2010 23:48 UTC www.csun.edu [Source type: Academic]

^ ANU’s new Research School of Economics .
  • Core Economics 27 January 2010 23:48 UTC economics.com.au [Source type: FILTERED WITH BAYES]

^ Bachelor of Arts in Economics Bachelor of Science in Economics Bachelor of Science in Economics: Minor Business Course Descriptions The primary objective of the Department of Economics is to provide all students and faculty with the opportunity and the supportive environment for excellence in study, learning, teaching, research, and service.
  • Catalog - Florida Agricultural and Mechanical University 2010 27 January 2010 23:48 UTC www.famu.edu [Source type: Academic]

.All contributions are lasting so that all may access them, and also quite appreciated!^ For all his contributions, Walker’s popularity may also have been one of the main sources of the promulgatation of many current misunderstandings.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

The objectives of this department are multiple:
  1. Gather economists together who are interested in collaborating on or contributing to the development of top-notch economics textbooks for Wikibooks or who are also interested in creating and hosting classes or other learning resources.
  2. Guide students of all backgrounds and levels of economic comprehension to a greater understanding of Economics.

Divisions and departments

Division of Economic History and Economic Thought

Division of Microeconomics

Division of Macroeconomics

Division of Mathematical Economics

Division of Behavioral Economics

Courses

Core Courses:
Introductory Level:
Intermediate Level:

Specialized and Advanced Courses:

Basic readings

Active collaborators

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  • Smaldj
  • Roadrunner
  • EmanueleCanegrati
  • znth
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  • PhD²
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External links

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Wikibooks

Up to date as of January 23, 2010
(Redirected to Subject:Economics article)

From Wikibooks, the open-content textbooks collection

.Books in this subject area deal with economics, the study of the production, distribution, and consumption of goods and services.^ See the books published by Liberty Fund in this subject area ( Economics ).
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

^ And this suggests something that you would expect a Professor of Economics to know- the consumption pattern looks suspiciously like that of Giffen goods .
  • Sepia Mutiny: Economics Archives 27 January 2010 23:48 UTC www.sepiamutiny.com [Source type: General]

^ He also wrote on production and distribution, capital, money, and the history of economics.
  • Online Library of Liberty - Economics 27 January 2010 23:48 UTC oll.libertyfund.org [Source type: Academic]

Economics Books Related Subjects
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Simple English

File:Ballard Farmers' Market -
Economists study how people make decisions, such as those that occur in a traditional marketplace.

Economics is the study of how people make choices to get what they want, when they cannot get everything they want. The word comes from Ancient Greek, and relates to οἶκος oíkos "house" and νόμος nomos "custom" or "law".[1] The models used in economics today, were mostly started in the 19th century. People took ideas from the field of political economy, because they wanted to use an empirical approach similar to the one used in the natural sciences.[2]

Contents

= Three ideas

= There are three main ideas that are useful for understanding economics.

Economics looks at how people try to make use of limited resources to get what they want. Resources include money, time, and things (like shoes, clothes, toys, etc.). People want different resources than the ones they have, so they will trade resources for other resources. Most resources are limited. This is called scarcity. Because things are scarce, people have to make choices about how to spend their resources on the different resources they want. The study of this behavior can quickly become very complicated because there are many people, and each person's choices affect the choices that other people make.

The subjects and objects in economics

The subjects in economic study are households, business companies, the government (the state), and foreign countries. Households offer their "factors of production" to companies. This includes work, land, capital (machines, buildings) and information. They get income which they use to buy or 'consume' goods. Business companies produce and sell goods and buy factors of production from households and from other companies. The state includes institutions and organisations. The state takes some of the earnings from the business companies and households, and uses it to pay for "public goods" like streets or university education, to be available for everyone. The last subject is foreign countries this includes all households, business companies and state institutions, which are not based in one's own country. They demand and supply goods from abroad.

The objects in economic study are consumer goods, capital goods, and factors of production. Consumer goods are classified as "usage goods" (for example, toilet paper), as "purpose goods" (for example, a car), and as "services" (for example, the work of a cleaning lady). Capital goods are goods which are necessary for producing other goods. Examples of these are buildings, equipment, and machines. Factors of production are work, ground, capital, information, and environment.

General economic rules

  • All people have to decide between their options.
  • The cost of a good is what a person gives up for the good.
  • When a person gives up something (like money) to get a good, he also gives up other things that he could have gotten instead. The true cost of something is what you give up to get it. This includes not only the money spent in buying or doing something, but also the economic benefits (utility) that you did without because you bought or did that thing and can no longer buy or do something else. This is called opportunity costs.
  • People react to incentives. Making an option more attractive will make more people choose it.
  • Markets are usually good for the organisation of economic life. In the free market, goods will be shared by people and companies making small decisions. The “invisible hand” of the market (Adam Smith) states that if everyone tries to get what they want, everyone will be as well-off as they could possibly be. This is called Pareto efficiency: when one person cannot become better off without making another person worse off.
  • Sometimes prices do not fully show the cost or benefit to society. For example, air pollution is bad for society, and education is good for society. The government can put a tax (or do something to reduce sales) on items that are bad for society. It can also support (like giving money for) items that are good for society.
  • The living standard of a country depends on the skills to produce services and goods. Productivity is the amount of the produced goods divided by total working hours.
  • When there is an increase in the total money supply, or when the cost to produce things rises, prices go up. This is called inflation.

History

Economists are strongly influenced by the times they live in. For example, Karl Marx lived in a time where workers' conditions were very poor, and John Maynard Keynes lived through the Great Depression of the 1930s. Today's economists can look back and understand why they made their judgements, and try to make better ones.

Branches of economics

The two main branches of economics are microeconomics and macroeconomics.

Macroeconomics is about the economy in general. For example, if a country's wealth goes up or if millions of people become unemployed, those are things that macroeconomists study. Microeconomics is about smaller and more specific things such as how families and households spend their money.

There are a number of other branches of economics:

  • behavioral economics
  • Constitutional economics
  • development economics
  • ecological economics
  • economic geography
  • environmental economics
  • energy economics
  • financial economics
  • information economics
  • international economics
  • labor economics
  • managerial economics
  • resource economics
  • urban economics

Famous economists

Famous economists in history include:

Famous economists in our current society include N. Gregory Mankiw and Paul Krugman.

References

  1. Harper, Douglas (November 2001). "Online Etymology Dictionary — Economy". http://www.etymonline.com/index.php?term=economy. Retrieved October 27, 2007. 
  2. Clark, B. (1998). Political-economy: A comparative approach. Westport, CT: Preager.

Other pages

Other websites

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frr:Eekonomiirue:Економіка


Citable sentences

Up to date as of December 29, 2010

Here are sentences from other pages on Economy, which are similar to those in the above article.








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