Posts tagged ‘economics’

October 26, 2012

Debunking Debunking Economics

A short article I wrote in 2002 regarding the novel arguments in Steve Keen’s Debunking Economics has been hard to track down for a while, so I’m making it available here.

Click here to download a copy (debunk.pdf).

Unfortunately, the link to Keen’s paper on the first page is broken. I attempted to get the paper from Keen’s site, but it’s now behind a paywall! I think the paper was called “A 75th Anniversary Gift for Sraffa,” but I failed to locate a copy.

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November 29, 2011

Dairy supply management: Orphans versus yuppies

Yesterday Federal Agricultural Minister Gerry Ritz uttered insane lies about dairy supply management:

I would make the argument that I don’t see those inflated prices, certainly, depending on where you buy,” Ritz told a joint news conference with Alberta Agriculture Minister Evan Berger and Saskatchewan Agriculture Minister Bob Bjornerud.

I received a flyer in my mailbox last night when I got back to my apartment and I opened it up and it’s from Canadian Tire. They’ve got four litres of milk for $4.19. That’s completely comparable to the American price that we’re always being beat up over.

Canadian Tire Econometrics aside, consumers are of course harmed by high prices driven by quantity restrictions. Click here to see a graph showing how much higher our prices are than the EU, US, or New Zealand (all of which all of which except New Zealand [*] also have some sort of supply management, Canada’s is just more severe).

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November 15, 2011

The optimal regulation of vibrators

In Alabama it is illegal to sell “any device designed or marketed as useful primarily for the stimulation of human genital organs for anything of pecuniary value.” You can’t legally sell a vibrator. This is an extreme example of morality legislation, laws against activities some people consider immoral merely because some people consider them immoral. Why are such laws on the books and how can we get rid of them?

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October 27, 2011

Smoking, health care costs, and imprisoning drug users because they cost us money to imprison

Earlier this week I posted an article on the Globe’s Economy Lab blog on lifestyle and health care costs. Here’s a little more exposition on a couple of key points, phrased a little more formally.

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September 29, 2011

A review of Economyths: Ten Ways Economics Gets it Wrong, by David Orrell

David Orrell, a mathematician who works on biological problems, recently published a book called Economyths: Ten Ways Economics Gets It Wrong. Economyths is a terrible, willfully ignorant, deeply anti-intellectual book. The characterization of economic thought presented is ridiculous. The level of scholarship is abysmal.

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September 26, 2011

Anti-economist watch: David Sloan Wilson edition

It is often, correctly I think, noted that economists are relatively bad at communicating results from economic research to the general public. A related failure is economists tend to be relatively bad at squashing ridiculous criticism of economics. Economics, biology, and climatology are all disciplines which tend to attract lots of craptastic criticism, and for similar reasons. One might think that biologists in particular might tread carefully when attacking other disciplines, given how much nonsense is written by creationists and their fellow travellers. Alas, some of the most egregiously poorly-aimed attacks on economics come from biologists, and not just David Suzuki.

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August 24, 2011

I'm not drinking any gosh darned merlot!

The movie Sideways impugned merlot and heaped praise on pinot noir. Did Sideways cause changes in market outcomes for these varietals?

In The Sideways Effect: A test of changes in demand for merlot and pinot noir wines Cuellar et al provide some econometric evidence. They look for post-Sideways price and quantity changes in merlot and pinot noir relative to the “control” varietal cabernet sauvignon using scan data from the U.S.

First consider quantities:

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August 23, 2011

The rise of econometrics ?

Bryan Caplan speculates on reasons for the decline of economic theory, an apparent reduction over the last two decades in the status of theory in economics. He wonders how to measure changes in the status of theory and, assuming theory has declined, why?

My casual empiricism agrees with Bryan’s. What does actual empiricism┬ásay? As a crude first pass, I counted the number of articles in Jstor economics journals that contain the word “regression.” Of course not all articles that contain that word are empirical, nor do all empirical papers contain that word, but it seems a reasonable signal of empirical content. The proportion over time (one observation per decade) looks like
which shows that in the sample of journals tracked by jstor (which changes over time, muddying interpretation) the proportion of empirical papers, or at least papers which for some reason mention regressions, has been steadily increasing, although the rate of increase seems to have been lower 1970-2000 than prior to 1970 or after 2000.

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August 22, 2011

Regarding David Suzuki’s inability to understand “externality”

How can it be that David Suzuki can so consistently and for so long get this straightforward concept so spectacularly wrong?

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