Monthly Archives: November 2017

Public schools, private goods

Salim Furth writes, we do not, in the suburbs, have a system of public schools. We have private, government-run schools. A public good is something available to all—non-excludable and non-rival in consumption, like clean air or a radio broadcast. But … Continue reading

Posted in Economics of Education | 9 Comments

Health spending negatively correlated with health outcomes

Tomoaki Katera writes, life expectancy at age 40 for males in the 90th income percentile is 45.3 years whereas the corresponding indicator in the 10th income percentile is only 35.8. For comparison, according to the report from National Center for … Continue reading

Posted in Economic education and methods, Economics of Health Care | 8 Comments

Cantercap Charlie on finance and the 2008 crisis

He wrote, if banks are doing their job, the banking system is illiquid, and the rest of the economy —us— have lots of cash. In Econ 101 this is known as “maturity transformation.” Liquidity-wise, the banking system is simply the … Continue reading

Posted in Financial Crisis of 2008, financial markets | 8 Comments

Killer health care policy, thanks to David Cutler

Ankur Gupta and others write, These findings support the possibility that the Hospital Readmissions Reduction Program has had the unintended consequence of increased mortality in patients hospitalized with heart failure. I found the article after seeing a reference in a … Continue reading

Posted in Economics of Health Care | 5 Comments

The Paradox of Profits, parts 2 and 3

Part 2 talks about the necessity of the profit system. In a modern, large-scale economy, coordination takes place through a combination of bosses and profits. Bosses order people to undertake particular tasks. Profits and losses provide incentives to engage in … Continue reading

Posted in Libertarian Thought, links to my essays | 9 Comments

Handle’s theory of consolidation

Referring to Hayek’s claim that local knowledge favors decentralized decision processes, Handle comments, IT and increasingly capable and sophisticated management information systems, which themselves benefit from massive economies of scale, and the management techniques they enable, has invalidated this argument. … Continue reading

Posted in Growth Causes and Consequences | Tagged | 9 Comments

Disaggregating the economy: clusters ten years later

A dozen years after coming out with The Clustering of America, Michael Weiss published The Clustered World, in 2000. This incorporated census data from 1990, which moved the analysis 10 years forward, but still leaves it well out of date … Continue reading

Posted in books and book reviews, disaggregating the economy, Four Forces Watch | 10 Comments

Disaggregating the economy: levels of digital skills

Mark Muro writes, the wage premium for digital skills (highlighted above) has nearly doubled since 2002. That means that the mean pay of workers in higher-level digital occupations (about $73,000) now more than doubles the $30,000 wage of low-digital workers. … Continue reading

Posted in disaggregating the economy, labor market | 3 Comments

Revive this research

I just finished re-reading The Clustering of America, by Michael J. Weiss. It is a narrative description of forty different socioeconomic clusters, derived primarily from census data, mixed with some market information. It was published in 1988. 1. Somebody should … Continue reading

Posted in books and book reviews, disaggregating the economy | 2 Comments

Crowded and Unsanitary

Glenn Reynolds writes, It wasn’t until you crowded thousands, or tens of thousands of them, along with their animals, into small dense areas with poor sanitation that disease outbreaks took off. Instead of meeting dozens of new people per year, … Continue reading

Posted in culture | Tagged | 2 Comments