Author Archives: Arnold Kling

City income differentials widen

Thomas B. Edsall writes, According to Romem, between 2005 and 2016, those moving into the San Francisco area had median household incomes averaging $12,639 a year more than the households of the families moving out, $70,015 to $57,376. Conversely, in … Continue reading

Posted in disaggregating the economy, Four Forces Watch, Housing and housing finance, Politics, Tyler Cowen is my Favorite Blogger | 12 Comments

Jason Collins on self-discipline

He writes, My iPhone is used for four main purposes: as a phone; as a train timetable; as a listening device (podcasts, audiobooks and music); and for my meditation apps (more on meditation below). It also has a few utilities … Continue reading

Posted in Jason Collins is Indispensable | 1 Comment

Estimating consumers’ surplus from information goods

Erik Brynjolfsson, Avi Gannamaneni, and Felix Eggers have a paper on the topic. From the abstract: We explore the potential of massive online choice experiments to measure consumers’ willingness to accept compensation for losing access to various digital goods and … Continue reading

Posted in business economics, Information Goods, statistical methods, Tyler Cowen is my Favorite Blogger | 9 Comments

Give up privacy, get free content: grand bargain?

James Pethokoukis writes, Overall, there still seems to be great satisfaction with “the internet’s grand bargain: the exchange of free or subsidized content for personalized advertising,” as Larry Downes, project director at the Georgetown Center for Business and Public Policy, … Continue reading

Posted in business economics | 6 Comments

Responses to some comments

Some people insist that there is still a working class. For example, Capitalists are those who obtain a majority of their incomes from capital (interest, dividends, capital gains, profits). Workers are those who can reasonably expect to get a majority … Continue reading

Posted in Uncategorized | 14 Comments

The Internet is not what it was

My latest essay is on the decline of the Internet. In 1993, I did not picture people having their online experience being “fed” to them by large corporations using mysterious algorithms. Instead, I envisioned individuals in control, creating and exploring … Continue reading

Posted in Internet governance and political theory, technology and the future | 13 Comments

Metrics meet the Null Hypothesis

From a podcast with Russ Roberts and Jerry Muller: what’s so striking when you read through a lot of this literature on pay-for-performance and standardized measurement combined with pay-for-performance is: How often the scholarly literature shows, in a variety of … Continue reading

Posted in Economics of Education | 12 Comments

Demonizing those who disagree

C Thi Nguyen writes, An ‘echo chamber’ is a social structure from which other relevant voices have been actively discredited. Where an epistemic bubble merely omits contrary views, an echo chamber brings its members to actively distrust outsiders. In their … Continue reading

Posted in Three-Axes Model | 17 Comments

Were mortgage securities badly mis-rated?

Juan Ospina and Harald Uhlig write, AAA securities did ok: on average, their total cumulated losses up to 2013 are 2.3 percent. . .Losses for other rating segments were substantially higher, e.g. reaching above 50 percent for non-investment grade bonds. … Continue reading

Posted in Financial Crisis of 2008, financial markets, Housing and housing finance | 20 Comments

The solar exponential

In his regular email, Peter Diamandis writes, Currently, the amount of solar installed each year increases by 35 to 40 percent. …One megawatt of solar power is estimated to require 8 acres of land. U.S. solar capacity is on the … Continue reading

Posted in energy and the environment | 16 Comments