Author Archives: Arnold Kling

On the state of economics

I have a long essay on the scientific status of economics in National Affairs. A few excerpts from the conclusion: In the end, can we really have effective theory in economics? If by effective theory we mean theory that is … Continue reading

Posted in Economic education and methods, links to my essays | 5 Comments

Education Realist on Hansonian education reform

He or she comments, Harmful interventions: Ending tracking De-emphasizing demonstrated test scores on difficult tests in favor of grades. Increased legal protections for discipline disasters. …Costly interventions: Special education now gives additional money to 1 out of 8 kids and … Continue reading

Posted in Economics of Education | 22 Comments

What to Study?

Scott H. Young writes, Assuming you were to fulfill that high-minded goal of education, how would you do it? I find it doubtful that the traditional university curriculum would be the best way to do that. Probably the best way … Continue reading

Posted in Economics of Education, Tyler Cowen is my Favorite Blogger | 26 Comments

Housing Finance Today

Ike Brannon writes, The private market for mortgage-backed securities all but dried up in the aftermath of the Great Recession, so Fannie and Freddie are the only games in town. If they won’t buy a mortgage–or if there is any … Continue reading

Posted in Housing and housing finance | 8 Comments

How to Handle the payments system

The commenter suggests, simply nationalize the “deposits taking and transaction processing” function of the banking industry? Everyone gets a zero-service-fee fully electronic (no paper checks) account at the Federal Reserve Picture this as a retail version of the Fed Funds … Continue reading

Posted in financial markets, Monetary Economics | 23 Comments

The null hypothesis: do I really believe it?

A commenter writes, surely students who took statistics with you know statistics better than students who didn’t take statistics at all, right? The null hypothesis taken to the extreme would suggest that having taken your- or any- statistics course, should … Continue reading

Posted in Economics of Education | 37 Comments

Hansonian Schooling?

A commenter writes, The most difficult part of this worldview for me to reconcile has been to convince myself that the subset of negative-impact health interventions can have a large enough magnitude of an effect to counteract the health interventions … Continue reading

Posted in Economics of Education, Economics of Health Care | 14 Comments

Facts, Feelings, and Filters

A commenter writes, Arnold’s argument that economics is about using particular frameworks as lenses for interpretation is also quite postmodern. Well, sort of. Consider three statements. a) Amazon announced its intention to purchase Whole Foods. b) Amazon should not be … Continue reading

Posted in Economic education and methods, Three-Axes Model, Washington Post bias | 15 Comments

The Grumpy Bank Holding Company Proposal

John Cochrane writes, For $100 of assets, and $100 of bank equity, let, say, $10 of that equity be traded — enough to establish a liquid market. Then, let $90 of that equity is held by a downstream entity or … Continue reading

Posted in financial markets | 7 Comments

Charter Schools and the Null Hypothesis

Neerav Kingsland writes, Overall, CMOs are delivering +.03 SD effects over three years in both reading and math. These gains are driven by the fact that students benefit from CMOs the longer they stay in them In this context, CMOs … Continue reading

Posted in Economics of Education, Tyler Cowen is my Favorite Blogger | 13 Comments