Category Archives: disaggregating the economy

Handle hypothesis watch

His hypothesis is that winner cities increasingly dominate. Marc Muro and Jacob Whitin write, growth across communities now tracks exactly with their size. The nation’s bigger communities — powered by well-educated millennial workers and the agglomeration trends brought by digital technology — are now … Continue reading

Posted in disaggregating the economy | 6 Comments

Sluggish economic adjustment

Timothy Taylor writes, In the decades after World War II and up into the 1980s, the US economy experienced regional convergence: that is, the economies and incomes in poorer regions (like the US South) tended to grow more quickly than … Continue reading

Posted in disaggregating the economy, Timothy Taylor is my Favorite Blogger, Tyler Cowen is my Favorite Blogger | 4 Comments

Disaggregating the economy: online prices

At the AEA session on measuring well-being, Austan Goolsbee and Pete Klenow write in an abstract, We use transactions-level data from Adobe Analytics to analyze inflation online vs. offline. Online inflation from 2014-2017 period averaged about 100 basis points lower … Continue reading

Posted in disaggregating the economy | 5 Comments

Consumers’ Surplus and well-being

Another paper from the AEA session on measuring well-being. The abstract of the paper by Erik Brynjolfsson, Felix Eggers, and Avinash Gannamaneni says, In principle, changes in consumer surplus (compensating expenditure) provide a superior measure of changes in consumer well-being … Continue reading

Posted in disaggregating the economy, Economic education and methods, Information Goods | 3 Comments

A Social Progress Index

At this year’s AEA meetings, there apparently was an interesting session on measuring well-being. One paper, by Daniel Fehder, Scott Stern, and Michael E. Porter, says we describe the construction of a synthetic measure of non-economic performance, the Social Progress … Continue reading

Posted in disaggregating the economy, Economic education and methods, links to my essays | 2 Comments

The clustering of the world

Razib Khan writes, Serbia has a much stronger affinity with Russia, Croatia is in Catholic Europe, while Slovenia seems more like Northern European nations than Croatia. You have to go read the whole thing. He discusses a cultural map of … Continue reading

Posted in culture, disaggregating the economy | 2 Comments

Are locational wage differentials also productivity differentials?

I think that an argument about this arose in the comments on this post. Let me provide a framework for discussion. Suppose that we observe that zip code X has higher average wages for waiters than zip code Y. Can … Continue reading

Posted in books and book reviews, disaggregating the economy, Economic education and methods, labor market | 22 Comments

Disaggregating the economy: California

Carson Bruno wrote, between 2009 and 2014, the Silicon Valley metro areas – a region that accounts for just 1/5th of the state’s population – accounted for 50% of California’s private industry real GDP growth. Steve Baldwin adds, a far … Continue reading

Posted in disaggregating the economy, PSST and Macro | 27 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