Category Archives: Introductory Economics

Household Production, Continued

The insightful Handle writes, free YouTube videos combined with cheap and quick home delivery of tools and parts have made my own home, computer, and auto repairs much more worth my time than trying to arrange for an experienced professional. … Continue reading

Posted in Growth Causes and Consequences, Introductory Economics | Tagged | 18 Comments

Household Services: I have a different take

Timothy Taylor reports, The value of household services was equal to about 37% of GDP in 1965, but is currently equal to about 23% of GDP. Tyler Cowen implies that this is a bad thing. I think of it this … Continue reading

Posted in Introductory Economics, Timothy Taylor is my Favorite Blogger, Tyler Cowen is my Favorite Blogger | 22 Comments

The Economics of a Border-Adjustment Tax

Timothy Taylor writes, Most countries around the world and all high-income countries other than the United States have “border adjustments” in their tax code, but a key point to recognize is that border adjustments are typically part of a value-added … Continue reading

Posted in Introductory Economics, public choice, Timothy Taylor is my Favorite Blogger, Tyler Cowen is my Favorite Blogger | 6 Comments

Where are the Servants?

I asked this question five years ago. Recently, on Facebook, Nathan Smith wrote, Consider the following hypothesis. Once upon a time, there was a notion of “respectability.” Society, represented chiefly by the gossip of housewives, imposed honesty, chastity, and maybe … Continue reading

Posted in Introductory Economics, labor market | 13 Comments

Robert Murphy on Mises and Economic Calculation

Murphy writes, If a particular operation is unprofitable, that means that it absorbs resources that have a higher monetary value than the outputs it produces. In other words, everyone else in society outside of that operation thinks that its input … Continue reading

Posted in Introductory Economics | 13 Comments

Not So Renewable?

Timothy Taylor writes, annual global production of lithium has more than doubled from from about 16,000 metric tons in 2004 to over 36,000 metric tons by 2014. Even with this rise in quantity produced, the price of a metric ton … Continue reading

Posted in energy and the environment, Introductory Economics, Timothy Taylor is my Favorite Blogger | 12 Comments

A Comic for the Book of Arnold

It illustrates at least two important themes of the book. 1. Specialized economies differ from hunter-gatherer life. 2. Money is socially constructed.

Posted in Introductory Economics, Specialization and Trade Economics Intro | 2 Comments

Hunter-Gatherer Economics and Sustainability

To many environmentalists, sustainability means leaving the world the way you found it. I think that this may reflect the instincts of a hunter-gatherer. If you are a hunter-gatherer, how much you can eat is limited by the natural rate … Continue reading

Posted in energy and the environment, Introductory Economics | 6 Comments

Tariffs vs. Quotas

Greg Mankiw writes, rationing under price controls is never perfect. Under rent control, for example, apartments do not automatically go to those who value the apartments the most. The misallocation due to imperfect rationing makes the actual welfare cost of … Continue reading

Posted in Introductory Economics, regulation | 1 Comment

Concern with the term “public goods”

Frances Woolley writes, in the US, as elsewhere, most public expenditure goes towards redistributive transfers, health and education. Table 2 shows total government expenditures for 18 OECD countries. Most government expenditures go towards health (7 to 19 percent of government … Continue reading

Posted in Introductory Economics, public choice | 5 Comments