Category Archives: PSST and Macro

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: product scanner data

David Argente, Munseob Lee, and Sara Moreira write, In this paper, we exploit detailed product- and firm-level data to study the sources of innovation and the patterns of productivity growth in the consumer goods sector over the period 2006Q3–2014Q2. Using … Continue reading

Posted in disaggregating the economy, PSST and Macro | 7 Comments

Economic segmentation

Jerry W. Thomas wrote, What is market segmentation? At its most basic level, the term “market segmentation” refers to subdividing a market along some commonality, similarity, or kinship. That is, the members of a market segment share something in common. … Continue reading

Posted in PSST and Macro | 4 Comments

The Servant Aggregators

Several years ago, I asked, In an economy where some folks are very rich and many folks are unemployed, why are there not more personal servants? Recently, someone pointed me to Umair Haque’s column from two years ago. I’m going … Continue reading

Posted in business economics, Growth Causes and Consequences, PSST and Macro | 12 Comments

The Elastic Economy and the Great Moderation

Alex Tabarrok writes, Since the great recession ended, growth in real GDP has been much less volatile than in the 1950s to 1980s. Indeed, volatility has been lower even taking into account the great recession. He goes on to point … Continue reading

Posted in Economic History, PSST and Macro | 6 Comments

Corporate tax cuts, math, and intellectual swindles

John Cochrane writes, Each dollar (per worker) of static tax losses raises wages by [more than one dollar] It’s always greater than one… A number greater than one does not mean you’re a moron, incapable of addition, a stooge of … Continue reading

Posted in Economic education and methods, Mark Thoma is Indispensable, PSST and Macro | Tagged | 8 Comments

Macroeconomics as narrative

Challenging the narrative that the Fed’s quantitative easing was a success, Brian S. Wesbury and Robert Stein write, The Fed boosted bank reserves, but the banks never lent out and multiplied it like they had in previous decades. In fact, … Continue reading

Posted in Monetary Economics, PSST and Macro | 5 Comments

Renewable != Sustainable

Benjamin Zycher writes, there is nothing “clean” about renewables. There is the heavy-metal pollution created by the production process for wind turbines, along with their noise and flicker effects. There is the large problem of solar panel waste. There is … Continue reading

Posted in energy and the environment, Specialization and Trade Economics Intro | 16 Comments

Is the economy illegible?

In the model of the economy as a GDP factory, the most fundamental equation is the production function, Y = f(K,L). This says that total output (Y) is determined by the total amount of capital (K) and the total amount … Continue reading

Posted in Economic education and methods, PSST and Macro | 10 Comments

Money, interest, and the economy

John Cochrane writes, Investment responds to the stock market, and the stock market moves because risk premiums move, not because interest rates move. He goes on to suggest that if monetary policy can effect the economy, it must work through … Continue reading

Posted in Monetary Economics, PSST and Macro | 8 Comments