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Markets
« Previous EntriesSunk Costs: Literally
Thursday, November 13th, 2008When the cost of maintaining a boat exceeds it’s value, owners abandon them. From MSNBC.com:
Unlike cars, wooden and fiberglass boats have virtually no scrap value. So rather than pay the high cost of hauling their boats to the dump, people ditch them or sell them for as little as $1 to anyone […]
My Visa Credit Line Just Increased
Sunday, October 12th, 2008By 25%. I wouldn’t know we were in a “credit crunch” if I wasn’t reading the news. About 3 weeks ago Alex Tabarrok wrote a post pointing to evidence that consumer, industrial, and real estate loans are at all time highs. While these numbers don’t include the latest data, housing prices have […]
Nigerian Bailout Satire
Saturday, September 27th, 2008The following letter has been floating around the web. If you have ever received an email from a Nigerian scammer (i.e. if you’ve had email for more than a month) it’s quite funny.
Dear American:
I need to ask you to support an urgent secret business relationship with a transfer of funds of great […]
Assorted Bailout Thoughts
Friday, September 26th, 2008I’m not a Macroeconomist. And, I’m conflicted about the Paulson plan. But, given the recent unprecedented events, I figure I should chime in. A few thoughts:
I had a Macroeconomics test today. In our models we assume No Ponzi Schemes. Representative agents aren’t allowed to pay off their debts by borrowing […]
A New Take on Bottled Water
Friday, September 19th, 2008Bottled water is immensely popular in the United States. And, while bottle labels display gurgling springs and mountain glaciers, most bottle water comes straight from municipal water sources. The two most popular brands of bottled water, Dasani and Aquafina, (owned by Coke and Pepsi respectively) both get their water right from the tap. […]
A Terrible Idea
Friday, September 19th, 2008The SEC bans the short-selling of financial stocks. This is a sad day. Fear and politics triumph over individual freedom and sound policy.
Arnold Kling offers a primer on short-selling and why stock prices can fall even if no one is “shorting.”
Tyler Cowen notes that investors are still able to short the exchange […]
Agricultural Inconsistencies: Senegal
Saturday, May 24th, 2008It seems like just the other day that Bono was vilifying developed countries for flooding the world markets with cheap food. Consider this excerpt from a news article leading up to the 2006 G8 summit:
In Senegal, a resilient showcase of democracy in a continent otherwise pervaded by corrupt dictatorships and brutal wars, producers of tomatoes […]
Rational Gus Guzzling
Saturday, April 26th, 2008It infuriates me when Congress calls on the CEO’s of oil companies to justify their profits. Economists routinely study gasoline prices and find no evidence of price manipulation. Washington State recently commissioned a report on gas prices (HT Knowledge Problem:
The report, written by University of Washington economist and petroleum expert Keith Leffler, didn’t […]
Markets in Everything: Substitute Grandchildren
Sunday, April 6th, 2008A Japanese toymaker designed dolls for the elderly:
As Japan produces fewer children and more retirees, toymakers are designing new dolls designed not for the young but for the lonely elderly - companions which can sleep next to them and offer caring words they may never hear otherwise.
Talking toys have become such a hit that some […]
Social Capital, Entrepreneurship and CB Radios?
Sunday, March 9th, 2008I’m in a group in my economics department that discusses microeconomics literature and research ideas. During our last meeting we discussed “Does Social Capital Promote Industrialization? Evidence From a Rapid Industrialization” by Edward Miguel, Paul Gertler and David Levine. This 2005 paper used evidence from Indonesia to dispute an earlier conclusion by Putnam […]
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