This week the Congressional Budget Office released The Budget and Economic Outlook: 2014-2024. From the press coverage, one would have guessed the report was either entitled Obamacare: the Job Killer that is Almost as Bad as Benghazi or Obamacare: Ending the “Job Lock” and Opening the Door to Leisure. In reality, the impact of the … Continue reading Once Again, We Chase the Shiny Objects
There seems to be very little disagreement among market-oriented economists that the optimal number of people on the planet is much larger than the number of people currently alive (see here, here, and here for examples). Here are some reasons for skepticism about that claim. The main advantage of more people is a deepening of … Continue reading Against Natalism
I have just posted a couple of my working papers to SSRN for those who are interested. They are as follows: "Public Policy and Quality of Life: An Empirical Analysis of Interstate Migration, 2000-2012" Abstract: Individuals and households choose their political jurisdiction of residence on the basis of expected income differentials and jurisdiction-specific characteristics covered … Continue reading Working Papers on Federalism & Public Policy
Whatever merits the regime uncertainty thesis has in explaining the length of the Great Depression (and they may be significant), it cannot explain the stagnant recovery of 2009-2012.
In my last post on this topic, I described an ideal system of federalism and its advantages and disadvantages. One of the concerns that progressives often have about this kind of federalism, which I wish to take seriously, is that it will lead to a growing gap between the incomes of rich and poor regions … Continue reading Federalism & Inequality, Part Two
Constitutional debates swirling around the PPACA's individual mandate have much to do with federalism. The core issue the Supreme Court is addressing is whether the federal government has essentially unlimited authority in economic policy, or whether they are yet some areas of economic policy-making (such as whether to compel commerce) exclusive to the states. As … Continue reading Federalism & Inequality, Part One
Since the East Asian financial crisis of the late 1990s, a consensus among even free-market economists has been developing: financial liberalization for developing countries usually don't make sense. The financial crisis of 2008 and the ongoing Eurozone crisis have only fortified this consensus. The mainstream economic position seems to be that, at least for developing … Continue reading Financial Liberalization: Is It Really Risky for Developing Countries?
I want to piggy-back here on Mark's great post on urban planning and the poor. I've been playing around with some state-level data on local land-use regulations and cost of living. The last decade in the U.S. has been one of very slow productivity growth. As a result, fast-growing states tend to be those with … Continue reading Land-Use Regulation and Growth
Nobel Prize-winning economist Joseph Stiglitz argued recently that both the economic downturn of the last two years and the looming debt crisis are the fault of "a powerful ideology---the belief in free and unfettered markets," whose "30-year ascendance" has "brought the world to the brink of economic ruin." As an economist, I can't hold a … Continue reading Stiglitz on Deregulation and the Rich
Is liberty an "amenity" that people find attractive? We know that people do not necessarily tend to vote for liberty, in part because they are politically ignorant or even irrational, but when it comes to where they choose to live, people can be expected to pay close attention to how the laws in different places … Continue reading Liberty as Amenity: Freedom, Migration, and Growth
Interesting piece on Robert Barro in today’s Telegraph. Money quotes: On the stimulus package: Turning to the $600bn (£373bn) to $800bn US package, he added it was "mainly a waste of money". Stimulus programmes, he said, offer little more than "rearranging the timing" of economic growth. "Possibly you could make an argument that it's worth … Continue reading Rearranging the Timing of Economic Growth
While the U.S. economy has been officially out of recession for a while and growing at a decent clip (1.8% at a seasonally adjusted annual rate in the first quarter of this year, 3.1% in the last quarter of 2010 - see chart), unemployment remains very unusually high, 9.0% in April 2011 (seasonally adjusted), compared … Continue reading A Deficit-Neutral Plan to Slash Unemployment
I am currently blogging from Roatán, Honduras, where I am participating in the "Future of Free Cities" conference, sponsored by Universidad Francisco Marroquín. The conference is about the economic and political preconditions for the establishment of free-enterprise zones in developing countries, as well as the internal governance of these territories. In his opening talk last … Continue reading The Future of Free Cities, Part 1
The latest Economist has an interesting feature on inequalities among regions within countries. The article compares countries on their ranges in GDP per head (the ratio of richest region to poorest). Thus, we get charts like the following: But range is an extremely crude concept for measuring inequality. In the U.S., the District of Columbia … Continue reading Regional Inequality