Skip to main content
17 votes

Why does the Solow Model matter for undergraduate students?

I disagree that: a) The core curriculum should not include things that are relevant only for those pursuing graduate school. b) A university degree should necessarily focus only on career outcomes ...
BB King's user avatar
  • 6,148
11 votes

Is money capital?

"...capitalists buy and sell money as though it were a productive economic good." No they don't. They buy and sell currency, because the price of currency fluctuates (due to imagination and/or ...
Alecos Papadopoulos's user avatar
10 votes

Why does the Solow Model matter for undergraduate students?

I second/third/whatever the objection to the "ideal careers" put forth here. Data Analyst - Most of these jobs will go to comp-sci graduates, especially as artificial intelligence and machine ...
heh's user avatar
  • 1,808
9 votes

Contest: earliest written instance of economic thought

Game Theory in the Talmud by Robert J. Aumann discusses a bankruptcy problem and a variety of fair division problems of a contested sum from the Talmud, a document written roughly between 200 and 500 ...
BKay's user avatar
  • 16.3k
8 votes

Why does the Solow Model matter for undergraduate students?

Adding to previous answers ... The basic Solow model is an example of a class of long-term macroeconomic models in which output is a function of inputs of two or more factor inputs and the ratios of ...
Adam Bailey's user avatar
  • 8,369
7 votes
Accepted

What did Adam Smith mean by "putting [the pins] into the paper"?

Alecos is correct that Smith is talking about packaging, but I don't believe that "paper" refers to a paper bag. Straight pins used to be sold on sheets of paper (usually as sets of a dozen), through ...
dismalscience's user avatar
7 votes

Why does the Solow Model matter for undergraduate students?

I think that the main reason why the Solow model is a must in every undergrad curriculum is the Solow residual. The fact that the bulk of the differences of per capita income between countries is not ...
Grada Gukovic's user avatar
7 votes

How does John Stuart Mill distinguish between "wealth" and "riches"?

I can only speculate on what Mill meant, but it seems to me that This is mostly a figure of speech. People sometimes say things like "I have no money, but I am wealthy in other ways", ...
Giskard's user avatar
  • 29.5k
6 votes

How was the year 1925 chosen as a dividing point in the history of economic thought?

tl;dr: It is most likely an arbitrary date because they had to set some year. In fact the year 1925 is not even a strict guideline but only loose criterion. As such the year was not set due to some ...
1muflon1's user avatar
  • 56.4k
6 votes

Most notable papers in Economics in 2021

This is an opinion question, but I'll give my opinion. In terms of methods, I like Arkhangelsky et al.'s synthetic diff-in-diff. In terms of applied economics, I liked Goncalves and Mello's study of ...
Michael Gmeiner's user avatar
6 votes

Most notable papers in Economics in 2021

I think the randomized trial of mask effectiveness is one of the most notable economic papers in 2021. This is not a pure economics paper and it is published in science that does not specialize in ...
WilliamT's user avatar
  • 1,833
6 votes

Most notable papers in Economics in 2021

Some papers that interested me this year (in game theory): Subgame-perfect equilibrium in games with almost perfect information: Dispensing with public randomization They show the seminal result of ...
Walrasian Auctioneer's user avatar
6 votes
Accepted

What are the primary differences between the Chicago and Austrian school of economics?

Before answering, I think it is worth while to slightly discuss what the schools of thought are and what they aren't. Schools of thought in economics refers to the methodological framework they prefer....
1muflon1's user avatar
  • 56.4k
5 votes
Accepted

Who said that growth would stop because of satiation?

In an essay entitled Economic Possibilities for Our Grandchildren, Keynes famously argued that people would one day only need to work 15 hours per week (see bottom of p 4). This was linked to an ...
Adam Bailey's user avatar
  • 8,369
5 votes

Contest: earliest written instance of economic thought

Fair division: from cake cutting to dispute resolution (Brams (1996)) claims that the following text from Hesiod’s Theogony (sometime in 750 and 650 BCE) is the earliest recorded example of an envy-...
BKay's user avatar
  • 16.3k
5 votes

What was Milton Friedman's opinion of Supply-side economics?

Friedman's involvement with the Reagan administration was only as an advisor, he was not part of the administration as a cabinet member or on the budget committee (roles he was offered), specifically ...
Bertrand Einstein IV's user avatar
5 votes
Accepted

What have been the main developments in macroeconomics and financial economics since the 2008 financial crisis?

Well, in macroeconomics, namely in DSGE modelling, VOXEU has recently published a report on its uses by Central Banks (CBs), and future lines of improvement, which academics have been tackling but ...
An old man in the sea.'s user avatar
5 votes
Accepted

Who is the first one to equate "rational" with "complete and transitive preference"?

As pointed in the comments this was done by Ragnar Frisch. At least Barten and Böhm. (1982) as well as Johansen (1969) attribute these axioms to one of these two publications: Frisch, Ragnar (...
1muflon1's user avatar
  • 56.4k
5 votes

Most notable papers in Economics in 2021

Despite the fact that I am tired of reading paper's on natural experiments, there is one contribution in this field that captured my attention. Not only the topic is fascinating (Switzerland offered ...
Bertrand's user avatar
  • 3,351
5 votes
Accepted

What was the paper that discussed the unit-root/spurious regression in economics before cointegration?

I was thinking of this one: Granger, Clive WJ, and Paul Newbold. "Spurious regressions in econometrics." Journal of econometrics 2.2 (1974): 111-120. Available here, http://www.climateaudit....
sera's user avatar
  • 86
4 votes
Accepted

Isoquant creator

A recently published (and perhaps the only one) paper on the matter is Lloyd, P. (2012). The Discovery of the Isoquant. History of Political Economy, 44(4), 643-661. From the Introduction : "The ...
Alecos Papadopoulos's user avatar
4 votes
Accepted

What is Islamic Banking?

Both another answer and the OP have linked to the wikipedia article on the matter. I think the following passage from the article sums adequately the situation (bold mine): "The term “Islamic ...
Alecos Papadopoulos's user avatar
4 votes
Accepted

Is Marx considered an important classical economist?

There is a major disciplinary specification problem here: “who is an economist?” At the time Marx was active as an author (including posthumously with Engels) the field of knowledge was known as “...
Samuel Russell's user avatar
4 votes

Whatever happened to Henry George's ideas?

If you're referring to a land-value tax, I'll just quote The Economist: Other economists like it too. Adam Smith said “nothing could be more reasonable”; Milton Friedman termed it “the least bad tax”....
dismalscience's user avatar
4 votes
Accepted

Walras's Law V.S Say's Law- Is there a difference?

The way you have defined excess demand, it is only consumer excess demand. But Walras's law holds in any private ownership economy at all prices (at which demand and supply are well defined). Walras's ...
Michael Greinecker's user avatar
4 votes
Accepted

(Why) was von Neumann not a fan of the Nash equillibrium concept?

Is there any more information about why von Neumann had this attitude? There must be, but I have never seen it. Or can we infer a reasonable answer? Here is one possibility based on hearsay ...
brunosalcedo's user avatar
4 votes

Best history of macro book?

Beyond Michel De Vroey's book, I know of no other book on the history of macroeconomics, as it is praised by macroeconomists. See for example this review. De Vroey has a true vision of macroeconomics,...
emeryville's user avatar
  • 6,935
4 votes

Were there any contemporary economists (or other observers) who considered the 1920s a "New Era" of greater growth and stability?

There are several other economists/observers that share view that this was time of growth and relative stability. For example, according to Smiley writing for the Economic History Association 1920s ...
1muflon1's user avatar
  • 56.4k
4 votes
Accepted

How did Pareto came up with Pareto Distribution of wealth law?

The Pareto distribution was derived based on the observation of Vilfredo Pareto that in Italy $80\%$ share of land belonged to $20\%$ of the country’s population, and he showed this held for many ...
1muflon1's user avatar
  • 56.4k
4 votes
Accepted

What Was the Accuracy of Macro Model in the Phillips' Machine (MONIAC)?

Phillips himself claims writing about Moniac like machines in 1950: "The accuracy obtained depends on the precision with which the machines are constructed, but there is no difficulty keeping it ...
Maarten Punt's user avatar
  • 2,375

Only top scored, non community-wiki answers of a minimum length are eligible