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24 votes

Understanding the "But they will lose jobs!" argument

if they were to go out of business, there'd be more unemployment and people in economic troubles in total Not necessarily. Customers are paying money for the ill-gotten services of company X. This ...
Adam Bailey's user avatar
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22 votes
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Are democracies more economically productive than autocracies?

In economics, it is accepted that countries with good 'inclusive' institutions, such as strong property rights, are more productive and able to develop faster (or even develop at all) than countries ...
1muflon1's user avatar
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15 votes

Understanding the "But they will lose jobs!" argument

As stated, a pest control company that sends pests into people's homes to then offer to get rid of them, is essentially a rephrased version of the parable of the broken window: https://en.wikipedia....
Mash's user avatar
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8 votes
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Is climate change an economic question?

Climate change in itself, its measurement and the fact that it is happening, and modeling its speed or trying to discover its causes (e.g., carbon emissions, methane emissions and so on) is not an ...
1muflon1's user avatar
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8 votes

Why land supply is inelastic?

The claim is that this curve should be a vertical line because no more land can be produced. However, as far as I understand, the supply curve represents the quantity of a product that sellers are ...
1muflon1's user avatar
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8 votes
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What are the reasons for Russian Ruble to strengthen in the past few days?

It’s likely combination of several factors. Some of it it’s because Russia has instituted capital controls (see Reuters). That means that Russians are limited or in some cases even prevented from ...
1muflon1's user avatar
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8 votes

Understanding the "But they will lose jobs!" argument

You're correct that there is wastage in this setup. Let's consider the pest control company X. If the company generates revenue of $M from its services, that revenue is distributed among its workers ...
Amit's user avatar
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5 votes

Why is Mises "permitted" to define "Economics is an a priori science", if a priori is not trustworthy?

Although I disagree with von Mises, he was reacting to what he saw as a very real problem, which was the use of relatively primitive statistical methods to describe behavior. In fact, Leonard Jimmie ...
Dave Harris's user avatar
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5 votes
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Is utility in neoclassical economics a circular argument/concept?

Let's be clear--the concept of utility is both unfalsifiable (as a singular proposition) and useful. Joan Robinson is right, of course: Utility as a definition is circular. If you read a textbook ...
ZCB's user avatar
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5 votes

Understanding the "But they will lose jobs!" argument

I am arguing with another person about such a company X, and say that X is bad for the economy since it will deplete the money of average person simply. The person I am arguing with say that, if they ...
1muflon1's user avatar
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4 votes

Quantitative Marxian/Marxist micro and macro economic models?

There is a very interesting paper by John Roemer, published in Econometrica in 1980, that presents a mathematical general equilibrium Marxian model. I am not sure someone have ever estimated it though....
luchonacho's user avatar
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4 votes

Quantitative Marxian/Marxist micro and macro economic models?

One (perhaps flippant) answer is that Marxists have a lot of ideas about how prices "should" work or how the value of labor "should" be rewarded, that aren't in line with what we observe, because ...
Kitsune Cavalry's user avatar
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4 votes

What does liberal economic theory say about monopolies?

Monopoly and competition are one of the central topics in microeconomics, so there many theories on the source of monopoly, and they are not universally applicable. Government intervention is ...
arsmath's user avatar
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4 votes

What would happen if a country defaulted on its public debt?

A “full explanation” would be extremely long; depending on the situation, a great many things would happen. For developing countries, defaults are typically on debt in foreign currency, issued under ...
Brian Romanchuk's user avatar
4 votes
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Country specific economic recession/financial crisis data?

Several articles use data sets on this issue but I am not sure that all the data sets are freely available. Valencia & Laeven (2012) use the IMF country reports to create their data set. It ...
Grada Gukovic's user avatar
4 votes
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What does 'Health spending as a share of GDP' mean?

Healthcare spending as a percentage of GDP is the measure of spending relative to the value of entire nations output at market prices in a given year. I suppose you can call the total output the value ...
1muflon1's user avatar
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4 votes
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Is Keynesian economic theory still considered capitalism?

Capitalism is not well-defined in economics. In most economic textbooks the word capitalism is not even printed. However, according to dictionary (Merriam-Webster) definition: an economic system ...
1muflon1's user avatar
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4 votes
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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
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4 votes
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Why does Game Theory seem to ignore the impact that collectively altering a player's possible strategies can have on their utility?

A basic assumption of game theory is that strategy choices lead to outcomes and players have preferences over outcomes only. If players in a given strategic choice situation are known to also have ...
VARulle's user avatar
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4 votes

Understanding the "But they will lose jobs!" argument

This resembles Keynes' suggestion to use public funds to let people dig holes to counteract a depression if nothing better can be found. Of course it would be much preferred to let people do something ...
Peter - Reinstate Monica's user avatar
3 votes

How does one asses the impact of a proposed policy?

Being an economist, I'd say that carrying out a quantitative forecast ("the policy will create/cost x jobs") would require setting up a model, feeding appropriate data and applying appropriate ...
E. Sommer's user avatar
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3 votes
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How long into the past can we trace the effect of institutions?

Institutions are likely having a permanent effects as they create path dependency which implies that even temporary shocks would have permanent effect. At least that is what is argued by many ...
1muflon1's user avatar
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3 votes
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Will economic discrepancy between democratic and authoritarian states decrease over time?

As you point out, going by the typical doctrine of extractive institutions from Why Nations Fail (Acemoglu), we have this basic framework: Disenfranchisement of private sector leads to capital flight ...
Arash Howaida's user avatar
2 votes

Why politicians choose Mega Projects in developing countries?

You are looking for the political economy literature on government expenditures. That is a massive literature. A starting point may be given here. A summary of all possible reasons for so-called ...
HRSE's user avatar
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2 votes

Are state owned enterprises really inefficient?

In contract theory, economists such as Oliver Hart have argued that ownership of a firm would not matter if complete contracts could be written. For example, the incentives to reduce costs that the ...
mfr2011's user avatar
  • 21
2 votes

Formula for feasibility for production versus import

Really, when considering whether importing a good is beneficial to a country we need only look at comparative advantage. For this concept however, we need information on another good which could be ...
DornerA's user avatar
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2 votes
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In what way specifically are US CEO's able to engage in rent-seeking and exploit corporate governance to increase compensation?

Pre-Sarbanes-Oxley it was common for CEOs to nominate the members of the board of directors of their firms. A sub-committee of the board would determine the CEO's compensation, so a CEO could choose ...
BKay's user avatar
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2 votes
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Keynesian Ethics

If you enjoy ethical and philosophical aspects, you should look into international aid and intervention. Check out "Adaptive Preferences and Women's Empowerment" by Khader and work by Nussbaum in ...
Ian Brigmann's user avatar
2 votes
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Hayek influenced by?

Hayek's The Constitution of Liberty is in my opinion the place to start. It has a lot of references to John Stuart Mill (which whom he strongly disagrees, btw), and puts forward his argument on ...
luchonacho's user avatar
  • 8,591
2 votes

Best strategy to incentivise third party investment

There are several possible routes to get conservation investment into national reserves, i.e. geographic areas that are designated for special protection and environmental conservation. The ...
410 gone's user avatar
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