Real-World Economics Review

Technical addendum: ‘Individual consumption expenditure of general government’ equals spending on health care and education and the like. Collective expenditure equals the proverbial streetlamps. NPISH stands for Non Profit Institutions Serving Households like churches, unions and soccer clubs. At this moment there is quite some talk about the specter of inflation. And indeed: some prices are increasing. Houses! The runaway increase of house prices sure is a specter to be bothered...

from Lars Syll Uber has conducted a study of internal pay differentials between men and women, which they describe as “gender blind” … The study found a 7% pay gap in favor of men. They present their findings as proof that there are issues unrelated to gender that impact driver pay. They quantify the reasons for the gap as follows: Where: 20% is due to where people choose to drive (routes/neighborhoods). Experience: 30% is due to experience … Speed: 50% was due to speed, they claim that...

After a ride, took some footage of the new 2021 colour called Black Jack Metallic which was sparkling in the sun. I did not want vivid black and I find this paint is very subtle and has a little sparkle

from Asad Zaman Brief History of Econometrics: Launched in early 20th Century by Ragnar Frisch, econometric methodology was strongly shaped by the Cowles Commission (CC) in the 1960’s. The CC approach relied on structural equations, which embodied causal information known in advanced to the researcher. The goal was estimation of causal effects, and not discovery or assessment of the hypothesized causal structures. The oil shock of the 1970’s led to dramatic failures of macroeconomic...

Source: International Monetary Fund. “As the chart shows, China’s economy first passed the U.S. in 2017. It is projected to be more than 16 percent larger this year, and by 2025 is projected to be almost 40 percent larger by 2025.” Dean Baker

from Lars Syll There are three fundamental differences between statistical and causal assumptions. First, statistical assumptions, even untested, are testable in principle, given sufficiently large sample and sufficiently fine measurements. Causal assumptions, in contrast, cannot be verified even in principle, unless one resorts to experimental control. This difference is especially accentuated in Bayesian analysis. Though the priors that Bayesians commonly assign to statistical...

from Dean Baker There has been a lot of silliness around President Biden’s proposed infrastructure packages and the extent to which they are affordable for the country. First and foremost, there has been tremendous confusion about the size of the package. This is because the media have engaged in a feast of really big numbers, where they give us the size of the package with no context whatsoever, leaving their audience almost completely ignorant about the actual cost. We have been told...

from Ken Zimmerman (originally a comment) Neoliberal economists announce to all, whether they want to hear it or not regularly, those who are wealthy and powerful deserve both, and more due to their greater intelligence, commitment, foresight, and competitive spirit. They deny that prejudices of any kind, racial, ethnic, gender, political, etc. play any part in such determinations. Referencing to the old Grouhcho Marx’s joke, these economists want us to believe their theory rather than...