Tag Archives: Uncategorized

from Asad Zaman My paper is a survey of the huge amount of solid empirical evidence against the utility maximization hypothesis that is at the core of all microeconomics currently being taught today in Economics textbooks at universities all over the world. It is obviously important, because if what it says is true, the entire field of microeconomics needs to be re-constructed from scratch. Nonetheless, it was summarily rejected by a large number of top journals, before being eventually...

from Lars Syll In science we standardly use a logically non-valid inference — the fallacy of affirming the consequent — of the following form: (1) p => q (2) q ————- p or, in instantiated form (1) ∀x (Gx => Px) (2) Pa ———— Ga Although logically invalid, it is nonetheless a kind of inference — abduction — that may be factually strongly warranted and truth-producing. Following the general pattern ‘Evidence  =>  Explanation  =>  Inference’ we infer something based on what would...

(Dan here….another one from NDd) My Weekly Indicators post is up at Seeking Alpha. The old vaudeville sketch comes to mind: “Niagara Falls.  Slowly I turn. Step by step ….” Not only are these weekly posts intellectually edifying, but since clicking over and reading it puts a penny in my pocket, it is the epitome of polite etiquette.

from David Ruccio In a recent article, Dan Falk [ht: ja] identifies a fundamental problem in contemporary physics: many physicists working today have been led astray by mathematics — seduced by equations that might be “beautiful” or “elegant” but which lack obvious connection to the real world. What struck me is that, if you changed physics and physicists to economics and economists, you’d get the exact same article. And the same set of problems.  Economists—especially mainstream...

Economics, like fashion, has its hot ideas. Among the hottest ideas of 1982 was the theory of contestable monopoly, described as an ‘uprising’ by its leading proponent William Baumol. To quote the summary in Wikipedia Its fundamental features are low barriers to entry and exit; in theory, a perfectly contestable market would have no barriers to entry or exit (“frictionless reversible entry” in economist William Brock’s terms).[1] Contestable markets are characterized by “hit and run”...

from Dean Baker Policy wonks and pundits have been nearly unanimous in their condemnations of Donald Trump’s trade war and his primary weapon of tariffs. Tariffs are a tax increase on US consumers, raising the price of imports and the domestically produced goods with which they compete. Retaliation by other countries will reduce US exports, costing jobs in other sectors. This is not likely to lead to good outcomes, especially when the basis for Trump’s complaints is vague, constantly...

The question is taken from the title of an article by Nancy Olewiler of Simon Fraser University in the Canadian Journal of Economics (November 2017), which, as it happens, was delivered as the Innis Lecture at the meetings of the Canadian Economics Association in 2017: “Canada’s dependence on natural capital wealth: Was Innis wrong?”  Her answer: she writes “Literature and recent debate reject his prediction that Canada would suffer lower levels of economic growth and well-being due to its...

from David Ruccio Most Americans are not loading sixteens tons of coal. But they are, even in the midst of the recovery from the Second Great Depression, sinking deeper and deeper into debt. According to a recent analysis by Reuters [ht: ja], the bottom 60 percent of income-earners have accounted for most of the rise in consumption spending over the past two years even as their finances have worsened.* The data show the rise in expenditures has outpaced before-tax income for the lower 40...

from Jorge Buzaglo “Under the gold standard the leaders of the financial market are entrusted, in the nature of things, with the safeguarding of stable exchanges and sound internal credit on which government finance largely depends. The banking organization is thus in the position to obstruct any domestic move in the economic sphere which it happens to dislike, whether its reasons are good or bad. In terms of politics, on currency and credit, governments must take the advice of the...