Economists Do It With Models

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Sir, There’s A Chihuahua In My Econ Book…

May 18th, 2010 · 7 Comments
Econ 101 · Just For Fun

You may remember from my Facebook page that I made a somewhat futile attempt at being clever for Cinco de Mayo. I later went back and tried to improve a little on the original half-assed attempt, and that produced the following iteration:

Now, I think the comments on the photo were probably better than the photo itself, despite the fact that I hold to the notion that Gizmo is too small to be a macro guy. I happened to look at the comments this afternoon when I was searching for something else, and I came across the following:

He would be happier with a picture of Chloe (from ” A Beverly Hills Chihuahua” inside the book..hahaha

Well, Roberto, you had no idea how close you were to being on to something. From that very book:

Whoever said that economists aren’t funny? Oh, right, me. Anyway…the relevant text in the book talks about the income effect on the supply of labor- basically, how having a very high wage or a lot of wealth reduces the incentive to work. (You can click on the image for a full-size version, though it may be shrunk by your browser.) It then gives the example of how Andrew Carnegie donated most of his fortune to charity rather than give it to his kids because he didn’t want his kids to be lazy or useless. The caption on the photo says “Luckily, I’m a Hilton rather than a Carnegie.”

In fairness, the reality of the situation is that Paris Hilton has probably made more money than anyone who is reading this right now. It appears as though textbook models of labor supply might want to acknowledge that sometimes people work for things other than just money.

Tags: Econ 101 · Just For Fun

7 responses so far ↓

  • 1 Caitlin // May 18, 2010 at 5:33 pm

    However, I feel that if Paris Hilton’s father wasn’t famous and rich she would not be either. She only became well known and got various deals because she is her father’s, somewhat morally bankrupt, daughter.

  • 2 Rachel // May 18, 2010 at 9:00 pm

    And her father’s father was only rich because he was his morally bankrupt father’s son….it’s an endless cycle and her children (as frightening of a thought as THAT is) will likely be of the same cloth….

  • 3 jody // May 19, 2010 at 10:12 am

    At the risk of sounding ignorant which doesn’t actually bother me much anyway, when someone receives a high wage and has the incentive to stop working at a point of satisfaction doesn’t that leave work to be done by others, thus potentially reducing unemployment?

  • 4 Joshua // May 20, 2010 at 4:47 pm

    Saying she made a lot of money is not the same as saying she worked.

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  • 6 curmudgeonly troll // May 29, 2010 at 12:04 pm

    Danged if that dog doesn’t look just like Ben Bernanke…

  • 7 Charlie Whats // May 5, 2012 at 4:50 pm

    Well, Cinco de Mayo is my birthday. It’s been for the last 60 years. So, if that is boring, I don’t know what is.

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