Economists Do It With Models

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Entries Tagged as 'Markets'

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How The Foxes Run the Henhouse (Or Why Goldman Sachs Hates Greece?)…

March 4th, 2010 · No Comments
Finance · Incentives · Macroeconomics · Markets

You know, I was previously worried that Goldman Sachs had Washington just a tad too much in its back pocket…good thing then, I suppose, that Greece has allowed me to take an “at least I’m not THAT guy” stance and feel much better.

If you’ve been paying attention to the news, you at the very least [...]

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Tags: Finance · Incentives · Macroeconomics · Markets

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The Dumbest Words I Read Today, And A Lesson On Public Goods…

February 23rd, 2010 · 11 Comments
Econ 101 · Markets · Policy

Apparently the town of Tracy, California has decided that its revenue shortfall should be relieved by charging people for making medical 911 calls. Before I get into the absurdity of this particular plan, let me give you a refresher:

Goods and services can be classified along two dimensions: excludability and rivalry in consumption. A [...]

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Tags: Econ 101 · Markets · Policy

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All I Need To Know About Economics I Learned From Perez Hilton, Tiger Woods Edition…

February 2nd, 2010 · 2 Comments
Econ 101 · Markets

Yes, I have a lot of feeds in my Google Reader, and yes, Perez Hilton is one of them. Sometimes I just really need to know who has new plastic surgery or what Lady Gaga had for breakfast, ok? (Before you go knocking on Ms. Gaga, I would like to point out that, [...]

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Tags: Econ 101 · Markets

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More On Why I Do What I Do, Extended Warranty Edition…

December 31st, 2009 · 7 Comments
Behavioral Econ · Buyer Beware · Markets

Try this quote on for size:
On our assumptions, the extended warranty is a product that simply should not exist. If Humans realized that they we paying twenty dollars for two dollars’ worth of insurance, they would not buy the insurance. But if they do not realize this, markets cannot and will not unravel [...]

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Tags: Behavioral Econ · Buyer Beware · Markets

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All I Want For Christmas Is Everything, Health Care Edition…

December 21st, 2009 · 30 Comments
Markets · Policy

Dear Health Care Protesters: I fully support your right to make your voices heard, but really, if you want to be taken seriously, you might want to make your demands a little more reasonable. Even Santa Claus inwardly mocks the little kids that ask for the PlayStation AND the pony AND the bicycle [...]

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Tags: Markets · Policy