Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1204
Posts / Week:5.9
Archived Since:April 1, 2011

Blog Post Archive

A Very Brief History of Demand and Supply

I’m teaching History of Economic Thought again this year and during my progression through the material this term what has struck me is the very long road over time –literally hundreds of years - to understanding markets and value a...

The Land Theory of Value

Last night I spoke with my Dutch ancestor again. Nick van Rowe told me about the Land Theory of Value, which began with the French, but was perfected by the Dutch. This is what he told me: Science has proved...

A silly question for anti-austerians

Let's make up some silly numbers. Suppose the national debt was, let's say, 1,000% (ten times) annual GDP. And suppose the budget deficit was, let's say, 50% of GDP. And suppose your economy hit the Zero Lower Bound, and suppose...

Babies as Human Capital in an OLG model

I'm trolling Elizabeth Breunig. Because she said that "Human capital is one of the more odious terms in the capitalist lexicon". And I like the term "human capital", because I think it helps us think more clearly about investment in...

The Fuss Over TFSAs

Well, there seems to be a fair amount of fuss over the proposed doubling of the contribution limit to Tax Free Savings Accounts(TFSAs). Kevin Milligan says the case for raising the annual TFSA limit is shaky as the benefit will...

Steve Poloz on inflation targeting

Stephen Poloz is Governor of the Bank of Canada. Here is the speech he delivered at Western. The whole thing is worth reading. Perhaps I'm reading too much into it. But I see a tension in Steve's speech. He recognises...

Does capital income exist?

[Ages ago, as a graduate student, I "wasted" my time (when I should have been finishing my thesis) reading capital theory, including the more "heterodox" stuff. My memory is pretty hazy, but I still think about the old questions occasionally....

Ours the task eternal -- investing in human capital

That's the motto of Carleton University, where I work. Carleton's task, and my task, and the students' task, is to produce educated students. It takes a lot of resources to do this: my time, the students' time, the support staff's.....

Do the Greeks need Greek banks?

Or could they all use foreign banks? Dumb question. I don't know the answer. Are there some laws that make it hard to use foreign banks? Tourists seem to manage OK without opening a foreign bank account. It ought to...

Keynesian Cross as simultaneous moves symmetric Nash equilibrium

Let there be two players. The apple producer buys bananas from the banana producer; and the banana producer buys apples from the apple producer. Each must place his order for how much fruit he wants to buy before observing the...

Fixed exchange rates and Blame Thy Neighbour

There is a parallel universe in which the Euro was never invented, and the Eurozone countries kept their own moneys and their own central banks, with flexible exchange rates. I think the economic outcomes would have been better. But let's...

Do economically illiterate slobs use duality theory?

Dunno. I was never that good at micro/math. That's why I'm asking. The government has a banana machine that converts any number of apples into the same number of bananas. If it starts the machine up we get a new...

"Human Capital" and "Land Capital"

Branko Milanovic (HT Mark Thoma) misses the point about the usefulness of the concept "human capital". To explain the point, let me talk about "land capital" instead. Raw land, in it's natural state often isn't very productive. Before you can...

Teaching, OLG models, and the phenomenology of perception

When we teach students economics, we sometimes use numerical examples to help them understand general principles. Sometimes we make them work through those numerical examples by themselves, as an assignment. It's the only way they will really get it, and...

Canadian Convergence

Mark Brown and Ryan MacDonald at Statistics Canada have just released a Research Paper on Canadian provincial convergence and divergence of per capita household disposable income from 1926 to 2011. They find that while there has been convergence over time,...

Is Poloz Pulling down the Loonie?

Bank of Canada Governor Stephen Poloz insists he is not talking down the Canadian dollar and its depreciation relative to the US dollar is the result of economic developments – in particular the fall in oil prices. So is oil...

How markets convert meat into vegetables

It is Winter. It is impossible to produce food, and the people can only eat the food they have already stored. The king wants to take food away from the carnivores and give it to the vegetarians. He orders a...

The census long form - A critical tool for better understanding and policy

The following was written by Russell Davidson, Charles Beach and Thomas Lemieux on behalf of the Canadian Economics Association. A condensed version appeared in Saturday's Globe and Mail. With a bill to reinstate the mandatory Census long form currently before...

Fisher, Calvo, Ball and Mankiw, skewed bad news, and Divine Coincidence failures

My head is not clear on this, so this won't be a clear post. 1. Econometricians know of Ronald Fisher as a statistician, but he was also a biologist. I have not read Fisher, but this is how Jeremy Fox...

Debt does have intergenerational distributional implications

Consider two possible worlds: World A: Us old people bequeath our government bonds to the next generation (as a freebie). World B: Us old people sell our government bonds to the next generation (they pay us for the bonds). See...

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