Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1211
Posts / Week:5.6
Archived Since:April 1, 2011

Blog Post Archive

The Growth of the Local Public Sector

The rising expense of local government services is increasingly capturing the attention of pundits and policy makers alike. The rising cost of policing and fire services in particular and their effects on local budgets and ratepayers, has drawn the attention...

Fiscal shocks as relative demand shocks

Take a macro model of an economy with two different goods being produced; call them Carrots and Grapes (there can be many different varieties of carrots, and many different varieties of grapes, if you like). Suppose the demand for grapes...

Consuming wealth without spending a dime

"It is a great comfort to have you so rich" - Jane Austen, Pride and Prejudice. Stripped down to the barest essentials, taxation works like this: taxes owing = tax rate tax base + lump sum taxes - income...

Unbundling the BA

The most useful university courses and degrees are the hardest to get into. For example, most people would benefit from knowing something about accounting. But do universities facilitate the study of accounting? No. Everywhere admission into Bachelor of Commerce and...

Ontario and Its Neighbours

I suppose I have become somewhat obsessed with Ontario’s economy and its performance but here I go again with a few comparisons. Ontario is strategically located on the Great Lakes-St. Lawrence waterway adjacent to the huge population of the US...

Why can't central banks monetise something else?

Other than government bonds? That's a rhetorical question. They can. David Andolfatto has gone over to the Dark Side, and all the lefty keynesians are celebrating their new convert to Big Government Deficits. (Tongue in cheek warning.) Not so fast....

VAR vs WTF!?

Vector auto regressions (VARs) are supposed to tell us how the economy would respond over time if hit by a shock, by looking at past patterns of responses to shocks. A "shock" means "a deviation of one of the variables...

When I really learned the David Ricardo idea

Noah Smith says: "Maybe people are perfectly smart and rational enough to understand the David Ricardo idea,..." I'm not so sure. I must have been taught the David Ricardo idea two or three times, and I must have taught it...

The mechanics of exchange and non market-clearing prices

Here is a very simple model of a pure exchange economy where the mechanics of exchange (who can trade what with whom) determine whether very small departures of prices from market-clearing cause very large welfare losses. There are three goods,...

Ontario Budget Commentary

Well, another Ontario budget has come and gone. The government still plans to balance its budget by 2017. According to the budget projections it will do this largely by increasing revenues and restricting expenditure growth. Between 2014/15 and 2017/18, revenues...

Deficit trageting vs Debt targeting

Is a "balanced budget law", even a flexible law that allows temporary deficits (and surpluses) in appropriate circumstances, the right way to think about prudent sustainable fiscal policy? A financial asset is just a bit of paper with a promise...

The Federal Deficit: A Long Term View

In honour of the 2015 Federal Budget and the balancing of the budget, why not a retrospective on Canadian federal government deficits since 1867. In the period from 1867 to 2014, the Federal government has run a deficit in 108...

Noah vs Steve: a suggested interpretation

Is Woodford's "cashless" economy a model of a monetary exchange economy, or a model of a barter economy? (In a monetary exchange economy, all other goods are only exchanged for one good called "money"; in a barter economy each good....

Fiscal Ships

“We're two ships that pass in the night, And we smile when we say it's alright We're still here, It's just that we're out of sight Like those ships that pass in the night” Barry Manilow Next week is a...

Secular stagnation, liquidity, and rent/price ratios

No answers here, only questions. By "secular stagnation" I mean "declining equilibrium real interest rates". Most explanations of secular stagnation say it is caused by a rising desire to save and/or a falling investment demand. Call this the "Saving/Investment Hypothesis"....

Funding the gerontocracy

This year, the per-vote subsidy once enjoyed by Canadian political parties ends. Parties will have to raise funds entirely through donations. So, who gives? There is a generous federal tax credit for political donations, worth 75 percent of the first...

SSHRC Grant Trends in Economics

Well, the past week saw notifications go out to academic economists on the results of their 2014-15 Social Science and Humanities Research Council of Canada (SSHRC) Insight Grant applications. Needless to say, there will be a lot of unhappy campers...

Overdrafts with 100% reserve banking

I was reading Frosti Sigurjonsson's proposal for monetary reform in Iceland. [Click on the document thingy halfway down the page.] His proposal is a variant on 100% reserve banking. I got stuck on page 72 and footnote 66, where he.....

Funding and the Future of Ontario Universities

Well, the Council of Ontario Universities or COU is looking for a new President and CEO. The role of COU is to serve as a voice for the province’s university sector and help improve the public policies that affect the...

Monetary policy in New Keynesian models is Gesellian

In one important respect, what we call "New Keynesian" macroeconomic models are in fact New Gesellian macroeconomic models. That's only in one respect, but it is important. Silvio Gesell proposed a tax on currency. The higher the tax rate, the...

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