Rational Estimation and Price Under Uncertainty

This article talks about ways to deal with uncertainty, and I will also briefly define the concept in contrast with simple risk. Definitions: Uncertainty vs Risk Rational Estimation without Uncertainty Rational Estimation with Uncertainty 1 – Definitions: Uncertainty vs Risk Uncertainty and risk are both not simple economic phenomena. They are generic elements of complex … Read more Rational Estimation and Price Under Uncertainty

Summing Budget Lines Does Not Derive the Demand Curve

It’s a common exercise in undergraduate economics to sum individual budget constraints to derive a market demand curve, but this is wrong. Budget constraints are immune to changes in individual preference, but demand is not. Budget constraints do not include economic cost, but quantities demanded do include preference and economic cost information (see point 5) … Read more Summing Budget Lines Does Not Derive the Demand Curve

Ed Stringham and the Information Puzzle

I recently began writing about my interest in The Preference Elasticity of Demand. This article argues that the Austrian School of Economics is a logical theoretical home for the theory of preference elasticity. I also discuss an objection the preference elasticity called the information puzzle. Ed Stringham is an Austrian economist and author of Private … Read more Ed Stringham and the Information Puzzle

Some Quick Bullets on Property Rights

This article briefly records some thoughts on property rights which I had as a result of class discussion, as well as a summary of the class method as it is not traditional lecture and I think highly of it. Thoughts: De facto property rights are the best economic explanation of property rights, precisely because they … Read more Some Quick Bullets on Property Rights

Assigning Explanation Under Simultaneous Price and Preference Shifts

This article is part 2 of 4 in a series on the preference elasticity of demand. This article will include the following: Gains to Utility from Preference Shift Identify the Preference-Substitution Effect Identify the Preference-Income Effect Simultaneous Price and Preference Shift Total Quantity Explained by Factor The subsequent article will refine the explanatory assignment using … Read more Assigning Explanation Under Simultaneous Price and Preference Shifts

The Preference Elasticity of Demand: Overview and Motivation

Standard microeconomics includes a discussion on the Hicksian demand curve. This article extends a similar analysis to establish a post-Beckerian framework for the analysis of preference change. A big shoutout to Desmos which was used to create all of the graphs this post will contain. The series will proceed as follows: Overview and Motivation Assigning … Read more The Preference Elasticity of Demand: Overview and Motivation

What Should People Do After Learning Economics?

This site is dedicated to learning economics, and then all the things people should do after learning economics. This article discusses the second item. The answer is largely contextual and this article is likely incomplete, but it certainly refers to most of the stuff on this website. What comes after economics? Mainly application and further … Read more What Should People Do After Learning Economics?

The Argument for Paternalism from Pleasant Surprise

This article argues for paternalism, but not statism, from pleasant surprise. Basically, the argument from pleasant surprise means that neither neoclassical nor Misesian efficiency may be optimal ex post. Just as with any other kind of shock. Here’s a short, entertaining video which touches on pleasant surprise: So what is a poor child to do? … Read more The Argument for Paternalism from Pleasant Surprise

Misesian Efficiency as Subjective Moral Optimization

This article makes a moral argument for polycentrism from Misesian efficiency. This article argues that rational action under a Misesian framework can be interpreted as a revealed subjective moral preference. As a result, a free market composed of rational actors will optimize at a position which is not only efficient from the viewpoint of real … Read more Misesian Efficiency as Subjective Moral Optimization