Semantics of Higher Education Appropriations

Caplan’s forthcoming The Case Against Education is a great read. It validates the signaling model applied to traditional education. It makes the case for lower federal spending on formal education as well as reduced private consumption of traditional formal higher education, such as a 4 year degree. I love the book, although I am bugged … Read more Semantics of Higher Education Appropriations

A Review of Subjectivism and Economics

In preparation for an article arguing in favor of objective value, this article goes over comparative views on subjective value among economists. Basically, all economists recognize subjective value, but to different extents and with subtly different meaning. I claim that Austrians emphasize subjective value in a decidedly more extreme way compared to other schools. I … Read more A Review of Subjectivism and Economics

Markets as Optimal Voting Systems

This article demonstrates that markets are an optimized voting system. I argue: Markets maximize corrected voter expression Markets solve Arrow’s Impossibility Theorem Further evidence economics is politics and vice versa. To have an optimal political system we need to have an optimal voting system. Such a system will: Allow voters to precisely express their desires. … Read more Markets as Optimal Voting Systems

Economics is Politics is Sociology

Economic action is a redundant phrase. All action is economic. I don’t just mean all rational action, or all human action. I mean all action. Accidental action still relates to the economy. All action is both influenced by and feeds back in to the economy. The term economic action truly is a waste of a … Read more Economics is Politics is Sociology

Technical Efficiency is So Underrated

This article anecdotally rants about how libertarians, economists, and others pay lots of attention to utilitarian efficiency and very little to technical efficiency. Refresher: Technical efficiency means that a given level of output is produced using the least-cost set of inputs. Economics has strong evidence for the astonishing claim that competitive economies will produce with … Read more Technical Efficiency is So Underrated

Neoclassical Hypocrisy and Improved Long and Short Run Definitions

This article will criticize the Neoclassical School for hypocrisy and provide an improved definition of the long run and short run in economics. In the Neoclassical School of economics there exist two foundational ideas which have an important characteristic in common. The two ideas are the natural rate of unemployment and potential output, which is … Read more Neoclassical Hypocrisy and Improved Long and Short Run Definitions

Newtown’s First Law of Behavioral Economics

People are much more likely to contribute to their employer’s 401(k) if they are automatically enrolled. Automatic enrollment means the firm enrolls the employee by default. This is in contrast to the traditional method of manual enrollment where the employee asks to be enrolled. Similarly, when people purchase subscription services or sign up to donate … Read more Newtown’s First Law of Behavioral Economics

Greedy Capitalist Pigs

My friend shared the following meme on facebook (except I added “Get the full story at…”): Consider the following response I gave: Chris, do you agree that if they were forced to share profits then they might not have gone into business to begin with? It could be that forced sharing of profits with the … Read more Greedy Capitalist Pigs

Elasticity of Belief and Presuppositional Economics

In thinking about the relationship between Christianity and Economics, it is interesting to consider the possibility of adapting a style of Christian apologetics into an approach to economics thought. The particular style this article is concerned with is the idea of presuppositionalism. In short, presuppositionalism argues for Christianity by attempting to prove the absurdity of … Read more Elasticity of Belief and Presuppositional Economics

Vandivier-Coase Theorem

Having considered the Coase Thereom a bit more, I think I can phrase the principle being described better than even Coase did. I’ll call this the Vandivier-Coase Thereom: When transaction costs are sufficiently small relative to total surplus, an efficient and invariant outcome will prevail, and as transaction costs approach zero the result will become … Read more Vandivier-Coase Theorem