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Our Word is Our Weapon / links for 2010-04-24

links for 2010-04-24

  • James Markusen: "A major role for per-capita income in international trade, as opposed to simply country size, was persuasively advanced by Linder (1961). Yet this crucial element of Linder’s story was abandon by most later trade economists in favor of the analytically-tractable but counter-empirical assumption that all countries share identical and homothetic preferences … Adding non-homothetic preferences to a traditional models helps explain such diverse phenomenon as growing wage gaps, the mystery of the missing trade, home bias in consumption, and the role of intra-country income distribution, solely from the demand side of general equilibrium. With imperfect competition, we can explain higher markups and higher price levels in higher per-capita income countries, and the puzzle that gravity equations show a positive dependence of trade on per-capita incomes, aggregate income held constant …"
    (tags: trade)
  • Tim Lee: "The weird thing is that the left and right in the carbon debate are on the opposite sides from the positions they occupy in the spectrum debate. In the spectrum debate, a commons is considered a “left-wing” position, while property rights are considered “right-wing.” In contrast, in the carbon debate you find right-wingers advocating a “carbon commons” while left-wingers advocate a property-like regime called cap and trade."

    Matt Y's comments too are also insightful.

  • It bears repeating, and the same applies to most areas of policy, in the UK as much as in the US: "Just as conservative legislative politics isn’t really about free markets conservative judicial politics isn’t really about restraint. The rhetoric is just rhetoric, and the reality is that conservative politics is about conservatism—about entrenching the power and influence of the dominant economic and sociocultural groups."

This entry was posted on Sunday, April 25th, 2010 at 3:02 AM and filed in Links. Bookmark this entry. Follow the comments here with the RSS 2.0 feed. Skip to the end of this entry and leave a response. Trackbacks are closed.

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