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Friday discussion thread. (self.badeconomics)

wumbotarianI want to be the Walrasian Auctioneer when I grow up が 投稿 - stickied post

I fell victim to sunk costs. I finished a burger and was just starting on my fries. I didn't want to finish them but said to myself "yeah but I paid for it". I realized I hecked up on my way out the poor with my stomach hurting from too many fries.

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[–]say_wot_againConfirmed for Google bigwig 3ポイント4ポイント  (2子コメント)

Dammit wumbo, with this and the automod, we'll have 3 stickies in about 14 hours.

[–]PonderayFollows an AR(1) process[🍰] 5ポイント6ポイント  (1子コメント)

The bad economics central sticky bank is out of control. When will they set a nominal sticky target?

[–]goodcleanchristianfu 1ポイント2ポイント  (0子コメント)

Hush now, if we let the market sort this out overall welfare will be maximized. See this dank prax:

  1. Human action is purposeful behavior
  2. Acknowledging sticky posts is human action
  3. Acknowledging sticky posts is purposeful behavior
  4. Enforcing nominal sticky targets is coercion
  5. Coercion is statist
  6. The state is an illegal and militant construct

Therefore:

Having social planners guide nominal sticky outcomes is an oppressive war against the population.

Citation:

Mises et al., "Sticky Substances and the Invisible Hand". Rothbard Journal of Applied Racism.

[–]besttrousers"Then again, I have pegged you for a Neoclassical/Austrian." 3ポイント4ポイント  (0子コメント)

Acemoglu has a new paper:

Acemoglu, Daron, Camilo García-Jimeno, and James A. Robinson. 2015. "State Capacity and Economic Development: A Network Approach." American Economic Review, 105(8): 2364-2409.

We study the direct and spillover effects of local state capacity in Colombia. We model the determination of state capacity as a network game between municipalities and the national government. We estimate this model exploiting the municipality network and the roots of local state capacity related to the presence of the colonial state and royal roads. Our estimates indicate that local state capacity decisions are strategic complements. Spillover effects are sizable, accounting for about 50 percent of the quantitative impact of an expansion in local state capacity, but network effects driven by equilibrium responses of other municipalities are much larger. (JEL D85, H41, H77, O17, O18)

Acemoglu needs to up his troll game. The paper clearly should have been titled "Who won't build the roads: A Network Approach to State Capacity and Economic Development".

[–]PonderayFollows an AR(1) process[🍰] 3ポイント4ポイント  (1子コメント)

Does everyone realize that the US is a socialist state for doing crazy things like building roads and having a weekend where people don't have to work? No this isn't a crazy fox news video or a bunch of an-caps. It seems to be produced by socialists.

[–]UltSomnia 2ポイント3ポイント  (0子コメント)

good to know we have mutual friends on Facebook.

[–]Lambchops_Legion 2ポイント3ポイント  (0子コメント)

BE, wumbo. It wasn't completely sunk cost as there was still the variable cost those fries had on your health.

[–]UltSomnia 3ポイント4ポイント  (5子コメント)

Discussion topic: how do you shills feel about legal gambling? I live in Nevada, and I think it's cool that we have these grand casinos that people can waste their money at. But, the slot machines in grocery stores/ convenience stores bother me. I mean, people are hooked on this stuff and they can't even go to the grocery store or get gas without being tempted. You see people that probably need this money wasting it away every time you go to the store. I know we all care about muh freedomz here, but we know gambling can be addictive and it seems a little exploitative to put it in places that people have to go to. I guess a lot of this applies to lotteries too (which we don't have), but I feel that machines are quite a bit more tempting.

[–]neshalchanderman 2ポイント3ポイント  (2子コメント)

We should probably ask Kate Upton's boobs.

[–]JPelter 2ポイント3ポイント  (0子コメント)

I'm wary of any proposal limiting people's freedom even if it is provably for their own good. I don't know how to solve this otherwise though.

[–]xorchidsExpert at economics I know what bitcoins are -1ポイント0ポイント  (0子コメント)

So we should remove alcohol, cigarettes and potentially ice cream (depending on if you view food as an addiction) as well?

Yeah it sucks you have a problem. But why should we as a society tip toe around everyone's problems...

[–]Homeboy_JesusAssume we have a can opener... 2ポイント3ポイント  (3子コメント)

I'm going to Vegas at the end of the month.

What's everyone's favourite game?

[–]devinejohSecretary of the Bitcoin Treasury 1ポイント2ポイント  (1子コメント)

Liars dice, they probably don't have that at Vegas though

[–]FittyakaferrariMas Kapital 0ポイント1ポイント  (0子コメント)

Hooked on that game, can't stop playing. I carry around a bag of dice everywhere I go now...I have a problem.

[–]prillin101 0ポイント1ポイント  (0子コメント)

War. It is simple with barely any house-advantage.

[–]doyleb3620 1ポイント2ポイント  (3子コメント)

So, we've heard a lot about inequality over the last couple years, and I was wondering; are there any positive objections to severe inequality, or just normative ones?

[–]PonderayFollows an AR(1) process[🍰] 1ポイント2ポイント  (2子コメント)

What kind of objections? Objections about if inequality is actually increasing or if inequality has certain effects on economic outcomes?

[–]doyleb3620 0ポイント1ポイント  (1子コメント)

The latter, if inequality has certain effects on economic outcomes.

[–]HealthcareEconomist3Krugman Triggers Me 0ポイント1ポイント  (0子コメント)

Which type of inequality? There isn't much in the way of support of wage/income/wealth inequality having negative economic outcomes in advanced economies (there is actually an illusory positive correlation between income inequality and growth), they can certainly be a sign of other problems (all three can be caused by mobility problems for instance) but are not in and of themselves issues.

Other forms of inequality can cause some significant problems. Educational inequality causes mobility issues, health inequality causes a whole host of issues but most notability significant differences in life expectancy which also reduces the progressiveness of retirement transfers.

They also stack, education inequality reduced mobility which in turn increases wealth, wage & income inequality. Health inequality increases lifetime wealth & income inequality. Some of the lifestyle factors which increase health inequality also increase education inequality.

[–]usrname42There is no God but Keynes, and Krugman is his prophet 0ポイント1ポイント  (0子コメント)

What does /r/badeconomics think of Jeremy Corbyn? He's running for leader of the Labour Party in the UK, and he's like a cross between Bernie Sanders and Donald Trump - Sanders because he's an old fairly populist candidate from the more extreme wing of the main left-wing party who's very popular with the young and on the internet, and Trump because he also seems to have energised the party's base and is leading in the polls, to the shock and amazement of everyone. Though he isn't anywhere near as anti-immigration as either of them. Some of his economic proposals are here - one that seems most badeconomics was this idea of "People's QE":

the Bank of England to be given a new mandate to upgrade our economy to invest in new large scale housing, energy, transport and digital projects: Quantitative easing for people instead of banks

any thoughts?

[–]iamelbenMalthusian Enthusiast 0ポイント1ポイント  (0子コメント)

I have a meeting with the head of a PhD program at one of my top five schools next month. Freaking out a LITTLE. Haven't formally applied, but the school is a great fit for me. So aside from the obvious questions about funding and such, what questions should I ask this guy?

[–]prillin101 0ポイント1ポイント  (0子コメント)

I'm confused now.

IGM Polls suggest that economists think that Americans would be better off with more low skilled immigration but low skilled Americans would not be (http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_5vuNnqkBeAMAfHv).

But people on this sub have cited studies where immigrants haven't depressed low-skill job wages.

/u/commentsrus has sent me a few studies about open immigration in general, but I'm still confused.

Will the average low skilled American be better off with more low-skilled immigration?

[–]commentsrusBring maymayday back! 0ポイント1ポイント  (0子コメント)

Ok, guys. People are starting to believe /r/PraxAcceptance isn't a serious Austrian Econ sub. What do?