(/Dan here…lifted from Robert’s Stochastic Thoughts) The Long Run and International Economics I am still thinking about Krugman and the Gravelle GeardownDo click the link if you are interested in understanding what I am typing about. Very briefly the question is: what effect would cutting the tax on profits have on the _US capital stock ? […]
Paul Krugman finds intuition for the calculations of Jennifer Gravelle difficult. Now even more than usually, you really have to click this link to know what I am typing about. My comment. yes that intuition is difficult. I have an attempt. So 1% of GDP is tradable. Also consumption and total production fixed. Mars cuts […]
Halloween potpouri Some comments on the economic data from yesterday and this morning… 1. Personal income and spending. Real, inflation adjusted income was flat, while real spending was up +0.6%. Which means the personal saving rate declined to a new expansion low: We’ve had a steep decline in the savings rate in the past year. […]
A NAWRU proposal Marco Fioramanti and I have strongly criticized the European Commission DG EcFin Output Gap working Group estimates of output gaps. I have also written a lot here at angrybearblog This topic is very important, because the output gaps are used to calculate cyclically corrected budget balances which are regulated by the Stability […]
Gimme shelter: the real cost of renting vs. homeownership What is the real cost of shelter? Over the last decade there has been lots of discussion of housing prices in isolation. Sometimes that discussion includes an inflation adjustment — which is problematic, since housing constitutes nearly 40% of the entire consumer price index, so in […]
Everything Is Going Great, So Let’s Change It Well, the actual headline on the front page of the Washington Post below the fold today reads, “Economy shows strong growth, could provide GOP momentum.” The strong growth is the 3.0% annual growth rate of GDP in the third quarter (supported by a strong stock market), with […]
A Serious Misreading of Coase Corey Robin is very insightful about a lot of things. I think his take on conservatism, that the thread running through it is opposition to attempts to demolish pre-existing hierarchies, explains ideological twists and turns that would otherwise remain mysterious. Don’t take this post as an expression of anti-Robinism. But […]
Marxism-Leninism In China Update The once-every five years Chinese Communist Party conference is now over. It appears that Xi Jinping has not identified an heir to himself as his two predecessors did at the time of this equivalent meeting during their presidencies. Furthermore, unlike either of them, Xi has joined Mao and Deng Xiaoping in […]
Top marginal taxation and economic growth by Santo Milasi and Robert Waldmann has (finally) been published here in Applied Economics ABSTRACT The article explores the relationship between top marginal tax rates on personal income and economic growth. Using a data set of consistently measured top marginal tax rates for a panel of 18 OECD countries […]
I jump at a rare chance to disagree with Paul Krugman and as a bonus also with my very good friend Brad DeLong, because Krugman just tweeted that Brad is right Brad is right here: Mankiw et al have clearly made a math error https://t.co/HpyVdoyRCT 1/ — Paul Krugman (@paulkrugman) October 24, 2017 update: Krugman […]