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The Trickle-Down Theory of Happiness

A poem by Philip Appleman via Bill Moyers. I think that about covers it. But if it was not for you, try this one: The Ant…

Keynes vs Modern Macroeconomics

…useful insight in macroeconomic theory which isn’t clearly stated in “The General Theory of Employment Interest and Money” ? By “useful” I mean that it has been used to predict…

Answers: Taking IOR to Zero

…accompanied by other moves, wildly expansionary. I’m presuming he says “slightly expansionary” based on the theory Mark Thoma gives us in a November 17 post that Cameron was nice enough…

Payroll Tax Cut

…this directly contradicts the theory they learned in introductory economics that labor demand is a downward sloping function of labor compensation. But remember, that theory is simply a massive over-simplification…

What is a Good Approximation ?

…know this. Yet the idea that there is some general smoothness property in the mapping from assumptions to conclusions absolutely dominates economic theory. Yes I just said that economic theory