…old results with relaxed assumptions. Thus old economic theory dominates economists contributions to the public debate even when economists know that it isn’t even valid as theory — that there…

…the blog post with the best title ever and by Brad deLong. Mankiw mentions his theory and I discuss after the jump. Prof Mankiw I once wrote a short paper…

…value to the cash needed to purchase it, or $100/$20 = 5. In standard economic theory, the equilibrium of supply and demand determines the interest rate on loans. It would…

…the theory of a weird left right alliance including Rep Darrel Issa (R Calif.). It is based on the idea that ideologue Congress persons can price assets better than professionals….

We have been discussing a lot of economics through the political viewer lately. And I certainly have laid my point of view out there, but I also like the theory…

…two pioneers of Game Theory. Thomas Schelling and Robert Aumann share this year’s Nobel Prize in Economics. Descriptions of their work from nobelprize.org: Thomas Schelling Against the backdrop of the…

…control of the contracting parties. OK, they failed to win on a theory that is clearly absurd, but what about its alternative theory: Respondent, who had the burden of proof…

…consistent with economic theory. And when you have data and theory in agreeing with each other, Occam’s Razor (and good economic practice) suggests that the theory and data are probably…

…that day by Sheryl Gay Stolberg. Stolberg’s article was titled “A New Wave of Challenges to Health Law.” My blog post was titled “The Antidisestablishmentarianism Theory of Obamacare Illegality. (The…

…wage literature and, most recently, The Sticky Wages of Sin reviewed criticisms of the efficiency wage hypothesis that make explicit its peculiarly inverted relationship to Marx’s theory of the industrial…