…and set forth four different scenarios for the future. There was a more optimistic Low Cost model, a more pessimistic High Cost model and two Intermediate Cost ones. It was…

…(including many who are not well off) to burnish that pose. Kling’s claim is a mathematical error as is shown after the jump by formal analysis of a model in…

…prices. The bolded passage is necessary for Pareto efficiency in a one period model without uncertainty (a model without financial markets). It is also key to proving that equilibrium with…

…macroeconomists are certain that salt water macro is discredited along the lines of the Ptolomaic model or the Phlogiston hypothesis. For a while they called their models “Modern Business Cycle…

…is easy to write down a model in which the volume of trade is zero. In standard models agents who do not maximize welfare are introduced to cause trading volume…

…the table is legible update: an illegible version of the table above was deleted. update II: Poorly labeled graphs added OK two plots Infant mortality and Public health care spending…

…is quality adjusted what it is showing is the price of buying an earlier model car, if you could. In the chart above I set the base at 1975 so…

…sustainable solvency with a 100 Trust Fund Ratio. The current system of reporting Social Security solvency depends on a projection model. The Trustees ask the Office of the Chief Actuary…

…trade. Does that sound far-fetched? It isn’t. If you did that, you would have what economists call the Scandinavian Model. The Scandinavian countries are egalitarian. They have universal unions, high…

…is as focused on individual taxpayers as optimal tax theory, individual taxpayers can object that the partnership does not apply to them. Second, even if one accepts the partnership model,…