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Labor Market Woes: Keynesian v. Real Business Cycles?

…remain roughly the same over the 2001 to 2020 period. Before addressing David’s suggestion of real business cycle effects, let’s tease out a couple of implications of Ellwood’s paper. I…

Paul Krugman on the Labor Market

…theory: (1) it contradicts his usual notion that substitution effects dominate income effects; and more importantly (2) real wages have been falling – perhaps because investment demand is still weak….

Debunking the White House’s Budget Myths

…made any discernable mark on economic growth. What did more sophisticated economic modeling predict for the supply-side effects of the tax cuts? As I mentioned in the previous post, the…

More on "Globalization"

…in our own country? Is there any particular reason that I should care more about the welfare effects of economic integration on people in Lubbock, Santa Barbara, or Chattanooga than…

Inflation Resurgent?

…however. So I do think that higher oil prices will probably have some additional impact on the aggregate inflation rate. Furthermore, I think that there are large potential price effects

The Benefits of Cultural Diversity

…for immigrants themselves, of course.) But the approach taken by Ottaviano and Peri is a good effort at trying to identify one of the less tangible effects of immigration: its…

The Natural Rate of Unemployment

…and perhaps other factors. It is very difficult to quantify the long-term effects of the temporary help and Internet innovations to the labor market. For the purpose of its conservative…

Economists for a higher minimum wage

…improve the well-being of low-wage workers and would not have the adverse effects that critics have claimed. In particular, we share the view the Council of Economic Advisers expressed in…

Kerry’s Health Care Reinsurance Proposal

…economist of the effects of this reinsurance proposal are those by Kenneth Thorpe, professor at Emory’s school of public health. He estimates that the Kerry plan would reduce the variance…