Robert Waldmann My effort immediately below to explain some general equilibrium theory in English didn’t work out so well. Here I will attempt to give simple examples which show how rational individual choice and/or trade between rational consenting adults can make everyone worse off. Models will all involve strange fruit trees, that is assets which […]

Robert Waldmann I’m not kidding. Someone in some thread said that he or she thought it would be great if I could give a simple intuitive explanation of Geanakoplos and Polemarchakis (1985). Also I would get an interesting perspective on the crisis if I could fly to the moon. I will try after the jump. […]

Via Stefan Karlsson, Kash guest-posts at EconBrowser. With—as will come as no surprise to long-time AB readers—lots of graphics.

Robert Waldmann Wow an argument in favor of protection from Paul Krugman. I never expected to read that. Now he’s against protection all the same, but he does admit that there is a good argument that right now a bit of protection would be good for the world. The argument, basically, is that governments aren’t […]

I’m staring at my car, which survived the past six NJ winters without looking much the worse for wear. At least compared to today. Data research question of the Day: Any way to get data on the number of car washes done in the winter in, say, the latitude of the lower Rustbelt over the […]

by: Divorced one like Bushat the beach on vacation Ha! Gee the economics profession is ignoring labor. I wonder why. Could it be who we follow? It’s not like we don’t quote old Adam often. Free market and ghost hand ideas are mentioned all the time as we follow Milton: According to The Economist, Friedman […]