A Roundup of Interesting Economics Links
Lynne Kiesling
I have to embed myself in Deep Thought today on a paper for a conference in September, so will have to content myself with offering you these links for your consideration:
Patri Friedman's Catallarchy post "Pigouvian taxes are not efficient if the money gets wasted". This is a hugely important point, and is one reason why, unlike Greg Mankiw, I am not a member of the Pigou Club. Top-down governments cannot determine the "optimal" Pigouvian tax, except by accident; furthermore, through political economy and public choice dynamics, that tax revenue frequently gets wasted, as Patri notes. I would argue that if instead government policy focuses on reducing transaction costs that prevent parties from negotiating, and implementing cap-and-trade markets in situations where those transaction costs are prohibitive, then we can all become members of the Coase Club.
Chicago Fed economist Bill Testa notes on their blog the new Midwest economy website at the Chicago Fed. Full of good, relevant, local economic information.
I didn't realize Jeff Miron had a blog until recently. Jeff's work on the economics of alcohol prohibition in the US in the 1920s is phenomenal.
I am not an expert in the trade/budget "twin deficit" area, so I find Don Boudreaux's response to Nouriel Roubini's analyses of the issue helpful and illuminating, particularly if you read through the set of linked articles.
Want to wear your "free trade is mutually beneficial" heart on your wrist? Then get one of these wristbands from the Adam Smith Institute. Although the post doesn't specify, I assume that ASI purchased them from a vendor that sources them from a poor country ;-). Oh, yes, I just noted from Tim Worstall that my assumption is correct.
In the wake of last week's Chicago City Council vote to enact the "big box minimum wage" (which is an affront to efficiency, equity, morality, and individual liberty), Lowe's joins Wal-Mart and Target in shelving plans to open stores in the city. I can't believe the extent to which my adopted hometown has become the standard-bearer for the Nanny State, between this item, the foie gras rule, the car cell phone rule, the proposed trans fat rule, the proposed dog chip implantation rule ...
If you are interested in the types of issues covered here at KP, you should also be checking out Organizations and Markets.