by Mario Rizzo Richard Thaler has won the Nobel Prize for initiating the behavioral moment in economics. My view of the Nobel Prize in economics is much like Time magazine’s view of its “Person of the Year.” It is awarded to the economist who "for better or for worse... has done the most to influence” … Continue reading Richard Thaler’s Nobel Prize
by Chidem Kurdas Robert Shiller says the speculative bubble in real estate was driven by “a contagion of optimism” that pushed up prices and expectations in a feed-back loop. This epidemic apparently engulfed regulators as well. “Government policy makers breathed in the same optimism, which no doubt encouraged them to be lax on regulatory restraint,” … Continue reading Policy Makers and Irrational Exuberance
by Roger Koppl Over at Marginal Revolution, Tyler Cowen recently said The Sensory Order is “Hayek's most overrated book.” In part he was complaining that “many call it his most underrated book.” Unfortunately, he does not name names. In any event, Tyler has other gripes including the mistaken suggestion that the science in it was not … Continue reading The Sensory Order
by Chidem Kurdas Last week the WSJ published a list of the past decade’s best-paid chief executives. You might nod approvingly at some names but gag at others. In the former group is Steve Jobs of Apple, whose company’s share value grew by about 11-fold in the period from 2000 to 2009. In the latter … Continue reading Executive Compensation as Lottery Prize
by Mario Rizzo Some time ago I wrote a post with this name. Now Paul Krugman is at it again with his ex-cathedra pronouncements. He says that because of the recent planned move by European countries in the direction of austerity and the talk in the US about austerity, we are on the verge on … Continue reading Paul Krugman, Ipse Dixit 2
by Roger Koppl Bill Butos edited the latest volume of Advances in Austrian Economics, which is devoted to “The Social Science of Hayek’s The Sensory Order.” It is a terrific volume demonstrating that Hayek’s classic 1952 book in psychology matters for the social sciences, including economics. Contributors include G. R. Steele, Leslie Marsh, Lorenzo Infantino, Francesco Di … Continue reading Why do we trade with strangers?