I have now read many instances of the Argentina problems being blamed on the
fact that tying the Argentine currency to the US dollar made that economy
seriously uncompetitive.
But I thought the measure of an uncompetitive currency was falling exports
rising imports.
And that Argentina had had
William Dickens wrote:
As I remember the standard neo-classical answer to this is that the main
source of endogenaity isn't ability bias but discount rate bias - - that
people with below average discount rates get more schooling.
I hadn't thought of that (or heard it). Is there actually
Just a note on discount rates. The late sociologist Ed Banfield had an entire
theory of poverty, education, crime, and in general, class distinction based
not on income but on discount rates, e.g. higher rates, less education, more
crime, lower-class behavior.
It was very intuitive in terms of a
Rodney F Weiher wrote:
Just a note on discount rates. The late sociologist Ed Banfield had an entire
theory of poverty, education, crime, and in general, class distinction based
not on income but on discount rates, e.g. higher rates, less education, more
crime, lower-class behavior.
Yes,
Alex T Tabarrok wrote:
Bryan's question, however, can be rephrased as not how do you explain
the data (low ability bias and high discount rate bias) but why is it
that ability bias appears low?
Ability bias isn't really low. Using the NLSY data, for example,
controlling for AFQT scores
