Feldstain is an ass. His 1967 article, "Specification of the Labour
Input in the Aggregate Production Function," is a prime piece of
cherry-picked propaganda data points. And of course the profession
swallowed it without blinking.



On Mon, Oct 27, 2008 at 9:07 PM, michael perelman
<[EMAIL PROTECTED]> wrote:
> In The Confiscation of American Prosperity, I looked at the career of Martin
> Feldstein, until recently longtime director of the National Bureau of
> Economic Research, chief economic advisor during the Reagan administration,
> and inveterate foe of Social Security.
>
> In the recent issue of the NBER digest, you can read a short discussion of
> Martin Feldstein's "proof" that wages have kept pace with productivity.
>
> http://www.nber.org/digest/oct08/w13953.html
>
> In case you do not want to purchase the article, you can read an earlier
> version here
>
> http://www.aeaweb.org/annual_mtg_papers/2008/2008_111.pdf
>
> The result is a display of incredible virtuosity. By selecting the
> appropriate deflators [a measure of inflation], including benefits as part
> of wages, and comparing wages with National Income rather than the Gross
> Domestic Product, voila, Feldstein manages to get a relatively constant wage
> share of national income.
>
> more at
> http://michaelperelman.wordpress.com/2008/10/28/fudging-data-to-prove-markets-are-fair/
>
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA
> 95929
>
> 530 898 5321
> fax 530 898 5901
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>



-- 
Sandwichman
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