The winners this year won for making incredibly abstract models, blaming > booms and > busts on technology shocks. I don't know what technology shock caused the > NASDAQ > bust, maybe they have an explanantion.
Hello Michael, I was very surprised when I read the news about the nobel. I don't have good knowledge in economics yet. I am still improving it but when i studied the real business cycle I didn't believe that recession could be explain with technological regression. I haven't found prove of technological regression yet! Of course, it does not exist. This is the logical consequences in their models. I my opinion another funny thing is the propagation mechanisms through which a disturbance is spread through the economy. As during the cycles average aggregate real wages doesn't change a lot they explain unemployment with intertemporal substituion of leisure!! There is a high elasticity of labor supply in response to temporary changes in the wage. People are volontary unemployed because prefer leisure!! Yesteday on the "Il sole 24 Ore", the italian business newspaper there was an interwiev with Mr. Prescott. One question was about the Europen high unemployment rate and Prescott's answer was that people don't work because of high rate of taxation and the prefery stay at home Because of I am unemployed this is excatly what I am suppose to do in Prescott funny view!! Unfortunately, I don't enjoy my leisure time as Mr. Prescott suppose I should. > I don't have an opinion about them as people, but their influence seems to > push > economics in the wrong direction, especially as far as excessive > abstraction is > required. I assume that the committee was apologizing for awarding too > many liberals > in the last few years -- Sen, Akerlof. You are right!!! Don't forget....Mr. Stiglitz... Bye Ennio ________________________________________________________________________ Cerchi un laboratorio fotografico aperto 24 ore su 24? Stampa le tue foto digitali su Kataweb e le ricevi a domicilio in 48 ore. http://www.kataweb.it/foto
