Bullshit or not?
Assumption 1: There is a trade off between welfare state spending and
military spending.
Assumption 2: The more you spend on military, the more a gov't can project
power abroad.
Assumption 3: The Median European voter prefers more welfare state than
Americans, who prefer more m
This is were income and substitution effects are useful even for business
student, the preference of the median voter could be the same between
America and Europe but relative prices of providing both military equipment
and welfare subsidies as well as income between the two continent are
definitiv
Interesting. A Neo-Marxist Conspiracy Theory,
from an economist's perspective, "It's all about OIL(Euro's)." My degree
is in Political Science, with an emphasis on International Relations. What
we learn in the Social Sciences is that things tend to be "over-determined,"
many not one cause
So far we have that i. and s. effects are useful to
a) teach Marshallian demand
b) teach difference between nominal and real income
c) students going on to graduate school
d) useful but for reasons that can't be remembered! :)
e) useful as a hurdle/signal
f) not useful at the intermediate/mba l
Note that the U.S. has lower welfare spending, higher military spending
*and* lower government spending over all than Europe. Thus if the U.S.
government spent as much as the Europeans we could have just as large a
welfare and a warfare state. The fact that we don't indicates that at a
minimum
Depends on what you mean by "used in making policy." As far as I know
there are no decisions which are based solely on cost-benefit analysis.
Budgeting is done by legislatures so if CBA plays any role there it is
in influencing the decisions of legislators. CBA is most commonly used
in making regul
I'm not disagreeing, but I am curious: what would you
teach instead?
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Hi Alex,
It seems to me that you do want your students to know that demand
curves don't have to slope down and that lowering taxes on a good
doesn't have to cause more of the good to be consumed. Even if you don't
teach your students the details of income and substitution effects you
want them
knowing what i and s effects are all about teaches people to evaluate
which types of tax cuts will entail higher production - and which types
of tax cuts will do the reverse...
jacob braestrup
danish taxpayers association
>So far we have that i. and s. effects are useful to
>
> a) teach Ma
I do agree that one of the few applications of i. and s. effects is to
labor supply (this was mentioned in my first post). (This is because
labor is one of the few goods where the income effect is likely to be
large.) Hence that is the context in which I teach the material. It is
appalling, th
On Tue, Feb 11, 2003 at 10:34:40PM -0500, William Dickens wrote:
> Should OPEC set oil prices in Euros and hold their cash reserves in
> Euros what would be the real consequences for the US? 1. A tiny increase
> in risk wrt oil prices (we know its tiny because the cost of currency
> hedging is mini
Hi Alex,
I cannot point with conviction to any example of a Giffen
consumption good and I don't consider it to be a very important
consideration. My claim was not that any demand curves _do_ slope up,
but that you want your students to know that it is a logical possibility
and what is required
In a message dated 2/12/03 10:00:59 AM, [EMAIL PROTECTED] writes:
>Depends on what you mean by "used in making policy." As far as I know
>there are no decisions which are based solely on cost-benefit analysis.
>Budgeting is done by legislatures so if CBA plays any role there it is
>in influencing
On Wednesday, February 12, 2003, at 11:14 AM, Wei Dai wrote:
On Tue, Feb 11, 2003 at 10:34:40PM -0500, William Dickens wrote:
Should OPEC set oil prices in Euros and hold their cash reserves in
Euros what would be the real consequences for the US? 1. A tiny
increase
in risk wrt oil prices (we
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