Any thoughts on this research? Any other ways you can think of applying weather in economics?
(Source: Freakonomics Blog)
I think The N.Y. Times and Washington Post websites are great (although I don’t pay for “Times Select” but I do think that their site has the best presentation, appearance-wise). I always try and remember to click on the ad banners once in a while to try and keep the sites free or at least much of the content free. Opening the ads in another tab on Firefox is not so disruptive. Or click and minimize.What do you think of this practice? Do you think it is (or would be) effective? Try to put in economic terms why people do this.
Which hypothesis do you find convincing? Any additional ones to add?1. Social networkers head to Manhattan, and social networkers smoke.
2. In Manhattan it is more important to signal you are cool.
3. Air pollution is higher, so the marginal health cost of smoking is less.
4. New York is colder, and that makes cigarettes more enjoyable.
5. The "artsy" variable is doing most of the work; of course this is related to #1 and #2.
6. NYC life is more stressful, and smoking calms some of these people down.
7. Many of them are poseurs, and these smokers don't have such valuable human capital.I'd bet first on #2, and also on #7, but I don't have a good theory that will explain the rest of the cross-sectional evidence.
What has casued the rise in horror genre popularity over the past few years, especially given that most movies this year are sequels or part of a series?
Do you think this new horror web site will stay in business? Is there enough of a fan base?
One proposal receiving some attention is to impose a tax on foods that contain high quantities of saturated fat in the hope of cutting down consumption of these foods. The basic law of demand states that a tax on saturated fat would raise the price of fatty foods, and thereby would reduce their consumption. A good analogy is with other "sin"taxes, such as the very heavy tax in most countries on cigarettes, or the large tax in many countries on alcoholic beverages. These taxes have greatly raised the price of these goods and reduced their consumption. For example, it is estimated that every 10% increase in the retail price of cigarettes due to higher taxes cuts smoking by about 4% after the first year, and by a considerable 7% after a few years.
He ends up arguing against the use of a tax on foods with high levels of saturated fat due to the fact that there are other major causes of obesity, the likelihood of future medical advances, and a doubt of whether it would be an effective tax.
(Source: Becker-Posner Blog)
everyone on earth has, on average, 52 of them.
The contest, launched in London, will award winning leaders $5m (£2.7m) over 10 years when they leave office, plus $200,000 (£107,000) a year for life. The award will go to African heads of state who deliver security, health, education and economic development to their constituents.
In an interview with the Financial Times newspaper, Mr Ibrahim, 60, said leaders had no life after office. "Suddenly all the mansions, cars, food, wine is withdrawn.
Some find it difficult to rent a house in the capital. That incites corruption; it incites people to cling to power. The prize will offer essentially good
people, who may be wavering, the chance to opt for the good life after office,"
What do you think of this prize? It is actually similar to the Netflix innovation prize we discussed recently. Do you think it will be effective in combatting the corruption in many African governments?
Economist Tyler Cowen thinks the prize is too small. Here is another post about it where the author is skeptical, thinking that is gives a reward for something that should be expected.
(Source: Marginal Revolution)
(Source: Carrie S.)How should the US healthcare system be reformed?
Which of these solutions seems that it would work the best?
If the world's very poor countries stay in Malthusian traps, how long will it be before wealthy philanthropists can try to "adopt a country"? Measured Haitian gdp, for instance, is only a few billion dollars a year. Yes many countries have laws against foreign investment and land ownership, but at some point a correct strategy can put the money to good use. Can an entire corrupt government simply be bought out? Just how much money, and what kind of plan, would a private philanthropist need each year to turn Haiti around, or at least bring it to the standards of Martinique?What do you guys think? Do you think this will happen in the forseeable future? Could it be a way to improve some countries or merely a power that will inevitably be abused?
Harford offers two strategies depending on how the food is presented:Dear Economist,
From time to time I find myself eating a meal with an unlimited supply of food: sometimes an all-you-can-eat buffet, sometimes a more sophisticated meal laid on by a friend or someone trying to impress: weddings, banquets, that kind of thing. I like food but there are limits to how much I can eat. So how should I pace myself for optimal enjoyment of the meal?
Mr M. Newman, Shrewsbury
Any thoughts on the best buffet strategy?
In some ways, says Tim Hartford, author of the article, this makes sense: having two working parents leaves young children unsupervised, at daycare or with a nanny, who probably puts them in front of the TV and feeds them high-calorie processed foods that take less effort to prepare. And at the end of a long working day, exhausted, they may provide fast food for the children rather than cooking a traditional, nutritious meal. (Just look at it based on opportunity cost: if parents are too exhausted, the cost of cooking a meal would be much higher than the "small" weight gain associated with just one fast food meal...and then that just snowballs.) But on the other hand, for example, many kids at Walker have two working parents, and few of them are overweight. Is Hartford's proposal a plausible cause of the childhood obesity epidemic? Could it be a major player, or only one of many factors? If it is one of many, what other possible causes (within the family) could there be (i.e., parents' income levels, living in the suburbs vs. the city, even firstborn vs. second, third, etc child)?(Source: Nicole O.)
Tax incidence. A basic principle of tax analysis -- taught in most freshman economics courses -- is that the burden of a tax is shared by consumer and producer. In this case, as a higher gas tax discouraged oil consumption, the price of oil would fall in world markets. As a result, the price of gas to consumers would rise by less than the increase in the tax. Some of the tax would in effect be paid by Saudi Arabia and Venezuela.What do you think of his argument? If you agree, what is the most convincing aspect? If you disagree, is there a better alternative?
Economist Tyler Cowen discusses this article and gives another argument for giving to only one charity:Even the way we choose to dole out cash betrays our true motives. Someone with $100 to give away and a world full of worthy causes should choose the worthiest and write the check. We don't. Instead, we give $5 for a LiveStrong bracelet, pledge $25 to Save the Children, another $25 to AIDS research, and so on. But $25 is not going to find a cure for AIDS. Either it's the best cause and deserves the entire $100, or it's not and some other cause does. The scattershot approach simply proves that we're more interested in feeling good than doing good.
Many people are unconvinced by this argument—which I owe to Steven Landsburg—because they are used to diversifying their financial investments (a bit of Google stock and a bit of Exxon, too) and varying their choices (vanilla ice cream AND bananas). But those instincts are selfish: They are not intended to benefit both Google and Exxon, nor both the ice-cream company and the banana growers. With charity, the logic is different, and a truly selfless donor would bite the bullet and put his entire donation behind one cause. That we find that so hard to imagine is just one more indication of how hard it is for us to think ourselves into a truly selfless view of the world.
None of this is to say that these contributions are worthless or economically insignificant. Just don't get too starry-eyed about the motives behind them.
I agree with Harford's point in a different regard. The fixed costs of processing a donation are relatively high, if only because the charity will send further letters asking for more money. For that reason it may be better to focus our giving on a single charity.What do you think? If you had $1,000 to give, what strategy would yield the biggest impact?
Why do you think there would be a market for this? You could also argue why there will not be a market for this (or why no one will buy it as long as they have that horrendous slogan).Companies appear to be on a never-ending quest for ways to pamper your pooch, and here's the latest evidence: Ice cream maker Good Humor and pet food producer Pedigree have announced plans to produce ice cream sandwiches for dogs.
Apparently this is not a stupid pet snack. The companies said they needed a special formula for the dairy treats, as many dogs are lactose intolerant and cannot easily digest regular ice cream. Pedigree Ice Cream Sandwich Treats for Dogs will be dairy-based and have the same texture as ice cream, but contain only 1 percent lactose. The treats also will have added protein and no sugar, and are "pawsitively delicious," the firms' press release exclaims. A package containing 6 frozen yummies will
sell for $3.99.
The rise in cancer-drug prices is a microcosm of broader trends pushing up health care costs nationally. Despite decades of efforts by governments and insurers to restrain costs, patients continue to want the newest — and most expensive — drugs and medical devices. And doctors and the health care industry have little reason to keep costs in check, because insurers rarely deny coverage for new treatments on the basis of price.And the insurance companies are not the only ones that face the higher price:
Drug industry experts say Abraxane’s price reflects the fact that makers of cancer drugs can charge high prices for new medicines even if they are only marginally better than their older counterparts. That pricing dynamic is enabled by insurance, which shields patients from the full price of drugs. Without pressure from their insurers, patients have little reason to choose older treatments over expensive new therapies.
Even if they have insurance, many patients face co-payments of 20 percent for their cancer drugs, an expense that can become ruinous for patients receiving combination therapy with several new drugs. For example, Abraxane is being tested along with Avastin, a treatment from Genentech that costs $8,000 a month for some patients.Here are some questions that go along with the article from Sarah:
Drug costs are rising so fast that some patients cannot afford the newest treatments, and access to some therapies “is beginning to be eroded,” Ms. Hinestrosa said.
What are the problems of this current system and what can be done to limit the prices of these not even miracle drugs? What are the long term effects of this trend and is it caused only by increased demand by consumers?(Question posed by Sarah O.)
(Source: Greg Mankiw's Blog)
I love the Netflix approach to the problem. They could easily spend $1 million internally hiring some programmers or Ph.D’s to try to improve their algorithm, with uncertain results. Instead, by making it a contest and offering up data to outsiders, they will probably succeed in having 100 times as many person-hours devoted to the problem for the same price—or cheaper because they only pay out the million if someone really improves on what they are doing now. In addition they gets lots of free publicity. Truly a brilliant strategy.Do you agree that it is a brilliant strategy? Is there any downside to this strategy?
Medicare requires that transplant centers perform 12 transplants a year to be certified but many programs are in violation of that standard with little consequence. Medicare is even thinking of reducing the standard from 12 per year to 9 in 30 months. As one specialist says "I wouldn't take my car to be serviced by someone who repaired nine cars over the past three years. Would anyone do that?"He references an article and graph in the Washington Post that discusses the fact that many hospitals are currently falling short of this mark.
What do you guys think? If you only have a certain number of vaccines, who should get first priority?In May, scientists at the National Institutes of Health stirred things up with a paper calling into question the policy that aims to save the most lives by first vaccinating the old, the very young and the sick, putting last those who are two to 64 years of age.
The value of a life, they argued, depends on age. A 60-year-old has invested a lot (measured by education and experience) in his life, but has also reaped most of the returns. A child has minimal investment. A 20-year-old has great investment but has reaped almost none of the returns. Conclusion: To maximize investment in a life plus years of life left, 13- to 40-year-olds should have first claim on rationed vaccine, explains NIH's Ezekiel Emanuel.
What do you guys think? Should they be giving Nobel Prizes to the economists that come up with a few pathbreaking ideas (the home run hitters)? Or to economists that have larger quantities of consistent, solid research (the batting average leaders)? Which would be better for the field of economics? Which would be better for society as a whole in terms of advancing knowledge and having better economic policies?There was an apparent consensus that the Nobel committee prefers rewarding people for a few path-breaking works, rather than judging an entire career of contributions. Is this optimal?
If the goal is to provide researchers with the right incentives, it may not be. It is as if a baseball team paid players based only on the number of home runs. We would have too many players swinging for the bleachers and too few base hits. In economics, maybe we get too many of the best people trying to create new paradigms and too few engaged in more routine, applied research.
ORNITHOLOGY: Ivan R. Schwab, of the University of California Davis, and the late Philip R.A. May of the University of California Los Angeles, for exploring and explaining why woodpeckers don't get headaches.
CHEMISTRY: Antonio Mulet, José Javier Benedito and José Bon of the University of Valencia, Spain, and Carmen Rosselló of the University of Illes Balears, in Palma de Mallorca, Spain, for their study "Ultrasonic Velocity in Cheddar Cheese as Affected by Temperature."
The basic idea in all of the examples is that the action is not adding to the total welfare to society, merely providing more profit or resources to the rent seekers (many times just transferring resources from one group to another).
As a sidenote, one of his colleagues at George Mason University posted this about how Tullock always comes up with great insults. Here is my favorite:
The other day Gordon asked me to read one of his papers and Ipointed out a few typos. "Excellent," he said, "this will surely be your greatest contribution to economics."
Can you think of any other examples of rent-seeking behavior? Any ways in which you try to gain without providing any productivity?
Williamson's core idea is the theory of transaction cost economics. We can analogize transaction costs to friction: they are dead weight losses that reduce efficiency. They make transactions more costly and less likely to occur. Among the most important sources of transaction costs is the limited cognitive power of human decisionmakers.
Can you think of any other examples where transaction costs are important other than when buying cars? Are there cases where transaction costs can cause you to not make a purchase that you would make if they did not exist?
How will this new policy from Wal-Mart affect the demand for brand name drugs and will this policy affect total revenue? Consider the elasticity of demand for generic drugs. Wal-Mart claims up to a 70% savings for consumers on some drugs, so where does Wal-Mart benefit? What are some possible negative repercussions for such a policy?
What do you think about this plan? Is it smart on Yale's part or are they giving people a free ride without having to pay the high tuition?Yale University said on Wednesday it will offer digital videos of some courses on the Internet for free, along with transcripts in several languages, in an effort to make the elite private school more accessible.
While Princeton University, Massachusetts Institute of Technology and others already offer course material online without charge, Yale is the first to focus on free video lectures, the New Haven, Connecticut-based school said.
The 18-month pilot project will provide videos, syllabi and transcripts for seven courses beginning in the 2007 academic year. They include "Introduction to the Old Testament," "Fundamentals of Physics" and "Introduction to Political Philosophy."
The courses cannot be counted toward a Yale degree, and educators say they are no substitute for actual teaching.
- Supply flexibility, which means that schools should have the ability to open where there is demand for them, expand with increased demand and contract with reduced demandNow being at a private school, you guys have at least some idea of the benefit of competition between schools. What do you think of the overall idea as a replacement for the current public school system? Let's get a discussion going of some of the key issues involved.
- Money should follow students, which means that funding policies must be designed so that schools that are in demand have the funds to expand and those that are not in demand lose funds and must contract; and
- Independent management of schools, which means that schools must be free to innovate in a range of areas, including pedagogy, teacher pay, budget allocation, and the way the school is organised.
On the other hand, profits have increased to operators of refineries that were not damaged by Katrina because the damage to Gulf oil refineries raised the wholesale price of gasoline, the main product of refineries. However, the higher prices and greater profits induced undamaged refineries to squeeze greater production out of their limited capacity, and companies hastened to repair the refineries that were damaged to cash in on the high prices. In fact, many were repaired in a remarkably short time. If price were not allowed to rise, profits of undamaged refineries would have been reduced, but the supply of gasoline would have increased at a slower, probably much slower, rate.He also discusses later in the article that he thinks that price controls are also not necessary in developing nations when they face a catastrophe, which is a more controversial stance. Any thoughts on that after reading his argument? Any cases that we did not discuss in class where you think price controls are valid?
One thing that I never could understand was why Webvan (the company "back in the day") who was in all the major cities delivering groceries from their online page went out of business. It just made sense to me that people would have an easier time buying their groceries online and having them sent directly to their house (no driving, long lines, etc).Here is an article that discusses the issue.
We should expect supermarkets to overinvest in encouraging impulse purchases. (Wegman's should put a given item in only one place and yes I will learn where that is.) Maybe that is the economic problem with home delivery. Smells, squeezes, and full-size items -- not Internet links -- sell profitable foodstuffs. The boring bulk stuff which is easy to order over the Internet also brings the lowest profit margins, I believe.Overall, can you think of any other reasons why the home delivery of groceries did not work? Or maybe answer the question posed by Dr. Cowen in his post: what features would you like to see in the near future in grocery stores (especially given that it will probably be a few years until you have to shop for groceries on a regular basis anyway)?
He offers several hypotheses, but the one I find most convincing initially is:I almost always read novels in bits. That is, I put the book down for a few times before finishing it.
I rarely watch movies in bits. That just seems wrong. But, assuming we are watching on DVD, why? Why do pauses ruin a movie but not a book?
2. Most books are longer than most movies, but there is otherwise no good reason for the difference in our consumption pattern.I find this one convincing simply because if there is a book that takes less than two hours to read, I usually read it in one sitting. I tend to think that any movie over 1 hour and 45 minutes is too long, anyway, so I have no problem pausing DVDs and watching the rest later if they are over 2 hours.
The ever-wise Natasha notes that we are mostly likely to read action novels -- such as The da Vinci Code -- straight through without pause. But action movies are the easiest to watch in bits. Ever try just a half hour of Jackie Chan? Wonderful. But breaking up a good drama is criminal.What are your thoughts on this?
In a few very publicized cases, the government is trying to get directly involved in maintaining (or improving) the health of America's children by putting weight on report cards, removing vending machines from schools, etc. Is it important to do such things, or is it a lost cause? If so, why, and what causes the problem in the first place (like marketing of junk food directly to children)? And is there something, ultimately, that could reduce the incentive for children (and people in general) to eat junk food, or is the approach that these schools are taking (by removing the temptation entirely) the best (or is it an impossible problem to fix at all)?
(Proposed by Nicole)
One of the challenging paradoxes during the past several decades is that American teenagers have consistently performed below average on international tests in math and sciences, and not especially well on reading tests, yet the American economy is more productive than any other.One reason he gives is that the education system in the United States builds up and gets harder as you move up each level, culminating with university, while in some other countries, elementary and secondary school is harder and college is seen as a "break" or a reward for doing all of the work in the first place. I can attest to this phenomenon from observing schools and talking to students in Japan. Another interesting reason he gives that I can relate to as a teacher is that:
American schools are less oriented toward rote teaching than are schools in many other countries, and they are more oriented toward giving students practice in thinking through issues and expressing themselves in discussions.Economist Arnold Kling boils the argument down to two propositions:
Which explanation do you find most convincing? Any other explanations that may be useful?(1) International tests fail to measure the superior aspects of the U.S. education system.
(2) Education is not such an important factor in comparative economic performance.
I lean toward (2). It's better to have strong entrepreneurialism and mediocre education than the other way around.
prominent fashion designers in the U.S. are pushing for federal legislation that would offer three years of copyright-like protection for designs ranging from dresses and shoes to belts and eyeglass frames.What do you think of this idea? Copyrights protect intellectual property and give people more incentive to create new ideas. However, they also create temporary monopolies and drive up the price of the goods in question. Copyrights already cover written material, songs, etc. Do you think copyrights should be extended to fashions?
His 24-year sentence stemmed from a calculation of the financial loss caused to investors in Dynegy by Project Alpha, an accounting fraud in which he took part. That financial loss was estimated using the fall in Dynegy's share price on the news that Project Alpha was fraudulent. According to Judge Lake, it was so big that, under sentencing guidelines then in place, Mr Olis had to go to jail for a long time.Any thoughts on the use of this theory to determine damages? The article discusses some of the controversy of using it.
There is no link to the article, but here is a link to the Marginal Revolution post that cited it and also an opinion from economist Tyler Cowen that his issue is that he does not think the foreign aid would end up in the hands of the poor in these cases.Our research find that a 5% drop in per capita income due to drought increases the likelihod of a civil conflict [in African countries] in the following year by nearly one half. That's a very large effect.
...Currently, most foreign aid focuses on long-term investments in infrastructure of education but does little to deal with such short-term triggers of violence as drought or falling export commodity prices. But our research suggests a larger share of aid should aim to dampen the sharp falls in income that actually generate recruits for rebel movements.
Aware that inserting advertisements at the beginning of video clips, as some sites do, is annoying and risks driving away YouTube's users, Mr Hurley and Mr Chen have announced two experiments with advertising, with the promise of more to come. One idea is for “brand channels” in which corporate customers create pages for their own promotional clips. Warner Brothers Records, a music label, led the way, setting up a page to promote a new album by Paris Hilton. The second experiment is “participatory video ads”, whereby advertisements can be uploaded and then rated, shared and tagged just like amateur clips. This “encourages engagement and participation,” the company declares.Do you think YouTube is a sustainable business? Any thoughts about their ideas on how to make money? I know that many of you are the prime consumers of YouTube, so would you look at ads in this way?
Why do you think trucking companies are facing a shortage of workers? Other than their penchant for driving RVs, why target older couples?Faced with a worsening shortage of long-haul truck drivers, freight carriers are turning to the RV generation, aggressively recruiting older couples like the Fords to climb behind the wheel. Schneider National Inc., the Green Bay, Wis., company that hired the Fords and put them through driving school, fishes for applicants through AARP, the advocacy group for people 50 and older, and has a Web page for "mature workers." This fall, the American Trucking Association plans a billboard and television ad blitz to lure older drivers."We just thought if Ma and Pa can drive the Winnebago, maybe they can drive the 18-wheeler," says Tim Lynch, a senior vice president at the trade group...
The hiring binge has dramatically increased the number of husband-and-wife driving teams, and truck makers are trying to make their big rigs feel more like rolling homes away from home. Paccar Inc.'s Kenworth Truck Co. unit introduced a new model in March with leather beds and heated seats. Volvo Trucks North America, part of AB Volvo, has begun production of trucks with a full-size bed in the cab comfortable for couples.
starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.They then rank countries in on how easy it is to have a business in the country based on the regulations of the government. For 2007, the top five are as follows:
If you were opening a new business in Lao PDR, the start-up procedures would take 198 days. If you were opening one in Syria, you would have to put up $61,000 in minimum capital—51 times average annual income. If you were building a warehouse in Bosnia and Herzegovina, the fees for utility hook-up and compliance with building regulations would amount to 87 times average income. And if you ran a business in Guatemala, it would take you 1,459 days to resolve a simple dispute in the courts. If you were paying all business taxes in Sierra Leone, they would take 164% of your company’s gross profit...Overall, a clear reason why many countries have difficulty sustaining economic growth is that it is so hard to merely conduct business in the country. Reactions to this? Why do you think so many countries burden their industry with regulations like this?
This new mobility is weakening the whole notion of the ethnic neighborhood. Forget the old Chinatown paradigm: Diffusion is the new model. As a result, ethnic restaurants are more like scattered outposts, drawing from a wide radius. As Serrano points out, "Our competition is not right next door. We compete with . . . restaurants five or 10 miles away."Cowen also discusses, however, the types of restaurants that are still clustered in ethnic neighborhoods. They tend to be ethnic foods, like Korean and Filipino, that do not appeal as much to American tastes.
Filipinos, for example, are the second most numerous Asian group in the United States (some 2 million, compared with 2.7 million Chinese). But outside of Little Manila in Los Angeles and parts of San Francisco, Filipino restaurants are unusual. The Washington area -- where there are some 34,000 people of Filipino heritage -- has Little Quiapo in Arlington and Manila Cafe in Springfield. But few non-Filipino Americans have a love for fish sauce, vinegar marinade and oxtail. And, as my Filipino friend John Nye has told me, many Filipinos prefer a home-cooked meal.
Apparently, the films are mostly straight-to-VHS films, and are watched all over Africa. Furthermore, the industry thrives with little to no help from the Nigerian government."Nollywood, as Nigeria's film industry is known, now makes over 2,000 low-budget films a year, about two-thirds of them in English. That is more than either Hollywood or India's Bollywood.
Today, filmmaking employs about a million people in Nigeria, making it the country's biggest employer after agriculture."
"Our mission is to help users skip phone trees and connect with a real human on the customer support phone lines at many companies throughout the U.S. Users simply choose the company they wish to call, and we’ll dial the company directly, navigate their phone tree, and call them back when they are in queue for an operator or customer service representative.”Do you think this is a sustainable business idea? Any thoughts on who their real market would be or who they should market to?
When is demand for haircuts higher? When short hair is in fashion, or long hair? Or is the relationship more complex?When you talk about demand for haircuts, I think you can talk about two different things: the number of haircuts demanded from professional barbers and stylists or instead the amount of money spent on haircuts from professional barbers and stylists.
It's no secret that Americans have been getting fatter over the last several decades. But in fact, weight has been rising for more than 150 years, as shown by the economic historians Dora Costa and Richard Steckel. From the Civil War to the 1990s, the weight of a 6-foot-tall American male increased by about 30 pounds on average.
These historical trends are not hard to understand. As we have gotten wealthier and more technologically advanced, food has gotten cheaper and work more sedentary. Both these factors have contributed to rising weight over the time-frame of centuries, and the recent rise in obesity has likewise been fueled by reductions in the price of food.
Since 1976, food has fallen in price by more than 12% compared to other goods. My colleague Tomas Philipson and I have shown that this reduction in price can explain at least half the recent growth in obesity. Shin-Yi Chou, Michael Grossman and Henry Saffer reached similar conclusions about the importance of price. In addition to its overall price, they stressed the increasing availability of food service establishments.
While it is not entirely clear whether restaurants make people heavier, or heavier people attract more restaurants, there is no question that eating is cheaper and easier than it used to be. As if that were not enough, the most calorie-dense foods have seen the biggest price reductions. David Cutler, Edward Glaeser, and Jesse Shapiro have shown that technological advances have especially lowered the price of processed and snack foods -- like french fries and vending machine treats -- which are particularly high in calories.
The evidence above suggests that obesity is a by-product of prosperity and technological advance.
(Source: Greg Mankiw's Blog)
There is a neuroeconomics critique of Big Box Sets. So much of the pleasure of a purchase lies in the anticipation of the buy rather than the having. The anticipatory pleasure of a Big Box Set, no matter how large, is not so much greater than the anticipatory pleasure from a single CD. Yet once you own a large box it sits around. You can't listen to the CDs all at once. They start to feel "stale," and then you go out and want that anticipatory fix again. Bryan Caplan aside, the anticipatory pleasure of "listening to the seventh CD in the box" is somehow not the same.Are there any other examples of this phenomenon where you buy smaller packages to get more enjoyment out of actually buying them?
To Nylabone:Dear Sir or Madam:
You may love to see me smile, but I, however, love to see me eat. Please send me coupons for free McDonald's product, so that I may continue to eat (and smile).
Thank you well in advance, Tom Locke, eating enthusiast
Dear Sir or Madam:He has already gotten more responses than I thought he would. Any predictions for what type of companies are likely to give him free stuff? Any explanation for the type of companies who already have? If you had to pick another company that he did not choose that you think would be very likely to send you free stuff if you asked, which would you choose?
My dog (a random mutt) loves your "Healthy Edibles" bones. I wanted to name the dog "Bonecrusher", but my wife ended up naming him "Rudy Huxtable". What a stupid name for a dog. Anyway, your bones are the only thing that stops this dog from molesting my leg while I'm working on the computer. Any chance you could send over some free samples? My dog – and my leg – would greatly appreciate it! Thanks well in advance, Tom Locke, "keeping my dog off of my leg" enthusiast
Which side do you believe? The side saying that movie theaters are on their way out or the side saying that movie theaters are helped by the popularity of DVDs, etc.?I think DVD's have been the savior of not only the studio model but have been beneficial to theater owners, too, because it funnels more money back into the studios, which in turn fuels higher production budgets, greater numbers of films, and so on.
We have seen the window shrink from an average of about six months between theatrical to video 10 years ago to about four and a half months today. Some compression of that window over time is justified, or has been justified at least in the past, because we generate our piece of the pie at the box office much quicker today than we did a decade ago.
People who run the studios are smart people, and I think they realize the tremendous value of having that theatrical launch pad. And I don't think that's going to change. They make films to be released on the big screen.
84 percent of new car sales in China are to first-time buyers. In the U.S., just 1 percent are.
What does this tell us about China? If you were starting a business in China, what type of business would you start (other than a car company)?
"LANSING -- State Attorney General Mike Cox said Wednesday he is taking legal action against Wal-Mart after an investigation at five of the retailer's stores found up to 80 percent of the merchandise didn't carry price tags."
Nearly 100% of the merchandise in my local Wal-Mart doesn't have price tags so what's the rub? Michigan has an item pricing law mandating that merchandise have old-fashioned price tags. So-called consumer advocates bleat about mispricing from scanners and barcodes, but the law is most likely a make-work sop to unionists. The Michigan AG is now using the law to beat up Wal-Mart--I'd bet dollars to donuts that it's either outright false or a case of selective enforcement.
BTW, Emory's Paul Rubin has a paper (with co-authors) examining the effects of item pricing laws. The money line:"We find consistent evidence across products, product categories, stores, chains, states, and sampling periods, that the prices at stores facing item-pricing laws are higher than the prices at stores not facing the item-pricing laws by about 25 cents or 9.6% per item."
Using data from three waves of Add Health we find that being very attractive reduces a young adult's (ages 18-26) propensity for criminal activity and being unattractive increases it for a number of crimes, ranging from burglary to selling drugs. A variety of tests demonstrate that this result is not because beauty is acting as a proxy for socio-economic status. Being very attractive is also positively associated adult vocabulary test scores, which suggests the possibility that beauty may have an impact on human capital formation. We demonstrate that, especially for females, holding constant current beauty, high school beauty (pre-labor market beauty) has a separate impact on crime, and that high school beauty is correlated with variables that gauge various aspects of high school experience, such as GPA, suspension or having being expelled from school, and problems with teachers. These results suggest two handicaps faced by unattractive individuals. First, a labor market penalty provides a direct incentive for unattractive individuals toward criminal activity. Second, the level of beauty in high school has an effect on criminal propensity 7-8 years later, which seems to be due to the impact of the level of beauty in high school on human capital formation, although this second avenue seems to be effective for females only.And yes, this is economics.
In Kenya, four million people are facing hunger due to severe drought. A New Zealand dog food manufacturer offered to donate 6,000 emergency packs of dog food mixture to help feed Kenyan orphans. A Kenyan government spokesman said: "We appreciate the offer, but we dismiss it as culturally insulting."Their source is the following BBC article.
