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You probably know, even if you have never tasted them, that Lafite is synonymous with elegance, Mouton with power. Lafite is fragrant and ethereal, Mouton loud and fleshy. Lafite is Leonardo to Mouton’s Michelangelo. If they made clothes, Lafite would be Armani and Mouton, Versace.
A very nice article about GMU’s Econ department. I love for instance the following bit, despite its capitalizing on stereotypes (but we love those sometimes :-)); so here’s Arnold Kling: My simple way of describing it is that at Chicago they say, ‘Markets work; let’s use markets.’ At Harvard and MIT they say, ‘Markets fail; let’s use government.’ And at George Mason, we say, ‘Markets fail; let’s use markets.’”
Barack Obama might be very good at writing books (see here my assessment of his most popular book); however, he fares pretty poorly so far, in his economics policies.
Here’s my favourite bit of the best essay I’ve read today:
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The reality is that democracy is a very blunt instrument, and in today’s environment we are choosing between ways of muddling through. We may hear that the election is about different visions for America’s future, but the pitches may be more akin to selling different brands of soap.
Alessina, Ichino and Karabarbounis arguing for gender based taxation, on VoxEU. This recent CEPR working paper has the details. Their modelling is very basic (one obvious extension to make this more realistic– probably requiring a lot of effort– should be to allow for frictions in the search & matching of agents on the marriage market), but still makes for super interesting research with (potential) serious policy implications.
[…] children should be taught not so much what to think as how to think. If, having been fairly and properly exposed to all the scientific evidence, they grow up and decide that the Bible is literally true or that the movements of the planets rule their lives, that is their privilege.→ Read more
How to avoid recession in USA: Greg Mankiw’s answer. Gary Becker and Richard Posner advocate a similar perspective (the argument is centered, of course, on the subprime housing mess). Former Fed boss Greenspan already said that one should do absolutely nothing and wait for the bubble to break on its own, just as the people above (e.g.