Economic Logic

The literature on international environmental agreements has established that when such agreement are only of the self-enforcing kind (not i...

Some people have been complaining about the increasing mathematization of econonmics and how it leads to a disconnect of economics with real...

The standard model of competition with a homogeneous good tells us that every supplier will apply the same, low price. This situation of per...

A persistent frustration for economists is that policy makers do not listen to them, especially politicians. That they then accuse economist...

When a business is successful, it grows. Successful businesses also are more likely to survive and thus old business tend to be larger. Now ...

Usually, better information leads to better outcomes (well except for those people who could exploit some information asymmetry). People can...

Ever since the Stern Review on climate change came out, the debate has raged about what the appropriate discount rate should be to evaluate ...

It is now the norm that both partners of a couple work, and with that come issues about coordinating work time around children and allowing ...

I mentioned only a couple of days ago that tax credits for economic development do not work. Yet, politicians cannot help it to grant such ...

It should by now be obvious to anybody who has been following this blog that I do not like time-dependent pricing (aka the Calvo fairy) beca...

Every government, from the most local to the national one, touts its success in attracting business and creating jobs through well targeted ...

Suppose you are a manager in a firm where it is difficult to observe the performance of workers, such as faculty, computer programmers or la...

A state-sponsored lottery is a tax on stupid people, and one may not object on its existence for this reason. Except that people may be stup...

From what I can see, the countries that are going to suffer the most from climate change are developing ones. As we economists are constantl...

Whether prices are sufficiently rigid to matter is an somewhat unsettled debate I have occasionally discussed on this blog. This is mostly a...