Monday, January 31, 2011
Very cool graph (via Economix; I suggest the whole post):
The graph comes from "The Haves and the Have-Nots,” by Brancko Milanovic. (He is the coauthor (with Lindert and Williamson) of a great paper).
Friday, January 28, 2011
Friday, January 21, 2011
Coase's Theorem and Ricardo's Comparative Advantage are the best single ideas in Economics. Simple, non-trivial and even inteligent people find it hard to grasp. In his twenties, Coase had already proved that he was a genius. The question posed in The Nature of the Firm "Why do firms exist?" opened a whole new research program and has changed economic thought forever. The answer, almost everybody agree, is transaction costs.
WN: (...) You have high hopes that the future of economics is in China. What makes you think so?
RC: It is obvious. It is the size of Chinese population. A new idea is always accepted only by a small proportion of the population. But a small proportion of the Chinese is a big number.
(...)RC: I am now 100 years old. At my stage, life requires a constant effort. As I told you many times, do not get old. (...)