"The great urbanist Jane Jacobs was correct about so much in cities, but she got housing prices wrong. She noted that old housing was cheaper than new housing, and so she thought that restricting new development could keep prices down. That’s not how supply and demand works. Abundant supply is the only way to reduce prices in really high-demand areas."
“To the extent that some expertise is required, friends and family members of the original entrepreneurs are more likely to have access to those resources than would-be criminals in an isolated location,” says Michael Macy, a Cornell University sociologist who studies social networks. “There may also be local political resources that provide a degree of protection.”
Online thievery as a ticket to the good life spread from the early pioneers to scores of young men, infecting Râmnicu Vâlcea’s social fabric. The con artists were the ones with the nice cars and fancy clothes—the local kids made good. And just as in Silicon Valley, the clustering of operations in one place made it that much easier for more to get started. “There’s a high concentration of people offering the kinds of services you need to build a criminal scheme,” says Gary Dickson, an FBI agent who worked in Bucharest from 2005 to 2010. “If your specialty is auction frauds, you can find a money pick-up guy. If you’re a money pick-up guy, you can find a buyer for your services.”
Is inequality largely the result of the Industrial Revolution? Or, were pre-industrial incomes as unequal as they are today? This article infers inequality across individuals within each of the 28 pre-industrial societies, for which data were available, using what are known as social tables. It applies two new concepts: the inequality possibility frontier and the inequality extraction ratio. They compare the observed income inequality to the maximum feasible inequality that, at a given level of income, might have been ‘extracted’ by those in power. The results give new insights into the connection between inequality and economic development in the very long run.IMHO, the concept of inequality possibility frontier is brilliant and relevant for historians and development economists.
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. (...)
