Monthly Archives: January 2011
International comparisons of construction employment in the recession
Many participants in the ongoing discussion ([1], [2], [3], [4], [5], etc) on international comparisons of the evolution of output and employment have raised the point that construction employment has played a more prominent role than usual in the most recent recession. I've put together a few graphs that may be useful. I'd also like […]
Productivity, labour demand, and employment
This topic has come up a couple of times in comments on previous posts. Suppose there's an increase in labour productivity. Maybe because of improved technology. How will that affect labour demand, and employment? I'm just going to work through the absolutely standard long-run classical textbook analysis of this question, with the help of a […]
Does the rest of the world subsidize research on the American economy?
When studios shoot movies or TV shows in Canada, they stick US licence plates on the cars and pretend Toronto is New York (the Rudy Giuliani biopic Rudy), Alberta is Wyoming (Brokeback Mountain), and BC is Kansas (Smallville). Studios do it because anything explicitly Canadian tanks in the ratings. The same rule applies to blogging. […]
Spain, Ireland, and the US. All breaking Okun’s Law.
In my last post I noted that the US was abnormal in comparison to the other G7 countries. In all the other countries GDP fell by more than employment, so labour productivity fell. That's what normally happens in a recession. Okun's Law says so. But US GDP fell by less than employment, so labour productivity […]
US Productivity Exceptionalism
Stephen's got standards. So I'm going to steal his graphs from his last post, and write the post he could easily have written. Before you look at Stephen's graphs, ask yourself this question. How well did the US fare in the Great Recession, in terms of GDP and employment, compared to other G7 countries? Now […]
The generosity collapse
People give when they're asked. Jim Andreoni and Justin Rao have proved it. They ran the following experiment: one person, the allocator, was given 100 'money units', worth $10 in real money. She was free to choose how much to keep for herself and how much to give to another person, the recipient. The recipient, […]
How Much Would You Be Willing to Pay to Reduce Murders by 30%?
And furthermore, would you be willing to make the change if it meant making changes to the water supply?
The federal budget: Austerity or stimulus or neither?
This year's federal budget is going to be an interesting one. A two-year stimulus package was introduced in 2009, which meant that the 2010 budget didn't have much to say. But now some decisions will have to be made. Should the government extend the fiscal stimulus? Follow the United Kingdom's example and embark on an […]
Stand up against the penny
At this year's American Economics Association humour session, stand-up economist Yoram Bauman launched a new campaign: to end the penny – a subject discussed on this blog before. Bauman has a novel suggestion on how to eliminate the penny: promote it. Make each penny worth five cents. Allow people to trade in 20 pennies for […]
Relative grade inflation, and Operation Birdhunt
Relative grade inflation is when one professor grades easier than another professor. Or when one department grades easier than another department. Operation Birdhunt was my attempt (OK, my colleague Marcel-Cristian Voia did the actual work) to do an econometric study of relative grade inflation across departments. Birdhunt was a failure, but a noble failure.
Worthwhile Canadian Initiative 
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