Author Archives: wciecon
It pays to be hot (sometimes)
There are some research questions you have to answer simply because the data is there: the salaries of Ontario university professors are published on the public sector salary disclosure website, research output is listed on Econlit, university websites and calendars list a person's rank – there are even databases that list every doctoral thesis published, […]
Is The Canadian Dollar Over or Undervalued? It’s Time for a MERT Update
It has been about 6 months since we last looked at MERT - my toy for examining the relationship between oil prices, interest rates and the value of the Canadian dollar (relative to the greenback). It turns out that in 2010 the toy has done a very good job at 'predicting' the value of the Canadian dollar, […]
Why readers believe this blog is too left wing — or too right wing or too…
When Stephen Gordon's recent post on heating costs was reprinted in the National Post's Full Comment section, a few commentators were somewhat hostile: "What a surprise that a professor from Quebec believes we should take even more from 'the rich' and give to 'the poor.'" "If this socialist extremist had his way…" My recent post […]
A self-contradictory communications strategy
Does loosening monetary policy mean lower or higher nominal interest rates? An article in today's Financial Times (H/T Brad DeLong) is a good illustration of the problems that arise when central banks frame monetary policy as a (conditional) time-path for nominal interest rates.
Did War Based Fiscal Stimulus End the Great Depression?
Paul Krugman believes it is a slam dunk. It's probably a bad idea to argue with a Nobel prize winner, but my understanding was the science was not quite as settled on that point as Prof. Krugman would have us believe. Below the fold I'll cite a few pieces of research on the topic.
The NDP’s misdiagnosis
A couple of weeks ago, the NDP suggested removing the GST from heating bills, and I bemoaned the idea as just another example of a policy designed to fit a communications strategy instead of the other way around. I was hoping that the proposal would do the decent thing and go away quietly, but the […]
Is debt too high? Debt, pensions, and houses
Debt to income levels are high by historical standards in Canada and the US. Here's a recent report (pdf) from TD Economics showing household debt/income ratios at around 150% in both countries. But is that "too high"? And is that evidence that some people, like the Flopsy Bunnies, are very improvident? I'm going to play […]
The economics of health care: lessons from the animal hospital
The veterinarian called at 2:30 a.m with an update on our dog's status. The bladder stone was still stuck in Micky's urethra. Did we want to go ahead with surgery, or…? The unstated alternative: euthanasia. As I sank back on the pillow I thought "I've been teaching health economics wrong all these years."
Canada, the Eurozone, and interest rates
This is something I know I don't understand. Compare the following two statements: A: "Some Eurozone countries have higher interest rates on their government bonds, reflecting higher perceived risk of default. This raises all interest rates in those countries, and so reduces aggregate demand in those countries." B: "Some Canadian provinces have higher interest rates […]
Corporate tax cuts by the numbers
The federal government is set to reduce corporate income tax (CIT) rates from 18% to 16.5% in January of 2011, and then again to 15% in 2012. The effects of these measures have been characterised in two ways: $6b per year in tax revenues. The Liberals use this number when they explain that they are […]
Worthwhile Canadian Initiative 
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