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Greg Mankiw's Blog

Greg Mankiw's Blog
Over the past few decades, there has been an amazing shift in how businesses are taxed. See the figure below, which is from CBO. Businesses are more and more taxed as pass-through entities, where the income shows up on personal tax returns rather than on corporate returns. (Here is an article discussing how the mutual giant Fidelity recently switched from one form to the other.) This phenomenon complicates the interpretation of tax return data. For example, when one looks at the growth of the 1 percent, or the 0.1 percent, in the Piketty-Saez data, that growth is likely exaggerated because some income is merely being shifted from corporate returns.

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Vickrey, William. 1996. 15 Fatal Fallacies of Financial Fundamentalism Fifteen Fatal Fallacies of Financial Fundamentalism A Disquisition on Demand Side Economics William Vickrey October 5, 1996 Reading Politics · Intervention and Prudence Patrick Porter Finally after a busy teaching term I’ve got a chance to add some thoughts to the great post and articles by Jon Western and Joshua Goldstein on humanitarian intervention. Bottom line: I think Jon and Joshua make a robust case that not only can intervention work, but that the international community is learning effectively how to go about it. As they argue, it is a technique of statecraft that is being refined and better understood. Modern Monetary Theory … alternative economic thinking The Weekend Quiz – March 5-6, 2016 Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention over the last seven days.

Lawrence Summers Some time ago speaking at the IMF, I joined others who have invoked the old idea of secular stagnation and raised the possibility that the American and global economies could not rely on normal market mechanisms to assure full employment and strong growth without sustained unconventional policy support. My concern rested on a number of considerations. First, even though financial repair had largely taken place four years ago, recovery since that time has only kept up with population growth and normal productivity growth in the United States, and has been worse elsewhere in the industrial world. Second, manifestly unsustainable bubbles and loosening of credit standards during the middle of the last decade, along with very easy money, were sufficient to drive only moderate economic growth.

The 1% are the very best destroyers of wealth the world has ever seen If wealth was the inevitable result of hard work and enterprise, every woman in Africa would be a millionaire. The claims that the ultra-rich 1% make for themselves – that they are possessed of unique intelligence or creativity or drive – are examples of the self-attribution fallacy. This means crediting yourself with outcomes for which you weren't responsible. Many of those who are rich today got there because they were able to capture certain jobs. This capture owes less to talent and intelligence than to a combination of the ruthless exploitation of others and accidents of birth, as such jobs are taken disproportionately by people born in certain places and into certain classes. The findings of the psychologist Daniel Kahneman, winner of a Nobel economics prize, are devastating to the beliefs that financial high-fliers entertain about themselves.

Blog Roundtable: Are there tips for fighting impostor syndrome? « Mr Epidemiology This blog roundtable is part of a series about graduate school – why do it, what is it like, and what to do afterwards. I encourage you to give your own opinions in the comments section, and if you disagree with a point made by the panel, voice your opinion! This is something a lot of my readers can relate to, so I’m hoping to hear from all of you. Note that these are the opinions of those involved, and do not reflect our institutions or departments in any way. For a full list of the questions, read the first post. One of those is not the mouse you are looking for (click to go to Snorgtees.com)

Blog Today is Equal Pay Day, a reminder that women and men are not always compensated at the same rate. While the widely reported statistic that women, on average, earn 77 cents to every man’s dollar has been is a great indicator that women are put in situations every day that for a variety of reasons mean they earn less, it has been criticized for not measuring individuals of similar characteristics, such as age, occupation, education, or experience. To try to get a better understanding of the gender wage gap among specific age groups, and given that many high school and college seniors are on the brink of graduating and entering the labor force, I thought it would be interesting look at the gender wage gap by age and education, to see how women and men fare as they enter today’s unsteady labor market. To close the gender wage gap, women need to see real wage growth faster than their male counterparts.

The Wealth Report One of the most famous and funny Monty Python skits is the “Four Yorkshiremen.” Four cigar-smoking, tux-wearing swells recount their childhood and try to top each other with stories of hardship. One says he used to live in a single room with 26 others. “Eh, you were lucky to have a room!,” says another. “We used to have to live in t’ corridor!” The Neuroeconomics Revolution - Robert J. Shiller Exit from comment view mode. Click to hide this space NEW HAVEN – Economics is at the start of a revolution that is traceable to an unexpected source: medical schools and their research facilities. Neuroscience – the science of how the brain, that physical organ inside one’s head, really works – is beginning to change the way we think about how people make decisions. These findings will inevitably change the way we think about how economies function.

the intervention ratchet’s lexicon: confronting the teleology of mass atrocities prevention « Securing Rights This is the second post in a series on the lexicon of intervention’s slippery slope. The series is intended to educate human rights advocates about the opportunities, costs, and opportunity costs of coercive responses to mass atrocities. Alex de Waal, Jens Meierhenrich, and Bridget Conley-Zilkic, three genocide scholars, have penned an exceptional essay on the analytical shortcomings of the present discourse on mass atrocities prevention. Disaggregating historical models of atrocities termination, de Waal, Meierhenrich, and Conley-Zilkic complicate popular trends in atrocities scholarship. The authors outline three dominant characteristics of the “genocide and mass atrocities” narrative: the teleological sliding scale of genocide’s emergence, the epistemological assumption of military intervention’s effectiveness, and the subsequent ethical imperative underlying our cognitive perceptions of mass atrocities. The essay is worth reading in full.

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