Lynne Kiesling Today’s Opinion Journal has a commentary by Art Laffer and Patrick Giordano on proposed wholesale power procurement auctions in Illinois. They claim that the uniform price reverse auction (in which the price falls until Q supplied=Q demanded, and all suppliers still in the market receive the market-clearing price) is a ComEd setup that’s … More Opinion Journal: Laffer and Giordano Miss The Point … More Opinion Journal: Laffer and Giordano Miss The Point
Lynne Kiesling Tim Worstall does some dynamic thinking about energy consumption and the price system. If you want energy efficiency in the face of high natural gas prices this winter, here’s my suggestion: install new windows. In September we got double-paned, UV-coated, argon-gas-filled windows on the front and side of our house (north and west … More Worstall on Energy … More Worstall on Energy
Lynne Kiesling On Sunday Irwin Stelzer had a column in the Times (UK) interpreting the ongoing financial troubles at General Motors, airlines, Kodak, etc. through a Schumpeterian lens: This process “incessantly” destroys the old economic structure, and creates a new one. “This process of creative destruction is the essential fact about capitalism. Every piece of … More Creative Destruction is Healthy … More Creative Destruction is Healthy
Lynne Kiesling Tyler Cowen has an intriguing post with a “Humean” thought experiment: what if demand curves sloped upward? How quickly would the economy unravel, and who would be the first to notice? In the comments, AZ gets to my first thought upon reading the question: depends on the relative positions of the demand and … More Upward-sloping Demand? … More Upward-sloping Demand?
Lynne Kiesling Sorry for the silence. I’ve been completely swamped with work, as is the case every year at this time, but this year is particularly daunting because I have more going on. And quite a bit of the stuff that I’m working on right now is kind of insider ball, so not of particularly … More She Lives! … More She Lives!