The new Alchian and Allen book Universal Economics is out. The publisher reports the authors have collaborated to produce a ”fresh, final presentation of the analytical tools” contained in their famous (among a certain kind of economics nerd) textbooks University Economics and Exchange and Production. In introducing the idea of opportunity cost in the new … More Alchian and Allen, opportunity cost, and the kid in the candy store
The UK government started an energy digital smart meter rollout in 2008, an “… £11bn scheme to put 53m devices in 30m homes and small businesses by 2020” to yield an estimated gross benefit of £16.7bn. Calling the rollout a disaster would be generous — it’s behind schedule, about £1bn over budget, and full of technical … More The UK smart meter transition: industry structure, market power, and interoperability
More stinging criticism of the agricultural industry harms from the Trump tariffs and the proposed aid package to offset some of those harms since my post about the dairy industry yesterday — this article in the Minneapolis Star-Tribune is full of pointed arguments against them: Bill Gordon, a soybean farmer near Worthington, Minn., said his crop … More “Any aid package, no matter what dollar amount, is a Band-Aid on an arterial bleed.”
Farming has always been an uncertain business. Weather and the price-taking nature of being small relative to large commodity markets lead to feast or famine. The Trump Trade War and today’s palliative farm subsidies to farmers harmed by Trump’s tariffs combine with pre-existing subsidies to amplify that underlying boom and bust cycle, imposing high costs on … More Dairy farming, tariffs, and Trump’s “12 billion dollar crutches”
Maximilian Auffhammer explored the question, “How Local Should Your Energy Retailer Be?” at the Energy Institute at Haas blog. He said the issue had come up over lunch in the office. The distribution utility of the future is going to buy electrons in this reordered market (mostly renewables and some fossils) and sell them to its … More Should your electricity distributor also be your electricity retailer?
Economical energy storage has long been the Holy Grail of electricity. Since 1800, when Alessandro Volta invented the electric pile (a forerunner of the modern battery), hobbyists, scientists, and engineers have experimented with chemicals and materials to create economical storage at a smaller scale than a hydroelectric dam and with a more portable technology than, … More Two EV entries in the “how cool is this?” file
Understanding the economy as a dynamic, complex system relies on the foundational work of several economists, including Adam Smith (of course) and Ronald Coase. As Coase observed in his 1991 Nobel Prize address, What I have done is to show the importance for the working of the economic system of what may be termed the … More Coase’s influence on economics, and Adam Smith’s influence on Coase