Economics

Eric Morris: Why You’ll Love Paying for Roads That You Don’t Pay for Now

Lynne Kiesling Eric Morris, guest-blogging at Freakonomics, has two guest posts (one) and (two) on road congestion pricing. Congestion pricing is a much-discussed topic here at KP, and the two Morris posts are excellent discussions of the benefits of congestion pricing. In his first post he explains how variable tolling can generate the optimal level …

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Cass Sunstein, Oira, and Nudging

Lynne Kiesling On Thursday President-elect Obama named law professor Cass Sunstein to head the Office of Information and Regulatory Affairs, an executive-branch office with the mission of analyzing and coordinating federal regulation. Most recently, Sunstein is known for his work with Richard Thaler on “choice architecture” and behavioral public policy, including their book Nudge. Others …

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Low Entry Barriers in Electric Car Market

Lynne Kiesling Very interesting story in today’s Wall Street Journal about BYD, a Chinese firm manufacturing electric vehicles. One of the most interesting points in this article: despite the global economic downturn, BYD is increasing its operations, first in China and then planned for US and Europe, because entry barriers are lower in the electric …

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What Model for the Financial System Breakdown? Falling Dominoes? Cascading Outages?

Michael Giberson Simon Johnson reviews and provides a summary of a paper by Daron Acemoglu on the current financial crisis.  Johnson summarizes one of Acemoglu’s points as follows: The seeds of the crisis were sown in the Great Moderation (the low inflation, relatively stable last 20 years or so).  Everyone who patted themselves or others …

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