This article summarizes a review of the literature presented in Sacerdote (2011) . I thank Ricardo Mora for bringing it to my attention. The simplest model of behavioral genetics assumes that child outcomes (Y) are produced by a linear and additive combination of genetic inputs (G), shared environment (F) and unexplained factors (S). For instance […]
The first known application of modern economic techniques to solving epistemic problems in science was very explicit in describing the value of a scientific theory as the difference between ‘costs’ and ‘benefits’. I’m referring to Charles Sanders Peirce’s ‘Note of the Theory of the Economy of Research’, published in 1879, less than a decade after […]
Competitive markets are efficient under a number of conditions. One is that the consumption or production of the commodity to be traded must not cause externalities. For instance, consider a group of firms polluting the atmosphere or the waters of a nearby river. The individual behavior is typically not sufficient to keep the pollution level […]
Originally, intellectual property legislation was created on the assumption that the profits derived from the monopoly of the patented inventions would encourage innovation and thus promote economic growth. This is one of many hypotheses that the vast majority of economists have ever considered as intuitive. Accordingly, it is generally believed that the patent system is […]
Tax data are an important source of information for a wide range of statistical series. Their use, however, has been mainly confined to the analysis of the impact of fiscal policies on different socio-economic groups. Nevertheless, a recent group of researchers has started using personal income tax data to construct top income shares series, i.e […]
One of the aspects in which modern economics has departed further away from the neoclassical paradigm is the treatment of information after the seminal works of Akerlof, Spence and Stiglitz, who rightly won the Nobel prize for their contributions. Some theoretical models were introduced to explain economic phenomena that did not fit well in the […]
In 2012 the Nobel Memorial Prize in Economic Science was granted to two mathematicians, Lloyd Shapley and Alvin Roth, “ for the theory of stable allocations and the practice of market design”. The market design in their theory was not exactly a market, at least, not the kind one usually calls that way. They are […]
With the delicate economical situation that many developed countries are experiencing in the last years, a significant number of questions and concerns have been risen about how to properly assign and distribute funding to scientific institutions and research group leaders. In particular, a relevant question for science funding could be how to optimize the scientific […]
The relevance of demand factors for explaining growth was stated almost simultaneously by Michal Kalecki and John Maynard Keynes in the 1930s. The main conclusion of the theory of effective demand is that spending determines income. Keynes stated that the marginal propensity to consume decreases when total income growths. Kalecki considered different propensities to consume […]
Until the 70’s of the last century there was a great divide in Economics. On the one hand, Microeconomics studied the individual economic behavior, whether of a firm or a consumer, and was able to construct a General Equilibrium Theory that explained remarkably well (at least, for a social science) many economic regularities like market […]