This article summarizes the work by Baker, Bloom and Davis (2016) published in the last issue of the Quarterly Journal of Economics. The economy does not like uncertainty. Or so goes a common saying among economic agents. In fact, economic analysis has formalized this idea at least since the theoretical works of Friedman (1968) and […]
Here is an oversimplified vision of immigration: a substantial number of foreign unskilled workers enter the job market, causing a shift of the labor supply curve to the right (workers are suppliers of work), and changing the current equilibrium to another one with lower wages. This is does not need to be the case. Immigrants […]
Different electoral rules have consequences on the strategic behavior of voters, political selection and policy outcomes. There is ample literature on the links between electoral rules and policy outcomes (see, for instance, Cox, 1997 ; Persson and Tabellini, 2000 , 2005 , and Norris, 2004 ). However, the extent to which the quality of the […]
The two biggest questions in Economics are, no doubt, efficiency and equality. The first means no dilapidation of resources, the second means…, well, it may mean many things: equality of opportunities, resources, access to basic goods, or equality of results, among many others. Whatever we understand by equality, there are two major problems with its […]
Consider a country with two left-wing and two right-wing parties. In each side of the political spectrum one of the parties is a radical and the other is a moderate. Consider also that the moderates attract more voters than the radicals. To fix ideas consider that the percentage of supporters are 15, 33, 30 and […]
Unlike in perfectly competitive markets, there are many instances of economic situations in which selfish rational behavior does not imply an efficient allocation of resources. One example is the financing of a public good. Say some neighbors are asked to contribute to the construction of a park of one hectare (10,000 m 2 ) in […]
Until the 80’s all Olympic Games took place in rich countries, with the only exception of Mexico 68. In the 80’s, Moscow 80, Seul 88 and Sarajevo 84 started a trend that encouraged bids from developing countries with the result that after 2000 over half of all bids have come from this group. This fact […]
Economics • Mathematics • Medicine • Pharmacy
Blood from donations is separated into three components: red cells, platelets and plasma, and one component or another is then transfused into patients according to their needs. The conditions for storage differ for each component: red cell concentrates can be kept for up to 42 days at temperatures of 1-6ºC. Platelet concentrates (PC) are stored […]
The last issue of the American Economic Review contains three articles on the performance of three different policies to fight poverty. Chetty et al . (2016) study a program in which families where moved from high-poverty neighborhoods to low-poverty ones, Hoynes et al . (2016) examine Food Stamp programs, and Aizer et al . (2016) […]
When I buy in a market I only deal with myself regardless of whether the market is competitive or in the hands of a monopoly. Given the price, I choose how much to buy. In an auction to get a Government project a firm has to anticipate what the other firms are bidding, but and […]