Comments for Robert Whaples and the Modern Principles

Comment on Inflation in a Nutshell by paragwaknis

paragwaknis — Thu, 03 Nov 2011 17:07:05 +0000

I am using the MPE-Macro book for the first time and really enjoying it. The overall emphasis on empirical evidence, economic history and recent research is really refreshing. I just covered this chapter and was happy to see that not too much space was devoted to actual calculation of CPI unlike other books. At this level students need to understand generally what inflation means and why we should worry about it.

Comment on Making Macro Dynamic by Donald A. Coffin

Donald A. Coffin — Thu, 04 Mar 2010 19:58:39 +0000

The Chapter 12 approach to AD/As is one I’ve wanted to see for a long time, but have been unable to work my way through without running into some conceptual issues…I take it you think C&T have done it well?

Comment on Growth Triumphant: The Chapter That Got Me to Switch by Donald A. Coffin

Donald A. Coffin — Thu, 04 Mar 2010 19:56:07 +0000

I’d like to see your notes on moving the Y/L, K/L model, if you’re willing to share.

Don

Comment on Drinking Milk and Drilling Oil by Robert Johnson

Robert Johnson — Thu, 05 Nov 2009 00:52:45 +0000

So, not efficient because of externalities I guess. I never finished my econ degree (switched to engineering), but that one seems pretty straightforward.

Comment on What Happens When Markets Go Rong by Jim

Jim — Wed, 04 Nov 2009 14:46:13 +0000

“about a quarter of economists think that rising levels of GHGs will be economically beneficial”

Economically beneficial to the USA, wasn’t it? That’s perfectly consistent with ‘economically catastrophic for some other parts of the world’. Shouldn’t global welfare be the criterion for evaluating the effects of global warming, especially given what an enormous chunk of GHG emissions the US is responsible for?

Comment on I’d Unravel Every Riddle by James Rex

James Rex — Mon, 12 Oct 2009 05:05:03 +0000

Both colleges will price discriminate because this will increase their revenue. They will both use the same methods of price discrimination (using FAFSA and tax return forms), but they will differ their admission rates. If a college wants to gain prestige, they will reduce their admission rates to drive up their demand (increasing their prestige). If a college wants to be a profit-maximizer, they will have a high rate of admission. By having a high rate of admission and perfectly price discriminating, the college will have lower mean SAT/GPA/ACT levels, but higher revenue. Prestigious universities remain prestigious by limiting their admission and being selective in their entrants, thus boosting their SAT/GPA/ACT levels, implying their prestige (An interesting cause-effect analysis would be the discussion of whether Harvard is prestigious because of its education or its selectivity or both). By increasing prestige, colleges can boost their future endowment because firms will pay higher premiums for selectively chosen students. Students that attend profit maximizing colleges will have a tougher time receiving a high paying job [than students attending prestige-maximizing colleges] because of more students, which results in more competition for jobs, and thus lower wages. In the end, prestige-maximizing universities will boost their endowment by gaining prestige and thus will reduce admission and profit-maximizing universities will boost their revenue by increasing admission rates. Both university systems will use perfect price discrimination with their entrants, because it is the most efficient means of satisfying both consumer and producer.

Comment on I’d Unravel Every Riddle by Alex Tabarrok

Alex Tabarrok — Fri, 09 Oct 2009 16:36:52 +0000

Excellent riddle! So how could we distinguish (and test) a profit-maximizing college from a something else maximizing college? Would both price discriminate but in different ways? I would be happy to offer any student in your class a copy of the just published micro-macro hardback of Modern Principles for the best answer! And who knows perhaps this will show up in the second edition!

Best

Alex Tabarrok

Comment on Labor Markets, God and Mammon by rick larsen

rick larsen — Wed, 30 Sep 2009 17:29:18 +0000

To Tim – Oh, that’s right. Numbers exist… on what planet do they spend most of their time?

Comment on Labor Markets, God and Mammon by RMG

RMG — Sun, 27 Sep 2009 01:28:14 +0000

My experience is that pastors are paid quite well. (Housing is often included in the compensation package.)

Also, what’s the likelihood of a pastor being fired… compare that to typical private sector jobs.

Comment on Labor Markets, God and Mammon by RMG

RMG — Sun, 27 Sep 2009 01:23:12 +0000

Not necessarily.

One issue is the type of training received; is training primarily ‘firm-specific’ or ‘general’?

Second, what is the marginal product of a worker at a poorly run firm, relative to marginal product at an efficient firm?