HC Economist diagnosis: A case of Baumol’s Disease

The American health care system seems ill.  Prices for medical services have continued to outpace inflation during recent history.  What is the Healthcare Economist’s diagnosis?  Simple, its a case of Baumol’s cost disease. Baumol’s cost disease is a phenomenon which appears in industries which have slow productivity growth over time (see “What ails us” in…

NeuroEconomics

Nearly since its inception, the field of Economics has used preference relationships, utility functions, and complete rationality as the theoretical basis for nearly all of its major findings.  Nevertheless, while the homo oeconomicus may preform well in certain contexts, in others areas the hypothesis of completely rational humans has been found to be patently false. …

EconBrowser – Jim Hamilton’s Blog

Jim Hamilton, one of my professors, has a great blog which analyzes current events from a macroeconomic point of view (Econbrowser.com). For instance, in the post “Just how implausible is a gasoline tax,” Hamilton reviews a NYT article which states that while 85% of Americans oppose a gas tax, 59% would support a gas tax…

How to invest your money

Paul Merriman one of the few investment advisors I respect.  His blog is full of useful information.  His advice is simple: Invest in Index Funds.  For an average investor, attempting to ‘beat the market’ or is a wasteful endeavor.  Index funds diversify risk by allowing investors to hold a large variety of stocks while minimizing…

Economists fail as evangelists on Sunset Blvd.

In the “Capitalism: The Movieâ€? in the March 2006 Atlantic Monthly, writer Clive Cook examines why many of Hollywood’s recent releases have been anti-capitalist.  Hollywood simply assumes that the public will run to see free-market bashing movies such as: Syriana, Fun with Dick and Jane, Wall Street, Erin Brockovich, The Insider, etc. Why? Cook claims…

Towards a more efficient housing market

When you want to buy a used car, what is the first thing you do?  For many, the first step is to look in Kelley Blue Book to see how much one should pay for the desired used car.  Now there is a ‘Blue Book’ for real estate: Zillow.com.  The San Diego Union Tribune reports…