The New York Times has a nice front page piece explaining the challenges that the Washington Metro subway lines face. They are old and not being maintained. One economic explanation for these facts is that Metro Transit Agencies are investing in labor not capital. This piece provide specifics about how public transit workers in this area are paid. In a recent NBER Working Paper, Jerch, Li and I study public sector bus driver pay across the United States.
Jan
25
My "Migration" to Substack
Dear Readers, In recent months, I have posted my public writing to my free Substack. I have such fond memories of Google Blogspot, thus it deeply surprises me that Google's search engine does a terrible job in helping those who search to find past blog posts. This deeply surprises me. As I age, I'm trying to post more dignified material to my Substack. I am sticking to what I know based on my ongoing research in microeconomics. Thanks very much for reading my posts. Best Regards, Matthew E.
Jul
28
How Will Houston Adapt to the High Heat?
I have moved my blog over to Substack (and I've lost many readers). Please join me there. Here is a recent column. The Wall Street Journal has published an important piece about how the high heat is reducing economic activity in Houston. The piece has a pessimistic tone that the heat melts the city’s infrastructure and shaves off economic activity as people don’t want to go outside. When microeconomists study consumer expenditure dynamics as people buy cars, go out to dinner and buy groceries.
Feb
7
The New Economic Geography of WFH
The New Economic Geography of WFH Matthew E. Kahn Over the last three years, companies from all over the world have learned valuable information about how their firm’s productivity and worker satisfaction is affected when workers can engage in Work from Home (WFH) on at least a part-time basis. Each firm faces fundamental tradeoffs in not requiring workers to return full time to the office. On the one hand, WFH accommodates worker lifestyles and responsibilities at home.
Dec
21
Homeownership Revisited: An Economist's Perspective
A majority of American adults live in owner occupied housing. As an economist, I celebrate the logic of revealed preference. While many poor people are renters, many non-poor people reveal that the benefits of ownership exceed the costs. In this entry, I would like to delve into the details here. Up front, let me say that I don’t want to discuss the tax code and the nitty gritty of mortgage interest deductions, the GSEs, etc.
Nov
7
Understanding the Arguments Made by Climate Change Adaptation Pessimists: Part One
Climate change adaptation refers to our individual and collective ability to cope with Mother Nature’s more intense weather punches in terms of extreme heat, drought, fire, flood and many other place based risks. My microeconomics research, as sketched out in my 2010 Climatopolis book and my 2021 Adapting to Climate Change books, argues that capitalism accelerates our ability to adapt as market price signals encourage substitution and innovation.
Jul
31
The Interesting Economics Related to the Marginal Cost of Avoiding Heat Exposure
This has been a very hot summer. For every person on the planet, what is her willingness to pay to avoid this hot summer? So, on a day when it s 93 degrees on average --- how much is Sally in Seattle willing to pay for this day to have been 78 degrees instead?
In a "make versus buy" economy, one can either pay God to not face the 93 degree day in Seattle or one can use a suite of adaptation strategies to cope with the high heat.
In a "make versus buy" economy, one can either pay God to not face the 93 degree day in Seattle or one can use a suite of adaptation strategies to cope with the high heat.
Jun
23
"The Water Cooler" and Spontaneous Face to Face Interaction in a Hybrid-WFH Economy
Is face to face interaction over-rated? I am not talking about participating in the service economy (i.e getting a haircut), romance, friends and family interaction. I am talking about workplace face to face interactions and the vaunted "Water Cooler" (WC).
The cliche WC story has focused on serendipity and spontaneity that occurs when people casually chat about this and that. This is not "directed search".
The cliche WC story has focused on serendipity and spontaneity that occurs when people casually chat about this and that. This is not "directed search".
May
19
How Will the Rise of WFH Help Us to Adapt to Climate Change?
Millions of American workers engaged in Work from Home (WFH) during the pandemic. WFH helped us to adapt to the risk of disease contagion. Going forward, WFH will also helps us to adapt to the rising climate risks we now face.
May
19
USC Economics Faculty Hiring Since 2015
I joined the USC Economics faculty in 2015 and Romain Ranciere also joined that year. Permit me to list the impressive scholars who have subsequently joined our faculty.
Marianne Andries
Tim Armstrong
Vittorio Bassi
Augustin Bergeron
Fanny Camara
Thomas Chaney
Pablo Kurlat
Jonathan Libgober
Robert Metcalfe
Monica Morlacco
Afshin Nikzad
Paulina Oliva
Simon Quah
Jeffrey Weaver
David Zeke
In July 2022, a star theorist will join our department as our newest hire.
Marianne Andries
Tim Armstrong
Vittorio Bassi
Augustin Bergeron
Fanny Camara
Thomas Chaney
Pablo Kurlat
Jonathan Libgober
Robert Metcalfe
Monica Morlacco
Afshin Nikzad
Paulina Oliva
Simon Quah
Jeffrey Weaver
David Zeke
In July 2022, a star theorist will join our department as our newest hire.
May
6
The New New Geography of Jobs
The Los Angeles Times rejected my piece that I present below. Of course, I'm trying to sell my new 2022 Going Remote book!!
The New New Geography of Jobs
LeBron James joined the Los Angeles Lakers in 2018. He wanted to live and work in Los Angeles.
The New New Geography of Jobs
LeBron James joined the Los Angeles Lakers in 2018. He wanted to live and work in Los Angeles.