The Economic Consequences of Youth Pessimism About Climate Risk: Lessons from Slemrod's "Savings and the Fear of Nuclear War"
The media keeps running articles that Greta Thunberg and a majority of the world's young people worry that "society is doomed" because of climate change. I understand that they seek to create a political movement to enact a global carbon tax.
What Insights Does Economics Offer About the Nascent Biden Administration Transport Infrastructure Investment Program?
The Washington Post has published a piece stating that the Secretary of Transportation, Peter Buttigieg, is the big winner of the Biden Infrastructure Bill as he will be attending many ribbon cutting ceremonies as grateful local mayors shake his hand.
Contrasting Adapting to Contagious Disease Risk with Adapting to Climate Change
Bill Gates argues that we were insufficiently prepared for COVID-19.
Will the Biden Administration's Trillion Dollar Investment in Infrastructure Unlock the Potential of Post-Industrial Cities?
The Biden Administration is about to enact a new infrastructure law that will spend more than $1 trillion dollars on rebuilding America's infrastructure. Cities such as Baltimore, Cleveland, Detroit and St.
Infrastructure Investment Microeconomics
A few thoughts about the pending Infrastructure Bill.
What Criteria Will be Used to Allocate the Money?
An efficiency criteria would state that it should be allocated to those places and on those projects within such places that offer the greatest economic and quality of life impact.
Incorporating Local Public Health Dynamics into The Rosen/Roback Spatial Equilibrium Model
Imagine if there is an infectious disease that spreads within cities but not across cities. Throughout the COVID crisis, the city specific infection rate has varied across cities at each point in time.
Adverse Selection in Car Insurance Markets: What Happens When Car Sellers Offer Insurance to Good Drivers?
My wife and I own a well known Electric Vehicle that monitors our driving in Southern California.
Spatial Equilibrium and Haitian Immigration to the U.S
Politico reports on the policy challenge that the Biden Administration faces. There are thousands of Haitian immigrants living in squalid conditions under the Del Rio International Bridge.
A dynamic incentives issue arises.
Some Microeconomics of Extreme Heat Exposure in the United States
The Biden Administration has made an announcement that it seeks to protect outdoor workers from extreme heat exposure. What does the theory of compensating differentials in real estate markets and labor markets teach us about exposure to high temperatures.
I maintain two assumptions.
Amazon's Big Data on Consumer Behavior Fuels its Entry into Urban Retailing
The Wall Street Journal reports that Amazon is opening retail stores in cities. On one level, this poses a puzzle because Amazon's rise was fueled by its cost savings due to the fact that it is a virtual store. Over the decades, Amazon has assembled a huge database about each of its customers.
What Does the Movie "Dirty Harry" Teach Us About Adapting to Climate Change Risk?
Michael Mann has co-authored a witty letter to the Wall Street Journal. Here is a photo for you to appreciate his insights.
His letter makes an analogy between climate change and Clint Eastwood in the first Dirty Harry movie.
How Can the Insurance Industry Accelerate Climate Change Adaptation?
In a series of pieces, I have explored how the for profit insurance industry can accelerate climate change adaptation progress. Here is my recent RMS interview. Here is my 2017 co-authored Harvard Business Review piece.
Ranking Academic Economics Power Couples Based on July 2021 REPEC Data
A few months ago, I posted a Twitter tweet about how to use REPEC data to rank academic couples. I followed a symmetric transparent method. My criteria takes the REPEC Ranking for one spouse + REPEC ranking for the other spouse. I treat them as equals.
Academic Economist Productivity Rankings
Across all of the world's economists;
#9 in Environmental Economics
#25 in Urban economics
#4 in Resource Economics
#27 in Energy Economics
Stiglitz Versus Cochrane: What Are the Non-Market Quality of Life Impacts of Climate Change?
John Cochrane recently posted an important blog post sketching out his claim that climate change will only have a small impact on world GNP over the next 75 years. He argues that the trend growth (3% growth for 60 years) will swamp the effect of climate change).
Some Microeconomics of Adapting to Wildfires in the American West Framed as a Gary Becker Problem Set Question
Consider a University of Chicago Econ 301 homework assignment situated in Summer 2021 in the American West.
"You own a $500,000 home in a fire zone in the American West. You owe $X on your mortgage.
A Few Thoughts About Economic Growth as a Climate Change Adaptation Strategy
John Cochrane has posted an important blog post about adapting to climate change. His piece mainly focuses on macroeconomic issues. For decades, John was colleagues with Bob Lucas and those familiar with Robert Lucas's optimistic work on economic growth will see a correlation.
Climate Change Bets and Julian Simon versus Paul Ehrlich Again
A nuanced blog post about the damage that we will suffer because of climate change.
Cliff Winston's New Book Gaining Ground
Cliff Winston sent me a copy of his forthcoming book Gaining Ground --- so I read it. This is an optimistic book that celebrates the constructive role that markets play in improving our quality of life. A theme throughout the book is the synergy between market forces and government activity.
A Self Evaluation of My Two Years Directing the Johns Hopkins 21st Century Cities Initiative
From 2017 to 2019, I served as the Chair of the USC Economics Department. Josh Aizenman served before me and he taught me the ropes. Under Josh's leadership, great things were already taking place at USC Econ and I built on this momentum.
The Emerging New Economic Geography of the United States
Back in 2011, my old friend Enrico Moretti published his important New Geography of Jobs book. You can read a synopsis here. Along with many other urban economic scholars, I am fascinated by how different geographic locations compete for jobs and people.
How Does Applied Microeconomic Research Accelerate Climate Change Adaptation?
In May 2021, I am quite aware that I am now an "old guy" in the academic economics profession. While this has obvious costs, it offers at least one benefit. I can blog and offer "big thoughts".
With that preamble, let's begin. We face a serious climate change adaptation challenge.
Do The Urban Poor Gain from Local Economic Growth?
I have co-authored a new book that argues that the answer is "YES" but there are many people who disagree with this claim.
At Johns Hopkins University, I taught Urban Economics in Spring 2020.
Why is Beautiful California Losing Congressional Seats? Constrained Local Housing Supply Influences National Politics
California real estate is desirable. I own property there. Zillow teaches us that it has the most valuable land in America with a Zillow average price of $644,000 in April 2021. The national Zillow price is $276,000.
Unlocking the Potential of our "Unlocking the Potential of Post-Industrial Cities" Book
In February 2021, Johns Hopkins University Press published my new co-authored book Unlocking the Potential of Post-Industrial Cities.
Why Climate Economics Continues to Succeed
A blog post that responds to Noah Smith's provocative piece titled Why Has Climate Economics Failed Us?. It raises a deep question. What is the point of climate economics research? I will respond below. Dr. Smith's piece also throws some low blows.
The Microeconomics of Enhancing the Effectiveness of Government Spending $2 Trillion Dollars on Infrastructure
In this blog post, I'd like to sketch out some "rules of the game" to raise the likelihood that Americans will earn a good rate of return on the $2 Trillion dollars that the Biden Administration has proposed to be spent on infrastructure.
The Revealed Preference of Porch Pirates
A case study about petty crime. A risk neutral thief will steal if the expected benefits are greater than the expected cost. The expected cost of theft (for those without a guilty conscience) equals the probability of detection multiplied by the $ punishment if caught.
The Great Climate Change Race Between The Rising Threat and Our Increasing Ability to "Take a Punch"
In their important book: The Race Between Education and Technology, Claudia Goldin and Larry Katz use a supply and demand framework to discuss changes in the U.S labor markets over the last 100 years.
Understanding the High Cost of Military Drone Use Using a Rebound Effect Model
The Economist Magazine's March 13th 2021 issue has a great story about drone use and drone expenditure.
The piece starts by talking about Tom Cruise in the movie "Top Gun" and says that manned airplanes are expensive.
The Resurgent Consumer City by Fall 2021
I really like Paul Krugman's NY Times piece from today. It focuses on his predictions about the short term future of cities. Here is a quote from the Nobel Laureate.
"So the best bet is that life and work in, say, 2023 will look a lot like life and work in 2019, but a bit less so.
Some Urban and Environmental Economics Links
I have moved my climate change economics blogging over to Substack.
In February 2021, we published our urban economics book ;
You can read chapter One and watch several relevant urban economic growth videos posted here.
Free Copies of a New Urban Economics Book: Unlocking the Potential of Post-Industrial Cities
I am delighted to announce that my new book Unlocking the Potential of Post-Industrial Cities has just been published. For those who have an active Twitter account, you can request a free e-book by filling out the form here.
Climate Change Adaptation Lessons from Freezing Texas
This blog post will sketch out some optimistic economics 101 lessons for how to reduce the risk of future Texas power blackouts without building a single new power plant.