10 Lesser Known Economic Issues

[n_huffhines]

If you like Economics, you'll find this interesting. Unless you were an Econ major, a lot of these will be new to you, but the concepts aren't all that complex.

The one I want to emphasize is the Khazoom-Brookes Postulate. It states that increased energy efficiency likely results in more energy consumption. So government programs intended to increase efficiency are very unlikely to achieve their objectives (duh).

10 Lesser Known Economic Issues

 

[WesternKyVol]

Thanks. I had never heard of a few of them as so named. The one that was the most interesting--and new-- to me was tragedy of the anti-commons. We need to figure out something to do about that one.

 

[n_huffhines]

Thanks. I had never heard of a few of them as so named. The one that was the most interesting--and new-- to me was tragedy of the anti-commons. We need to figure out something to do about that one.

Although I wasn't familiar with some of the terms, that was the only concept that was new to me.

 

[therealUT]

1. Paradox of Value: who the hell says we do not pay for water in America? While I understand that water has a higher utility than a diamond and is more valuable than a diamond (objectively), I think this guy hurts his credibility when he says we do not pay for water. I say he is a college student.

2. Khazzoom-Brookes Postulate: he needs to refine his definition of "energy". Technology makes it cheaper to heat a house in the winter; however (and, I am not biologist, so I could be in a different galaxy here), if a body is colder, it must burn more calories to stay warm (that is energy use) and, therefore, one must consume more calories in order to burn them, which requires energy to produce the food. This postulate probably uses a very limited definition of "energy".

3. Bounded Rationality: sounds about right.

4. Lipstick Effect: I would like to see how this plays out in a system that experiences poverty conditions that force one to choose between food, shelter, and hygiene and luxury goods and does not have the welfare net that the US does.

5. Tragedy of the Commons: when Man shows that he can successfully deplete the fish populations of the Pacific, alone, not counting the other three oceans, I will give credence to the actual worth of this theory.

6. Tragedy of the Anti-Commons: is this author really trying to imply that patents could and do serve as a disincentive for innovation and production?

7. Perverse Incentives: the example regarding the dinosaur bones made me laugh.

8. Information Assymetry: I've never been sold on the notion that this is an inherently negative theory.

9. Cobra Effect: I applaud the Indians for this!

10. The Samaritan's Dilemma: Easily solved by a Kantian worldview.

 

[RespectTradition]

If you like Economics, you'll find this interesting. Unless you were an Econ major, a lot of these will be new to you, but the concepts aren't all that complex.

The one I want to emphasize is the Khazoom-Brookes Postulate. It states that increased energy efficiency likely results in more energy consumption. So government programs intended to increase efficiency are very unlikely to achieve their objectives (duh).

10 Lesser Known Economic Issues

Check this out Privatizing the Chesapeake - Reason Magazine if you want a really good example of this. Kinda long, but worth it.

 

[RespectTradition]

1. Paradox of Value: who the hell says we do not pay for water in America? While I understand that water has a higher utility than a diamond and is more valuable than a diamond (objectively), I think this guy hurts his credibility when he says we do not pay for water. I say he is a college student.

2. Khazzoom-Brookes Postulate: he needs to refine his definition of "energy". Technology makes it cheaper to heat a house in the winter; however (and, I am not biologist, so I could be in a different galaxy here), if a body is colder, it must burn more calories to stay warm (that is energy use) and, therefore, one must consume more calories in order to burn them, which requires energy to produce the food. This postulate probably uses a very limited definition of "energy".

6. Tragedy of the Anti-Commons: is this author really trying to imply that patents could and do serve as a disincentive for innovation and production?

1) I think the point is that the price of water is negligible to us here.

2) Energy in common usage in political discourse is about generated energy used for mechanical or electrical tasks, not caloric energy. The very fact that technology makes it easier, means we will do more of it, and other related tasks.

6) Patents do act as a brake on innovation. I work in IT and I see this every day. I also see how much innovation comes from open source projects that we use in our business. Money can be made without patents.