Crooked Timber

One for the junior-birdman Hayekians, Coasians and such like:

Consider a finite quantity of a consumption good G, which is to be divided into two allocations G1 and G2 for two different agents with utility functions over G described as U1(G1) and U2(G2).

What would be the minimum information that a central planner would need to have about U1 and U2 in order to be able to calculate a Pareto efficient allocation G1/G2?

Answer after the jump – I just asked three economists this question and they all got it wrong.
Continue reading “Friday Economics 101 quiz time!”

There are many reasons to take pleasure in the New York Football Giants’ victory in the Supreme Bowl last night, but none, I think, is more important than the fact that the Northeast Region Patriots did not manage to pick up any points on their first drive of the second half. Here’s why.

For those of you who didn’t watch the game (and what, really, is wrong with you people? are you not sufficiently cosmopolitan to follow every last detail of American sporting contests that run for a mere four hours?), the Patriots faced a fourth-and-two at the Football Giants’ 44-yard line. They punted, and the Football Giants got the ball on their 14.

Continue reading “On Certainty and Illegal Substitutions”

Some of these images are excellent. The level of geek quotient required to understand/appreciate them varies.

[Thanks to Ethan.]

UPDATE: The images have been deleted from Flickr. Thanks to Jacob for this link with an explanation. The pictures are available here (for now – Mon pm).

I suspect most have already seen the famous episode of the Miss Teen USA South Carolina contestant’s answer to a geography-related question . (By the way, amazing performance by the host holding the microphone. Could you keep a straight face through that?)

This one seems a bit less well known (if you can say that about a clip that’s been watched 4 million times on YouTube):

The host here is much less impressive (note his commentary in general, and pronunciation of a certain country name in particular). The little boy looks adorable though.

There’s more along similar lines, for example this Family Feud episode.

WASHINGTON, D.C. – One month after calling for a review of the video game ratings process in the wake of “Manhunt 2” receiving a “Mature” rating, Senators Joe Lieberman (ID-CT), Sam Brownback (R-KS), Evan Bayh (D-IN), and Hillary Rodham Clinton (D-NY) called for a thorough review of the video game “Enhanced Interrogation 2.” In a letter to the Entertainment Software Ratings Board (ESRB), the Senators explained that the recent change in the game’s rating in the U.S. opened the door to widespread release of the game, which depicts acts of prolonged torture.

Continue reading “U.S. Senators Announce Opposition to “Enhanced Interrogation” and “Unitary Executive””

I was going to respond at length to commenter sg in the thread to John Quiggin’s post, but decided I would just bump it up to a post. I think I may fairly summarize sg as saying that some drugs are so intrinsically harmful that they must be illegal. Further, that the US wouldn’t be awash in guns and drugs “if the US would actually try and police the drug trade.” This last is just madness, on my view, and anyone who thinks different should just go peruse Radley Balko’s archives. [In fairness, it seems sg is referring to more competent policing rather than more overwhelming force and aggressive raids, but I’m unclear on how this is meant to work.]

I wanted to talk about something that would-be legalizers often hear, namely, “you’re not willing to admit that under your system there would be lots more drug addicts, and being addicted to drugs is, in itself, a bad thing.” In my experience this isn’t right at all, and everyone who advocates decriminalization will admit that more people will use drugs if they are more widely available and there are no legal penalties. This means more people would become addicted to drugs. How could it be otherwise? This doesn’t mean that I think it’s good thing for people to abuse IV drugs—it’s obviously a bad thing. But the costs our own nation incurs in the War on (Some Classes of People Who Use Some) Drugs are crushing: citizens jailed for drug possession and minor sales; the wholesale violation of civil rights that attends aggressive enforcement of anti-drug laws; the fundamental unfairness of denying sick people access to drugs give them relief. With decriminalization we would need fewer police officers, and those we had could focus on violent crimes. We could reverse pernicious trends in which more and more African-American men are shoveled into the maw of the prison system. That’s not even considering the violence and misery spawned around the world by our insatiable appetite for drugs. You’ll pretty much have to convince me that decriminalization will mean free samples of heroin-enriched enfamil before I even bother to reconsider my cost-benefit analysis. Continue reading “Yes, Even Heroin”

It’s Saturday noon and my toddler is taking a nap; I am not in the mood for doing academic work and by now too heavily pregnant to do any serious amount of housework. So here are two musing about books.

The first is a real book, with a wonderful 1970s smell. I finally could get hold of a copy of Amartya Sen’s Collective Choice and Social Welfare. I made photocopies of that book when I studied welfare economics in the mid-1990s, and subsequent attempts to buy the book always failed. It hasn’t been reprinted for yeeeeeeears, and the only second hand version that I once found was a few hundred dollars – too much for my budget. But purely by accident, I had another look earlier this week on the Amazon second hand market, and found one, for 50 dollars. A first edition, with the errata-page included. It arrived from California today – less than 5 days after I ordered it. It’s a first edition, previously owned by someone called David Owen Butcher. Thank you David, you made my day.

The other book is Facebook. It seems that the virus finally caught me. Last week a friend showed me the ‘inside’ of facebook, and tried to lure my into joining. I saw the phantom of the timesink in the close distance, so resisted the temptation. Yet Chris’s post suddenly made me think that perhaps facebook can also be useful, and hey, the economist in me woke up, and earlier this week I joined. I even joined the Crooked Timber group (not sure what that implies, though). So, did those of you who joined Facebook in July after Henry set up the group, ever went back to work on your social facebookrelations there?

I doubt you have to be a Sex and The City fan to appreciate this clip from The Daily Show called “Is American Ready for a Woman President?”, but if you are a SATC fan you are absolutely guaranteed to LOL.

I’ve long enjoyed cropping images into abstract sections. I like discovering sections of things I don’t necessarily notice otherwise. It’s related to the project Chris and I are undertaking this year, taking a photo every day. That also helps discover things in one’s surroundings that otherwise may go unnoticed.

Since it’s a slow Sunday and I just happened upon a crop in my photostream that I like, I thought I’d post it here:

Any ideas?

Continue reading “Mystery image”

Simpsonize yourself by uploading a headshot, providing a few variables, and (allegedly) having it automatically converted. You can tweak the image afterwards. JamesJoyner thinks it’s lame. Here I am—I’ll leave the veridicality of the representation for others to judge. The site is a bit finicky, perhaps because it’s overloaded with users. If you get it to work, post a link to yourself in the comments.

I don’t seem to be doing too well playing rock, paper, scissors over on Facebook so I’ve decided to focus my energies on taking care of my adopted turtle Turquoise. It’s good prepartion for when I’ll get a real turtle likely in the near future (unlike some turtle plagiarists, it’s a plan I’ve had for a while).

Unfortunately, you can only earn munny to feed your pet by having your pet pet by someone else or petting other people’s pets. (That’s not as hard to say three times fast as it may seem at first read…) And it turns out that despite having over 150 friends on Facebook, only three of them have (fluff)Friends, one because I asked him this morning. So this is a request that if we are linked on Facebook (or should be since we know each other) then can you please come over and show Turquoise some affection? Thanks!

Anyone wondering why I would spend time on Facebook has to understand that it is imperative for the legitimacy of my research to familiarize myself with these services. It’s a sacrifice, but all in the name of science.

I should add that I have been thinking about a more substantive post concerning Facebook and hope to get around to it one of these days. Lots going on there, it is spreading like wildfire way past college students, and there are some understandable reasons for that. More later. It’s time to check in on Turquoise now.