Ben Smith has a good suggestion, but I think I can improve it. The conservatives he wants to call ‘liberty conservatives’ should be called ‘anti-freedom conservatives’ (to signal that they are opposed to the people Smith calls ‘freedom conservatives’.) The conservatives he wants to call ‘freedom conservatives’ should be called ‘anti-liberty conservatives’ (to signal that they are opposed to the people Smith calls ‘liberty conservatives’). [click to continue…]

In search of search theory

by John Quiggin on July 10, 2014

This is going to be a long and wonkish post, so I’ll just give the dot-point summary here, and let those interested read on below the fold, for the explanations and qualifications.

* The dominant model of unemployment, in academic macroeconomics at least, is based on the idea that unemployment can best be modelled in terms of workers searching for jobs, and remaining unemployed until they find a good match with an employer

* The efficiency of job search and matching has been massively increased by the Internet, so, if unemployment is mainly explained by search, it should have fallen steadily over the past 20 years.

* Obviously, this hasn’t happened, but economists seem to have ignored this fact or at least not worried too much about it

* The fact that search models are more popular than ever is yet more evidence that academic macroeconomics is in a bad way
[click to continue…]