Signaling and Education notes
Signaling and Education
Sometimes, schools teach skills that people eventually
use on the job, like reading and writing. In other words, some
kinds of schooling make workers more productive.
But much of what schools tea
Present Discounted Value notes
Present Discounted Value (PDV)
What determines the sale value today of a future
payment - positive or negative?
Ex: If you issue a certificate that pays $1, 10 years
in the future, what could you sell it for today?
Rationales for Redistribution
Rationale #1: Redistribution as a return on investment.
For the largest program, SS, people supposedly get money
because they previously contributed to the program. They are
just being paid a "return o
Personality Culture and Human Capital
Personality, Culture, and Human Capital
Another well-developed field in psychology is the study
of personality. To my knowledge, unfortunately, there is little
cross-over between this literature and labor economics
Economics of Family Size notes
The Economics of Family Size
While there is some element of chance, to a large extent
families control the number of children they have.
We should expect the demand curve for children to have
the usual negative slope.
Intelligence as Human Capital notes
Education Subsidies: The Failure of Externality Arguments
Externalities are non-excludable benefits and costs. The
basic logic of selfishness then goes:
If benefits are non-excludable, then each individual
Slaves as Investments notes
Slaves As Investments
What slave-owners like about owning slaves is that the
slave can't easily say "no." The owner can threaten violence or
death to make the slave do as he is told.
But the slave owner still can't give t
The Market for Mates notes
The Market for Mates I
Most people today probably marry for love, but few
regard all attributes as equally lovable.
Instead, most people are looking for a partner with
desirable traits, such as:
Search Theory notes
Must economists assume "perfect information"? Not at
all: there is an extremely general theory of economic action
under uncertainty, known as "search theory."
Basic assumptions of search theory:
More time and eff
The Leaky Bucket: The Deadweight Costs of Taxes and Redistribution
Taxes and redistribution take wealth from some people
and give it to other people. That's pretty obvious, and there's
no need to study economics to appreciate it.
Policy and Labor Supply
Policy and Labor Supply: Income and Substitution Effects
So how do government tax and redistribution programs
affect the quantity of labor supplied?
Since tax laws apply throughout the economy, not
merely isolated sectors, we