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Boserupian Evolution of Agriculture

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credit: TheDialogue

Boserup argues that the main stimulus to development of agriculture and productivity is the population growth. Her argument was an opposing view against the Malthus and Ricardo, who developed the macroeconomic theory of the relationship between demographic and agricultural movement in Europe. Mathusian theory claimed that “a population can never increase beyond the food supplied necessary to...

Do Policymakers’ decisions lead to an efficient allocation?

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Usually, voluntary exchange without any external intervention leads to an efficient allocation of goods and services under the ideal market conditions. This is justified by the fact that prices coordinate the activities of buyers and sellers and transmits necessary information about the strength of demand and supply. Nonetheless, this type of efficiency is not an ideal one, because there are...

John Mill’s On Liberty

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Persons of genius, it is true, are, and are always likely to be, a small minority; but in order to have them, it is necessary to preserve the soil in which they grow. – J.S.Mill Ultimately, while striving to get through the each subsequent day, I’ve managed to finish the ‘On Liberty’ by John. S. Mill. If my memory does not fluctuate too much from reality, I saw this...

Prosperity for All by Roger Farmer (Book Review)

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oger Farmer, the distinguished professor of UCLA, challenges the orthodox macroeconomics models, especially New Keynesian model, in his new book- Prosperity for All: How to Prevent Financial Crises. The human being in me is deeply disturbed by every crisis. The economist in me recognizes the invaluable opportunity that is provided by every crisis to disentangle one economic theory from another...

Does Politics Matter? For Markets, Sometimes.

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The word ‘politics’ is derived from the word ‘poly’ meaning ‘many,’ and the word ‘ticks,’ meaning ‘blood-sucking parasites. The narrative of global markets is shifting away from its focus on central banks and monetary policy toward geopolitics and fiscal policy. The surprise outcomes of the UK referendum on membership in the European Union and the US presidential election suggest that the “old...

Behavioral Economics applied to Agriculture Economics

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Behavioral economics is perhaps the most important new paradigm in economics in the new millenium. It is based on the idea that people don’t behave rationally, like economics suggests – that they are, in Thaler’s words, Humans (homo sapiens) rather than Econs (homo economicus). In the 1960s and 1970s, Nobel Laureate Herbert Simon and others developed behavioral economic theories assuming that...

Economic growth in the US: A tale of two countries

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 By Thomas Piketty, Emmanuel Saez, Gabriel Zucman [intense_dropcap font_color=”primary”]T [/intense_dropcap]he rise of economic inequality is one of the most hotly debated issues today in the United States and indeed in the world. Yet economists and policymakers alike face important limitations when trying to measure and understand the rise of inequality. One major problem is the...

Blanchard on Recession, Expansion, and Inequality after Elections

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Olivier Blanchard, PIIE   ill the economic program of President-elect Donald Trump lead to a recession or to an expansion? Before the election, many predicted a recession. But last week, markets clearly predicted an expansion. Who is right? It is obviously hard to tell. Announced programs are never implemented as such. Political realities and the need for support by Congress force minor and...

Oil Caps Biggest Weekly Decline Since January

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New York (Bloomberg) Oil capped the biggest weekly loss in almost 10 months as hopes faded that OPEC will be able to implement a promised deal to cut production and ease global oversupplies. Futures dropped 1.3 percent in New York, bringing the six-session decline to 11 percent. Prices closed Thursday at the lowest level since OPEC reached a preliminary accord in Algiers for the cuts, and...

BREXIT, Nationalism, EU

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Author: MOHAMED A. EL-ERIAN The aftermath of the United Kingdom’s unexpected vote in June to leave the European Union is being monitored closely. People all over the world – and particularly in Europe – want to know how Brexit will unfold, not just to manage its specific effects, but also to gain insight into what is likely to happen if other upcoming votes tip in favor of nationalist agendas...

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