Quote of the Day

This study investigated the antipoverty efficacy of minimum wage policies.  Proponents of these policies contend that employment impacts are negligible and suggest that consumers pay for higher labor costs through imperceptible increases in goods prices.  Adopting this empirical scenario, the analysis demonstrates that an increase in the national minimum wage produces a value-added tax effect …

Jonathan Gruber Accidentally Tells the Truth

One of the chief criticisms of those who did not like the Halbig decision is that Congress could not possibly have intended to restrict federal subsidies for coverage under Obamacare to only those states that established an exchange. Furthermore, by not taking intent into account, the D.C. Circuit Court of Appeals was creating "an 'absurd' result." It is …

The Tragedy of Thomas Piketty

The latest Pikettian response to Giles's and Giugliano's assertions regarding the quality of Piketty's data and research is to accuse Giles and Giugliano of being "dishonest." (Hat tip in comments here.) I suppose this means that Piketty's is employing a classic I-am-rubber-and-you-are-glue-whatever-you-say-bounces-off-me-and-sticks-back-to-you defense, but there is little substance to the accusation; at best, Piketty can assert (without …

What the Piketty Errors Mean

Remember the Reinhart/Rogoff spreadsheet error? In the event that you do not, here is a summary. Those who follow debates between economists will recall that the spreadsheet error led to all kinds of excorations of Reinhart and Rogoff on the part of liberal economists, who claimed that Reinhart and Rogoff were responsible for austerity policies …

The French Critique Piketty

So report Tyler Cowen and Veronique de Rugy: . . . some other French economists have taken the lead in challenging Mr. Piketty’s empirical claims. One recent paper by four economists at l’Institut d’Etudes Politiques de Paris challenges Mr. Piketty’s view that inequality has increased because the return to capital has been greater than general growth in the …

More Critiques of Piketty

Ryan Decker points out that Piketty's "criticisms of mathematical economics (32, 574) are not surprising given that he relies so heavily on assumptions and mechanisms that would be highly vulnerable to criticism if they were forced into the transparency of a formal model." And the following from Garrett Jones is certainly worth reading: Market-oriented economies that learn to …

Paul Krugman Remains as Arrogant and Epistemically Closed as Ever

Don't believe me? Read this, in which he reviews Thomas Piketty's new book and says the following: So what’s a conservative, fearing that this diagnosis might be used to justify higher taxes on the wealthy, to do? He could try to refute Mr. Piketty in a substantive way, but, so far, I’ve seen no sign …