Reputations, Relationships, and Contract Enforcement

http://www.aeaweb.org/articles.php?doi=10.1257/jel.45.3.595


From State to Market: A Survey of Empirical Studies on Privatization

http://www.aeaweb.org/journal/contents/june2001.html#megginson


Why health consumers aren’t cost conscious

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Why health consumers aren’t cost conscious

Out+of+Pocket+Health+Spending

Source.

Daniel J. SmithSent Via Mobile Phone


Division of Labor Gone Awry

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Division of Labor Gone Awry

Here’s a letter that I sent today to the New York Times:

Two celebrated advocates of active and expansive government – President Obama and yourself – admit, quite accurately, that the security breach on Northwest Flight 253 represents a momentous failure of government (”The System Failed,” Dec. 30).

Ponder this fact carefully. Government’s core function is to protect citizens from violence. If Uncle Sam fails at this central, all-important task, what reason have we to trust that it will succeed at delivering less-costly and higher-quality health-care? Or at productively restructuring financial markets?

Surely, before government directs energy and resources to these and the countless other tasks that it now tries to do, it should first master its most fundamental duty.

Sincerely,

Donald J. Boudreaux

If the gardener isn’t up to the task of keeping the flowers properly watered, then it’s especially foolish to assign to him the additional task of mastering plant genetics.

UPDATE: Perhaps better is — If the gardener isn’t up to the task of keeping the flowers free of insects, then it’s especially foolish to assign to him the additional task of mastering plant genetics.

CafeHayek?d=yIl2AUoC8zA CafeHayek?d=dnMXMwOfBR0 CafeHayek?i=1JVGiIUSchg:7wLd4hmqdHM:F7zBnMyn0Lo CafeHayek?i=1JVGiIUSchg:7wLd4hmqdHM:V_sGLiPBpWU CafeHayek?i=1JVGiIUSchg:7wLd4hmqdHM:gIN9vFwOqvQ

Daniel J. SmithSent Via Mobile Phone


What are the odds that the best chess player in the world has never played chess?

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What are the odds that the best chess player in the world has never played chess?


Criminal Recidivism after Prison and Electronic Monitoring — by Rafael Di Tella, Ernesto Schargrodsky

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Criminal Recidivism after Prison and Electronic Monitoring — by Rafael Di Tella, Ernesto Schargrodsky

We study the re-arrest rates for two groups: individuals formerly in prison and individuals formerly under electronic monitoring (EM). We find that the recidivism rate of former prisoners is 22% while that for those a€treated’ with electronic monitoring is 13% (40% lower). We convince ourselves that the estimates are causal using peculiarities of the Argentine setting. For example, we have almost as much information as the judges have when deciding on the allocation of EM; the program is rationed to only some offenders; and some institutional features (such as bad prison conditions) convert ideological differences across judges (to which detainees are randomly matched) into very large differences in the allocation of electronic monitoring.

Daniel J. SmithSent Via Mobile Phone


If Any of Us Showed Up to Work Like This, We’d Get Fired

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If Any of Us Showed Up to Work Like This, We’d Get Fired

Steven Horwitz

The next time someone tries, with a straight face, to tell you that the Senate is the world’s greatest deliberative body and that elected politicians take their jobs seriously, or that reforming health care was a moral imperative that reflected the utmost in careful thought and planning, just show them this clip of Sen. Max Baucus (D – Montana) drunk off his ass debating health care on the Senate floor. Too drunk to drive, but drunk enough to argue for nationalizing a sixth of the US economy. Do we need an interlock system for the voting buttons in Congress?

Daniel J. SmithSent Via Mobile Phone


Smoking Trials Again

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Smoking Trials Again


Animal Smoking Studies

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Animal Smoking Studies


The Lesson of Ebenezer Scrooge

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The Lesson of Ebenezer Scrooge


Should we cut the minimum wage?

Should we cut the minimum wage?


Reinterpreting Slave History

Preserving Slave Families for Profit: Traders’ Incentives and Pricing in the New Orleans Slave Market

“We find large price discounts for families which cannot be explained by scale effects, childcare costs, legal restrictions, or transport costs. Because family members cared for each other, sellers found it advantageous to keep some families together.”

http://www.nber.org/papers/w14281

Also:

Time on the Cross: http://www.amazon.com/Time-Cross-Economics-American-Slavery/dp/0393312186

Roll Jordon Roll: http://www.amazon.com/Roll-Jordan-World-Slaves-Made/dp/0394716523


Drug Busts and Forfeiture Laws Research

http://www.jstor.org/pss/30026428

http://www.nber.org/papers/w10484


Automobile “Safety” Inspections Research

http://www.jstor.org/pss/30027176

http://www.jstor.org/pss/30025852

http://www.jstor.org/pss/2487049


Hanson on Random Smoking Trials

http://www.overcomingbias.com/2009/12/what-anti-smoking-evidence.html


Rothbard: The Mantle of Science

http://mises.org/rothbard/mantle.asp


Boettke on Samuelson

http://austrianeconomists.typepad.com/weblog/2009/12/paul-samuelson.html


Caplan: Philosophy and Rational Irrationality

http://econlog.econlib.org/archives/2009/12/philosophy_and.html

(1) Principle of Epistemic Rationality: (PER)- It is not epistemically rational to believe something just because it is interesting, original, or controversial.

(2) Publishability Fact: (PF)- In order to get regularly published in philosophy, you need to be able to say things that are interesting, original, and controversial.

(3) Perverse Incentives: (PI)-The practice of philosophy incentivizes non-rational motives of belief formation; specifically, it incentivizes believing things that are interesting, original, and controversial whether or not they are true.
(4) Sad Truth: (ST)- Almost all claims that are interesting, original, and controversial are false.
(5) Unfortunate Conclusion: (UC)- The practice of philosophy encourages philosophers to believe and to publish things that are false.”

The Monopoly of Violence: Evidence from Colombia — by Daron Acemoglu, James A. Robinson, Rafael Santos

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The Monopoly of Violence: Evidence from Colombia — by Daron Acemoglu, James A. Robinson, Rafael Santos

Many states in Latin America, Africa and Asia lack the monopoly of violence, identified by Max Weber as the foundation of the state, and thus the capacity to govern effectively. In this paper we develop a new perspective on the establishment of the monopoly of violence and the formation of the state. We build a model to explain the incentive of central states to eliminate non-state armed actors (paramilitaries) in a democracy. The model is premised on the idea that paramilitaries may choose to and can influence elections. Since paramilitaries have preferences over policies, this reduces the incentives of the politicians they favor to eliminate them. The model also shows that while in non-paramilitary areas policies are targeted at citizens, in paramilitary controlled areas they are targeted at paramilitaries. We then investigate the predictions of our model using data from Colombia between 1991 and 2006. We first present regression and case study evidence supporting our postulate that paramilitary groups can have significant effects on elections for the legislature and the executive. Next, we show that the evidence is also broadly consistent with the implication of the model that paramilitaries tend to persist to the extent that they deliver votes to candidates for the executive whose preferences are close to theirs and that this effect is larger in areas where the Presidential candidate would have otherwise not done as well. These results illustrate that, consistent with our model, there appears to be a symbiotic relationship between some executives and paramilitaries. Finally, we use roll-call votes to illustrate a possible ‘quid pro quo’ between the executive and paramilitaries in Colombia.

Daniel J. SmithSent Via Mobile Phone


Steve Chapman on Obama’s Losing Bet in Afghanistan

“Obama’s new Afghanistan policy is a clever attempt to reconcile the two sides of the debate, one favoring escalation and the other recommending withdrawal. He proposes to do both: ramp up now and start to leave in 18 months. But as Steve Chapman writes, betting on a substantial withdrawal in 2011 is like betting that Tiger Woods will become monogamous.”

http://reason.com/blog/2009/12/14/new-at-reason-steve-chapman-on?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reason/HitandRun+(Reason+Online+-+Hit+%26+Run+Blog)&utm_content=Google+Reader


Smoking Bans? Why Not Football Bans?

An average smoker loses 11 minutes of life for every cigarette.

An average NFL football player loses 1,460 – 2,190 minutes of life for every minute of football played (if my calculations are correct).

http://www.overcomingbias.com/2009/12/football-decimation.html


Miron: To Create Jobs, Stop Destroying Jobs

http://jeffreymiron.blogspot.com/2009/12/to-create-jobs-stop-destroying-jobs.html


Hasnas on the Right to Die

http://faculty.msb.edu/hasnasj/GTWebSite/WorkshopDraft.pdf


Hasnas on “The Mirage of Product Safety”

http://faculty.msb.edu/hasnasj/GTWebSite/SafetyFinalDraft.pdf


The Depoliticization of Law by John Hasnas

http://faculty.msb.edu/hasnasj/GTWebSite/TIL.PDF


More on Smoking Bans

http://www.cato.org/pub_display.php?pub_id=2487

“The totalitarian method to resolve the conflict is through political power and guns. In other words, the group with the greatest power to organize government’s brute force decides whether there’ll be smoking or no smoking in restaurants. Totalitarians might justify their actions by claiming that bars, restaurants and workplaces deal with the public, and thus the public should decide how they’ll be used. That’s nonsense. Just because an establishment deals with the public doesn’t make it public property.

The liberty-oriented method to resolve conflict is through the institution of private property. In fact, conflict resolution is one of the primary functions of private property, namely it decides who gets to decide how what property is used in what way. Put another way: Who may harm whom in what ways? In a nutshell, private property rights have to do with rights held by an owner to keep, acquire and use property in ways so long as he doesn’t interfere with similar rights held by another. Private property rights also include the right to exclude others from use of property.

Under the liberty-oriented method of private property, as a means to conflict resolution, we’d ask the question of ownership. If the owner wishes his restaurant to be smoke-free, it is his right. Whether a smoker is harmed or inconvenienced by not being allowed to smoke in his restaurant is irrelevant. Similarly, if a restaurant owner wishes to permit smoking, it is his right, and whether a nonsmoker is harmed or annoyed is also irrelevant. In the interest of minimizing possible harm either way, it might be appropriate for restaurant owners, by way of a sign or other notice, to inform prospective customers of their respective smoking policy. That way, customers can decide whether to enter upon the premises.

In today’s America, the successful anti-tobacco campaign has become a template for conflict resolution through the forceful imposition of wills through the political system. It’s part of a continuing trend of attacks on private property rights. Private property rights are the bulwark for liberty, and should be jealously guarded and not be sacrificed for the sake of expediency.”

http://www.cato.org/pub_display.php?pub_id=6835

http://www.cato-at-liberty.org/2006/10/25/smoking-ban-without-government/


Total indoor smoking ban and smoker behavior

Conclusion. A total indoor smoking ban had little effect on overall institutional quit rates. Heavy smokers will, predictably, experience the greatest difficulty complying with a total indoor nonsmoking policy.”

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6WPG-4BNG6BB-146&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1133868543&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=1505e246bc555348c9547671a52bacdd


Why You Shouldn’t Buy Fair Trade Products

http://www.marginalrevolution.com/marginalrevolution/2009/12/facts-about-fairtrade.html


Science and Government: Food Pyramid

http://econ.as.nyu.edu/docs/IO/10119/Butos_NEW_Science_Funding-1.pdf

Malthus vs. Malthusian Population Scares

http://aidwatchers.com/2009/12/malthus-vs-malthusian-population-scares/


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