Inspired by a podcast at MacroMusings, let’s talk about growth. Alex Tabarrok and Tyler Cowen, co-authors of a couple of excellent textbooks on the principles of economics, discuss what they mean by “cutting edge” growth and “catching up” growth. The reason for this distinction arises because of the claim that particular institutions promote economic growth. … Continue reading Master Chefs Grow Slower Than New Cooks
Clearly Ambiguous — Institutions
A central question of economics is to understand how in the heck social coordination is able to exist in such a crazy world. With all our differences in beliefs, resources, abilities, and more, it is remarkable people can work together long enough to produce a Big Mac pretty much anywhere in the world. Economists will … Continue reading Clearly Ambiguous — Institutions