The new year brings an innovation to the Graz Economics Blog: the collected links. Once every month, I will post a list of links which have gained the special attention of our bloggers. These lists will feature an eclectic mix of topics ranging in the degree of seriousness from fascinating new research insights to the latest econ jokes. Read, discuss, critize, or, if you want to add another link, feel free to do so in the comment section!
How much do immigrants from poor countries reduce wages in the destination countries? Not at all says a classic 1990 paper by David Card studying the Mariel Boatlift – a short episode in 1980 when Cubans were allowed to flee to Florida. George Borjas says that paper is seriously flawed and the wage effect is clearly negative. This article has the best summary of the debate.
Related to that: Branko Milanovic on the benefits and costs of free migration.
Greg Mankiw plots the price of oil in labor commanded (how many hours you have to work to be able to buy one barrel). That puts things in perspective, doesn’t it?
Venezuela’s Minister for Economy and Productivity says “inflation does not exist“. Prices are rising, he says, because corporations are greedy. He is a sociologist.
The Economist writes about a study measuring the productivity of young American researchers six years after receiving an economics PhD. The results are quite surprising: Even graduates from top schools mostly seem to under-perform. Or are they using an inappropriate measure?
People have analyzed cities and metropolitan areas in for all kinds of things: house or land prices, gentrification, air pollution, crime rates, etc. Three researchers from Denmark and the Netherlands, respectively, think cities are marriage markets and analyze whether people move to cities because of marriage market considerations.
Housing markets are super important – say the people doing research on housing markets. But given the experience of the past crisis, we should probably pay attention to what they have to say. Here’s a brief and concise overview on the importance of research in this field.
Why do bad policies get implemented when good policies are available? A new paper says it’s because people systematically fail to fully anticipate the equilibrium effects of new policies and hence vote for inefficient ones. And not just stupid people: they do experiments on students in Berkeley and Brown.
The economics of free parking. There is no such thing as free parking space.
New Graz Economics Papers:
In a conflict situation where you don’t know the preferences of your opponent going in, is it always optimal for you to learn about his/her preferences? Christoph Kuzmics and Florian Gauer have the answer.
If people give donations because of the “warm glow” they feel when donating, and when the intensity of the warm glow I feel depends also on how much everyone else is donating, then should we subsidize donations or tax them? It depends say Ron Wendner and co-authors.