Comments on: New Trade Theory

New Trade Theory

grobstein — Tue, 11 Mar 2008 12:38:50 -0800

Where no economist had gone before . Paul Krugman posts a type-written paper on interstellar trade which he wrote as "an oppressed assistant professor" in the '70s. I do not propose to develop a theory which is universally valid, but it may at least have some galactic relevance. [pdf link]

By: nebulawindphone

nebulawindphone — Tue, 11 Mar 2008 12:48:06 -0800

Ha! Nice dig at William Proxmire there.

By: Ironmouth

Ironmouth — Tue, 11 Mar 2008 12:52:04 -0800

Many critics of conventional economics have argued, with considerable justification, that the assumptions underlying neoclassical theory bear little resemblance to the world we know. These critics, however, have been too quick to assert that this shows that mainstream economics can never be of any use. Recent progress in the technology of space travel, as well as the prospects of the use of space for energy production and colonization (O'Neill 1976) make this assertion doubtful; for they raise the distinct possibility that we may discover or construct a world to which orthodox economic theory applies. All hail Krugman, King of Snark!

By: dazed_one

dazed_one — Tue, 11 Mar 2008 13:04:30 -0800

Awesome!

By: Zinger

Zinger — Tue, 11 Mar 2008 13:09:03 -0800

I do not propose to develop a theory which is universally valid, but it may at least have some galactic relevance. I am so stealing this line.

By: deejay jaydee

deejay jaydee — Tue, 11 Mar 2008 13:21:13 -0800

In a year when so many of Krugman's recent newspaper writings just strike me as so, well, depressing, I'm delighted to stumble across such a gem. In his discussion of which time frame to use in calculating the "present value" of the goods in interstellar trade, he sets forth this little treasure: "This is an inertial problem -- which becomes a weighty problem in a gravitational field -- requiring an economic analysis, provided in the next section" (3). As an "oppressed assistant professor, caught up in the academic rat race," well, it seems as if he knew how to have a bit of fun with it, no?

By: cortex

cortex — Tue, 11 Mar 2008 13:22:47 -0800

You an me both, Zinger. That's t-shirt material. <3 Krugman.

By: dhartung

dhartung — Tue, 11 Mar 2008 13:32:07 -0800

A solution is derived from economic theory, and two useless but true theorems are proved. Heh. But he ignored the work of G. Harry Stine, particularly The Third Industrial Revolution .... Yes, yes, it was published one year after the paper, but you have to take time compression near lightspeed into account.

By: wobh

wobh — Tue, 11 Mar 2008 13:38:11 -0800

Interested readers might also like Greg Costikyan's The 11 Billion Dollar Bottle of Wine. Also Robin Hanson's collection of articles The Economics of Science Fiction.

By: Artw

Artw — Tue, 11 Mar 2008 13:39:19 -0800

In space nobody can hear you scream ABOUT BARGAINS!

By: fearfulsymmetry

fearfulsymmetry — Tue, 11 Mar 2008 13:44:28 -0800

The dismal science... goes super-nova!

By: mckenney

mckenney — Tue, 11 Mar 2008 13:45:28 -0800

Oh, I promise, there are fans of Carrot Top. Back in the day of the Fametracker boards, someone had the insane sadistic genius to post some link to a chick who got his signature tattooed on her body.

By: Mister_A

Mister_A — Tue, 11 Mar 2008 13:50:14 -0800

Haha, mckenney is in the wrong thread (or is he???)

By: Thorzdad

Thorzdad — Tue, 11 Mar 2008 13:52:18 -0800

So, we're outsourcing to Proxima Centauri now? Man, the guys in Bangalore are gonna be pissed. No way are they going to be able to match Centauri hourly rates.

By: cog_nate

cog_nate — Tue, 11 Mar 2008 13:52:46 -0800

"The modern starship commander is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for anthropocentrism."

By: arnicae

arnicae — Tue, 11 Mar 2008 13:53:43 -0800

Cortex said: You an me both, Zinger. That's t-shirt material. <3 You make it, I'll buy one, cortex!

By: Artw

Artw — Tue, 11 Mar 2008 14:04:20 -0800

Shipping costs may be prohibitive.

By: never used baby shoes

never used baby shoes — Tue, 11 Mar 2008 14:21:15 -0800

Hmmmm. I think he did not deal with the issue of the effects of coupons for cheap OJ at light speed effectively (lol).

By: Jakey

Jakey — Tue, 11 Mar 2008 14:54:28 -0800

This paper, then, is a serious analysis of a ridiculous subject, which is of course the opposite of what is usual in economics. Now that's worthy of a t-shirt.

By: dilettanti

dilettanti — Tue, 11 Mar 2008 15:31:17 -0800

Interplanetary trade ... can be treated in the same framework as interregional and international trade. Among the authors who have not pointed this out are Ohlin (1933) and Samuelson (1947). I don't have my Samuelson handy, but I'm sure it's in there. Damn near everything else is.... Fun post - he's got some good jokes in there.

By: wendell

wendell — Tue, 11 Mar 2008 15:48:32 -0800

Considering how many geeks are hard-core free-marketeers, this may be the only possible way for Krugman to increase his Geek Cred. But it works!

By: JackFlash

JackFlash — Tue, 11 Mar 2008 16:39:21 -0800

In the references he cites a paper called "Theory Capital and Travel Light-than-Faster" which of course is published 10 years after he wrote this paper.

By: spaceman_spiff

spaceman_spiff — Tue, 11 Mar 2008 18:39:46 -0800

Metafilter: a serious analysis of a ridiculous subject

By: jason's_planet

jason's_planet — Tue, 11 Mar 2008 18:53:44 -0800

I will assume, then, that future futures markets are, well, futuristic in their development. In fact, I will assume that investors, human or otherwise, are able to make perfect forecasts of prices over indefinite periods. yeah, this one's a keeper.

By: metasj

metasj — Tue, 11 Mar 2008 21:55:41 -0800

interesting to see how the seriousness of age can blunt such a fine sense of humor.

By: moonbiter

moonbiter — Wed, 12 Mar 2008 02:47:50 -0800

Fine work in this important field was also done in the book Far Trader, although unlike Krugman's paper it assumes the use of the jump drive