4 posts tagged with economics by Jasper Friendly Bear.
Displaying 1 through 4 of 4.
We’re all familiar with the stories of Russian oligarchs buying up mansions in London, but this is a much broader phenomenon. A torrent of capital from wealthy people in emerging markets—from China, above all, but also from Latin America, Russia, and the Middle East—has flowed into the real-estate markets of big cities in other countries, driving up prices and causing a luxury-construction boom. ... The globalization of real estate upends some of our basic assumptions about housing prices. We expect them to reflect local fundamentals—above all, how much people earn. In a truly global market, that may not be the case.James Surowiecki writing in the New Yorker on the rise of a truly global market in real estate.
Are Healthy Foods Really More Expensive? (6.78 MB PDF) It turns out that it depends on how you measure the price. In a recent study by the USDA, some 4,439 foods were compared using the following metrics: the price of food energy ($/calorie), the price of edible weight ($/100 edible grams), the price of an average portion ($/average portion), and the cost of meeting the federal dietary recommendations for each food group. The study found that for all metrics except the price of food energy ($/calorie) healthy foods cost less than less healthy foods (defined as foods that are high in saturated fat, added sugar, and/or sodium, or that contribute little to meeting dietary recommendations).
Everyone knows that correlation doesn't imply causation, but researchers invariably need to come up with plausible explanations (i.e., models) for the patterns found in their data. However, very different models can "explain" the same pattern. The books The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It and Wars, Guns and Votes: Democracy in Dangerous Places by Oxford economist Paul Collier try to explain why some countries have remained poor using data from econometric studies. In his very interesting review (PDF), Mike McGovern, a political anthropologist at Yale, critiques the types of explanations found in popular economics books. Statistician Andrew Gelman has further thoughts on descriptive statistics, causal inference, and story time.
How to Be a Good Graduate Student, How to Organize a Conference, Economical Writing: An Executive Summary, Why Don't Economists Believe Empirical Findings?, The Bankruptcy of Statistical Significance, The A-Prime, C-Prime Theorem, and many other articles in PDF format (scroll down to the bottom of the page to see the others) originally published in the very entertaining “Other Things Equal” column by Deirdre McCloskey in the Eastern Economic Journal.