25 years ago, Paul M. Romer's oft-cited article: "Endogenous Technological Change" (pdf) was published in The Journal of Political Economy. In it, he tried to explain how technological progress and knowledge creation affected the dynamics of growth. Romer’s model (pdf) became the "primary engine that fueled a decade-long re-examination of long-term growth in economics." This past October, Dr. Romer posted 7 follow-up blog entries to his historic paper, in order to 'revisit the basics,' starting with: Nonrival Goods After 25 Years. [more inside]
Rewrite the rules to benefit everyone, not just the wealthy - "If there's one thing Joseph Stiglitz wants to say about inequality, it's that it has been a choice, not an unexpected, unfortunate economic outcome. That's unnerving, but it also means that citizens and politicians have the opportunity to fix the problem before it gets worse." (via) [more inside]
Joe Stiglitz on Inequality, Wealth, and Growth: Why Capitalism is Failing (video; if you don't have 30m, skip to 20m for discussion of political inequality, wealth, credit and monetary policy) - "If the very rich can use their position to get higher returns, more investment information, more extraction of rents, and if the very rich have equal or higher savings rates, then wealth will become more concentrated... economic inequality inevitably gets translated into political inequality, and political inequality gets translated into more economic inequality. The basic and really important idea here is that markets don't exist in a vacuum, that market economies operate according to certain rules, certain regulations that specify how they work. And those effect the efficiency of those markets, but they also effect how the fruits of the benefits of those markets are distributed and the result of that is there are large numbers of aspects of our basic economic framework that in recent years have worked to increase the inequality of wealth and income in our society... leading to a society which can be better described, increasingly, as an inherited plutocracy." [more inside]
Raj Chetty gives the 2015 Richard T. Ely Lecture (video, slides; talk begins at 9m) for the AEA: [more inside]
There is an European Commission budgetary proposal to boost E.U. funding for science and technology by 45% from €55B to €80B by trimming some fat form the controversial Common Agricultural Policy. [more inside]
Homelessness: Cutting out the middle men (Economist) "The most efficient way to spend money on the homeless might be to give it to them". [more inside]
"The rich are different than you and me." A new study out of the Harvard Business School suggests that frequent use of luxury goods and services may encourage a narrower, more self-interested view of the world. Here's a link to the report itself. (Achtung! it's a PDF.)
"Does Professor Quality Matter? Evidence from Random Assignment of Students to Professors" by Scott Carrell and James West is the title of an interesting new study in this month's Journal of Political Economy, a leading journal in economics. (For a summary of the paper, see this review. An ungated version, too). The authors are interested in determining the role of "professor quality" in student learning. They do this by exploiting an unusual institutional feature of the Air Force Academy whereby all undergraduates are randomly assigned their professors, and all professors use the same syllabus. The authors also have the professor's student evaluations, as well each student's subsequent performance in the follow-up classes. To keep it simple, they focus only on Calculus I and the follow-up courses in Calculus (which are mandatory), though they note that an earlier study that looked at Chemistry and Physics found similar things. [more inside]
A new study suggests that humanity's sense of fair play and kindness towards strangers is determined by culture, not genetics. Speculation: the finding may be directly related to the rise of religion in human history, as well as more complex economies. (Via). [more inside]
Search for an Rx - We asked Johns Hopkins administrators, physicians, and researchers about the health of a system Americans rely on to keep them healthy. Afterall, an ounce of prevention... [more inside]
Andy Grove on Our Electric Future - "Energy independence [viz.] is the wrong goal. Here is a plan Americans can stick to." Perhaps some infrastructure spending1,2 is in order? [etc., &c., cf.] [more inside]
An unprecedented five consecutive years of stagnant funding for the National Institutes of Health is putting America at risk - a few prominent research institutions get together to voice their concern over flat funding of the National Institutes of Health over the past 5 years, in their report The Broken Pipeline (pdf). Bloggers comment [1, 2, 3].
Understanding what makes America tick "The belief that America is exceptional, in the double sense that it is superior and that it is different...The United States had a mission, a manifest destiny, to change the world in its image. This conviction echoes down through American history....Other countries—France, Britain, Russia—have from time to time in their history felt a sense of mission, of carrying their civilisation to other peoples and territories. But in their cases it has been episodic and not deeply rooted—usually limited to when their power was at its zenith and usually clearly recognisable as a rationalisation for what they were doing for other reasons. In the case of the United States, it has been constant and central." [Centre of Independent Studies in Sydney via aldaily] American Exceptionalism. Mix it with sole super power status and massive military might. Should make it quite an intoxicating ride these next few years.