Redirect


This site has moved to http://economistsview.typepad.com/
The posts below are backup copies from the new site.

May 25, 2014

Latest Posts from Economist's View

Latest Posts from Economist's View


Links for 5-25-14

Posted: 25 May 2014 12:06 AM PDT

'Buying Insurance Against Climate Change'

Posted: 24 May 2014 09:39 AM PDT

Robert Shiller:

Buying Insurance Against Climate Change: The third National Climate Assessment report ... warns us about our hazardous future... We must face facts: There is a real risk of new kinds of climate-related disaster. ... We are taking major gambles with our environment... Expect surprises.
In March, a United Nations report identified with "high confidence" a number of risks that will be visited on different people unequally. ... In short, we need to worry about the potential for greater-than-expected disasters, especially those that concentrate their fury on specific places or circumstances ... we cannot now predict.
That's why global warming needs to be addressed by the private institutions of risk management, such as insurance and securitization. They have deep experience in smoothing out disasters' effects by sharing them among large numbers of people. The people or entities that are hit hardest are helped by those less badly damaged.
But these institutions need ways to deal with such grand-scale issues. Governments should recognize that by giving these businesses a profit incentive to prepare for these unevenly distributed disasters. ...

'Is Piketty All Wrong?'

Posted: 24 May 2014 08:59 AM PDT

Guess I should post something on the Piketty data controversy (please feel free to post links to additional discussion in comments). This is Paul Krugman:

Is Piketty All Wrong?: Great buzz in the blogosphere over Chris Giles's attack on Thomas Piketty's Capital in the 21st Century. Giles finds a few clear errors, although they don't seem to matter much; more important, he questions some of the assumptions and imputations Piketty uses to deal with gaps in the data and the way he switches sources. Neil Irwin and Justin Wolfers have good discussions of the complaints; Piketty will have to answer these questions in detail, and we'll see how well he does it.
But is it possible that Piketty's whole thesis of rising wealth inequality is wrong? Giles argues that it is...
OK, that can't be right — and the fact that Giles reaches that conclusion is a strong indicator that he himself is doing something wrong.
I don't know the European evidence too well, but the notion of stable wealth concentration in the United States is at odds with many sources of evidence. ... [discusses several sources]...
The point is that Giles is proving too much; if his attempted reworking of Piketty leads to the conclusion that nothing has happened to wealth inequality, what that really shows is that he's doing something wrong.
None of this absolves Piketty from the need to respond to each of the individual questions. But anyone imagining that the whole notion of rising wealth inequality has been refuted is almost surely going to be disappointed.

No comments: