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Homo Economicus

Nicholas Decker, Dave Donaldson
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I write about cutting edge research in economics.

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Latest Issues

What Do Unions Do?

A union is a collusive cartel of workers. By bargaining as one unit, they are able to increase their bargaining power relative to bargaining individually, and raise their wages. In some circumstances, this will be inefficient, with the unio...

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The Theory of Trade

Trade theory began in earnest with David Ricardo. There were, of course, many scattered antecedents, but none of them had the same systematized character as Ricardo’s famous demonstration of comparative advantage. Remarkably, even if someon...

13 days ago
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Funding Charity After AGI

The founders and employees of the major AI companies have made very large charitable commitments. The sums involved are so large as to saturate all low-hanging fruit. That does not mean that there will be no poor people, just that our exist...

14 days ago
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Everything I Know About Dynamic Discrete Choice

I do not think anyone understands quite what John Rust is doing the first time they read Rust (1987). I certainly didn’t. It was only upon seeing it applied elsewhere, and being given a high level overview, that I could approach the forbidd...

15 days ago
17
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Sticky Wages, Disequilibrium, and the Keynesian Revival in Modern Macroeconomics

Orley Ashenfelter’s 1980 paper “Unemployment as Disequilibrium in a Model of Aggregate Labor Supply” is hardly ever cited these days, and it isn’t surprising. I had a hard time understanding the paper at first because the debates it is invo...

16 days ago
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    Follow me at https://twitter.com/captgouda24 for studies, papers, and takes.

  • Dave Donaldson
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