The Austrian Economists

Economic Growth in China

Due to the miracle of the modern technology of video conferencing, I gave a lecture on constitutional political economy to a group of students from Michigan State University.  During the Q&A one of the students asked me to explain Chinese economic growth.

Bob Subrick, inspired by Bryan Caplan's blog post, discusses the issues associated with Chinese economic growth.

Best Paragraph of the Day (so far)

Mihaly Csikszentmhialyi writes in his book Creativity: Flow and the Psychology of Discovery and Invention that:

Each of us is born with two contradictory sets of instructions: a conservative tendency, made up of instincts for self-preservation, self-aggrandizement, and saving energy, and an expansive tendency made up of instincts for exploring, for enjoying novelty and risk --- the curiosity that leads to creativity belongs to this set.  We need both programs.  But whereas the first tendency requires little encouragement or support from outside to motivate behavior, the second can wilt if it is not cultivated.  If too few opportunities for curiosity are available, if too many obstacles are placed in the way of risk and exploration, the motivation to engage in creative behavior is easily extinguished. (1996, p. 11)

The relevant economic applications of this insight, I would argue, have been explored in works such as Reuven Brenner (e.g., Labyrinths of Prosperity and Betting on Ideas), Joel Moykr (e.g., The Lever of Riches), and Nathan Rosenberg (e.g., How the West Grew Rich).  The reason why some nations are rich and others are poor, is to a considerable extent a consequence of that fact that the rich societies have found a way to create an environment which encourages, and ultimately captures the returns, the innovative side of humanity.  In short, the entrepreneurial element in economic life.

Austrian Economics, Sociology and Community Planning

Over at OrgTheory, Brayden discusses Brad de Long's review of James Scott's See Like a State.  de Long actually published this review in Review of Austrian Economics.  Brayden expresses "surprise" at the link to Austrian ideas, but actually Scott himself recognized the possible connection and takes time out in his book to try to distance himself from Hayek.  But that is not an important point.  Brayden goes on to discuss issues of scale in social organization that are very relevant for understanding social order outside the existence of the state.

Sex and Economics

Tim Harford discusses new research on the strategic use of assets and the question of virginity.

Many years ago I wrote a review essay on Richard Posner's Sex and Reason, while checking out of the library at NYU with a handful of books by anthropologists on unusual sexual practices and legal books on rulings concerning sexual behavior I ran into one of my freshman honors students (who was working at the library as the check out person).  She looked at me in shock, I just pointed to the pile of books and said "Research".

Is There a Wisdom of Crowds?

There is an interesting experiment being conducted by JC Bradbury (author of The Baseball Economist and one of the great examples of what the GMU PhD program can produce) that relates to the Wisdom of Crowds thesis.  A-Rod is up for a contract extension with the Yankees, or will test the open market by being a free agent.  The first-line prediction is a 7 year $244 million contract.  If you would like a signed copy of The Baseball Economist get your prediction in over the next week in the comments section on Bradbury's blog.

As a Yankee fan, I am thrilled to see this discussion take away from discussion of the apparent Red Sox's World Series victory.  Please will the Rockies catch on-fire again and start driving in some runs!  I am now staying up way too late and going to bed way too disappointed.  But hope springs eternal --- if the Red Sox's can come back from 0-3 against the Yankees in 2004, and 1-3 against the Indians in 2007, the Rockies can surely pick up the wins at home and make this a series.  Go Rockies.*

*Might be one of the few times in my life I am routing for the National League team.  But I follow the rule, anyone but the Red Sox's.  The world was in a better equilibrium during those 86 years, some how things have been turned upside down.  It must relate to the Bush years some how!

Is Hayek Grossly Overrated?

Bryan Caplan believes so.

And Bryan pulls no punches in his response to Dan Klein's critique of The Myth of the Rational Voter.

I am actually in this instance, as in so many other cases, closer to Klein than to Bryan.  But I must say that the success of Bryan's book has given me reason to doubt my inner judgments.  It is not just the wide success in the popular media such as the NYT and in the blogosphere (that is desirable but not pivotal to me), but the success Bryan has had academically with the argument in his book.  It is a phenomenal academic success --- e.g., the debate at Yale's political science department.

So given the evidence, perhaps I should be like George Costanza and just do the opposite.

Though Tyler Cowen's comment to Caplan's entry reinforces my original impression and the position that I presented to Bryan when he and Dan debated in my PPE Workshop.  But I walk away wondering if an argument is self-defeating IF nobody recognizes to be so except those closest to the author?

Political Theology

Mark Lilla, who I once served with on the core curriculum committee in the College of Arts & Sciences at NYU, discusses coping with political theology at CATO Unbound.

Witty and Insightful --- II

Greg Mankiw describes the evolution of data-free empirics in economic policy discourse.

Witty and Insightful

Dani Rodrik on this past weekends New York Times Book Review.

Kirzner on You Tube on Choice, Entrepreneurship and Market Processes

Israel Kirzner on You Tube.

Hat tip to Jeff Tucker.