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Author Archives: Lorenzo

Have worked in the public sector, the non-government sector and now the small business sector.

Plan or strategy?

In Austrian school economics, and economics influenced by the same, there is often talk of entrepreneurs as making plans. This turns up, for example, in Mark Casson’s entrepreneurial theory of the firm (pdf). As someone who is actually in business, I find the notion of plan somewhat problematic. The business I am a principal of does not make plans in […]

Good appeasement and bad appeasement

Appeasement–in the form of conciliatory concessions–can be a perfectly reasonable way of dealing with folk. It entirely depends on how limited their aims are. Mixed past So, the Middle Realm‘s Sons of Heaven used appeasement successfully for centuries in dealing with the steppe nomads to their north, the only open border of a unified China (with the partial […]

Don’t mention the inconvenient

So, a black guy with a long criminal record, a history of mental illness and attempted suicide, attempts to murder his girlfriend, kills two cops in Brooklyn and then shoots himself. A mainstream newspaper provides details on his life, ignoring an obvious one; he was Muslim (his name being Ismaayil Abdullah Brinkley is something of a hint). […]

Culture and rationality: or why South Asian call centres can be so infuriating

I recently read Kenneth Pollack’s Ph.D dissertation on The Influence of Arab culture on Arab Military Effectiveness (which later became a book). It is a very fine piece of social science which, alas, I doubt any important member of either the Obama or Bush II Administrations has read. The burden of his analysis is that Arab culture strongly […]

Domain states, tax states and fiscal states

Have been reading a Ph.D dissertation by Wenkai He on the consolidation of a modern fiscal state in C18th England and late C19th Japan and the failure to do so in late Qing China. (The dissertation has since become a book.) The dissertation references history of public finance literature I was previously largely unaware of. The literature covers domain states and fiscal […]

States and gangs

Having previously defined the state as (a structure of) systematic coercion requiring hierarchy to operate and revenues to sustain itself extracted from a given territory, an obvious question is: what about criminal gangs? They engage in systematic coercion, have a hierarchy which they use to extract revenue to sustain themselves from a given territory. One objection might be that criminal […]

Origins of the state

The state is systematic coercion requiring hierarchy to operate and revenues to sustain itself extracted from a given territory. The development of farming does not, of itself, create the preconditions for the development of the state, apart from requiring the storing of food across seasons (and so able-to-be-expropriated). Indeed, the first wave of proto-cities rose and […]

Atavism error

What is the most atavistic state on the planet? That would be the Democratic People’s Republic of Korea (DPRK), aka North Korea. It is a state of hereditary God-kings using a hierarchy of officials and soldiers to extract resources from a poverty-stricken population. And a system of God-Kings extracting resources from poverty-struck mass populations harks back centuries […]

A regulatory wrinkle from rational expectations

The rational expectations hypothesis can be understood in various ways. One is as an equilibrium condition in a model–the model is in equilibrium when expectations of agents in the model align with the predictions of the model (though that does not mean it is a stable equilibrium). Another is that expectations of agents within the model should not be set differently […]

Three ages of Western history summarised

In the Ancient period, the dominant ideal was to ennoble life (to seek glory). In the Medieval period, the dominant ideal was to sanctify life (to seek salvation). In the Modern era, the dominant ideal is to expand life (to live long and prosper). The ideal of the previous era never entirely dies, but becomes part […]