No Clean Feed - Stop Internet Censorship in Australia

Category Archives: Economics

Thinking about states

While writing a paper on state dynamics in Latin Christendom, it was useful to try and think (think out aloud indeed) coherently about states as historical entities. State understood as an institutionalised structure of expropriation and coercion dominant in a particular territory. The notion that a state has to have, or even aspire to, a monopoly of coercion does not make […]

Fancy maths and data series are no reason to ignore supply and demand

Came across a 2014 NBER paper Betting The House (pdf) by Òscar Jordà, Moritz H.P. Schularick & Alan M. Taylor. I was wildly unimpressed. I am not quite sure whether I am willing to use the tag line of “numbers make smart people stupid”–as per this wonderful post on the adoption of farming, criticising an attempted cliometric study of said transition […]

“Over-valued” is the wrong metric about “bubbles”–housing or otherwise.

Thinking about asset price stability is pervaded by incorrect framings. Particularly if folk start throwing around the term “bubble”. Not the fault of the central banks One incorrect framing is “the central banks did it”; with the finger usually pointed at low interest rates and clams of “easy money” fuelling “bubbles”.  Low interest rates are […]

The revolutionary status quo Power

Based on a comment I originally made here. The US is at once both a revolutionary and a status quo Power. It is a revolutionary Power in the straightforward sense that it is the only contemporary state seriously trying to export its revolution, apart from the Islamic Republic of Iran. It is also a revolutionary Power […]

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 […]

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 […]

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 […]