Revisiting the mathematics of economic expectations

The below presentation by Dr Ole Peters opened my mind. If there was one thing I believed was reasonable about economics, it was assumption that expectation values upon which agents base their decisions are the “ensemble mean” of a large…

Decent criticisms of economics? Here are 111 of them.

Throw out the standard urban economics model

If we want to understand urban development our models of it must at least feature the process of development. But in urban economics no one seems to care.

There is no economic rationale for compulsory superannuation

Will the current debate about housing and super finally reveal this economic truth?

Do economists even know what firms do?

Standard economic theory says that firms maximise profits, or revenue minus costs. I had always taken this to be a self-evident truth given how entrenched in economic thought it is.

Humans vs Houses: Australia’s perverse tax system

Investment property income beats actually working…

Economics of favours and karma

Giving gifts is not selfless. It always creates an implicit obligation…

Book review: The Econocracy

I have just read a fantastic economics book. In entertaining detail, it outlines many issues in the economics profession that I feel strongly about [1]. Like the authors, I want my discipline to evolve into one that is much better than it is; more practical, humble, and diverse…

Immigration economics lesson

When foreign supermarket chains ALDI and Costco entered Australia, did Coles and Woolworths welcome them with open arms?

What a silly question. Of course not. The entry of foreign competitors undermined their pricing power. So much so, that recent RBA…