BOHANON & CUROTT: Pay attention to what’s happening at the margins
Marginal analysis is a cornerstone of economic reasoning. It’s the simple notion that the incremental value of a variable is what matters, not its total or average value.
Economic Analysis
Articles
BOHANON & CUROTT: Here’s why May’s jobless data was skewed—but still positive
How should BLS count the servers or hair stylists who did not work because of COVID-19 workplace closures? Technically, they ought to be counted as laid-off and unemployed. But apparently this isn’t happening.
African Americans point to racial biases in economics
The field of economics is facing an upheaval, with African American scholars decrying bias in the profession and presenting evidence that leading journals have failed to publish sufficient research that documents racial inequalities.
BOHANON & CUROTT: Universities, businesses need protection from frivolous claims
Now the economy is opening back up and many universities are planning to resume in-person learning in the fall. But the fear of lawsuits could easily derail these plans.
BOHANON & CUROTT: Federal borrowing makes sense, but let’s do it right
We propose $1 trillion of new debt be specifically issued as Corona Bonds. The bonds should be long term and be backed by a small surtax on current federal income taxes earmarked for their repayment.
BOHANON & CUROTT: Entrepreneurs are best equipped to pull us out of this mess
Epic levels of unemployment and declines in GDP take time to repair, even if we get good news such as better remedies or an effective vaccine. There are at least two reasons why.
BOHANON & CUROTT: Price swings caused by virus spur debate over what’s ‘just’
Discussions of what constitutes a just price go all the way back to the ancient Greeks.
BOHANON & CUROTT: Ultimately, consumers are key to reopening economy
The economic notion of compensating-wage distinctions goes back to Adam Smith, who stated the “wages of labour vary with the ease or hardship, the cleanliness or dirtiness … of the employment.”
BOHANON & CUROTT: In the real world, you actually can put a value on human life
The cold, hard fact is that putting a value on human life is unavoidable.
BOHANON AND CUROTT: Once economy begins to rebound, don’t expect swift return to ‘normal’
The economy is not a machine that can be turned on or off. It is not as if President Trump, nor even Dr. Anthony Fauci, can declare, “OK, on May 17, it’s all over—everyone go back to work.” Rather, an economy is networks of relationships.
BOHANON AND CUROTT: Coronavirus reveals nuances of supply and demand
It is a safe bet that the pandemic will produce a decline in gross domestic product and unemployment rates at a level not seen since the Great Depression.
BOHANON & CUROTT: Big spending is needed, but this deficit won’t go quietly
The day of reckoning comes when the U.S. Treasury has to choose between paying the interest on its bonds or paying its obligations to its pensioners.
BOHANON & CUROTT: Trade will remain robust after pandemic ends
What we call globalization is nothing new. Long-distance trade is as old as humankind.
BOHANON & CUROTT: Action by Fed can have unintended consequences
Markets responded negatively to both Fed actions in March because the cuts themselves confirmed investors’ worst fears about the coronavirus’s impact on future profitability of American companies.
BOHANON & CUROTT: Coronavirus market turmoil shows limits of monetary policy
On March 3, the Federal Reserve cut its interest rate target by half a percentage point in a preemptive move to combat the economic risks caused by the coronavirus. Nevertheless, on March 9, the S&P 500 fell a stunning 7.6%.
BOHANON & CUROTT: Delivering a commodity is tricky if it’s considered a public ‘right’
Politicians often proclaim that certain goods and services such as health care, housing and internet service are human rights.
BOHANON & CUROTT: Criticism of president’s budget is deserved but off the mark
Trump’s proposal does little to address the rising tide of national debt.
BOHANON & CUROTT: Raising taxes, even on tobacco, can have unintended effects
On the surface, it seems an e-cigarette tax is a good idea. But upon further examination, it turns out the answer is tricky.
BOHANON AND CUROTT: Iowa fiasco obscures beauty of the caucus
The hullabaloo will probably kill off the Iowa caucus. Yet there is much to like about a caucus system—especially if one sees democracy as something more than a frantic media-driven circus.
BOHANON & CUROTT: Trump’s unpredictability hurts business investment
Good economic policies are predictable. Often, the predictability is more important than the particulars of the policy itself.