Some worrisome news from the Economist on global warming: “On October 19th, the International Energy Agency reported that doubling world GDP by 2040 would require only a small rise in energy demand if everyone adopted strict standards, like Japan’s for vehicle-fuel efficiency. … [According to their logic,] higher efficiency means less fossil fuel must be burned—and less planet-cooking gas belched—to power the global economy. But some economists are not so sure. [In] ... Read More
With $3-an-hour Mexican Labor, Why Should Capital Flow to Rural America?
With $3-an-hour Mexican labor, why should capital flow to rural America? Can rural America achieve the productivity needed to sustain high wages unless it exports labor to urban America? It doesn’t seem likely. ... Read More
The San Antonio Express-News’ Michael Taylor Compliments The Upside of Inequality
The San Antonio Express-News' Michael Taylor Compliments The Upside of Inequality “Conard’s book challenges some deeply held beliefs. I want people … who think inequality is a major problem to read more smart people on the other side of the debate, like Edward Conard.” Is the wealth gap really all that bad? The financial crisis wiped out trillions of dollars of savings and capital in America, sparking an entire movement against the top 1 percent of earners and ... Read More
Graph of the Week: An indication of the migration of talent to large cities…
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Two More Studies Find Shocking Inability to Replicate Economic Research
The Economist reports on two more studies that find a shocking inability to replicate economic research: A recent examination in the Economic Journal, of almost 7,000 empirical economics studies, found that in half of the areas of research, nearly 90% of those studies were underpowered, i.e., that they used samples too small to judge whether a particular effect was really there. Of the studies that avoided this pitfall, 80% were found to have exaggerated the reported ... Read More
Rates of Return Are Low for American Big Pharma
The Economist reports that rates of return are low for American pharmaceutical companies: Given the rapid pace of scientific advances in medicine, you might think Big Pharma is in rude health. You would be wrong. Last year consultants at Deloitte estimated that returns on investment among the biggest American drugmakers fell to 3.2% from 10.1% in 2010 (see chart). Many observers blame the rising cost of bringing new drugs to market. It now costs an average of $2bn to ... Read More
