The Laffer effect at work?

The Laffer effect at work?

February 22, 2019February 22, 2019 admin Laffer curve, Laffer effect

Is this news item an example of the Laffer effect?

4.1.6 Case Theme 4

Frozen Fries Fray

December 8, 2018December 8, 2018 admin anti-dumping, dumping, WTO

Some EU frozen fries producers have entered a trade fray over anti-dumping duties levied by the Colombian government upon their products. Exploring the case, we can deepen our insight into anti-dumping rules and measures, and into the parties involved.

1.4.1 2.6.1 Case Doughnut Model Ecological Ceiling Social Platform Theme 1 Theme 2

Fuel subsidies reforms

November 27, 2018December 8, 2018 admin fiscal deficit, subsidy

One sentence in my textbook triggered my attention: “Attempts to remove subsidies on basic foods or fuel in countries like Iran, Venezuela or India have caused major riots in the past. This led to an exploration into India’s fuel subsidies.

Reflection

Economic Literacy

October 9, 2018 admin doughnut model, economic literacy, scarcity

Yesterday I attended the Economic Literacy for Everyone summit of 2018, organized by ecnmy.org. I listened to some really informative and inspiring talks by some very involved men and women, however I could not help the feeling that something was missing.

Reflection Theme 1

What is a public good?

September 25, 2018December 8, 2018 admin private goods, public goods

I always feel bored when reading about public and private goods in an economics textbook. The reason is the topic is generally covered by fencing off both concepts, using the concepts of rivalry and excludability. It lures us into hairsplitting, whereas in my opinion, what makes the distinction between public and private goods, is of a political nature.

1.4.1 Case Theme 1

Animal abuse: a meat market externality

September 8, 2018September 8, 2018 admin government intervention, legislation

The Daily Mail covered a story on the sale of cat and dog meat in Indonesia. The trade has officially been banned but the ban has not been succesfully enforced on the market covered in the article. Cats and dogs are killed in plain view of the public, including children, and the methods used are devastating.

Questions:
1. Animal abuse is an externality of the meat industry. Explain.
2. Do you think a ban on dog and cat meat will root out animal abuse related to meat consumption?
3. Can you think of other options to deal with animal abuse in the meat industry, besides a ban?

1.3.1 Reflection Theme 1

Externalities

September 5, 2018 admin externality, market failure, overproduction, under-provision, underproduction

A popular example of an externality is road congestion, this is not different in my current textbook. We tend to look at the direct and indirect costs involved with road congestion. But at which markets is this externality pointing?

1.2.10 Reflection Theme 1

Thinking rationally

September 4, 2018 admin behavioural economics, irrational decision making, rational decision making, rational economic man

I am happy to see that the EdExcel specification puts the neo-classical assumption that men is rational to question. My textbook mentions three reasons why men may not behave rational: social norms, habits, and weak computational skills. It does not cover that people may not end up with a rational decision because of empathetic considerations.

1.2.9 Reflection Theme 1

Subsidies

September 2, 2018 admin consumer surplus, demand, economic model, government intervention, producer surplus, subsidy, supply

In this post, I focus on subsidies. The author of my textbook uses the model of supply and demand to analyse the effect of a subsidy on both supply and demand. He takes the perspective of a subsidy that falls to the supplier. But not all subsidies fall to suppliers, subsidies like housing benefit or subsidy on solar panels fall to buyers. I wondered if an analysis from the perspective of the buyer would give another result, all other things equal.

1.2.4 3.3.2 Case Theme 1 Theme 3

The Cost of Rental Housing

August 31, 2018 admin cost, supply

Question: What are the costs of the supply of rental housing?

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