Somehow he succinctly describes the key insight in one page. Here is the full paper at jstor. I vainly searched the web for “Akerlof rat race intuition” and of course there was nothing better, because why bother? The article marked a key turning point in the shifting of thinking of most economists away from a “with free markets and people and firms engaging in voluntary transactions the presumption should be to leave things alone” to a perspective of “with information asymmetries ubiquitous and indeed constantly ‘manufactured’ the presumption should be that we know very little about how economies are really working.” The issue came up in a student discussion of the 35 hour work week, versus, say, a 40 or 50 hour work week. How would we research and justify a stance as a citizen one way or the other? (Assuming that the whole point of the work week restriction is that it is fairly binding on what some people and firms would otherwise want to do.)
Blogs I Follow
- Revenue-strapped government of Burkina Faso? I don’t think so.
- How much is the Trump trade war helping African consumers of soybean?
- Recent reading: Beard, Twain, and Pinsker
- Should anti-vaccination parents be liable under tort law if their child infects a baby and kills them?
- Reading fiction because it is actually better than binge-watching
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