When asked to name one proposition in the social sciences that is both true and non-trivial, Paul Samuelson famously replied: 'Ricardo's theory of comparative advantage'. Truth, however, in Samuelson's reply refers to the fact that Ricardo's theory of comparative advantage is mathematically...

Im Mittelpunkt dieses Lehrbuches steht das Verständnis grundlegender ökonomischer Zusammenhänge sowie des Wirtschaftsgeschehens in der Bundesrepublik Deutschland. Der Lehrstoff wird in einem mittleren Schwierigkeitsgrad und auf einem mittleren Abstraktionsniveau vermittelt. Die zur...

Im Mittelpunkt dieses Lehrbuches steht das Verständnis grundlegender ökonomischer Zusammenhänge sowie des Wirtschaftsgeschehens in der Bundesrepublik Deutschland. Der Lehrstoff wird in einem mittleren Schwierigkeitsgrad und auf einem mittleren Abstraktionsniveau vermittelt. Die zur...

In recent years, comparative economics experienced a revival, with a new focus on comparing capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand...

Some booms in housing prices are followed by busts. Others are not. It is generally difficult to find observable fundamentals that are useful for predicting whether a boom will turn into a bust or not. We develop a model consistent with these observations. Agents have heterogeneous expectations...

Economics and history both strive to understand causation: economics using instrumental variables econometrics and history by weighing the plausibility of alternative narratives. Instrumental variables can lose value with repeated use because of an econometric tragedy of the commons bias: each...

This paper is a non-technical and somewhat philosophical essay, that seeks to investigate the relationship between economics and reality. More precisely, it asks how reality in the form empirical evidence does or does not influence economic thinking and theory. In particular, which role do...

A large literature following Hirsch (2005) has proposed citation-based indexes that could be used to rank academics. This paper examines how well several such indexes match labor market outcomes using data on the citation records of young tenured economists at 25 U.S. departments. Variants of...

Written in celebration of the upcoming 100th anniversary of the American Economic Review (February 2011), this paper recounts the history of the journal. The recounting has an analytic core that sees the American Economic Association as an organization supplying goods and services to its...

In this essay I review Sylvia Nasar's long awaited new history of economics, Grand Pursuit. I describe how the book is really an economic history of the period from 1850-1950, with distinguished economists' stories inserted in appropriate places. Nasar's goal is to show how economists work, but...