Matt Nolan

More rhetoric on restricting the choice of the poor

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I see that leading Stuff today is an article on New Zealand’s “obesity epidemic”, and how we must changes some things because we are “killing ourselves”.  The policy suggestions are:

In a report published today, the association calls for drastic cures for the bulge, including taxing or minimum prices for sugary drinks, restricting food advertising aimed at children, and taking fast food out of schools.

I’ll be honest, I can see a reasonable justification for everything except the minimum price.  I can see a good justification for changing policies around children, based on habit formation.  This isn’t the point.  The point I’m touching on involves the inappropriateness of quotes like this:

Otago University health researcher Professor Jim Mann said he supported the report’s recommendations, particularly a fizzy drink tax. Kiwis were becoming so big that they were almost blind to obesity. “Parents can’t even identify when their children are overweight or obese. Obesity is fast becoming normal.”

New Zealand’s poverty rates, particularly among children, and cheap access to fatty tasty foods were largely to blame, as was a lack of political will. “There is this obsession with the nanny state, that we shouldn’t be telling people what to do.”

Read more

Matt Nolan

On fairy tales

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Dawkin’s believes that fairy tells hurt kids.  Update:  It sounds like I have been unfair, here are the reported comments.  It still makes a cool conversation, so I will leave this up for comments about the ideas 🙂

From the article:

The British scientist, known for his assaults on religion in books such as The God Delusion, has told a science festival audience that parents should ditch fairy tales in order to “foster a spirit of scepticism” in their children.

“I think it’s rather pernicious to inculcate into a child a view of the world which includes supernaturalism,” The Times reports him saying.

I find this troubling, as I have a different view on what fairy tales are:

You may note some similarities in this to how I have broadly discussed economics.

However, I’m interested in your thoughts.  Is the framework I’m using “right”, if not why, if so how can we use that to analyse the efficacy of fairy tales for helping give children knowledge (vs misleading them).  Given all this, what lessons can we take for economics!

Matt Nolan

Top 10 on Global Warming

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So Interest.co.nz allowed me to pop up another one of these “Top 10” links things – where I blatantly use more than ten links to make some arbitrary point about some arbitrary subject.  This time, global warming – go over and give it a look.

However, there are a few links that I missed.

An excellent post by Eric Crampton from 2010, considering NZ policy choices.  I hear he is doing the next Top 10, so it will be interesting to see if he expands on this!  He discusses the idea of what policy we should put in place, given the fact that the lack of an international agreement removes the “externality” argument from play.  Ideas such as investment in technology (risky, with high potential reward, strategy) and investment in adaption and insurance become much more important here – it is an honest conversation we need to have!

Also, the links in this tweet:

Our views, and expectations of, global coordination are an essential part of what is “right” policy here.  Let’s try to be honest about that.  Yes, we can decry the impact on future generations, and we can do things to signal our concern (that is why I support a tax, even though it does nothing to the chance of a GWE).  But these issues are too important to only be controlled by the tyranny of ‘good intentions’, without considering what the actual future impact will be – if we actually believe that global coordination is fraught, we instead need to think about ways to coordination nationally to insure against/limit the impact where appropriate.  Ranting instead will just see us sacrificing future generations of New Zealander’s to make ourselves sound “moral” now 😉

Matt Nolan

Productivity in the UK and NZ

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I see that Patrick Nolan has an article in Public Finance talking about UK and New Zealand productivity.  Go read it, but come back here to comment as they don’t seem to have a comment system.

As we are a NZ audience, I’ll quote this bit:

While New Zealand faces different challenges, its experience can throw light on the UK’s situation. OECD research recently published by the New Zealand Productivity Commission has shown that the country has good resources – investment in physical capital and average years of schooling are broadly consistent with other countries – and policy settings. It is one of the easiest countries in the world in which to set up a business and its tax and regulation regimes are often seen as world class.

Indeed, the OECD estimates that New Zealand should have GDP per capita 20% above the OECD average. But its productivity performance means it is 20% below. In short, New Zealand poses a real challenge for standard prescriptions for what countries should do to lift their productivity performance.

– See more at: http://www.publicfinanceinternational.org/features/2014/06/solving-the-productivity-puzzle/#sthash.qZST25PS.dpuf

Matt Nolan

A modern version of an old economists joke

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You’ve all heard the joke about the Chicago economist who doesn’t pick up the $20 note on the pavement, as someone would have picked it up already.  All very good – it is discussed over at “Economist’s do it with models”.

The always brilliant SMBC has come up with a different take on this in his comic:

In both cases I think our problem stems from poorly defining the choice set – but that is sort of the point, it is an indication of how we can inadvertently misuse the EMH if we haven’t fully considered the types of expectations, the amount of competition involved, the existence of change from a steady state, and the general ideas of history dependent or emergent phenomenon.

Look, I didn’t say anything I said would be funny – but the comic is humorous ok!

 

Matt Nolan

Some links for today

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Hello all.  Here are some links I’d like to do posts on, but don’t have the time.  As a result, I suggest enjoying them for yourself!