Entries by Infometrics

Breaking windows, doors, and GDP

This week Mieke Welvaert discussed (Infometrics link) the broken window fallacy. GDP measures the value produced within a geographic entity. Even though it seems damaging property could increase GDP, this is unlikely – and when it does, it does not do so in a way that increases wellbeing.  In truth, it would be better if we […]

Careful making us an aggregate happiness machine

Last week Matt Nolan discussed the idea that being too target focused can be dangerous (Infometrics link here): Instead of targeting an arbitrary set of outputs that treat New Zealand like a machine, policy should be based on the inherent trade-offs that exist for the policy question we are asking.  Focused research on the costs […]

Co-ordintation: Daylight savings and global warming

This week (Infometrics link here), Matt Nolan discuss daylight savings, specifically discussing the way an economist would probably look at it – as a type of ‘co-ordination game’ where a government can help individuals co-ordinate actions. He then goes on to discuss a prisoner’s dilemma that exists between government around global warming – implying that […]