The Economics Book

INDEX 349 market price 22–23, 57–58, 145 on value 106, 133 search and matching theory 304–05 and morality 18, 22–23 risk 115, 162–63, 248, 267 second best, theory of 220–21 predatory pricing 96 banking 27–28 self-interest 52, 53 price fixing 71–73 Value-at-Risk (VaR) 262 Selten, Reinhard 236, 240–41 and quantity of money 32 Robbins, Lionel 133, 144, 146, 152, Sen, Amartya 140–41, 214, 219, 220, 257 sticky 303 supply and demand 108–13 171 entitlement theory 256–57 Prigogine, Ilya 278 Robinson, Joan 180–81 Shapiro, Carl 302 private property 18, 20–21, 176 Rodrik, Dani 261, 339 shares, see stocks and shares probability 88, 248–49 Shiller, Robert 98 property rights 207 on economic reform 328–29 Shin, Hyun Song 325 prospect theory 269 on globalization 228, 229, 230–31 Shleifer, Andrei 266, 326 protectionism 50, 51, 82, 85, 190, on inequality and growth 326–27 shortages 232–33 Rogoff, Kenneth 290, 322 signaling and screening 281 192, 228, 242 Romans 20, 22 Simon, Herbert 52, 98, 247, 266 Protestantism 138–39 Romer, Paul 224 Singer, Hans 124, 242, 243 public choice theory 60 Roosevelt, Franklin D. 152, 153, 184, Sismondi, Jean-Charles 51, 78–79 public goods 19, 46–47, 285, 308 Smith, Adam 45, 61, 71, 75, 132, 148 public limited companies 38 321 Putnam, Robert 280 Röpke, Wilhelm 222 on competition 90, 126, 129, 131 quantitative easing 33 Rose, Andrew 252, 255, 293 on division of labor 66–67 quantity theory of money 30–33 Rosenstein-Rodan, Paul 190–92, 284, on economic man 52–53, 208 Quesnay, François 45, 51, 62, 165, free market economics 56–61, 212 336 on international trade 83, 84, 228 216 Rostow, Walt 190 on market forces 78, 156, 220 on circulation of money 42–45 Rothschild, Michael 129, 274, 281 on monopolies 88, 96 on land/agriculture 19, 39, 178 Roubini, Nouriel 61, 321 on public goods 47 on self-interest 52 Rowntree, Seebohm 140 on taxation 270 on value 39, 63, 106, 110 R S The Wealth of Nations 351 50–51, 52. Ramsay, Frank 64 Sachs, Jeffrey 261, 314–15 56, 66, 74, 94, 166, 224 RAND Corporation 238, 239 Saint-Péravy, Guerneau de 62 Smith, Yves 324 rationality 50, 52–53, 60, 61, 88 Saint-Simon, Henri de 334 Smithson, Michael 248 rational choice theory 52–53 Sala-i-Martin, Xavier 326, 327 social capital 280 rational expectations 60, 198, 201, Samuelson, Paul A. 46, 120, 130 social choice theory 214–15 Samuelsson, Kurt 138 social market economy 184, 222–23 244–47, 276, 303 Saravia de la Calle, Luis 22 socialism 22, 89, 153, 175, 260 see also irrationality Sargent, Thomas 77, 201, 202, 246, Rawls, John 215 planned economy 142–47, 232–33 Reagan, Ronald 199, 201, 260, 270, 303 socialist calculation 145 Savage, Leonard J. 115, 194, 248 Solow, Robert 62, 224–25, 313 271 savings 33, 75, 204–05 Sombart, Werner 148 recession 148, 149, 261, 303 South Korea 284, 285, 286, 287 redistribution 211, 326 global imbalances 322–25 Soviet Union 102, 146, 152, 260, 261 reform, economic 328–29 Say, Jean-Baptiste 51, 74–75, 78, Spence, Michael 274, 281, 338 Regnault, Jules 272 spending paradoxes 116–17 Reinhart, Carmen 290 270, 298 Sraffa, Piero 133 religion 138–39 Scandinavia 223 stagflation 201, 203, 271 Ricardo, David 51, 64, 78, 84, 124, Scarf, Herbert 210 Stalin, Joseph 152 Schelling, Thomas 236, 241 statistics 19, 36, 37, 152 128, 140 Schmookler, Jacob 313 Stern, Nicholas 261, 306–07 on comparative advantage 312 Scholes, Myron 262, 264 Stevenson, Betsey 219 on prices 110 Schultz, Theodore 39 Stigler, George 70, 73, 116, 304–05, 337 Ricardian equivalence 76–77, 164 Schumpeter, Joseph 58, 89, 97, Stiglitz, Joseph 219, 220, 228, 274, 338 on trade 34, 82–83, 228 on developing countries 85, 193 148–49, 313 on screening 281 Schwartz, Anna 198 on taxes 64 science 36, 50, 56, 120, 185, 261 on unemployment 161

350 INDEX trade unions 134–35, 160 Value-at-Risk (VaR) 262 Trajtenberg, Manuel 313 van de Walle, Nicolas 328 on wages 302 transport 229, 230 Veblen, Thorstein 89, 117, 136, 206, stocks and shares 19, 88 Trivers, Robert 273 Tulipomania 98–99 335 bull and bear markets 79 Turgot, Anne-Robert-Jacques 50, 51, Verdoorn, Petrus Johannes 132 shareholders 168–69 Vickrey, William 294–95 stockbrokers 38 62, 63, 64, 65 Vishny, Robert 326 stock exchanges 19, 29, 38 Tversky, Amos 162, 194, 260, Volcker, Paul 272 stock market 88 von Neumann, John 114, 123, 194, Stone, Richard 36 266–69 Summers, Lawrence 266 236, 237, 274 supply 74–75, 270 U voting paradox 184, 214–15 and demand 51, 88, 89, 108–13, uncertainty 114, 208 WY 121–22 decision making 194, 195, 248, supply-side economics 270–71 249, 267 Wade, Robert 285, 286 Sweezy, Paul 106 and risk 129, 162–63 wages 58–59 Syrquin, Moshe 178 underconsumption 78,79 efficiency wages 160, 161, 302 T underemployment 75 real 158–60, 303 unemployment 74, 75, 152, 219, sticky 303 Taleb, Nassim N. 248, 265, Wagman, Barnet 310 298 302 Wall Street Crash 89, 152 global 305 Wallace, Neil 246, 303 tariffs 85, 229, 230 and inflation 185, 200–03, 246 Wallerstein, Immanuel 242 Taussig, Frank 180 involuntary 154–61 Wallis, John 328 tax 46, 50, 76, 220, 326–27 and job searches 304–05 Walras, Léon 120, 131, 211 natural rate 200–01 general equilibrium 44, 56, 60, 88, cuts and revenues 260, 270–71 United Nations 184, 306, 308, 310 fairness and efficiency 64, 65 US 50, 85, 134, 187, 198, 264 113, 120–23, 130, 146, 210 havens 271 deficit 262, 270, 322–23, 325 on efficiency 232 incidence 64–65 financial crises 51, 152, 318, Wanniski, Jude 271 on pollution 137, 306, 308 Waring, Marilyn 261, 310–11 Taylor, Fred 75, 144 320–21, 324–25 Washington Consensus 328, 329 Taylor, John B. 303, 322, 324 housing bubble 300–01 Watt, James 50 technology 60, 62, 69, 178, 179, USSR, see Soviet Union wealth 19, 36–37 utilitarianism 51, 120, 130, 214, 215 Webb, Beatrice 89, 134–35, 156, 225 utility 52, 89, 130 leaps in 313 expected 194–95, 248, 266 157, 160 and market integration 228, 229 marginal 63, 88, 89, 114–15, 116, Weber, Max 138–39 Thaler, Richard 272 Weber, Robert J. 294 Thatcher, Margaret 201, 223, 110, 124 Weingast, Barry 328 ordinal 130 welfare economics 130–31, 176, 260 Thom, René 278 V 212–15, 220 Thornton, Henry 318 welfare spending 140–41 Thünen, Johann von 120 value 25, 51, 210 well-being 52–53, 185, 217–19 Tinbergen, Jan 336 auctions 294 Wieser, Friedrich von 89, 133, 335 Tobin, James 337 labor theory of 19, 36, 37, 89, Williamson, John 328, 329 Todaro, Michael 338 106–07, 110 winner’s curse 294–95 trade 18–19, 50, 80–85 opportunity cost 133 Wolfers, Justin 219 subjective theory of 63 women 310–11 deficits 262 World Bank 140, 141, 228, 231, 284, dependency theory 124, 286, 314, 315, 327 242–43 World Wars 152, 153, 184 free trade 19, 34, 35, 82 Yellen, Janet 156, 302 and geography 312 international 186–87, 228–31

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