Jroc
יעקב כהן
- Oct 19, 2010
- 19,815
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- #81
What I like is:
1. He is doing original research in a very important field, and breaking ground not only in his model and conclusions, but also in finding ways to get meaningful data from 150--200 year old tax records. His is making a methodological contribution that will allow others to develop methods that produce data otherwise unobtainable. It's a bit like the Rosetta Stone.
2. He writes well and has a good grasp of historical method. That's one of the three pillars of economic analysis.
3. He is making some links among previously unconnected theory and phenomena, principally the relationship between inequality in income and wealth, intergenerational transfer of wealth, and economic growth. This is where the big dividends should eventually be.
4. All of this has major applications for the formation of economic policy.
In short, it's good professional economic research and theory.
As to the model, some of it is in the book "Capital". Mine is on back order like everybody else's. From the book reviews I have a pretty good hunch the book covers maybe two-thirds of what he wants to cover, but the other third will take a couple of years to develop. I've speculated elsewhere on the board about what that missing part will turn out to be and I think he got caught at the end of last year wanting to integrate the Summers-Hansen debate into the work, but realized that would delay publication too long and bifurcated the work. It screams "Volume II coming".
The "big idea" hinges on an internal rate of return on capital (what Keynes called the "marginal efficiency of capital" and it relationship to the real growth rate (what Piketty labels "r-g"). This feeds into a marginal productivity theory of factor shares. I really need to see the math to say much more.
Or then I could have just had a bad bit of potato for dinner and am hallucinating. We'll see.
I can live without reading the economic theory of a socialist. There is no such thing as equality of outcome
[ame="https://www.youtube.com/watch?v=fKc6esIi0_U"]https://www.youtube.com/watch?v=fKc6esIi0_U[/ame]
So you choose to be willfully ignorant, sticking your fingers in your ears and chanting "Na-na-na-na". You can't effectively argue against that which you refuse to read, so I guess we will hear no more from you on the subject.
I don't study Mises, Hayek, Bohm-Bawerk, Schumpeter, and Friedman because I agree with everything they say. But if I want to be taken seriously in opposing them when they are wrong, I have to at least understand their argument.
Obviously you choose another course.
Ignorant?..Common sense and a little logic tells me that socialist economies don't work. No need to read all that crap, unless you enjoy it. I can find better ways to spend my time than reading socialist economic theory