Here’s a list of articles that I have been reading today (organized by topic):

Economics and the Financial Crisis

• Judging Downturns, by Greg Mankiw

Finance

• Eugene F. Fama: Economist

Fama/French Forum: “In an interview conducted by Professor Richard Roll, famed University of Chicago economist Eugene F. Fama discusses his life, research, and contributions to the field of finance.”

Foreign Policy

• Taking Iran Seriously, by Daniel Coats, Charles Robb, and Charles Wald

Wall Street Journal: Tehran is on course for a nuclear weapon next year.

Health Care Reform

• Reviewing the checklist from the President’s speech, by Keith Hennessey
• Did Obama rescue the public option? (Prediction Markets assessment of last night’s address by President Obama to Congress)

The Intrade Gazette: “The market did receive a bump in price but with Obama indicating he is willing to compromise on the public option the chances of it being passed remain modest. The market closed yesterday at 27.9%, up from the previous days close of 20.0%. Many Democrats feel the public option is essential to effective reform. However, the market clearly feels that compromise or outright defeat is the likely outcome.”

• Why Liberals Should Drop the Public Option, by Matt Miller

Washington Post: “”Switzerland and the Netherlands . . . cover all their citizens using private insurers, and they do so for much less cost.”

Politics

• It’s Still the Economy, Stupid, by Daniel Henninger

Wall Street Journal: This could be America’s greatest failed presidency.

• Why are Jews Liberal?, by Norman Podhoretz

Wall Street Journal: “I’m hoping buyer’s remorse on Obama will finally cause a Jewish shift to the right.”

When I read Mr. Podhoretz’s essay this morning, the following quote (about liberal versus conservative world views) stood out in particular:

“…I think it fair to say that what liberals mainly see when they look at this country is injustice and oppression of every kind—economic, social and political. By sharp contrast, conservatives see a nation shaped by a complex of traditions, principles and institutions that has afforded more freedom and, even factoring in periodic economic downturns, more prosperity to more of its citizens than in any society in human history. It follows that what liberals believe needs to be changed or discarded—and apologized for to other nations—is precisely what conservatives are dedicated to preserving, reinvigorating and proudly defending against attack.”

Here’s a list of articles that I have been reading today (organized by topic):

Economics and the Financial Crisis

• Capitalism After the Crisis, by Luigi Zingales

Professor Zingales’ essay is compelling and provocative, and has motivated me to order his new book (with Raghuram G. Rajan) entitled Saving Capitalism from the Capitalists.

• What We’ve Learned: Incentives Matter, Even to the Irrational, by Casey Mulligan

New York Times: “The fundamental result of economics is that incentives matter. These laws of economics constrain public policy dreams, but show no signs of bending or breaking.”

• The Fed Can’t Monitor ‘Systemic Risk’, by Peter Wallison

Wall Street Journal: “That’s like asking a thief to police himself.”

Education

• What the Public Thinks of Public Schools, by Paul Peterson

Wall Street Journal: “High-school graduation rates are lower today than in 1970.”

Fiscal Policy

• The Exploding Deficit Reaches $1.4 Trillion, by Donald Marron

Health Care Reform

• A Bipartisan Plan to Wreck the System, by Holman Jenkins

Wall Street Journal: “The health-care address President Obama should really give to Congress.”

Here’s a list of articles that I have been reading today (organized by topic):

Economics

• How large is the fiscal policy multiplier?, by Greg Mankiw

Professor Mankiw brings up a critical flaw with the Keynesian framework behind the so-called stimulus plan from earlier this year; that is, that the 1930’s style Keynesian theory relied upon by the U.S. Congress and the Obama administration is predicated upon the assumption that households and firms don’t care about the future and therefore are not forward-looking.  Once you relax this assumption, then the multiplier effect essentially vanishes as a result of the behavioral adjustments made by forward thinking (i.e., not myopic) households and firms.

Foreign Policy

• The Afghan Stakes, by Bret Stephens

Wall Street Journal: “A U.S. withdrawal from Afghanistan would have terrible consequences in the war on terror.”

Health Care Reform

• A More Perfect Death, by Ross Douthat

New York Times: “Our move toward physician-assisted suicide springs from the same quest that leads us to spend nearly twice as much on health care as any other developed nation.”

• ObamaCare’s Crippling Deficits, by Martin Feldstein

Wall Street Journal: “The higher taxes, debt payments and interest rates needed to pay for health reform mean lower living standards.”

Law and Politics

• The Chance for a Free Speech Do-Over, by Ted Olson

Wall Street Journal: “Will the Supreme Court finally overturn McCain-Feingold and enforce the First Amendment?”

Here’s a list of articles that I have been reading today (organized by topic):

Economics

• Why College Costs Rise, Even in a Recession, by Ron Lieber

New York Times: “If you have paid college tuition recently, you probably have questions. Where does all that money go? And why doesn’t the price tag ever fall?”

• Disneyland and the Texas Tower, by Daniel Hamermesh

UT-Austin economics professor Daniel Hamermesh provides an interesting “real world” example of a so-called “two-part tariff” involving revenue sharing arrangements between a local artist and the University of Texas.

Health Care Reform

• How to Insure Every American, by John Shadegg and Pete Hoekstra

Wall Street Journal: “We don’t need radical change. Subsidies and high risk pools can get the job done.”  The proposal outlined by Messrs. Shadegg and Hoekstra bears a remarkable resemblance to the Mackey and Garven “plans”!

• Incorrect conventional wisdom about health care reform, by Keith Hennessey
• More on Rising Healthcare Spending, by Greg Mankiw

Miscellaneous

• Notable & Quotable, by Steve Malanga

Wall Street Journal: “Steve Malanga writes about what Alexis de Tocqueville and Max Weber would think of America today.”

• Two Mongolias, from the Boston Globe’s “Big Picture” blogsite

Boston Globe: “Mongolia (the independent nation), and Inner Mongolia (a neighboring autonomous region of the People’s Republic of China) share a common history and geography, and have both evolved in recent years, centering much of their growth on their famous culture. Mongolia is a young democracy – its 1990 revolution less than 20 years old now – formerly a Soviet-backed communist republic, and much earlier ruled by many different dynasties back to Genghis Khan in 1206. Inner Mongolia continues to undergo a cultural shift as ethnic Han Chinese now make up nearly 80% of the population, and efforts at retaining Mongolian culture are being undertaken. Collected here are a number of recent photographs of these two Mongolias. (33 photos total).”

Political Economy

• Warning: The Deficits Are Coming!, by John Fund

Wall Street Journal: “The former head of the Government Accountability Office is on a crusade to alert taxpayers to their true obligations.”

Here’s a list of articles that I have been reading today (organized by topic):

Financial Crisis

• The Coming Reset in State Government, by Mitch Daniels

Wall Street Journal: “My fellow governors and I are likely facing a permanent reduction in tax revenues.”

Health Care Reform

• Forecasting the Cost of U.S. Healthcare, by Robert Fogel

The American: “There is no need to suppress the demand for healthcare. Expenditures on healthcare are driven by demand, which is spurred by income and by advances in biotechnology that make health interventions increasingly effective.”  Nobel laureate Fogel notes, among other things, that “the long-term income elasticity of the demand for healthcare is 1.6—for every 1 percent increase in a family’s income, the family wants to increase its expenditures on healthcare by 1.6 percent.”

• Let’s Get Fundamental, by David Brooks

New York Times: “President Obama has drifted away from tackling the real problem with health care: perverse incentives.”

Politics

• Obama’s Magic Evaporates in the Heat of the Health-Reform Debate, by Charles Krauthammer

Washington Post: “What happened to President Obama? His wax wings having melted, he is the man who fell to earth. What happened to bring his popularity down further than that of any new president in polling history save Gerald Ford (post-Nixon pardon)?” 

• Harry Jekyll and Harry Hyde, by Kim Strassel
• Coruscating on Thin Ice, by Peggy Noonan

Wall Street Journal: “The Obama administration is young and out of touch.”

Here’s a list of articles that I have been reading today (organized by topic):

Economics

• Customers Angered as iPhones Overload AT&T, by Jenna Wortham

New York Times: “Slim and sleek as it is, the iPhone is really the Hummer of cellphones… Owners of the iPhone 3GS, the newest model, ‘have probably increased their usage by about 100 percent… It’s faster so they are using it more on a daily basis.’”  The iPhone certainly provides an interesting case study concerning the adverse consequences of limited network capacity bandwidth combined with the use of a flat-rate (as opposed to metered) pricing scheme.

Health Care Reform

• Bending the Curve: Redefining Health Insurance, by Donald Marron

Dr. Marron asks the following questions: “What are the ‘specific, feasible steps’ that policymakers could use to reduce the growth of health spending? In short, how can we bend the curve?” His answer (based upon references to a recently published Brookings study, contributions by Andrew Samwick and Keith Hennessey, and his own analysis) is “…a private insurance market in which essentially everyone is covered and insurance companies compete on cost and quality, but not selection.

• In praise of mediocre health care

The Economist argues against a so-called “public option” and in favor of tort reform and altering regulation and the tax code as strategies for lowering health care costs.  I recently made similar points in my own blog entry entitled “My preferred approach for reforming health care”.

• Maybe We Should Spend More on Healthcare, by James DeLong

The American (Journal of the American Enterprise Institute): The argument that we spend too much on healthcare makes little sense, and the current ‘spend too much’ panic will prompt us to cut costs at the expense of the future.

Miscellaneous

• Some Theorists Withhold Best-Voting-System Award, by Carl Bialik

The “Numbers Guy” at the Wall Street Journal “…examines the way numbers are used, and abused.”  Today’s column reveals a very interesting voting theory conundrum related to a decision made recently by the Academy of Motion Picture Arts and Sciences to double the number of best-picture nominees from 5 to 10.

• Michael Ramirez’s Cartoon of the Day (For more of Mr. Ramirez’s cartoons, go to http://www.ibdeditorials.com/Cartoons.aspx):

Here’s a list of articles that I have been reading today (organized by topic):

Health Care Reform

• How profitable are health insurance companies?, by Tyler Cowen
• Understanding the President’s legislative options for health care reform, by Keith Hennessey
• Clifton Says Health Care Now Liability for Democrats (MP3)

Bloomberg: “Daniel Clifton, director of policy research at Strategas Research Partners, talks with Bloomberg’s Tom Keene and Ken Prewitt about the U.S. budget deficit and the political “liability” that the health-care debate has become for the Democrats.”

Miscellaneous

• Wildfires in Southern California, from the Boston Globe’s “Big Picture” blogsite
  
• Finding Good News in the Numbers on Cancer Deaths, by Carl Bialik

Here’s a list of articles that I have been reading today (organized by topic):

Economics and the Financial Crisis

• What Happened to the ‘Depression’?, by Allan Meltzer

Wall Street Journal: “Despite the rhetoric from Washington, we were never close to 25% unemployment.”

• The Coming Deposit Insurance Bailout

Wall Street Journal: “Another lesson that federal guarantees aren’t free.”

Game Theory

• Pay cuts or job layoffs—which one is better?, by Presh Talwalkar

This article provides an interesting analysis of the behavioral dynamics behind a firm’s decision to either implement pay cuts or laying people off.  In light of Mr. Talwalar’s analysis, I find it very interesting that the seemingly preferred mode of action amongst universities during this recession has been to implement so-called “furloughs” which represent temporary pay cuts; e.g., one friend at a public university told me that his university is “furloughing” faculty one day per month. 

Foreign Policy

• How a Detainee Became An Asset, by Peter Finn, Joby Warrick and Julie Tate

Washington Post: “Sept. 11 Plotter Cooperated After Waterboarding.”

Health Care Reform

• Cut Costs Without Rationing Care By Putting Patient Back In Charge, by Tevi Troy and Jeffrey Anderson

Investors Business Daily: “Decades of data confirm a simple truth: If we want to lower health costs, we need to put consumers back in charge.”

• British Balance Benefit vs. Cost of Latest Drugs, by Gardiner Harris

New York Times (December 2, 2008): Apparently, the UK’s National Institute for Health and Clinical Excellence (aka NICE), has decided that “Britain, except in rare cases, can afford only £15,000, or about $22,750, to save six months of a citizen’s life.”

Higher Education

• What Will They Learn For Your $50,000?, by Walter Williams

Investors Business Daily: “When parents plunk down $20,000, $30,000, $40,000 and maybe $50,000 this fall for a year’s worth of college room, board and tuition, it might be relevant to ask: What will their children learn in return?”

Politics

• Redemption Song, by Christopher Hitchens

Slate: “Assessing the media version of the Kennedy “legacy.””

• The Obama Slide, by David Brooks

New York Times: “Most Americans still admire the president and want him to succeed. But if he doesn’t proceed in a manner consistent with the spirit of the nation and the times, voters will find a way to stop him.”