Economic Links of the Day

1) The Tragedy of the Bunnies

“The Tragedy of the Bunnies” is a simple game that illustrates an important concept commonly referred to as “The Tragedy of the Commons.”

2) 2006 Index of Economic Freedom:

The 2006 Index of Economic Freedom measures 161 countries against a list of 50 independent variables divided into 10 broad factors of economic freedom. Low scores are more desirable. The higher the score on a factor, the greater the level of government interference in the economy and the less economic freedom a country enjoys.

3) tutor2u --  An online "Cliff's Notes" of many economic topics.

4) Public Choice 101 -- by Walter Williams (HT Don Boudreaux)

Many [people] think things can be changed by electing different politicians. But I ask: Given the incentives politicians face, why should we expect one politician to differ significantly from another? We should focus less on personalities and more on rules.

5) David Henderson takes on the Terminator (HT Greg Mankiw)

Gov. Schwarzenegger writes a prescription for disaster.

Mr. Schwarzenegger's solution hits the trifecta also. He would require employers with 10 or more workers to provide health insurance or pay a 4% tax on all wages covered by Social Security: Look for employers with 10 to 12 employees to get creative about outsourcing. And look as well, as Harvard economist Jonathan Gruber has documented, for wages to fall in firms that offer health insurance because of the mandate.

Gov. Schwarzenegger would throw in a 2% tax on doctors and a 4% tax on hospitals to help fund Medi-Cal, California's name for Medicaid. And he would expand Medi-Cal to adults earning as much as 100% above the poverty line and to children, even those here illegally, in poor and middle-income families. He hopes, by doing this, to shift $5 billion of Medi-Cal's annual cost to the federal government.

There are two problems with such solutions. First, they infringe on economic freedom, preventing, in Robert Nozick's phrase, "capitalist acts between consenting adults." Second, government solutions rarely work.

6) The Real Questions Behind Global Warming by Tyler Cowen:

The key issue is what we can expect from China and India.  As I understand the evidence, if China and India continue to grow, the United States cannot succeed in much limiting global warming on its own.  Let us assume, somewhat dubiously (many European countries are further from Kyoto targets than is the United States), that Europe is already on board, what are the options?

7) The Future of Economics Isn't So Dismal (HT Steven Levitt)

NY Times -- I did an informal poll of about 20 senior economists around the country and asked a single question: who are the young (untenured) economists doing work that is both highly respected among experts and relevant to the rest of us? Who, in other words, is the future of economics?

8) Al Roth's game theory, experimental economics, and market design.

9) The Journal of Interesting Economics:

An Experiment in Open Source Publishing

10) The World's Largest Economic Entities

Of the world's 100 largest economic entities, 51 are now corporations and 49 are countries.