Icosian Reflections

The crisis through which we are passing

is only part of our day’s work.

IN  WHICH Ross Rheingans-Yoo—a sometime economist, trader, artist, expat, poet, EA, and programmer—writes on things of int­erest.

Reading Feed (last update: May 17)

A collection of things that I was glad I read. Views expressed by linked authors are chosen because I think they’re interesting, not because I think they’re correct, unless indicated otherwise.


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Blog: Don't Worry About the Vase | Formula for Dying Babies


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Blog: Marginal Revolution | Ask and they shall deliver — "Companies in the [EU] would be allowed to build wind and solar projects without the need for an environmental impact assessment, according to draft proposals obtained by the Financial Times that call for the fast-track permitting of renewable projects in designated “go-to” areas."

Comic: xkcd | Health Data

Blog: Marginal Revolution | Infant Formula, Price Controls, and the Misallocation of Resources

Blog: In the Pipeline | Personal Paxlovid Update


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Blog: Marginal Revolution | I favor bird consequentialism — Environmental conservation opposes radical climate

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Elasticities, revisited

Hannes Malmberg commented on my review of Saez and Zucman in response to a point I made about the elasticity of capital supply:

I think you are confusing demand and supply elasticities of capital.

The revenue calculations hinge on the elasticity of capital supply, i.e., how fast capital supply rise with the interest rate (how much more do people decide to save).

The Piketty spiral, in contrast, hinges on the elasticity of capital demand, i.e., how fast the interest rate fall with increasing capital (i.e., how fast firms and companies switch away from using capital when it gets more expensive).

There is nothing theoretically preventing us from having an almost horizontal capital demand curve, and an almost vertical capital supply curve. In such a world, a capital tax raises a lot of revenue, but increasing the savings propensity increase the capital stock without reducing the interest rate. (...)

I think he is basically right, and I'll partially retract section 3A of my

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