Icosian Reflections

…a tendency to systematize and a keen sense

that we live in a broken world.

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

Reading Feed (last update: August 6)

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: Marginal Revolution | PredictIt seems to be closing?


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Blog: Marginal Revolution | How many times are we going to make this kind of mistake? — I am old enough to remember the claims that we had a strategic national stockpile of poxvirus vaccines large enough to vaccinate every American. Now: "The shortage of vaccines to combat a fast-growing monkeypox outbreak was caused in part because the Department of Health and Human Services failed early on to ask that bulk stocks of the vaccine it already owned be bottled for distribution, according to multiple administration officials familiar with the matter."

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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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