My Faults My Own

Any human’s death diminishes me,

because I am involved in humankind.

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

Reading Feed (last update: July 5)

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 | Spoiler-Free Review: Witcher 3: Wild Hunt (plus a Spoilerific section)

Blog: Popehat | The Fourth of July [rerun]

Blog: Tyler Cowen @ Bloomberg View | The NBA’s Reopening Is a Warning Sign for the U.S. Economy — "If so many NBA players are pondering non-participation, how keen do you think those workers — none of whom are millionaire professional athletes — are about returning to the office?"

Comic: SMBC | Saturday Morning Breakfast Cereal - Holism


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Blog: Market Design | Job market technology is diffusing slowly through the armed forces

Blog: Marginal Revolution | Tales from Trinidad barter

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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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