Comments for Olga Nicoara's Blog http://olganicoara.wordpress.com Yesterday, Today, Tomorrow, Everyday - a special case of a perfect day in need of thoughtful economic considerations Thu, 10 Sep 2009 16:52:48 +0000 http://wordpress.com/ hourly 1 Comment on Measuring “Doing Business in 2010″ – World Bank vs. Reality by Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … | centralafrican http://olganicoara.wordpress.com/2009/09/09/measuring-doing-business-in-2010-world-bank-vs-reality/#comment-119 Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … | centralafrican Thu, 10 Sep 2009 16:52:48 +0000 http://olganicoara.wordpress.com/?p=406#comment-119 [...] here to see the original:  Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … Share and [...] [...] here to see the original:  Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … Share and [...]

]]> Comment on Measuring “Doing Business in 2010″ – World Bank vs. Reality by Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … | Headlines Today http://olganicoara.wordpress.com/2009/09/09/measuring-doing-business-in-2010-world-bank-vs-reality/#comment-118 Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … | Headlines Today Thu, 10 Sep 2009 01:16:45 +0000 http://olganicoara.wordpress.com/?p=406#comment-118 [...] posted here: Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … Share and [...] [...] posted here: Measuring “Doing Business in 2010″ – World Bank vs. Reality « Olga … Share and [...]

]]> Comment on Gore Warming vs. Mother Nature by Gabriel http://olganicoara.wordpress.com/2009/08/27/gore-warming-vs-mother-nature/#comment-117 Gabriel Thu, 27 Aug 2009 18:22:27 +0000 http://olganicoara.wordpress.com/?p=388#comment-117 Here's another puzzle for realists... How come one of the best predictors of whether someone is a climate skeptic or not is their views on income tax increases (at relevant ranges, in the US, let's say)? ;-) And, assuming we claim that it's spurious, how do we explain that another good predictor is their views on the minimum wage? -- I have a feeling that this isn't about the environment at all, I must be crazy! Here’s another puzzle for realists… How come one of the best predictors of whether someone is a climate skeptic or not is their views on income tax increases (at relevant ranges, in the US, let’s say)? ;-) And, assuming we claim that it’s spurious, how do we explain that another good predictor is their views on the minimum wage? — I have a feeling that this isn’t about the environment at all, I must be crazy!

]]> Comment on Trouble in the Silicon Valley. Blame USCIS by Olga Nicoara http://olganicoara.wordpress.com/2009/08/23/trouble-in-the-silicon-valley-blame-uscis/#comment-116 Olga Nicoara Mon, 24 Aug 2009 13:38:04 +0000 http://olganicoara.wordpress.com/?p=384#comment-116 I think I see what you mean and for that I partly agree with you. If you compare labor market liberalization with the overnight Soviet economy - market economy change, than yes, I feel for the truly desperate times those people have gone through. As one of them, I could probably write a whole book about it. But, really, trade is freer now than it was 50 years ago thanks to institutions like WTO, and regional and local FTAs. Sadly, I think much of what is left of the current debate over trade clings to the idea of job creation=job protection, an illusion fed with political promises without any regard to the microeconomics or the dynamics of the labor market. I think I see what you mean and for that I partly agree with you. If you compare labor market liberalization with the overnight Soviet economy – market economy change, than yes, I feel for the truly desperate times those people have gone through. As one of them, I could probably write a whole book about it. But, really, trade is freer now than it was 50 years ago thanks to institutions like WTO, and regional and local FTAs. Sadly, I think much of what is left of the current debate over trade clings to the idea of job creation=job protection, an illusion fed with political promises without any regard to the microeconomics or the dynamics of the labor market.

]]> Comment on Trouble in the Silicon Valley. Blame USCIS by Gabriel http://olganicoara.wordpress.com/2009/08/23/trouble-in-the-silicon-valley-blame-uscis/#comment-115 Gabriel Mon, 24 Aug 2009 02:25:39 +0000 http://olganicoara.wordpress.com/?p=384#comment-115 I'm not sure the US should have a Silicon Valley anymore. If US workers have higher reservation wages than foreigners then they can just go do that next best alternative and all is fine, no? It's also weird to claim that everyone will be better off with free migration, without any compensation. Nothing in Economic theory supports such a claim and a lot of things support the opposite. I think we need a good, large and microfounded model of international trade with which we could simulate the counterfactual and figure out what policies will make sure any change in trade policy will not leave any group particularly worse off. The apparent failure of NAFTA-vintage models shows what a hard task this is. -- The status quo might be the best bet until we get a good grasp of the underlying micro- structure, unless we want to risk putting a lot of people through gratuitous hardship. I think the profession can come up with some serious recommendations re: fiscal policy reform, for example. I don't think we can say the same regarding trade. I’m not sure the US should have a Silicon Valley anymore. If US workers have higher reservation wages than foreigners then they can just go do that next best alternative and all is fine, no?

It’s also weird to claim that everyone will be better off with free migration, without any compensation. Nothing in Economic theory supports such a claim and a lot of things support the opposite.

I think we need a good, large and microfounded model of international trade with which we could simulate the counterfactual and figure out what policies will make sure any change in trade policy will not leave any group particularly worse off.

The apparent failure of NAFTA-vintage models shows what a hard task this is. — The status quo might be the best bet until we get a good grasp of the underlying micro- structure, unless we want to risk putting a lot of people through gratuitous hardship.

I think the profession can come up with some serious recommendations re: fiscal policy reform, for example. I don’t think we can say the same regarding trade.

]]> Comment on Trade restrictions. Untangling WTO tariff statistics – Albania by Albania » Elvana Gjata Hi-Tech | virtual albania http://olganicoara.wordpress.com/2009/07/08/trade-restrictions-untangling-wto-tariff-statistics-albania/#comment-110 Albania » Elvana Gjata Hi-Tech | virtual albania Thu, 16 Jul 2009 07:52:30 +0000 http://olganicoara.wordpress.com/?p=350#comment-110 [...] Trade restrictions. Untangling WTO tariff statistics – Albania …For instance, does it matter to know the simple average of all levels of customs duties applied on dairy products by Albania? For statistical records, maybe, but for economic interpretation, very little. … [...] [...] Trade restrictions. Untangling WTO tariff statistics – Albania …For instance, does it matter to know the simple average of all levels of customs duties applied on dairy products by Albania? For statistical records, maybe, but for economic interpretation, very little. … [...]

]]> Comment on Trade restrictions. Untangling WTO tariff statistics – Albania by Gabriel http://olganicoara.wordpress.com/2009/07/08/trade-restrictions-untangling-wto-tariff-statistics-albania/#comment-109 Gabriel Thu, 09 Jul 2009 03:27:00 +0000 http://olganicoara.wordpress.com/?p=350#comment-109 There are many ways to finance a given level of government spending, some more distortionary than others. "Ramsey principle": to minimize distortions while financing a given level of government spending, set taxes as an inverse function of the elasticity of supply. Here's an overview of issues in optimal policy: http://www.econ.yale.edu/faculty1/tsyvinski/optimal_commitment.pdf I was just saying that tariffs are not all that interesting because we know that they're not all that important, welfare-wise. There are many ways to finance a given level of government spending, some more distortionary than others. “Ramsey principle”: to minimize distortions while financing a given level of government spending, set taxes as an inverse function of the elasticity of supply.

Here’s an overview of issues in optimal policy: http://www.econ.yale.edu/faculty1/tsyvinski/optimal_commitment.pdf

I was just saying that tariffs are not all that interesting because we know that they’re not all that important, welfare-wise.

]]> Comment on Trade restrictions. Untangling WTO tariff statistics – Albania by Olga Nicoara http://olganicoara.wordpress.com/2009/07/08/trade-restrictions-untangling-wto-tariff-statistics-albania/#comment-108 Olga Nicoara Thu, 09 Jul 2009 02:53:17 +0000 http://olganicoara.wordpress.com/?p=350#comment-108 That's precisely the problem. If you are not in control of government spending (if you don't know "what the optimal tariffs are"), than why would you approve of any form of taxation, of any amount, pennies or less, why? If you don't know, then the optimal level should be 0. Of course, I'm using the "you" generically; different people have different levels of tolerance of theft or stress when loosing something. And what exactly was Ramsey's insight? That government should raise taxes on imports for which consumers can find plenty of substitutes anyways, and lower them for shortages? Is that some kind of a joke-form of raising public money? I say it would not stand market forces, not for a second! Btw, never heard of R before, if I am wrong in interpreting his thing, please correct me. I appreciate your recommendations though. Thank you for taking your time, it helps. Obviously, there is more to my research than trade tariffs. Capital taxation is indeed interesting, I am looking into that as well as to other structural and institutional problems. That’s precisely the problem. If you are not in control of government spending (if you don’t know “what the optimal tariffs are”), than why would you approve of any form of taxation, of any amount, pennies or less, why? If you don’t know, then the optimal level should be 0. Of course, I’m using the “you” generically; different people have different levels of tolerance of theft or stress when loosing something.

And what exactly was Ramsey’s insight? That government should raise taxes on imports for which consumers can find plenty of substitutes anyways, and lower them for shortages? Is that some kind of a joke-form of raising public money? I say it would not stand market forces, not for a second! Btw, never heard of R before, if I am wrong in interpreting his thing, please correct me.

I appreciate your recommendations though. Thank you for taking your time, it helps. Obviously, there is more to my research than trade tariffs. Capital taxation is indeed interesting, I am looking into that as well as to other structural and institutional problems.

]]> Comment on Trade restrictions. Untangling WTO tariff statistics – Albania by Gabriel http://olganicoara.wordpress.com/2009/07/08/trade-restrictions-untangling-wto-tariff-statistics-albania/#comment-107 Gabriel Thu, 09 Jul 2009 00:50:28 +0000 http://olganicoara.wordpress.com/?p=350#comment-107 LOL! I don't know what the optimal tariffs are and neither do you. If 1) there is to be some government spending; and 2) the government has only access to distortionary taxes then, teaches Saint Ramsey, optimal taxes ought to reflect the relevant supply elasticities. -- I don't know whether tariffs are not the least of all evils in Albania or in any place in particular. As far as I remember from gravity equation and 2-nd order approximation of Dixit-Stiglitz taste-of-variety model approaches, the elimination of barriers for the average agricultural product (for the US) is in the range of tens of millions, money-metric wise. Peanuts compared to overall consumer spending, gov. spending or whatever comparison you might want to make. I was just saying that I would be very interested in finding out how those countries are doing re: capital income taxation (accounting for investment tax credits and whatnot), to give an example. We know that the elasticity there is rather high. Tariffs and seigniorage are examples of things I would not prioritize, compared to the other nonsense that's going on. LOL! I don’t know what the optimal tariffs are and neither do you.

If 1) there is to be some government spending; and 2) the government has only access to distortionary taxes then, teaches Saint Ramsey, optimal taxes ought to reflect the relevant supply elasticities. — I don’t know whether tariffs are not the least of all evils in Albania or in any place in particular.

As far as I remember from gravity equation and 2-nd order approximation of Dixit-Stiglitz taste-of-variety model approaches, the elimination of barriers for the average agricultural product (for the US) is in the range of tens of millions, money-metric wise. Peanuts compared to overall consumer spending, gov. spending or whatever comparison you might want to make.

I was just saying that I would be very interested in finding out how those countries are doing re: capital income taxation (accounting for investment tax credits and whatnot), to give an example. We know that the elasticity there is rather high.

Tariffs and seigniorage are examples of things I would not prioritize, compared to the other nonsense that’s going on.

]]> Comment on Hiking in the Shenadoah National Park by Olga Nicoara http://olganicoara.wordpress.com/2009/07/06/hiking-in-the-shenadoah-national-park/#comment-106 Olga Nicoara Thu, 09 Jul 2009 00:05:35 +0000 http://olganicoara.wordpress.com/?p=327#comment-106 No, thank you! for stopping by :) No, thank you! for stopping by :)

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