Of Kidney Sales and Economics

I wrote a piece for Mint based on the developments in Gurgaon. In this I discuss how the kidney racket unfolded in India and the way the racketeers took advantage of loopholes in the law to trade in what is otherwise a banned activity.

However, I took the discussion further and added an economics perspective to it. Just a few days before the incident took place, I posted about a fantastic thought provoking paper from Alvin Roth where he discusses how there is repugnance with respect to selling kidneys and how that effects making a much needed market for the same. And then this incident happened.

There is a lot if discussion in media since Roth wrote this paper- NY, WSJ, Freokonomics Blog etc.

Assorted Links

1. FOMC announcedanother 50 bps rate cut on Wednesday. I just love the way Fed is playing to the gallery and demand of financial markets. WSJ Blog points to economists’ reactions. Fisher was the lone dissenter. Meanwhile inflation expectations are rising.

2. Econbrowser summarises various thoughts over Fed moves

3. WSJ Blog points how Suharto was a boon for economists.

4. Mervyn King has got an extension, WSJ Blog points to economists’ reaction 

5. Mankiw updates fiscal stimulus

6. EPSA Blog on subprime crisis and its impact on South Asian economies

7. MR points to a paper which discusses co-authorship.