Archive for May 26th, 2011

How Hollywood explains the 2007 crisis and does it explain well?

May 26, 2011

Nicole Gelinas and Judith Miller of  City Journal discuss and review the two movies on the global crisis – Too Big to Fail, HBO Movies, 2011 and Inside Job, Sony Pictures Classics, 2010.

Miller says:

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Do income levels determine SAT scores?

May 26, 2011

Prof Mankiw raises a super question on the topic.

He points to a Leonhardt article who looks at how low income individuals are not really accepted by top colleges in US. The low incomes lead students to study at homes and lower SAT scores. Whereas rich ones get a better tuition and other facilities leading to higher SAT scores and acceptance in colleges. This leads to colleges underappreciating the effort put in by low-income people. This leads to wastage of human capital as good students who don’t have the opportunity are sidelined by the system. As good education usually leads to good income in future, it is kind of vicious cycle as well.

Leonhardt says:

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Did increase in competition help make better electricity markets and lower prices?

May 26, 2011

Adam Swadley and Mine Yücel of Dallas Fed write this nice paper on the topic. It is always great to read such papers on competition and efficiency.

The paper focuses on retail electricity market. In 2000s US reformed its retail electricity market and allowed competition. People could choose their suppliers and so on. What was the impact of such reforms? Did it help consumers? Did it lower prices?

This paper looks at these issues.

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When US defaulted on its debt…

May 26, 2011

Donald Marron has this super post linking to a paper (gated though). It mentions how US defaulted temporarily on its T-bills in 1979. It did pay but alongwith interest for the period it remained unpaid.

Actually one comes across three such instances (see this as well) of US debt default:

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