Fri, 29 September 2017
My guest today is Karl Smith, he is the director of economic research at the Niskanen center.
Our topic for today will be market power. Karl has written a series of posts on the Niskanen center blog discussing markups and market power. The debate was sparked by a paper by Loecker and Eeckhout that claimed that average markups in the American economy had risen from 18 percent in 1980 to 67 percent today.
There are many different interpretations one might have for this data. What Karl points out is that these markups have mainly risen among smaller firms. Wal-Mart has very low markups, but niche specialty firms such as the local vegan café have relatively high markups. This makes sense in the context of monopolistic competition, where consumers pay a small premium in return for greater product differentiation.
Noah Smith had this response to Karl's article:
"Robin Hanson and Karl Smith both have posts responding to De Loecker and Eeckhout’s paper and attacking the Market Power Story. Both give reasons why they think rising markups indicate monopolistic competition, rather than entry barriers. But both seem to forget that monopolistic competition causes deadweight loss. Just because it has the word 'competition' in it does NOT mean that monopolistic competition is efficient. It is not."
As Tyler Cowen points out, this is not necessarily the case. What is inefficient in a partial equilibrium model may not be inefficient in a general equilibrium model.
Fri, 8 September 2017
My guest today is Fabio Rojas. He is professor of sociology at Indiana University Bloomington.
Fabio is the author of three books, the first is From Black Power to Black Studies: How a Radical Social Movement Became an Academic Discipline, published in 2007. The second book, coauthored with Michael Heaney, is Party in the Street: The Antiwar Movement and the Democratic Party after 9/11, published in 2015. The third book, Theory for the Working Sociologist, was published just recently in 2017.
We begin the conversation by talking about the discipline of sociology in general. What should an undergraduate student know about sociology, and furthermore, what should other social scientists know about the field? We discuss the distinct methods that make sociology sociology.
Moving on, we discuss the relationship between activism and scholarship, particularly as it pertains to sociology but also as it pertains to black studies, the subject of Fabio's first book.
Evicted: Poverty and Profit in the American City by Matt Desmond
Fri, 1 September 2017
We recorded this on August 24th, 2017, the same day Peter published an op-ed in the National Post titled "Canada needs blood plasma. We should pay donors to get it." The op-ed argues in favour of allowing people who donate blood plasma in Canada to be compensated in return:
Peter and I discuss the best and most popular arguments against compensating blood plasma donors, and organ donors in general, then Peter gives counterarguments to each of these objections.
Furthermore, we discuss the United States' recent legalization of compensation for bone marrow donors. In 2012, The Institute for Justice successfully argued in front of the 9th Circuit Court of the United States that bone marrow should be exempted from the 1984 National Organ Transplant Act (NOTA), since bone marrow can be extracted from blood and does not thus count as an organ. Blood was specifically exempted from NOTA.