GDP and Living Standards
Does GDP Capture Changes in Living Standards? Potential Implications for Our AI Future
Economics
Economic Forces.
Brian Albrecht and Josh Hendrickson on price theory, markets, and applied economics.
Recent essays
30 of 43[Re-Post] What (and who) in the world are we trying to tax when we tax corporate income?
Inside the wild world of corporate tax theory
Where the returns to AI go
The scarce return earns the rents. So what remains scarce?
AI Policy and National Defense
How should we think about national security concerns and AI?
Never Reason from an Accounting Identity, Redux
Economic confusion all around
Externalities, Pigouvian Taxation, and Optimal Policy
Are Pigouvian Taxes Actually Optimal Solutions to Externalities?
A compute tax is a REALLY dumb idea
People are freaking out about AI. That doesn't mean a random tax is a good idea.
Parking, Fireworks, and Making Sense of Prices
Why do universities have persistent shortages of parking? Why do states allow you to purchase fireworks, but not set them off?
A simple approach to dynamic mergers
Can we capture the core trade-off without going full IO?
Are Giffen Goods Real?
Price theoretic logic implies the demand for Giffen goods is downward-sloping
You are not a horse
AI and the future of labor demand
Panhandlers and Price Theory
Do panhandlers behave as price theory would predict?
Pouring cold water on the waterbed effect
Impossibility in the popular model
Drugs of Choice
Doubling down on explaining drug use with price theory
Price theory. RIP?
On Tyler Cowen's new book and price theory
Econ 101 ignores 50+ years of economic science
Insights from Harold Demsetz
Does Narcan Save Lives?
What can price theory teach us about the ability to reverse an overdose?
Are oil price spikes good for the US?
In aggregate, maybe.
Are We at War with Grocery Stores Now?
Price theoretic reflections on a growing trend.
Europe's rigid labor markets are an economic death sentence
Why has Europe slowed down relative to the US?
We don't need to just make up fantasy stories
Using economics is underrated
Should We Care About Replication?
Reflections on a recent debate
Price controls cause chaos
Price controls are worse than you think
Is Dave Ramsey right?
We all use heuristics
What is Your Life Worth?
Price theory as a tool for pricing the priceless
[Re-Post] Costs, Competition, and Prices that Don't Clear the Market
We at Economic Forces are big fans of supply and demand.
Will AI Prove Piketty Right?
What the basics of growth theory say
The Problem of Cooperation Costs
Potential cooperation as an explanation for underdevelopment, quantity-based responses to externalities, and punishments carried out by our criminal justice system
Best of Economic Forces: 2025 Edition
Thanks for reading!
The invisible hand screws up your regression
Markets, diff-in-diff, and "The Missing Intercept" problem