Showing all posts tagged #economics:

Property values should be normalized by acre

July 14th, 2024

In the US, it's common for local governments to focus on tax revenue produced by a property, without considering the costs it adds to the city's budget. This is like measuring how far a car can drive without considering how much gas it uses to get there. Different properties create different long-term cost burdens for the city. One of the biggest contributors to that variance is the amount of infrastructure they require, which correlates with...

Georgist land taxes balance community benefit & the efficiency of markets

July 13th, 2024

One thing I like about Georgist land taxes is they reflect a deep-seated intuition many people have that land should be owned by the community, while still employing markets to ensure efficient use of this limited resource. People feel that land is special and should serve the collective good and reflect community interests. This intuition manifests in behaviors like NIMBYism, where residents oppose changes to their neighborhood and try to st...

Why do home buyers look at price/sqft more than renters?

January 9th, 2023

A question that's puzzled me for a while is why home buyers focus on price/sqft so much more than renters. I asked around for what other people thought and got some interesting answers, so I decided to write up my takeaways. I. Investments demand legibilityHomeownership is an investment and consumption good, while renting is just a consumption good. As a result, buyers are forced to think of it in more legible ways as opposed to just an amenit...

Inside Argentina's currency exchange black markets

September 10th, 2022

In Argentina, your money is worth double if you skip the airport currency exchange and instead go to one of the many black market exchanges hidden throughout Buenos Aires. These illegal exchanges are called "cuevas" (the word for "cave" in Spanish), and they are a crucial part of Argentina's financial infrastructure. Argentinians are constantly exchanging their pesos (ARS) for other currencies, usually US dollars (USD), and back again because ...

Uncharted waters: what startups can learn from pirates about compensation

September 10th, 2022

Pirate crews developed a surprisingly similar approach to compensation in the 17th century. Just like many startups, they also balanced equity incentives with other mechanisms that would be familiar to a startup employee today, such as bonuses. These surprising similarities offer an interesting frame through which we can reflect on why startup equity and bonuses are structured the way they are. We can learn a lot about the theory of compensat...

Inflation propagates unevenly

January 2nd, 2022

Inflation hits some parts of the economy harder and faster than others. It's obvious once you say it, and yet the way pundits and academics talk about inflation glosses over this reality. As a result, most people who haven't had direct experience with high inflation have a flawed view of how it affects daily life. Popular use of the term "inflation" makes it sound like the inflation rate is a single indisputable number that you can plug into ...

Urban sprawl is a tragedy of the commons

November 4th, 2021

We tend to choose larger homes than we want our neighbors to choose. The result: sprawling development that doesn't match what people actually want from their communities. People aim to maximize access and space when deciding where to live. All things equal, most people like living in places with easy access to their day-to-day life. It's nice to be able to walk your kids to kindergarten, and it's easier to keep a social life when many of yo...

OWD #4: Supersonic planes, levitating trains, & electric automobiles

December 23rd, 2020

Mobility is central to living in every city. In this episode, we discussed how different communities tackle the question of transportation, and how culture shapes how different transport technologies get adopted.RSS · Apple Podcasts · Spotify · OvercastMobility is central to living in every city. In this episode, we discussed how different communities tackle the question of transportation, and how culture shapes how different transport technol...

Making is Show Business now – alexdanco.com clipping

October 12th, 2020

Nadia Eghbal’s new book, Working In Public: the Making and Maintenance of Open Source Software, may not have been on your short list of books to read this year. It’s admittedly a nerdy topic: it’s about open source projects, roles and responsibilities; the rise of GitHub as a developer platform; and how developer culture is evolving around the new power of creator platforms. I recommend you get it. It is mostly about software development, bu...

OWD #3: Disney World & other underworlds

August 15th, 2020

Every place has some dirty secrets, even Disney World. We all have to get rid of waste somehow! In this episode, the Bertauds and I discuss methods of sanitation and waste management from around the world, and how these hidden systems shape our cities. RSS · Apple Podcasts · Spotify · Overcast Every place has some dirty secrets, even Disney World. We all have to get rid of waste somehow! So in this episode, the Bertauds and I discuss methods o...

OWD #2: Vanished in Guadalajara

July 8th, 2020

Alain and Marie-Agnes raised three children while living their nomadic lifestyle. So in this episode, we dug into how their role as parents shaped how they experience cities. Join us as we roam Bangkok, Guadalajara, Sana'a, Paris, Port-au-Prince, NYC and beyond!RSS · Apple Podcasts · Spotify · Overcast Here's the full transcript. You can also find it with synced audio here. If you'd like to correct any errors in the transcript, let me know an...

OWD #1: Tea time in Yemen

May 7th, 2020

I'm starting a podcast with my friends, Marie-Agnes and Alain Bertaud, who also happen to be the most interesting couple I know. Over the course of this first conversation, we traveled all around the globe for a whirlwind tour of the adventurous life they've led together.Audio · Photos · Transcript RSS · Apple Podcasts · Spotify · Overcast As I mentioned in my recent post, I'm starting a podcast with my friends, Marie-Agnes and Alain Bertau...

OWD #0: Welcome to Order Without Design

April 30th, 2020

I'm starting a new podcast called Order Without Design with the most interesting couple I know: Alain & Marie-Agnes Bertaud. This project is an extension of their book, Order Without Design: How Markets Shape Cities. With its focus on economic theory, you might not realize that this book is the product of the adventurous life these two have shared together. This podcast series is my excuse to hear and share those stories. Join the three of u...

Markets in everything at the Duomo

August 11th, 2019

You're not allowed inside the Duomo with your shoulders uncovered. We learned this the hard way. I was wearing a spaghetti strap dress (it's 92℉/33℃ and humid here in Milan), so they stopped my little group at the entrance, after we'd already purchased 3 tickets. Luckily, we only had about 15 seconds of frustration. I said "Ah that's a shame", Sebastián responded "Oh I'm sure there's a shop around here somewhere", Tyler said "Markets in eve...

Independence for whom?

March 23rd, 2019

I recently spent a day at Sea Ranch, a strange and beautiful place. Sea Ranch is a planned community with a distinctive architectural style: simple timber-frame structures clad in wooden siding, and gardens all planted with native flora. The Sea Ranch Design Committee enforces strict design rules on all 1,800 homes along that 10-mile stretch of the Northern California coast. The result is a cohesive, calming aesthetic unlike anywhere else I've...

Kinky Labor Supply and the Attention Tax clipping

January 22nd, 2019

This essay was written by Andrew Kortina and Namrata Patel. Kinky (S1) vs classical (S0) labor supply curve.Over the past few decades, labor force participation has sharply dropped for men ages 20-34. Theories about the root cause range from indolence, to a lack of skills and training, to offshoring, to (perhaps most interestingly) the increasing attractiveness and availability of leisure and media entertainment. In this essay, we propose th...

Re: For the greater good: the game theory of zoning

December 30th, 2018

Jake Auchincloss emailed me about my recent post For the greater good: the game theory of zoning and made the constructive point that a homeowner's mindset is "situation-dependent, not ingrained". At the end of the post, I had written that "Individualists and Regionalists are odd bedfellows". Jake pointed out that there may be tension at the abstract level of the Individualist-Localist-Regionalist framework, but that in practice people don't o...

For the greater good: the game theory of zoning

November 16th, 2018

Pro-housing advocates criticize "NIMBYs" as being uncooperative and selfish. However that's not how the so-called NIMBYs see themselves. The difference is a question of the granularity of your analysis. Individualists vs Localists A question I hear a lot is: "Why do NIMBY homeowners support zoning laws? Isn't it in their best interest to allow for the highest and best use so that they can sell their own property for the maximum price? Don't t...

Agglomeration effects (might) change the YIMBY calculus

July 15th, 2018

Epistemic status: Pretty sure of the structure of the argument (~80%), not so sure of the valence of the coefficients (~60% that agglomeration does not overwhelm the supply-demand effect). Epistemic effort: Medium effort. This idea has bounced around my head for almost a year, and over that time I spoke with several friends about it. Then, I had a long conversation in which I formalized it a bit more, at which point I decided to write it down....