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Food and Trade: The New Corn Laws

Posted on September 17, 2012 · Posted in Uncategorized

Trade restrictions to hold down food prices exacerbate the problem they are trying to solve Read More

Ron Paul: We’re creating new money out of thin air

Posted on September 15, 2012 · Posted in News Videos

Sept. 13 (Bloomburg) Ron Paul discusses his reaction to Federal stimuli with Trish Regan on Bloomburg TV “Street Smart” View Interview

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Gas Prices rise due to Tropical Storm Isaac

Posted on August 28, 2012 · Posted in News Articles

ABC Video

Agency Problems and the Theory of the Firm

Posted on August 21, 2012 · Posted in Academic Articles

This paper attempts to explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization. We first set aside the presumption that a corporation has owners in any meaningful sense. The entrepreneur is also laid to rest, at least for the purposes of the large modern corporation. The two functions usually attributed to the entrepreneur-management and risk bearing-are treated as naturally separate factors within the set of contracts called a firm. The firm is disciplined by competition from other firms, which forces the evolution of devices for efficiently monitoring the performance of the entire team and of its individual members. Individual participants in the firm, and in particular its managers, face both the discipline and opportunities provided by the markets for their ser- vices, both within and outside the firm. Eugene Fama, “The Journal of Political Economy”, Vol.88,No.2 (apr.1980), pp.288-307..
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Production, Information Costs and Economic Organization

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Below is an excellent article by Armin Alchian relating to  the structures of free market firms. The striking insight is in viewing the firm as a set of contracts among factors of production. In effect, the firm is viewed as a team whose members act from self-interest but realize that their destinies depend to some extent on the survival of the team in its competition with other teams. Production, Information Costs and Economic Organization, Armin Alchian and Harold Demsetz, “American Economic Review”,Vol. 62, 1972,Issue 5, pp.777-95.

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Free Exchange: The Origins of Spices

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Theories on where money comes from say something about where the dollar and euro will go… MONEY is perhaps the most basic building-block in economics. It helps states collect taxes to fund public goods. It allows producers to specialise and reap gains from trade. It is clear what it does, but its origins are a mystery. Some argue that money has its roots in the power of the state. Others claim the origin of money is a purely private matter: it would exist even if governments did not. This debate is long-running but it informs some of the most pressing monetary questions of today. Money fulfils three main functions. First, it must be a medium of exchange, easily traded for goods and services. Second, it must be a store of value, so that it can be saved and used for consumption in the future. Third, it must be a unit..
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The Human Microbiome

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WHAT’S a man? Or, indeed, a woman? Biologically, the answer might seem obvious. A human being is an individual who has grown from a fertilised egg which contained genes from both father and mother. A growing band of biologists, however, think this definition incomplete. They see people not just as individuals, but also as ecosystems. In their view, the descendant of the fertilised egg is merely one component of the system. The others are trillions of bacteria, each equally an individual, which are found in a person’s gut, his mouth, his scalp, his skin and all of the crevices and orifices that subtend from his body’s surface. A healthy adult human harbours some 100 trillion bacteria in his gut alone. That is ten times as many bacterial cells as he has cells descended from the sperm and egg of his parents. These bugs, moreover, are diverse. Egg and sperm provide..
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Armen Alchian

Posted on August 20, 2012 · Posted in Academic Articles, Influential Economists

Armen Alchian has had a significant influence on the developments in Microeconomics, particularly in the area of transaction costs and law & Economics. Read a Summary of his publications

milton-friedman

The Great Depression Myth

Posted on August 8, 2012 · Posted in Academic Videos, Influential Economists

Here is a video of Milton Friedman explaining the cause of the Great depression.

nice weather cloud over a farming field Germany west of Munich. Image shot 2007. Exact date unknown.

A New Manufacturing Technology will Change the World

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Print me a Stradivarius Feb 10th 2011 | from the print edition THE industrial revolution of the late 18th century made possible the mass production of goods, thereby creating economies of scale which changed the economy—and society—in ways that nobody could have imagined at the time. Now a new manufacturing technology has emerged which does the opposite. Three-dimensional printing makes it as cheap to create single items as it is to produce thousands and thus undermines economies of scale. It may have as profound an impact on the world as the coming of the factory did.  Click here for more…