Author Archives: Adam Bailey

A Fallacy about Trade

Posted on April 10, 2013 by Adam Bailey

What determines the production quantities and relative prices of internationally-traded goods?  Some textbooks suggest a misleading answer. An old textbook I have on my shelves (Wells 1969 (1)) has a diagram similar to Diagram 1 below, showing the production possibility … Continue reading →

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Lessons from the Industrial Revolution

Posted on March 7, 2013 by Adam Bailey

The economics of energy in the 18th century offers lessons for the present. I recently read Robert Allen’s The British Industrial Revolution in Global Perspective (1), a fascinating analysis of why the industrial revolution happened, why it happened in Britain, … Continue reading →

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Some Economics of a Carbon Tax

Posted on February 20, 2013 by Adam Bailey

A carbon tax can be an effective policy for reducing emissions.  It also affects output and social welfare. Like many economists I am fond of diagrams.  I feel I understand a piece of economics when I see it expressed in … Continue reading →

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The Role of Contingent Valuation

Posted on January 21, 2013 by Adam Bailey

Contingent valuation is sometimes presented as applicable to any environmental good, unlike other valuation methods which can be used only in particular circumstances.  Recent thinking suggests a narrower role. A symposium in the Journal of Economic Perspectives (1) offers three … Continue reading →

Posted in Environment (general) | Tagged , , , , | 2 Comments