Marijuana use can lower educational outcome

Preparing myself for an upcoming lecture by Professor Deborah Cobb-Clark here at the Jahrestagung des Vereins für Socialpolitik 2014 (Association of German Economists) I came across an interesting paper. It is about the relationship between early marijuana use (at age 14 or younger) and young people’s educational outcomes. Key lesson: „Early marijuana use is associated […]

Merkel to blame on establishing sound budgetary policies?

„Foreign countries are to blame!“ – That is how politicians tend to justify developments voters do not appreciate. From a politician point of view such a accusation is understandable in two ways: Those who are accused can’t vote (and so can’t harm the politician) and, secondly, the politician is absolving himself of responsibility. The problem with […]

Example how wrong incentives impede progress

Small example how a incorrect framework impedes progress: Till 1996 hospital costs in Germany were charged by day. The longer patients stayed in hospital the more the hospitals earned. With the result that hospital care in Germany was the longest in western countries. One bad effect: New procedures like the minimally invasive surgery had to […]

What is a free or liberal order?

A question that struck me during a just finished first session at the Juniorenkreis Publizistik at Bresinchen: What is a free or liberal order? Is it an order where people have as much freedom as possible or does it mean that people agree to rules in freedom? In the latter sense liberal regulations must be broadly […]

„Taxation on performance“ vs.“taxation on interests“: What is fair?

In preparation of a meeting with Hayek-Followers the next weekend I am reading a paper (Markt und Staat in einer globalisierten Welt: Die ordnungsökonomische Perspektive) from Viktor J. Vanberg. Among other things the paper is about taxation in a globalised world. Vanberg draws attention to an interesting point: about the ethical standard of raising taxes. […]

How rich is Europe compared to all US states?

How rich is Europe compared to the US states, The Spectator askes. Some answers: The richest country is Alaska with 80741 Dollar gross domestic product (GDP) per capita per year. The richest european country is Norway (ranked after 7 US states). 39 US states are richer than Germany. England is just a little bit richer than the […]

How fair is fair trade?

The Germans never have spent so much on fair trade products. In 2013 it was 784 million Euro (worldwide, 2011: 4.9 billion Euro). But does fair trade achieve the self-imposed targets? The Economist reviews a book from Ndongo Samba Sylla, a Senegalese development economist working with the left-wing Rosa Luxemburg Foundation of Germany, that takes a negative […]

Learn Behavioral Economics the easy way

Even if you are not interested in Economics in general, Behavioral Economics will interest you, I bet. It is, among others, about the fact, that people often make decisions based on approximate rules of thumb and not strict logic. This leads to some surprising findings. Some of the key findings now became illustrated in the book […]