Comments on Aguanomics: Kill the growth zombie!

@Eric -- that's not what I was saying. Insurance m...

2009-11-18T13:49:08.473-08:00

@Eric -- that's not what I was saying. Insurance markets *can* take care of things, but they need to be free of political intervention to work. It's the difference between risk (you can insure) and [Knightian] uncertainty.

Is there insurance or a futures market against Cal...

2009-11-17T15:17:31.067-08:00

Is there insurance or a futures market against California politicians passing a bill on coal which then beggars Ohio which then can't produce the steel for Californians cars.

I have never seen such insurance or futures markets.

Also, trying to determine the policy rates for such an event would be nightmarish.

The insurance might be worthwhile though.
Thanks.

@Eric -- that's what insurance, futures markets an...

2009-11-17T15:12:40.355-08:00

@Eric -- that's what insurance, futures markets and property rights are all about: they bring timing back on to the table.

Not that pols pay attention :(

Timing issues Is there any structure in economics...

2009-11-17T10:07:30.411-08:00

Timing issues

Is there any structure in economics, macro or micro, that deals explicitly with timing.

For example, an economic issue that is decided in Northern California today to impact Southern California six months from now and then to impact Northern California, negatively, three years from now.

It seems, from the discussions here, that few people are considering how long an economic system might take to come to equilibrium and what that equilibrium might be once all of the factors settle out.