Economic education, a continuing series

1. Megan Non-McArdle explains what is a "separating equilibrium."  First sentence:

There are bad reasons why the girl doesn’t ask out the boy.

2. Tim Harford argues that stock price crashes can be rational.  Market trading reveals information by showing traders the slope of the demand curve.

3. Jason Kottke points us to the Coca-Cola index, which correlates the consumption of this beverage with freedom and prosperity.

4. Lott vs. Levitt update

Comments

Herr Cowen,

Re: Coke

The Coke-Quality of life correlation makes perfect sense.

On freedom: Did the count the developing countries that produce their own coke and use the brands’ names and logos (without license agreement). Such states tend to be less free.

"the Coca-Cola index, which correlates the consumption of this beverage with freedom and prosperity": that must constitute the most vicious verbal attack on democracy that I've ever seen.

Tim Hartford seems to have missed the memo on the Efficient Markets Hypothesis.

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