Tuesday, September 29, 2009

Cap and Trade - Krugman style

Paul Krugman writes on "cap n trade" in the NY Time.

The textbook economics of cap-and-trade [NY Times]

I realized, after the last post, that it might be useful to write down just what the Econ 101 version of cap and trade looks like; as it happens, this also helps explain the intellectual sins of Glenn Beck and Martin Feldstein.


I am currently writing a paper with someone who is also the co-author of two of Krugman's ex-PhD students (from many years ago). Does that count for anything?

.

No comments: