tag:blogger.com,1999:blog-7539577136486286096.post2668831474475943534..comments2024-03-28T02:46:41.090-05:00Comments on Supply and Demand (in that order): Professor Barro - Where Are You?!Casey B. Mulliganhttp://www.blogger.com/profile/03317454408275318282noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7539577136486286096.post-72352908124139803792008-10-12T10:29:00.000-05:002008-10-12T10:29:00.000-05:00"The possibility of ready institutional substituti..."The possibility of ready institutional substitution for democratic political institutions is why democracies and autocracies have similar public policies in so many areas. It is critical that the basic economic function be performed, but there are multiple institutions that can perform it."<BR/><BR/>The argument is fundamentally flawed. A sociopathic killer may well be a good son (as is now fashionable to point out in movies and literature). A person dying of cancer needs to urinate as well as a healthy individual. What does that prove?<BR/><BR/>The problem is a lovial one of condusing a statement with its converse (rather than contrapositive).Anonymoushttps://www.blogger.com/profile/10029844756610603282noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-37005946422196808272008-10-11T11:52:00.000-05:002008-10-11T11:52:00.000-05:00Prof. Barro is also a noticeable absence from this...Prof. Barro is also a noticeable absence from <A HREF="http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm" REL="nofollow">this list</A> too.Gabriel Mhttps://www.blogger.com/profile/18020403326536585795noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-18273152639462597702008-10-11T11:18:00.000-05:002008-10-11T11:18:00.000-05:00"As a result, taxpayers will attempt to reduce the..."As a result, taxpayers will attempt to reduce their holdings of bank stocks by the same amount that the Treasury increased them."<BR/><BR/>Won't their investment depend on what they perceive is their expected return on investment, irrespective of what the government does?<BR/><BR/>"I cannot believe that investors would not invest in new banks, or would not invest in alternative institutions that could compete with banks."<BR/><BR/>This might be true, but surely a question would be how long would this take, and would they wait for a government bailout to lift the overall economy before doing so.Donald Pretarihttps://www.blogger.com/profile/14493535232127084725noreply@blogger.com