Arnold Kling on inequality

“In short, the distribution of wealth represents differences in taste. Many people prefer jobs with less income and more of other characteristics.”

Read the whole thing here.

While I tend to agree on this point, I still think there’s more to it. The fact that the pay to the very best in investment banking is an order of magnitude higher than that of those who are quite good, makes me think the average investment banker do not easily substitute the top earner. That is, differences in taste do not tell the whole story.

Endowments matter.

Update

Arnold Kling elaborates on the part about investment banking.

Global opvarmning

Bjørnskov har skrevet et længere indlæg om global opvarmning.

Flere posts om de økonomiske aspekter ved emnet her og her.

Regner med at skrive lidt mere om emnet inden så længe, måske her, måske som kommentar til Bjørnskovs post.