Very interesting!
This theory paper has some serious implications for those of us who use the World Bank's International Poverty Line in applied work... #EconSky
www.sciencedirect.com/science/arti...

“Higher interest rates cause the outside financial wealth of private agents to grow faster in nominal terms…If the monetary authority responds to higher inflation with sufficiently higher nominal interest rates, a vicious circle is formed.”

faculty.wcas.northwestern.edu/lchrist/pape... #econsky

If you want to understand why healthcare pricing is horrific, the first thing to know is that our system puts 100% of the credit risk for deductibles, copays and co-insurance on hospitals and doctors. That's insane.

We have turned them into Sub Prime Lenders 🧵

Remember the "Biden bribe" story? The guy who invented it just admitted to making it up.
Remember the "FBI did Jan. 6" thing? According to a new inspector general report, they didn't.
I'm sure Fox News et al will be suitably chastened.
www.washingtonpost.com/politics/202...

🚨Together with Ethan Akin, Martin A Nowak and @chilbe.bsky.social our new paper published in PNAS characterizes partner strategies (Nash strategies that sustain cooperation) for reactive-n strategies in repeated games 🧵

📜 www.pnas.org/doi/10.1073/...

Rightists as Low Decouplers: Examples from the Comments

A thread about whether the global – and American – center-left needs a different kind of liberalism. These are thoughts triggered by Trump’s victory in the United States and the swing against mainstream incumbents in many other elections around the world.

These two papers, taken together, really cause a rethinking of behavioral economies.

Rather than having anomalous risk preferences; it looks like people have complexity aversion to "hard" decisions, especially on valuation, which drives behavioral anomalies. Herbert Simon ftw.

Some of the most important lottery anomalies from the behavioral risk literature (e.g., probability weighting and loss aversion) actually have nothing to do with risk.

They also arise in perfectly deterministic settings.

Lead article in the latest AER issue:
www.aeaweb.org/articles?id=...