To Those Applying for a Job at Towson

First, let me say I have only been at Towson for 3 months. So far I have found the department to be extremely collegial, there is a good mix of pre-tenure and older faculty. People seem really willing to help me. I also already have begun collaborating on a research project with one other faculty member.

In terms of the college. There is a 3/3 teaching load, but classes are generally 30-35 for intro (you will have two sections) and 25 for upper level classes. Teaching schedule is flexible you can even teaching an evening or two. With the smaller class sizes and one night class I have had reasonable amount of time for research. Also given our proximity to DC, I have also been able to continue some work at the World Bank.

I’m really happy here so far and would highly recommend Towson to any job candidate. As the process goes on if you are a candidate feel free to e-mail me with your questions.

IMF layoffs

I have been a bit busy with finals week and the end of the semester. I’m surprised I have not seen much discussion of the proposed layoffs at the International Monetary Fund. In short, the IMF will face yearly deficits of 400 million dollars a year. So the director has proposed cutting around 15% of the Funds work force. Although it is unclear if part of this press release is to allow the IMF to sell off some of its gold reserves.

Why is the fund running deficits? Well as best I can tell it is making fewer loans with many developing countries now having their own sovereign wealth funds they no longer need the help of the IMF.

Tigers made in Venezuela

Over at DailyKos a posts ask today why are Major League Baseball (MLB) jerseys and hats made abroad. The author, Mooncat, points out that although the uniforms worn by the players are made in the USA the same merchandise sold to the public is made in China, Honduras, and Vietnam.

The author then points to several outfits that several similar hats and shirts without baseball logos made in the USA sell for similar amounts and would only raise the price of a hat a few dollars. If the US is capable of making these jersey for only a few dollars more, why wouldn’t MLB have everything made in the US…..simple profits. The author of the post is suggesting that readers make their voice heard that they prefer American made jerseys and hats, which would suggest to MLB that more profits might be possible if they made some or all items in the US. This raises some questions in my mind.

1.Suppose that MLB closed all Chinese apparel factories and opened up new factories in the US. Is it really better to put those Chinese workers out of a job at the expense of giving Americans jobs.

2.How much are the Dailykos readers willing to pay for the privilege of purchasing made in America goods?

3.Could having American made jersey sold as a more expensive product (sold separately), actually make MLB more money?

4.If some of my favorite Detroit Tigers were made in Venezuela (Miguel Cabrera, Magglio Ordonez, and Carlos Guillen) are they taking away American baseball jobs, should MLB move to systems where the number of foreign players are limited as was/is the case in some soccer leagues.

We want a buyers market

As someone who is currently saving for a down payment for a house. I was pleased to see this article in the Washington Post about how some of those like me who have avoided the risk of the real estate market and are working to save a down payment might be hurt by the recent proposed sub prime bail out.

Actually the housing market won't really determine when I buy, just like I do not try to time the stock market. I have been given the advice that now is a great time to buy since the market is at a low. As an economist I know the future of the market is a known unknown.

Feeding Your Inner Economist at the Tapas Bar

Yesterday Tyler Cowen over at Marginal Revolution linked to a NY Times article about the death of the entrée. Not only is Prof. Cowen a prolific blogger/economist he is also known locally as the author of a local DC dining ethnic guide. In his recent book, Discovering Your Inner Economist, Prof. Cowen suggests some ways to maximizing your dining experience. Including “appetizers are often better than main courses (145)” and “order more dishes than you plan to eat (146)”

My wife and I have often noted the first, as we often prefer to order 3-4 appetizers instead of an entrée or go to one of Jose Andrés tapas joints such as Oyemel or Jaleo. As the New York Times article point out you can avoid diminishing returns to one entrée and get lots more variety while ordering more types of food.

Suggestion 2 is a risk averse strategy, if you order 3-4 dishes just enough to eat perhaps one will dish will not be good. I’m not big on leftover food from restaurants though so I’m not as sure it is worth the money. Although I have been having success with the strategy at restaurants where I’m not as familiar with their menu.

I support the death of the giant entrée, but unfortunately the article suggests it is at the expense of the massive salad or appetizer. I hope you will join me in going to restaurants with properly sized delicious portions. See you at Oyemel!

Economists' Chanuka

I wrote a song for all those Economists Out There Who Celebrate Chanuka
The Econ Chanukah Song: (With Apologies to Adam Sandler)

Put on your yarmulke
Here comes Chanukah
Lots of Economica
Celebrates Chanukah
Chanukah is the festival of lights
Avoid diminishing returns with eight crazy nights

When you feel like the only kid in town without Christmas utility
Here’s a list of economists who are jewish just like you and me
Paul Samuelson lights the menorah in the evenin’
So do Solow, Stiglitz and the late Milton Friedman

Guess who eats together at the Fed reserve deli
Alan Greenspan and Chairman Ben Bernanke
Akerlof’s part jewish, Herb Simon’s part too
Bundle them together, what a fine econ jew

You don’t need jingle bell or a yule log
cause you can spin a dreidel at the Becker/ Posner blog- both jewish

Put on your yarmulke
It's time for Chanukah
the author of Freakonomikah
Celebrates Chanukah

Robert Mugabe, not a jew! Or an economist!
But guess who is? Nobel prize winners Ken Arrow and Simon Kuznets too
We got Herb Stein and his son’s Ben’s money
David Ricardo was born jewish- but went Quaker for his honey

Some people know that Paul Krugman is
He hasn’t won a Nobel prize
but three others did --- This YEAR!
So many jews are econ wiz kids
Greg Mankiw isn’t, but I heard his book agent is

So study your Economica
It's time to celebrate chanukah
I hope I get published in Econometrikah
Oh this lovely, lovely chanukah

So find your equilibriah
And check your heteroskedisticas
If you really, really wannakah
Have a happy, happy, happy, happy chanukah
Happy chanukah!

Source: http://www.jinfo.org/Economists.html

Fertilizer in Malawi

Developing countries like Malawi are beginning to turn away US aid, (previously discussed here). In part because much of it comes in the form of free food that makes it harder for farmers within the country to make enough to live, since they compete with free food.
To address mass hunger issues Malawi has gone against the advice of the World Bank and other economists and reinstated a fertilizer subsidy program. The program seems to have been a success (according to this NY Times article). The $70 million investment yielded an extra $120 million in corn production, although the returns may have been helped by good weather conditions.

I think the article might be a bit hard on the World Bank here. I tried to find places where the World Bank recommended ending the subsidy program, but all I found is a positive review of the program (here) and a report (here) that suggests some success, but problems with distribution to the poorest farmers.

Are subsidies a long term solution to development? Perhaps not if development require moving away from agriculture. But the described impact against hunger makes it hard to argue with the results.