Anyone see any reference to supply siders beyond Laffer’s Curve discussion?
thats about the extent i have seen…it always makes me think of ronny reagan
Not really, they don’t give much discussion. Don’t expect to see much discussion in any economics text book–the guys that write them are either Keynesians or Monetarists.
mcf Wrote: ------------------------------------------------------- > Anyone see any reference to supply siders beyond > Laffer’s Curve discussion? SSiders = voodoo economics laffer – higher tax rate actually lowers tax revs after a certain point. curve looks like an upside down smile
Oh, I get laffers curve… just got caught off-guard by a question that referenced supply-siders, which I’d not heard before. Laffers curve is something I file in the ‘gimme’ question category… up there with herfshenel (however you spell it) values, calculating elasticity, and changing yields… could do those all day long!
mcf Wrote: ------------------------------------------------------- > Oh, I get laffers curve… just got caught > off-guard by a question that referenced > supply-siders, which I’d not heard before. > > Laffers curve is something I file in the ‘gimme’ > question category… up there with herfshenel > (however you spell it) values, calculating > elasticity, and changing yields… could do those > all day long! HHI = sum of squared market shares for all firms concentration ratio = sum of N number of market shares HHI is “better” by most standards and more realistic BOOM
upside down smile? Isn’t that a frown?
looks more like a distribution skewed to the left, with origin at ax crossing
daj224 Wrote: ------------------------------------------------------- > mcf Wrote: > -------------------------------------------------- > ----- > > Oh, I get laffers curve… just got caught > > off-guard by a question that referenced > > supply-siders, which I’d not heard before. > > > > Laffers curve is something I file in the > ‘gimme’ > > question category… up there with herfshenel > > (however you spell it) values, calculating > > elasticity, and changing yields… could do > those > > all day long! > > > HHI = sum of squared market shares for all firms > > concentration ratio = sum of N number of market > shares > > HHI is “better” by most standards and more > realistic > > BOOM … and what’s the equivalent firms value…? come on… hit me!
1/HHH
1/HHI
daj224 Wrote: ------------------------------------------------------- > mcf Wrote: > -------------------------------------------------- > ----- > > Anyone see any reference to supply siders > beyond > > Laffer’s Curve discussion? > > > SSiders = voodoo economics > > laffer – higher tax rate actually lowers tax revs > after a certain point. > > > curve looks like an upside down smile That was George H.W. Bush’s term when he ran against Reagan. Supply-side is nothing new. It’s a rebirth of classical economics and basic premises of Adam Smith. If you want a definitive discourse on what supply side economics is, I’d suggest that you read Jude Wanniski’s “The Way the World Works.” Art Laffer is one supply sider. Also look into Robert Mundell of Columbia University (a Nobel Laureate from 1999). Victor Canto is another name to throw out there. And if you want to go even deeper, check out works by Ludwig von Mises, and Frederick Hayek. These are two famous economists who you will never see referenced in ivory tower economics textbooks. That’s why economics, as it is taught, is such a useless subject. You are only taught monetarism and keynesian theory.
And what values, roughly, are considered thresholds for competitive / non-competitive with HHI? (remember one section of the CFA material calculates the value with % as value *100… so 10% is 10 not .1)
10000 Monopoly >1800 Not Competitive (Oligopoly) 1000-1800 Moderately Competitive (Monopolistic Competition) under 1000 Competitive
I was curious about this, so I just looked it up. The numbers above are according to the Justice Department (they use it when they look at anti-trust stuff related to mergers) (Vol 2, pg 106) There is also a table on pg 108 that suggests otherwise (1000 for Mono, >1000 for Olig, 100-999 for Mono Comp., and less than 100 for perfect comp.) Given the ambiguity–even in the CFAI text–I’m guessing there will be no question on this…
bottom line: hgiher HHI or CRatio = LESS competitive market. you want those HHI and CRs high if you are a company, if you are a CUSTOMER, competiton is good (firms hit excess capacity, etc, cut prices,) BOOM