Why No One Likes Land Taxes
Economists and [insert basically every other group of people] often don’t agree. Take, for instance, the recent discussion of price controls. The headline of this opinion piece on the subject in The New York Times literally begins with “Economists Hate This Idea.” Yet voters aren’t so skeptical. (I’m not ready to say the idea has ... Why No One Likes Land Taxes
The Competitive Chaos Behind Moore’s Law
Semiconductors are everywhere. They power your phone, your car, your refrigerator. They enable AI models, cloud computing, and modern manufacturing. Advanced chips control weapons systems, telecommunications networks, and financial infrastructure. No technology is more central to modern economic activity. This makes competition in semiconductor manufacturing a question of enormous importance. Yet the industry presents a ... The Competitive Chaos Behind Moore’s Law
What Competition Scholars Should Know About the 2025 Economics Nobel
The 2025 Economics Nobel went to Joel Mokyr, Philippe Aghion, and Peter Howitt for exploring innovation-driven economic growth. I already wrote a general explainer about the prize. Here I want to make a different claim: If you work in antitrust, you should pay particular attention to their scholarship. Their work, especially that of Aghion and ... What Competition Scholars Should Know About the 2025 Economics Nobel
Nobel Committee Rewards Explorations of Why Growth Happens
There are years when the Royal Swedish Academy of Sciences’ selection for the Nobel Memorial Prize in Economic Sciences is good, years when it is bad, and years when it is outstanding. This year is outstanding. This is the prize I’ve been waiting for. Not because I predicted it or had money riding on it, ... Nobel Committee Rewards Explorations of Why Growth Happens
No, You Can’t Just Compare Tariff Rates and Income-Tax Rates
A little while back, John Lott had a very confused piece in the New York Post. In it, he made the following claim: Distortions increase as tax rates do. Before Trump’s policies, the average US tariff rate stood at just 2.5% — tiny compared to the 43.4% average top personal income tax rate (including federal and state ... No, You Can’t Just Compare Tariff Rates and Income-Tax Rates
Self-Preferencing Isn’t a Sin. It’s Often the Way Competition Works.
Paris has decided that 2025 is the year to crack down on “autopréférence,” with the Autorité de la Concurrence opening a public consultation in June under France’s new law “to secure and regulate the digital space.” The inquiry asks interested parties to identify cases where a cloud-computing service provider treats its own software better than ... Self-Preferencing Isn’t a Sin. It’s Often the Way Competition Works.
When Do Rent Controls Help Renters?
Imagine you’re a renter in a city where housing costs are sky-high. When the city council passes a rent-control law capping rents below the market rate, it feels like a victory. Finally, some relief! Indeed, the first people to benefit are those lucky tenants whose rents are now frozen or reduced. But fast forward a ... When Do Rent Controls Help Renters?
Network Effects in FTC v Meta
The Federal Trade Commission’s (FTC) ongoing antitrust case against Meta has brought network effects into the spotlight, as the agency’s complaint and opening statement both lean heavily on networks as a source of competitive harm. But the commission’s arguments fundamentally misunderstand how network effects interact with competition in digital markets. Far from being solely anticompetitive ... Network Effects in FTC v Meta
Stop Saying a Value-Added Tax Is an Export Subsidy
In a recent Financial Times opinion piece, Jason Cummins (who holds a Ph.D. in economics from Columbia University) argued that the Trump administration should impose a 25% tariff on European goods to offset an “unfair advantage” from Europe’s value-added tax (VAT) system. According to Cummins, European exporters like BMW Group enjoy an “implicit subsidy” when they ... Stop Saying a Value-Added Tax Is an Export Subsidy
Competition Confusion in the UK
UK Member of Parliament (former Conservative Party Cabinet Minister) Kit Malthouse published an essay in CapX earlier this month titled “We need a competition revolution.” I, of course, completely agree that competition is vitally important to any economy, and the UK has been struggling with productivity and growth challenges that may be linked to competition ... Competition Confusion in the UK
Prices Are Signals (and Politicians Keep Shooting the Messenger)
Back in November, I outlined eight economic insights that matter for policy. I promised to explain them one by one. It’s taken me months to get to that—not because I forgot, but because this concept is a central part of the book I’m working on. I wanted to make sure I had all the parts lined up, ... Prices Are Signals (and Politicians Keep Shooting the Messenger)
Beyond Market Definition: Key Economic Concepts in FTC v Amazon
The Federal Trade Commission’s (FTC) antitrust suit against Amazon, originally filed in October 2023, is scheduled for trial in October 2026. While we’ve previously explored the market-definition questions at the center of this case, several other economic concepts will be equally important in determining whether Amazon has violated antitrust laws. Ahead of a scheduled March ... Beyond Market Definition: Key Economic Concepts in FTC v Amazon
