giovedì 3 marzo 2016

3 Perfect Markets and the ‘World of Truth’ - The Undercover Economist by Tim Harford

3 Perfect Markets and the ‘World of Truth’ - The Undercover Economist by Tim Harford - #mercatomacchinadellaverità #lamenzognadelletasse #tassaottima #optout #scuolaeimmobiliaristi #garaoblocchidipartenza?
3 Perfect Markets and the ‘World of Truth’Read more at location 994
Note: La verità: la preferenza rivelata dai comportamemti. La sincerità conduce all' efficienza: le tasse sono un' interferenza nel mondo della verità. ovvero cambiano i comportamenti e impediscono alle preferenze di emrrgere I prezzi informano x' sono pagati volontariamente Prezzo + competitività => verità precisa Competenze nella scuola pubblica e nella scuola privata Liberismo e verità: metti i soldi dove metti la lingua (la doppia funzione dei prezzi) Tassa ottima: lump tax (impraticabile di fatto) Edit
Consider the film Liar, Liar, which tells the story of Fletcher Reede. As a result of his son’s birthday wish, Fletcher Reede finds that he is compelled to tell the truth for twenty-four hours. This is problematic for Fletcher because he is a lawyer – or a liar, as his son understands itRead more at location 996
Note: LIAR LIAR CON JIM CARREY Edit
free markets are just like Fletcher Reede’s son – they force you to tell the truth.Read more at location 1000
Note: MACCHINA DELLA VERITÀ Edit
we will discover that a world of truth leads to a perfectly efficient economy,Read more at location 1001
As we’ll see, taxes are like lies: they interfere with the world of truth.Read more at location 1004
Note: LE TASSE. DEMONIETTO MENZOGNERO Edit
So, let’s buy a cappuccino in the world of truth.Read more at location 1007
Note: UN CAPPUCCINO NEL MONDO DELLA VERITÀ Edit
‘What’s the most you’re willing to pay for this coffee?’Read more at location 1008
‘How much did those coffee beans cost?’Read more at location 1012
more killer question:Read more at location 1017
Note: LA DOMAMDA CHIAVE Edit
‘Are any other places within thirty yards selling coffee like this?’Read more at location 1018
Prices are optional, which means they reveal informationRead more at location 1021
There’s a basic truth incorporated into any system of prices. That truth comes from the fact that stores and consumers do not have to buy or sell at a given price – they can always opt out.Read more at location 1022
Note: OPT OUT Edit
Now you can begin to see why I say that prices ‘tell the truth’ and reveal information. In a free market, all the buyers of coffee would prefer to have coffee than the money the coffee cost, which is shorthand for saying they prefer coffee to whatever else they might have spent 60p on.Read more at location 1032
Note: COSTO OPPORTUNITÀ Edit
anything that is paid for outside the market – for example, the Olympic Games in London in 2012. The Games will cost around £10 billion, most of which will come from taxpayers. Maybe this is a good use of money, and maybe not. It’s not clear how we find out.Read more at location 1037
Note: FUORI DAL MERCATO. NEBBIA Edit
Perfect markets: the truth, the whole truth and nothing but the truthRead more at location 1042
the price is not conveying a vague fact (‘this coffee is worth 60p, or more, to the buyer, and it cost the coffee bar 60p, or less’) but a precise truth (‘this coffee cost the coffee bar exactly 60p’).Read more at location 1050
Note: FATTO VS VERITÀ Edit
To appreciate why markets do such a good job of processing complex information,Read more at location 1068
Note: INFO COMPLESSE Edit
Companies are making things the right way. Any company that wastes resources, over-produces or uses the wrong technology will go out of business.Read more at location 1090
Note: NEL MODO GIUSTO Edit
Companies are making the right things.Read more at location 1092
The price is a direct line of communication from what products cost to what customers prefer, and back again.Read more at location 1094
Note: IL PREZZO GIUSTO Edit
Things are being made in the right proportions. If too much coffee were being produced, manufacturers would cut prices;Read more at location 1095
Note: QUANTO Edit
Things are going to the ‘right’ people. The only people who buy products are the people who are willing to pay the appropriate price.Read more at location 1099
Note: A CHI Edit
you can’t get more efficient than a perfectly competitive market.Read more at location 1104
Note: SPRECO ZERO Edit
Life without marketsRead more at location 1106
the non-market system also has some disadvantages. For instance, if a police officer is rude or incompetent, you don’t have the option to shop for a different police force. If you think that the level of police protection you receive is excessive, it’s not up to you to cut back a bit. Neither can you spend more if you decide that you’d like extra service. No, you have to lobby your local politicians and hope they consider your demands.Read more at location 1112
Note: NO EXIT STRATEGY Edit
Government-provided schooling is another example of a non-market service that many of us use.Read more at location 1115
Note: SCUOLA Edit
In Britain, government-run religious schools often have the best academic records, so atheists take their children to church every Sunday in order to get good references from priests and get their children into these schools.Read more at location 1120
Note: DISTORSIONE ATEI IN CHIESA Edit
It seems that there is a willingness to pay for good schools, and we see it emerge because house prices are higher in the areas of schools with the best reputation. The non-market system, which gives preference to local children, channels the money that parents are willing to pay for a good school into the hands of property owners near existing good schools. This hardly seems sensible. A market system would simply direct the money to pay for more good schools.Read more at location 1127
Note: L IMMOBILIARISTA E LA SCUOLA Edit
The signalling function of pricesRead more at location 1130
In a market system, prices provide a way of deciding who gets to enjoy a limited supply of schools: whoever pays most gets to send their children to the best schools, an uncomfortable state of affairs, which the government-school system is designed to prevent. But prices also give the signal to build more schools, hire more teachers or raise their wages if they’re in short supply, and buy better materials. In the longer term, a price system will transform a high willingness to pay for good schools into a lot of good schools, just as surely as it will transform a high demand for coffee into a lot of cappuccino.Read more at location 1131
Note: COSTRUIRE NUOVE SCUOLE? Edit
The difficulty is that politicians hear that we want good schools, but they also hear that we want more police on the streets, a better health service, lots of big roads, excellent welfare benefits, low taxes and a double-shot caramel Venti latte. It’s easy for us to demand all of these things, but prices, by forcing us to put money where our mouths are, uncover the truth. Taxes have their advantages, but many don’t contribute to truthRead more at location 1137
Note: LE TASSE SPINGONO A MENTIRE Edit
Efficiency versus fairness: can we handle the truth?Read more at location 1146
efficiency is not enough to ensure a fair society,Read more at location 1150
Cost of cappuccino: 60p Price of cappuccino in perfectly competitive market: 60p Price of cappuccino after tax: 66p Willingness to pay for cappuccino: 63p Cappuccino sold: none Tax raised: zeroRead more at location 1158
Note: LAFFER Edit
Taxes are often higher when price-sensitivity is low. For example, the government charges high taxes on petrol and cigarettes, not for environmental and health reasons but because people who buy these products need to drive and are addicted to smoking;Read more at location 1168
Note: IL FUMATORE TARTASSATO Edit
(If you think that taxes on petrol are motivated by environmental concerns, think again: despite the environmental impacts of air travel, electricity and domestic heating, 90 per cent of all ‘environmental’ taxes in the UK in 2009 were paid by motorists.)Read more at location 1170
Note: L AUTOMOBILISTA TARTASSATO Edit
Can we enlist markets to help with fairness?Read more at location 1176
He proved that not only are all perfect markets efficient, all efficient outcomes can be achieved using a competitive market, by adjusting the starting position.Read more at location 1190
Note: ARROW Edit
I call it the ‘head start theorem’.Read more at location 1193
Note: IL TEOREMA DEI 100 METRI Edit
think of a very simple one-dimensional human challenge: the 100-metre sprint. The fastest sprinter will win the race. If you wanted all the sprinters to cross the line together, you could just change the rules of the race, ordering the fast runners to slow down and everyone to hold hands as they crossed the line. A waste of talent. Or you could move some starting blocks forward and some starting blocks back,Read more at location 1194
the trick is to adjust the starting blocks by making lump-sum payments and levying onetime taxes.Read more at location 1199
Note: LUMP SUM TAX O TASSA A SORPRESA O TASSA SUI TALENTI Edit
a lump-sum tax doesn’t affect anybody’s behaviour, because there is nothing you can do to avoid it.Read more at location 1202
an example of lump-sum redistribution would be to give £500 to everybody whose name starts with H, a policy for which I would be happy to vote.Read more at location 1204
Note: ES. SI LUMP TAX Edit
The implication is that in a world of perfect markets, the only thing needed to ensure both fairness and efficiency is a ‘head start’ strategy: a programme of appropriate lump-sum taxes and subsidies that puts everyone on an equal footing.Read more at location 1211
Note: MA È POSSIBILE? Edit
The question is, can this be done in practice?Read more at location 1214
Impractical examplesRead more at location 1215
political philosopher Robert Nozick deployed a famous argument against taking a view of ‘justice as fairness’.Read more at location 1215
Note: O DUBBI DI NOZICK Edit
Chamberlain’s talents made him wealthy; Nozick felt this was ‘just’ because Chamberlain’s wealth was the outcome of legitimate decisions by fans happy to pay to see him play. The situation may have been ‘just’ in Nozick’s sense of the word, but can any situation that leads to a highly unequal distribution of cash be considered ‘fair’?Read more at location 1218
Nozick warns that if Chamberlain did not really enjoy playing basketball and he was loaded down with heavy taxes, he might stop playing altogether.Read more at location 1221
Thanks to Kenneth Arrow, we now know that, when faced with a modern-day sports star like Tiger Woods, the solution is to levy a one-time lump-sum tax of several million dollars on him.Read more at location 1225
Note: TIGER WOOD Edit
The only trouble with this plan is that it’s wildly impractical.Read more at location 1229
Note: IMPRATICITÀ. MENZOGNA Edit
President Franklin Roosevelt introduced an income tax rate of 79 per cent, but the threshold was so high that the tax was paid by only John D. Rockefeller.Read more at location 1230
A practical exampleRead more at location 1237
application of the head start theorem could be used to prevent elderly people from getting cold in winter,Read more at location 1237
Note: VECCHI CHE MUOIONO DI FREDDO Edit
To address this concern, domestic fuel is subject to lower taxes than many other things. But that’s a slightly odd way to deal with the problem – an equivalent to the ‘running backwards’ solution.Read more at location 1239
Note: LA SOLUZIONE SBAGLIATA Edit
Because customers cannot easily cut down on fuel consumption, they are not very sensitive to the price of domestic fuel, hence the government should levy a bit more tax on fuel and a bit less on other goods: customers would not change their behaviour much and so the inefficiency would be small.Read more at location 1243
Note: SFRUTTARE LA RIGIDITÀ Edit
The simple policy remedy is to raise fuel tax but give extra money to the elderly, money that they could use to switch that heating on and stay warm.Read more at location 1250
Note: + REDSISTRIBUZIONE Edit
The lesson of the head start theorem is that when a problem arises, it’s worth asking whether the problem can be addressed by rearranging the starting blocks rather than interfering with the race.Read more at location 1256
Note: LAVORA SULLA PARTENZA NN SULLA GARA Edit
and facing up to the real world once again. 4 CrosstownRead more at location 1272
Note: traffico: dove il mercato manca o è imperfetto Edit
outcomes that are flawless in every respect except distribution. We also know from theRead more at location 1273
why did I spend two hours stuck in traffic on the way to work this morning?Read more at location 1276
The obvious answer is that, of course, there is no market perfectRead more at location 1278
because perfect markets provide such a clear benchmark, economists find it much easier to start from themRead more at location 1280
What’s wrong with my world