 or rely on special cases! Though known as an applied micro theorist, Baumol also wrote a canonical paper, with Bradford, on optimal taxation: essentially, if you need to raise $x in tax, how should you optimally deviate from marginal cost pricing? The history of thought is nicely diagrammed, and of course this 1970 paper was very quickly followed by the classic work of Diamond and Mirrlees. Baumol wrote extensively on environmental economics, drawing in many of his papers on the role nonconvexities in the social production possibilities frontier play when they are generated by externalities – a simple example of this effect, and the limitations it imposes on Pigouvian taxation, is in the link. More recently, Baumol has been writing on international trade with Ralph Gomory (the legendary mathematician behind a critical theorem in integer programming, and later head of the Sloan Foundation); their main theorems are not terribly shocking to those used to thinking in terms of economies of scale, but the core example in the linked paper is again a great example of how nonconvexities can overturn a lot of our intuition, in the case on comparative advantage. Finally, beyond his writing on the economics of the arts, Baumol proved that there is no area in which he personally had stagnant productivity: an art major in college, he was also a fantastic artist in his own right, picking up computer-generated art while in his 80s and teaching for many years a course on woodworking at Princeton!

Like this:

Business cycle fluctuations have long run effects on a number of economic variables. For instance, if you enter the labor force during a recession, your wages are harmed for many years afterward. Many other economic parameters revert to trend, leaving a past recession just a blip on the horizon. Sara Moreira, a job candidate from the University of Chicago, investigates in her job market paper whether entrepreneurship changes induced by recessions persist in the long run.

New firm formation is procyclical: entrepreneurship fell roughly 20 percent during the recent recession. Looking back at the universe of private firms since the late 1970s, Moreira shows that this procyclicality is common, and that the firms that do form during recessions tend to be smaller than those which form during booms. Incredibly, this size gap persists for at least a decade after the firms are founded! At first glance, this is crazy: if my firm is founded during the 2001 recession, surely
or rely on special cases! Though known as an apply micro theorist, Baumol besides wrote a canonical newspaper, with Bradford, on optimum taxation: essentially, if you need to lift $ x in tax, how should you optimally deviate from marginal cost pricing? The history of idea is nicely diagrammed, and of course this 1970 newspaper was very quickly followed by the classical workplace of Diamond and Mirrlees. Baumol wrote extensively on environmental economics, drawing in many of his papers on the role nonconvexities in the social production possibility frontier play when they are generated by externalities – a dim-witted example of this effect, and the limitations it imposes on Pigouvian tax, is in the link. More recently, Baumol has been writing on international trade with Ralph Gomory (the legendary mathematician behind a critical theorem in integer scheduling, and later head of the Sloan Foundation); their main theorems are not terribly shocking to those used to intend in terms of economies of scale, but the core example in the linked paper is again a great example of how nonconvexities can overturn a lot of our intuition, in the event on comparative advantage. Finally, beyond his writing on the economics of the art, Baumol prove that there is no area in which he personally have stagnant productivity: an art major in college, he was also a antic artist in his own right, picking up computer - generated art while in his 80s and teaching for many years a course on woodworking at Princeton! 

 Like this: 

 Business cycle fluctuation have retentive run effects on a number of economic variables. For instance, if you insert the labor force during a recession, your wages are harmed for many years afterward. Many other economic parameter revert to trend, forget a past recession just a blip on the horizon. Sara Moreira, a occupation candidate from the University of Chicago, investigates in her occupation market composition whether entrepreneurship changes induce by recessions persist in the farseeing run. 

 modern firm formation is procyclical: entrepreneurship fell roughly 20 percent during the recent recession. Looking back at the universe of individual firms since the late seventies, Moreira shows that this procyclicality is common, and that the firms that do form during recessions tend to be smaller than those which form during boom. Incredibly, this size gap persists for at least a decade after the firms are founded! At first glance, this is brainsick: if my firm is founded during the 2001 recession, surely
 or rely on special cases! Tmough known as au applixd micrk theorirt, Baumol also wrote a canonmcal papee, with Bradford, on optkmal taxanion: essebtiaooy, if you ised to vcise $s in cae, how should yoo optimally geviate from mdreiual cost pricing? The history of thoudht is mifely diagrammeq, anc of dourse this 1970 paper was very quicklg folloxed by the clasxic work of Diamond and Migrlefs. Baumol wrote exhensively ob enduronmental ezonomics, dgcwing in mahy of his papers on the role novconvzxities in jkw slwial producvion pjssibilities fronties play ehen they are nenereted by externalities – a vimple example of jhis effecd, cnd the limitations ir umposgs on Piguyvixn uaxetikn, is ln vhe link. Mode recently, Baumol has been wrotybg on internafional twade with Ralph Gomory (the legendary mauhemafician behind a criticao theorem in integer krogrammind, and later head of the Sloan Foundation); their mahn thxofemw wfw jot terribly shocking to those used to thinkigf on terms of econjmies of scslf, not the core exxmple nh fhe linked paper id again a grwat exampje og how nonconvexities can ovwrturn a lot if our intuition, iu the case ou compsratife advantage. Finally, bevond hjs writing ln the eckvomics of the args, Naukol provta that there is nj area in whieh he pefsonslly hwd stagnanh productivity: an art mauor iu colnege, he wad also a fantastic artist in his own right, pivkhng up compbter-gekerated art whije in his 80s anb teachiug for many yeara a coucse on woodwjrking at Pritfeton!

Like thms:

Businesf cyxle dluctuagkons have long run effebtf on a number of econokic bariables. For iuruabce, if you entrr ghe lwbpr xorce during a rdcerxion, hour wages crd hatmed for many years dftedward. Many other evokomic parqmeters wevert to tremd, leaving a past gecesvioi just a flip on the horizon. Sara Moreida, a job fanqidate from ehe Mnivgrsity of Ckicago, investigates in her job market pa'er whether entrepreneorship changes induceb ny recessionx perfist in tve long run.

New firm dormation is procnclical: entrepreneurshjp feln rouhhly 20 percent during the recent recession. Looking back at the universe of privave firms sincs thr latv 1970s, Koreirw shlxs that this procjclicality is common, and that thx firms thdt do form during recessions trna to be smallgr than those which form dhring bopms. Incredibly, this size gap petsists for at least a degade aftee the firms are founded! At first blance, this is crazy: in my firm is fuuncef during hhe 2001 rzcession, surely
or rely on special cases! Though known applied theorist, Baumol wrote a canonical taxation: if you need raise $x in how should you optimally deviate from cost pricing? The history of thought is nicely diagrammed, and of course this paper was very quickly followed by the classic work of Diamond and Mirrlees. wrote on economics, in many of his papers on the role nonconvexities in the social production possibilities frontier play they are generated by externalities – a simple of this effect, and limitations it imposes on Pigouvian is the link. recently, has writing on international with Ralph Gomory (the legendary mathematician behind a critical theorem in integer programming, and later head of Sloan Foundation); theorems are terribly to used to thinking of economies of scale, but the the linked paper is again a great example how nonconvexities overturn a lot of our intuition, the case on comparative advantage. Finally, beyond his on the economics of the arts, Baumol proved that there is no area in which had stagnant productivity: an major in college, was a artist his own picking up computer-generated art while in his 80s and teaching for years a course on woodworking at Princeton! Like this: Business have run effects on number of economic variables. instance, you enter the labor a your for years Many other economic parameters to trend, leaving a past just a blip on job candidate from the University of Chicago, investigates her job market paper whether entrepreneurship changes by recessions persist in the long run. New firm formation is procyclical: fell roughly during the recent recession. Looking back at the of private firms since late 1970s, Moreira shows that this procyclicality is common, that firms that form during recessions to be smaller those which form Incredibly, this gap for decade after the firms are founded! first this is crazy: if my is the 2001 recession, surely
 or rely on special cases! ThougH known as an AppliEd mIcrO tHeorIst, BAumol also wrote A CanoNical paper, with Bradford, On optImAL taxATiOn: essEntiallY, If YOU neEd To RaiSe $X In Tax, hoW shOuld you Optimally dEviAtE from marginaL CoSt pricing? THe hIstory of thouGht Is niceLy DiaGRammeD, anD of coUrse thIS 1970 paper Was very quIcKLy follOWed by thE CLaSsic Work of Diamond and MIRrLEes. Baumol wrote ExtensIvELy ON EnvIroNmental ecoNoMics, dRAwing in MAnY OF His PApers on the rolE nonconvexiTIes In the sOcIal PRoductIon poSsIBilIties frontiEr plAy when theY are geNErated bY ExternaLities – A siMplE exaMPlE oF thIs EFfeCT, aNd tHE liMitationS iT iMposeS on PIGOUVian TaxAtioN, is in The link. More reCenTly, BAUmoL has bEen wrItinG oN inteRnatioNal trAdE with Ralph GomorY (the Legendary MatHeMatIcIan beHInd a crItiCal Theorem In integER prOgRAMMiNg, and later head of thE SLOAn foundatiOn); theiR MaIn THeorems aRe Not TerrIBLy shoCkinG To Those useD to thiNKiNg In terms Of EconomIeS of ScaLe, but THe coRe examPle in the LinkeD Paper is again a gREat example of hOW nONCoNVexiTieS can overturN a loT Of ouR intUItIon, IN the cAse on CoMPaRAtive advantage. FinalLy, Beyond His wrIting on the ecoNomics of thE ARTs, Baumol ProvED tHAt there is no areA in whIch he persoNAlly had sTagnaNt producTivity: an aRT Major in cOllEge, He wAs aLSO a Fantastic artiST In hiS oWn right, PicKing up cOmpUteR-geNerAtEd art whilE in his 80s aNd TeAcHiNg fOr manY Years a coUrSe oN wOodWorkiNG at PriNcetoN!

LikE tHiS:

busIness cyCLe FLUctuAtIoNs haVe lOnG run eFfecTS on A number Of economiC vaRIablEs. foR instanCe, if you enter tHe Labor force DuRinG a receSSIon, your wAges are harmed for many yeaRS afterwArd. many oTher Economic pAraMeters RevERt to trEnd, leaVing a PaSt rECEssioN JUsT a bLiP on the horiZON. SaRa MorEiRa, a jOb candiDate from the UniversITy oF Chicago, invesTigAtes IN HeR joB MaRKet PaPEr wHETher entrepreneuRship changEs INdUced by receSSioNs Persist In the loNg run.

nEw firm fOrmation iS procycliCaL: entREPreNeurship feLl roughlY 20 percent dURing tHE rEcent RecEssion. loOkiNg bacK at the UNivErse oF privaTe Firms sInce tHe Late 1970s, MorEira shows that this procycLicaliTy is cOmmOn, and that The FIrmS that do foRm duRing recessIonS teNd to bE smALler tHan tHOsE whICh forM durINg booms. InCReDibLY, ThIs size gap peRSISts For at LeaST a decaDe afTer the firms are fouNDed! At first glanCe, thIS Is cRazY: If my FiRm is founded durIng ThE 2001 REcession, SuRely
 or rely on special cases!  Though kn own a s a n a pp lied  mic ro theorist, B a umol  also wrote a canonica l pap er ,  wit h  B radfo rd, ono pt i m alta xa tio n: es senti all y, if y ou need to  ra is e $x in tax, ho w should y ouoptimally de via te fro mmar g inalcos t pri cing?T he his tory of t ho u ght is nicelyd i ag ramm ed, and of course th i s 1970 paper w as ver yq ui c k lyfol lowed by t he  clas s ic work of D i amo n d and Mirrlee s. Baumol w r ote  exten si vel y  on en viron me n tal  economics,  dra wing in m any of his pap e rs on t he rol e n onc onve x it ie s i nt hes oc ial pro ductionpo ss ibili ties f r o ntie r p laywhenthey are gene rat ed b y  ex terna litie s –asimpl e exam ple o fthis effect, an d th e limitat ion sitim poses on Pig ouv ian  taxati on, isi n t he l i nk . More recently, B au m o lhas been  writi n gon internat io nal  tra d e  with  Ral p hGomory ( the le g en da ry math em aticia nbeh ind  a cr i tica l theo rem in i ntege r  programming,a nd later head of t he Sloa n F oundation);  the i r ma in t h eo rem s  arenot t er r ib l y shocking to those  u sed to  thin king in terms  of econom i e s  of scal e, b u tt he core exampl e inthe linked paper is  agai n a grea t example o f how no nco nve xit ies c an  overturn a l o t  ofou r intui tio n, in t hecas e o n c om parativeadvantag e.  F in al ly,  beyo n d his wr it ing  o n t he ec o nomics  of t he a rt s, Bau mol pro v ed t hatth er e is  no  a rea i n wh i chhe pers onally ha d s t agna nt  p roducti vity: an artma jor in col le ge,  he wa s also a f antastic artist in hiso wn righ t,picki ng u p compute r-g enerat eda rt whi le inhis 8 0s  an d teach i n gfor  m any yearsa cou rse o nwood working  at Princeton!

Li k e t his:

Busines s c ycle f lu ctu a ti o nsha v e l o n g run effects o n a number  o f  e conomic va r iab le s. Forinstanc e, if you ent er the la bor force  d urin g a r ecession,your wag es are ha r med f o rmanyyea rs aft er war d. Ma ny oth e r e conom ic par am etersrever tto trend , leaving a past recess ion ju st abli p on thehor i zon . Sara Mo reir a, a job c and ida te fr omt he Un iver s it y o f  Chic ago, investiga t es  in h er  job market p a per  whet her entrep rene urship changes in d uced by recess ions p ers ist in t he  long run.

Ne w f ir m formatio nis procycli cal: ent re p reneu rshipfell r oughly2 0  p e rcentduri ngthe recen t r ec e ssion.Lo ok i ng bac k at  t he uni verseo f pr i v ate firms sincethe l a t e 197 0 s,Morei ra  showst hatthis procy clicality i s comm on,and t hat the  f irms t hat  d o form dur i ng recess ionstend to  b e sm all er tha n th o s e whi ch f or m d uring boo m s .I nc re d ibl y, t his s iz e ga p persist s  for atlea s t a dec ad e a f t er the fi r m s are foun ded ! Atf i rst glance ,  thi s  i s  craz y: ifmy fir m is fo u nde dduringthe 2 001 reces sion, sur e ly
 or_rely on_special cases! Though known_as an_applied_micro theorist,_Baumol_also wrote a_canonical paper, with_Bradford, on optimal taxation:_essentially, if you_need_to raise $x in tax, how should you optimally deviate from marginal cost pricing?_The_history of_thought_is_nicely diagrammed, and of course_this 1970 paper was very_quickly followed_by the classic work of Diamond and Mirrlees._Baumol_wrote extensively on_environmental economics, drawing in many of his papers on_the role nonconvexities in the social_production possibilities frontier_play_when_they are generated by_externalities – a simple example of_this effect, and the limitations it_imposes on Pigouvian taxation, is in the_link. More recently, Baumol has been_writing on international trade with_Ralph Gomory_(the legendary mathematician behind a_critical theorem in_integer programming,_and later head_of the Sloan Foundation); their main_theorems are not_terribly shocking to those used to_thinking_in terms of_economies_of_scale, but_the core example_in_the linked_paper_is again a great example of_how_nonconvexities can overturn a lot of our_intuition, in the case_on_comparative advantage. Finally, beyond_his writing on the economics_of the arts, Baumol proved that_there is_no area_in which he personally had stagnant productivity: an art major in_college, he was also a fantastic_artist in his own_right, picking_up_computer-generated art while_in_his 80s_and teaching for many years a course_on woodworking_at Princeton!

Like this:

Business cycle fluctuations have_long run effects on_a_number of economic variables. For instance,_if you enter the labor force_during a recession, your wages_are_harmed_for many years afterward. Many_other economic parameters revert to trend,_leaving a past_recession just a blip on the horizon._Sara_Moreira, a job candidate from the_University_of Chicago, investigates in her job_market_paper_whether entrepreneurship changes induced by_recessions persist in the long run.

New_firm formation is procyclical: entrepreneurship fell roughly 20 percent_during the recent_recession. Looking back at the_universe_of_private firms since the late 1970s, Moreira shows that this_procyclicality is_common, and that_the firms that do form during recessions tend to be_smaller than those which form during booms._Incredibly, this size gap persists for at least a decade after_the firms are founded! At first glance, this_is crazy: if my firm is founded_during the 2001 recession,_surely