by Summary:
Finanz und Wirtschaft, December 9, 2020. PDF. Economic policy is not about GDP growth. It’s about welfare. Externalities are key. Infection externalities don’t go away by calling for responsible behavior. Infection externalities can turn positive. Keeping worthy companies or networks alive does not require government intervention, unless capital markets don’t work. To judge the right amount of burden sharing is beyond economics. But economics gives some clues: In an ideal world, idiosyncratic risk exposure would be insured while in second best, taxes and subsidies achieve only part of that. The data show that trade-offs between public health and economic activity are less severe than sometimes argued.
Topics:
Dirk Niepelt considers the following as important: Burden sharing, Contributions, COVID-19, Economic policy, Externality, Fiscal policy, Monetary Policy
This could be interesting, too:
Finanz und Wirtschaft, December 9, 2020. PDF. Economic policy is not about GDP growth. It’s about welfare. Externalities are key. Infection externalities don’t go away by calling for responsible behavior. Infection externalities can turn positive. Keeping worthy companies or networks alive does not require government intervention, unless capital markets don’t work. To judge the right amount of burden sharing is beyond economics. But economics gives some clues: In an ideal world, idiosyncratic risk exposure would be insured while in second best, taxes and subsidies achieve only part of that. The data show that trade-offs between public health and economic activity are less severe than sometimes argued.
Topics:
Dirk Niepelt considers the following as important: Burden sharing, Contributions, COVID-19, Economic policy, Externality, Fiscal policy, Monetary Policy
This could be interesting, too:
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Finanz und Wirtschaft, December 9, 2020. PDF.
- Economic policy is not about GDP growth. It’s about welfare.
- Externalities are key. Infection externalities don’t go away by calling for responsible behavior. Infection externalities can turn positive.
- Keeping worthy companies or networks alive does not require government intervention, unless capital markets don’t work.
- To judge the right amount of burden sharing is beyond economics. But economics gives some clues: In an ideal world, idiosyncratic risk exposure would be insured while in second best, taxes and subsidies achieve only part of that. The data show that trade-offs between public health and economic activity are less severe than sometimes argued.