Did the Ratchet Effect Apply to Post-War Government Spending in Australia?

The ratchet theory suggests that government spending tends to ratchet up in times of crisis (wars, social upheavals, recessions) and then to remain at the new higher level. It has been put forward as an alternative to Wagner’s law (discussed in an earlier post).

In terms of the ratchet mechanism, the explanation for upward . . . → Read More: Did the Ratchet Effect Apply to Post-War Government Spending in Australia?

Correlation, Causality and Common sense

WSJ looks at an updated metric of ‘low risk housing markets’.

Yeah, yeah, there we are… just as we have been for years at this point.  What makes this year’s iteration noteworthy is the WSJ’s summary for why Pittsburgh’s ranking is so low. Verbatim from the WSJ:  “Pittsburgh, where the natural gas industry is . . . → Read More: Correlation, Causality and Common sense

Economic Events on November 18, 2010

At 8:30 AM EST, the U.S. government will release its weekly Jobless Claims report.  The consensus is that there were 445,000 new jobless claims last week, which would would be 10,000 more than the number released last week, which was unexpectedly low.

At 10:00 AM EST, the Leading Indicators report for October will be . . . → Read More: Economic Events on November 18, 2010