William Yu's Blog

Why Americans Won't Do Dirty Jobs

2011-11-11T12:37:00.003-06:00

An incredible report in Alabama for its immigration policy change.

Empire State of Mind

2011-09-12T14:48:00.000-05:00

9/11 Tribute.

Calculated Risk's Links

2011-08-12T15:49:00.002-05:00

Calculated Risk collects this wonderful links for economic data source.

Charting the American Debt Crisis

2011-08-01T12:18:00.004-05:00

From NYT.

Bullish US Economy

2011-06-08T16:17:00.001-05:00

The view from Robert Doll.

China's Rising Wages Propel U.S. Prices .

2011-05-09T19:37:00.003-05:00

From WSJ:

During China's 30 years of economic growth, hundreds of millions of factory and urban jobs soaked up surplus rural farm labor. In the past three or four years, he says, that extra labor has been exhausted.

Many analysts predict that China's vast labor force will begin declining in the next year or two, the result of family-planning policies. Others say there's already a shortage of the most active members of the factory floor, workers aged 15 to 34. That group has been steadily declining since 2007, according to Jun Ma, Deutsche Bank's chief economist for Greater China. A shrinking work force will need higher salaries to support an expanding population of elderly.

Plans for Slashing Corporate Taxes Worry Some Firms .

2011-05-09T19:13:00.005-05:00

From WSJ:

Under the current thinking, Treasury officials would propose lowering the U.S. corporate rate from the current 35%, among the world's highest, to the upper 20s.

To offset the lost revenue that would come with a major rate reduction, the plan would likely call for reducing or eliminating major business deductions, such as for accelerated depreciation.

But in addition, administration officials have been considering ideas that could result in different tax treatment and possibly higher taxes for some large businesses that are organized as small businesses, according to people familiar with the situation. In particular, small-business representatives worry that the administration will seek to force the largest of those businesses to pay corporate taxes in addition to what they pay now.

Taxing China's Assets

2011-04-26T00:40:00.002-05:00

Foreign Affairs has this interesting article for a policy dealing with China's currency manipulation.

WSU Homepage

2011-04-25T22:25:00.002-05:00

I like this homepage picture of Winona State University. It has a charming Midwest style: simple, pure, and vigorous.

For Undergraduate Business Education

2011-04-25T14:54:00.001-05:00

From Chronicle of Higher Education.
Employers want to hire 22-year-olds who can write coherently, think creatively, and analyze quantitative data.

Big U.S. Firms Shift Hiring Abroad

2011-04-19T10:26:00.002-05:00

Here.

President Obama’s Framework for $4 Trillion in Deficit Reduction

2011-04-13T21:54:00.001-05:00

Here.

Is the Market Overvalued?

2011-04-11T21:44:00.003-05:00

Famous and university Shiller vs unheard and Wall Street Bianco. Which one do you believe?

Jeff Miron on Healthcare

2011-04-11T18:25:00.001-05:00

I agree mostly with his proposals.

Employment to Population Ratio

2011-04-02T14:35:00.003-05:00

What a bad recession we had!

Immigration Bills Rile Farmers

2011-03-29T19:12:00.003-05:00

From WSJ. Baloney in the article: They argue that the legislation will drive Mexican workers out of their states, and that there aren't enough American workers willing to pick crops. I think the truth is that these farmers do not want to make less money by paying their fellow unemployed Americans a little bit more wage. So one common-sense solution to our nation's persistent high unemployment is continually cracking down illegal immigrants.

Medicare Records Reveal Troubling Trail of Surgeries .

2011-03-29T19:10:00.002-05:00

A case that helps explain why our health care cost is so high.

State Tax Revenue Snaps Back

2011-03-29T19:08:00.001-05:00

From WSJ.

Funny News and Stupid Robotraders

2011-03-26T17:54:00.001-05:00

Hathaway conquers sage and screen.

Unsustainable Budget Threatens U.S.

2011-03-24T18:32:00.003-05:00

Ten former CEA chairmen agree on this, which is not easy. I hope Congress and the president will do the same.
The document "the moment of truth" is here.

China's Debt Burden Limits Policy Leeway

2011-03-12T11:53:00.002-06:00

From WSJ.

Hispanics Surge in California .

2011-03-12T11:36:00.002-06:00

From WSJ.

State Pension Value

2011-03-11T21:52:00.002-06:00

State pension systems had an estimated funding ratio of 69% for fiscal year 2010, ending June 30, up from 65% for fiscal year 2009.

Beijing Will Use New Credit Gauge

2011-03-11T21:48:00.002-06:00

From WSJ.

Are America's Best Days Behind Us?

2011-03-11T18:48:00.001-06:00

By Fareed Zakaria from Time.

China is About to Slow Down

2011-03-09T18:15:00.002-06:00

Barry Eichengreen says that the a significant slowdown in China gorwth is imminent.

Jobless Rate and Labor Force Participation Rate

2011-03-09T00:26:00.002-06:00

WSJ article and an excellent interactive graph for the labor force participation rate.

The Challenges of Long Term Unemployment

2011-03-08T18:23:00.000-06:00

Econbrowser has a good summary for this issue.

Freeman on Labor Unions

2011-03-08T18:18:00.001-06:00

Harvard's Freeman talks about labor union in an interview.

Emerging Risks

2011-03-07T22:31:00.001-06:00

From WSJ.

States Fumble Revenue Forecasts .

2011-03-07T21:42:00.002-06:00

From WSJ.

The 25 Best Financial Blogs

2011-03-07T18:40:00.001-06:00

The list is from Time.

Happy Chinese New Year

2011-02-03T12:07:00.003-06:00

Happy Chinese New Year, 100 Anniversary of ROC.

Five Books that Shiller Recommends

2011-01-25T16:19:00.000-06:00

Here.

States Budget Outlook

2011-01-23T20:18:00.002-06:00

States Continue to Feel Recession’s Impact.

Local Revenues Climb as Economy Recovers.

US States' GDP Equivalents

2011-01-17T13:59:00.002-06:00

A very informative map.

Rogoff Forecasts Currency 2011

2011-01-03T20:01:00.001-06:00

Armageddon Can Wait by Ken Rogoff.

Mankiw Wrote to Obama

2011-01-02T11:33:00.002-06:00

The letter from Mankiw to Obama: How to Break Bread With the Republicans.
One interesting and important sentence:
"Take care of the ____ run and the ____ run will take care of itself."

Not Really Made in China

2010-12-23T14:18:00.001-06:00

From WSJ.

Visualizing Economics

2010-12-07T16:34:00.000-06:00

A cool website.

Global Wealth Factbook

2010-11-22T19:41:00.003-06:00

The 2010 global wealth factbook from Credit Suisse.

The summary (in USD):

Total wealth: 195 trillion
195 trillion = financial asset (117 trillion) + non-financial asset, mainly real estate (115 trillion) - household debt (37 trillion)
Top three wealth coutries: US (54.6 trillion), Japan (21 trillion), and China (16.5 trillion)
Top three household debt: US (13.9 trillion), Japan (4.3 trillion), and Germany (2 trillion)
Top three average wealth per adult: Switzerland (373K), Norway (327K), Austrilia (321K)... US (236K)

Stimulus and Debt Reduction

2010-11-20T23:41:00.002-06:00

My colleage sent me this amusing story explaining how the stimulus work for relieving debt:

IT is a slow day in a dusty little Irish town. The rain is beating down and the streets are deserted.
Times are tough, everybody is in debt, and everybody lives on credit.
On this particular day a rich tourist is driving through the town, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.

The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.

The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the pub.

The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.

The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything. However, the whole town is now out of debt and looking to the future with a lot more optimism.

And that, ladies and gentlemen, is how the stimulus package works.

China's Catch-Up on High-Speed Rail Technology

2010-11-18T12:42:00.005-06:00

An interesting and detailed article about how China learned the technology of high-speed rail from developed countries.

Daily Price Index from online Retailers

2010-11-17T21:01:00.002-06:00

The daily price indices covers various countires in the world from online retailers.

Quantitative Easing Explained

2010-11-16T12:13:00.002-06:00

A very funny video about the Fed and Quantitative Easing II.

Hamilton provides more accurate and serious answers to those bunnies' questions.

Is Obama A Keynesian?

2010-11-03T13:52:00.001-05:00

A very funny video.

Rogoff on Global Economy

2010-11-02T20:38:00.001-05:00

Beware of Wounded Lions.

Google Uses Transfer Pricing

2010-10-31T19:34:00.001-05:00

Google 2.4% Tax Rate Shows How $60 Billion Lost to Tax Loopholes.

The Economics of Early Childhood Education

2010-10-31T13:11:00.005-05:00

On Friday, my colleague, my students, and I attended the Minnesota Economic Association Annual Conference at St. Paul. One speaker, Art Rolnick, who is the co-director of the Human Capital Research Collaborative at University of Minnesota, made an excellent speech on economics of early childhood education. Here I found two related works by Art:

Early Childhood Development: Economic Development with a High Public Return
Early Childhood Development on a Large Scale

Remind me of this beautiful song: The greatest love of all by Whitney Houston.

The History of Chinese Stock Market

2010-10-25T20:44:00.001-05:00

Here.

Clarida on Monetary Policy

2010-10-24T13:52:00.001-05:00

What Has – and Has Not - Been Learned about Monetary Policy in a Low Inflation Environment? A Review of the 2000s by Richard Clarida.

Interview with Mundell on Currency Choas

2010-10-24T12:05:00.001-05:00

Currency Chaos: Where Do We Go From Here?

Romer on Deficit

2010-10-24T11:58:00.000-05:00

Now Isn’t the Time to Cut the Deficit by Christina Romer.

Fed Chief Gets Set to Apply Lessons of Japan's History

2010-10-15T00:04:00.000-05:00

Here.

Who Caused the Currency Wars?

2010-10-14T21:33:00.000-05:00

By Simon Joghson.

Mankiw on Tax

2010-10-11T13:27:00.001-05:00

I Can Afford Higher Taxes. But They’ll Make Me Work Less.

Two Cheers for the New Bank Capital Standards

2010-09-30T21:07:00.001-05:00

From Alan Blinder.

Becker on China

2010-09-29T16:07:00.000-05:00

China's Next Leap Forward.

The Most Profitable Bank: Fed

2010-09-29T16:06:00.000-05:00

here.

Implications of the Financial Crisis for Economics

2010-09-26T18:02:00.002-05:00

Ben Bernake had a pretty good summary and reflection.

The U.S.-China Exchange Rate Squeeze

2010-09-19T15:09:00.001-05:00

Here.

U.S. Adopts Tougher Stance on China

2010-09-16T10:38:00.000-05:00

Here.

Steelworkers Accuse China of Violating Trade Rules

2010-09-09T09:42:00.002-05:00

China’s Subsidies for Clean Energy Are Illegal from NYT.
You cannot find a better example than this for teaching international economics.

Divergence of Dow Jones 30 Companies

2010-09-08T14:35:00.002-05:00

Divided by a Two-Track Economy from WSJ.

Mankiw's Advise to Students

2010-09-04T18:06:00.000-05:00

Here.

Reich on Labor Day

2010-09-04T18:05:00.000-05:00

The real lesson of labor day from Robert Reich.

Currency Trading Soars

2010-09-02T13:43:00.002-05:00

From WSJ.

Christina Romer's Farewell Speech

2010-09-02T10:12:00.002-05:00

Not My Father’s Recession: The Extraordinary Challenges and Policy Responses of the First Twenty Months of the Obama Administration By Christina Romer, CEA Chairman.

Rogoff on American Ecomomy After the Financial Crisis

2010-09-02T09:34:00.001-05:00

Why America Isn’t Working?

Joint Venture and Intellectual Property

2010-08-31T09:27:00.001-05:00

In China, Western Firms Keep Secrets Close from WSJ.

Robert vs Robert

2010-08-30T23:02:00.002-05:00

Robert Barro vs Robert Reich on unemployment.

Where Do State and Local Governments Get Their Tax Revenue?

2010-08-30T22:09:00.000-05:00

Where Do State and Local Governments Get Their Tax Revenue?

Glass City

2010-08-30T16:53:00.001-05:00

In Toledo, the 'Glass City,' New Label: Made in China from WSJ.

Gross National Happiness Growth

2010-08-26T20:57:00.001-05:00

An interesting example from Bhutan.

Double Dipping

2010-08-24T22:36:00.002-05:00

An interesting song from the Songs of Merle Hazard.

The Case Against Corporate Social Responsibility

2010-08-23T14:34:00.001-05:00

I think the case the auhtor made is very wrong.

Prepare to Be Surprised in China

2010-08-23T14:32:00.000-05:00

From WSJ.

Southeast Asia Tries to Link Up to Compete

2010-08-23T13:18:00.001-05:00

Here from WSJ.

Disagreement on Housing Bubble

2010-08-18T22:51:00.000-05:00

Reasonable People Did Disagree: Optimism and Pessimism About the U.S. Housing Market Before the Crash.

Deje Vu on Banks

2010-08-17T12:55:00.001-05:00

In China, it happends again.

Deje Vu on the Housong Market

2010-07-28T12:32:00.002-05:00

Hamilton on China's housing market based on this research.

Economic Reform Doesn’t Produce Democracy

2010-07-27T20:49:00.001-05:00

Note to China: Economic Reform Doesn’t Produce Democracy from IMF working paper.
In summary: Democracy has a positive and significant impact on the adoption of economic reforms but there is no evidence that economic reforms foster democracy.

Change in the US Employment Dynamics

2010-07-06T10:17:00.002-05:00

The article provides one explanantion of US jobless recovery from Econbrowser.

Inside the iPhone

2010-07-06T10:13:00.002-05:00

An insightful analysis of supply chain of iPhone.

The Arrogance of Chinese Power

2010-06-29T14:19:00.000-05:00

Here.

Sustainable Capitalism

2010-06-24T11:03:00.003-05:00

Toward Sustainable Capitalism by Al Gore and David Blood at WSJ.

What is q?

2010-06-16T14:12:00.001-05:00

q and FAQs from Smithers & Co.
US CAPE and q chart.

Blinder on Economic Rescue

2010-06-16T13:12:00.002-05:00

Government to the Economic Rescue, a good article by Alan Blinder from WSJ.

What Do China’s Workers Want?

2010-06-14T19:51:00.000-05:00

From NYT.

Chinese Workers Win Wave of Raises

2010-06-09T11:09:00.002-05:00

This is a good result for Chinese workers.

Mankiw Does Not Like a Soda Tax

2010-06-08T17:42:00.003-05:00

Can a Soda Tax Save Us From Ourselves by Greg Mankiw from NYT.

I think that Mankiw is very wrong on this issue. He said the following as an undesirable path after imposing soda tax: "... Taxing soda may encourage better nutrition and benefit our future selves. But so could taxing candy, ice cream and fried foods. Subsidizing broccoli, gym memberships and dental floss comes next. Taxing mindless television shows and subsidizing serious literature cannot be far behind..." These are exactly the policies I think we should do.

Homeownership is Overrated

2010-06-08T10:32:00.002-05:00

This is a very interesting point of view by Richard Florida from WSJ.

Risk vs Uncertainty

2010-06-03T15:22:00.002-05:00

About Knightian uncertainty.
Rogoff on uncertainty and regulation from the lesson of BP oil's spill.

Fair's Model on Yuan

2010-06-02T11:00:00.003-05:00

The Yin and Yang of Yuan appreication by Ray Fair from WSJ.
Hmm, I disagree with Prof. Fair. I think there is something wrong with his model.

Hon Hai

2010-05-28T10:06:00.001-05:00

Suicides spark inquiries from WSJ.

Chinese Economy Treads Risky Path (Ask Japan)

2010-05-26T11:54:00.000-05:00

Here from NYT.

Kocherlakota on Modern Macro Models

2010-05-16T16:07:00.001-05:00

Modern Macroeconomic Models as Tools for Economic Policy

The Economics of Happiness

2010-05-09T15:24:00.002-05:00

Fed Chairman Ben Bernanke talks about the economics of happiness, which I think is an excellent speech.

China Slaps Tariffs

2010-04-29T14:55:00.002-05:00

In April 2010, China slaps import tariffs on steel, chemical product, and chicken.

William Yu's Blog

Why Americans Won't Do Dirty Jobs

Empire State of Mind

Calculated Risk's Links

Charting the American Debt Crisis

Bullish US Economy

China's Rising Wages Propel U.S. Prices .

Plans for Slashing Corporate Taxes Worry Some Firms .

Taxing China's Assets

WSU Homepage

For Undergraduate Business Education

Big U.S. Firms Shift Hiring Abroad

President Obama’s Framework for $4 Trillion in Deficit Reduction

Is the Market Overvalued?

Jeff Miron on Healthcare

Employment to Population Ratio

Immigration Bills Rile Farmers

Medicare Records Reveal Troubling Trail of Surgeries .

State Tax Revenue Snaps Back

Funny News and Stupid Robotraders

Unsustainable Budget Threatens U.S.

China's Debt Burden Limits Policy Leeway

Hispanics Surge in California .

State Pension Value

Beijing Will Use New Credit Gauge

Are America's Best Days Behind Us?

China is About to Slow Down

Jobless Rate and Labor Force Participation Rate

The Challenges of Long Term Unemployment

Freeman on Labor Unions

Emerging Risks

States Fumble Revenue Forecasts .

The 25 Best Financial Blogs

Top 20 Articles in American Economic Review

Happy Chinese New Year

Five Books that Shiller Recommends

States Budget Outlook

US States' GDP Equivalents

Rogoff Forecasts Currency 2011

Mankiw Wrote to Obama

Not Really Made in China

Visualizing Economics

Global Wealth Factbook

Stimulus and Debt Reduction

China's Catch-Up on High-Speed Rail Technology

Daily Price Index from online Retailers

Quantitative Easing Explained

Is Obama A Keynesian?

Rogoff on Global Economy

Google Uses Transfer Pricing

The Economics of Early Childhood Education

The History of Chinese Stock Market

Clarida on Monetary Policy

Interview with Mundell on Currency Choas

Romer on Deficit

Fed Chief Gets Set to Apply Lessons of Japan's History

Who Caused the Currency Wars?

Mankiw on Tax

Two Cheers for the New Bank Capital Standards

Becker on China

The Most Profitable Bank: Fed

Implications of the Financial Crisis for Economics

The U.S.-China Exchange Rate Squeeze

U.S. Adopts Tougher Stance on China

Steelworkers Accuse China of Violating Trade Rules

Divergence of Dow Jones 30 Companies

Mankiw's Advise to Students

Reich on Labor Day

Currency Trading Soars

Christina Romer's Farewell Speech

Rogoff on American Ecomomy After the Financial Crisis

Joint Venture and Intellectual Property

Robert vs Robert

Where Do State and Local Governments Get Their Tax Revenue?

Glass City

Gross National Happiness Growth

Double Dipping

The Case Against Corporate Social Responsibility

Prepare to Be Surprised in China

Southeast Asia Tries to Link Up to Compete