15/09/2010

Sample Selection Bias for Laypeople

Now, economists hear this sort of argument all the time. "That's ridiculous! I would never start working fewer hours because my taxes went up!" This ignores the fact that you may not be the marginal case. The marginal case may be some consultant who just can't justify sacrificing valuable leisure for a new project when he's only making 60 cents on the dollar. The result will nonetheless be the same: less economic activity.

No comments:

Post a Comment

Comments at posts older than 14 days will only be published after preapproval.