The Massachusetts Health Experiment

As seen by Jim Capretta.

Declining Admission Rates at Top Colleges

Click on graphic to enlarge. Source.

This is part of a longer-term trend.  Here are the admission rates from about 10 years before this graph begins:

Harvard: 12 %
Princeton: 14 %
Yale: 20 %
MIT: 27 %
Stanford: 19 %

Speculation about Larry

The media is abuzz with stories that Larry Summers is unhappy and may be leaving the Obama administration: click here, here, here, and here.

I have no idea if any of this speculation is true.  (The only way I would know is if Larry said something to me about it, and then I wouldn't be talking about it on my blog.  But he hasn't, so I can.)  What I do know is that it would be unfortunate for the country if Larry left.  I am obviously not privy to internal discussions at the White House, but I bet that, more often than not, Larry is pushing policy in a more moderate and more sensible direction.

On the other hand, a loss for the nation could be a gain for ec 10 students.  Before he left for the White House, Larry was a regular and popular guest lecturer.  We would be delighted to have him back.

Is "Unpaid" Below the Minimum Wage?

Here is a good article for class discussion.  Apparently, some government regulators think unpaid internships might violate minimum-wage laws.  (FYI, the internship as the Council of Economic Advisers is unpaid!)

Keynes: Economics as Impressionism

A correspondent alerts me to this fascinating quotation from the esteemed economist John Hicks:

"Of all great economists, Mr. Keynes is probably the most Impressionist; the General Theory, in particular, needs to be read at a distance, not worrying too much about detail, but looking principally at the general effect. At least, that is how I have read it myself, and it seems that as a result I retain a higher opinion of it than Professor Robertson does. His own criticisms sometimes remind one of a man examining a Seurat with a microscope and denouncing the ugly shape of the individual dots. It is very probable that the Impressionist method is not particularly appropriate to the higher economics (though it may be suitable enough for more popular writing); however, it is Mr.Keynes' method, and in his hands it has some countervailing virtues."

"The Monetary Theory of D.H. Robertson", 1942, Economica.

Barro on the Great Depression

My Harvard colleague Robert Barro opines, with a reading list.

An Auction

Today is the day Harvard announces admission decisions to the college.  Moreover, as you may know, Harvard has been struggling with a sizable budget shortfall.  The budget problem, however, has now been solved.  Harvard has decided to auction off 100 slots in next year's freshman class to the highest bidders.  If you are interested in entering a bid or learning more about the program, click here.  Bids are due by the end of the day.