Comments on: A Few Questions for Roger Farmer http://blog.oup.com/2010/04/roger-farmer/ Academic insights for the thinking world. Sun, 19 May 2013 05:35:14 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Roger Farmer http://blog.oup.com/2010/04/roger-farmer/#comment-162582 Roger Farmer Sun, 30 May 2010 15:03:34 +0000 http://blog.oup.com/?p=8167#comment-162582 @David Chester: I agree with you about the importance of land values. Both housing wealth (two fifths) and stock market wealth (three fifths) contains an important component that reflects land prices. In my book Expectations Employment and Prices I write down a formal model where the ONLY asset is non reproducible and can be thought of as land. I also agree completely that the economy is not quite as simple as the naive Keynesians believe. @David Chester: I agree with you about the importance of land values. Both housing wealth (two fifths) and stock market wealth (three fifths) contains an important component that reflects land prices. In my book Expectations Employment and Prices I write down a formal model where the ONLY asset is non reproducible and can be thought of as land. I also agree completely that the economy is not quite as simple as the naive Keynesians believe.

]]> By: Goldman v. reform « Outpost19 http://blog.oup.com/2010/04/roger-farmer/#comment-161205 Goldman v. reform « Outpost19 Wed, 19 May 2010 19:03:15 +0000 http://blog.oup.com/?p=8167#comment-161205 [...] of provocative ideas, cutting some new ground and ruffling feathers. Oxford Press hosts a recent interview. Released last month. [...] [...] of provocative ideas, cutting some new ground and ruffling feathers. Oxford Press hosts a recent interview. Released last month. [...]

]]> By: David Chester http://blog.oup.com/2010/04/roger-farmer/#comment-157610 David Chester Sun, 02 May 2010 15:47:14 +0000 http://blog.oup.com/?p=8167#comment-157610 Roger Farmer: "Stock market wealth accounts for roughly three-fifths of all tangible wealth in the United States. The other two-fifths is in houses. In the fall of 2008, people lost confidence in the value of both those assets at the same time. They stopped spending, firms laid off workers and the drop in wealth was self-fulfilling." Sorry not to be able to agree with this. The additional wealth is in land values. The way that this grew and the bubble like collapse of land prices was also the cause of the economic crisis. So that in fact the way our macroeconomics system ACTUALLY works is not quite as simple as Keynes and most of the others say. They should also have included the effect of land value speculation (which unlike capital investment in company stocks, does not fall when the average dividend rate goes down, in fact land value rise here). When this included,see the 18 year busness cycle really works as was first proposed by Henry George in 1879 "Progress and Poverty" which sold more than 3 million copies. Roger Farmer: “Stock market wealth accounts for roughly three-fifths of all tangible wealth in the United States. The other two-fifths is in houses. In the fall of 2008, people lost confidence in the value of both those assets at the same time. They stopped spending, firms laid off workers and the drop in wealth was self-fulfilling.”

Sorry not to be able to agree with this. The additional wealth is in land values. The way that this grew and the bubble like collapse of land prices was also the cause of the economic crisis.

So that in fact the way our macroeconomics system ACTUALLY works is not quite as simple as Keynes and most of the others say. They should also have included the effect of land value speculation (which unlike capital investment in company stocks, does not fall when the average dividend rate goes down, in fact land value rise here). When this included,see the 18 year busness cycle really works as was first proposed by Henry George in 1879 “Progress and Poverty” which sold more than 3 million copies.

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