Blog Posts on development economics

What is PPP? by FOO Law and Economics on Oct 12, 2010It’s not purchasing power parity, a theory used to explain exchange rates.  But PPP was once called the BOT scheme.  So says the Philippine News Agency: MANILA, Sept. 13 (PNA) — President Benigno Aquino III has issued an executive order...

Why the Philippines is poor – a retake by FOO Law and Economics on Feb 22, 2010It’s been almost exactly a year since I posted on this subject.  That post was the most-hit in this blog, so it must be a “burning” issue out there.  But it’s time for some rethinking. The question is not why we are poor.  It is why a few...

The mystery of the Philippine economy – or why we are poor redux – or why blame (the rain in) Spain by FOO Law and Economics on Jan 26, 2010In a 2007 article, Robert H. Nelson, concludes that we are poor because the Americans were not good enough in eradicating our Spanish-based religion and culture.  In caricature, the story is: It’s all the fault of the Spanish friars and our ow...

Market power and contracts – the case of Philippine conglomerates by FOO Law and Economics on Oct 19, 2009Here’s another take on why the Philippines is a poor country.  This time by Prof. Fabella. In effect, the story is that we are poor because the rich have to strangle the rest of us in order not to become poor themselves.  Ironic? Posted in de...

The economics of (dog) riches – and how to explain poverty in a poor country by FOO Law and Economics on Sep 6, 2009A dog can be rich through plain luck.  This raises very uncomfortable questions:  Can we say the same about the poor?  That they are poor because of bad luck? I often think that Bob Thaves is a better economist than many who claim to be one.  But...

Food as a merit good by FOO Law and Economics on Aug 8, 2009If another consumes a good and this gives you happiness, this good is said to be one with “interdependent utility.”  Happiness comes not only to the one consuming the good but also to others who see or know that another also has that goo...

Economic performance – what do the experts say? by FOO Law and Economics on Jul 24, 2009In a major newspaper, three economic experts gave their reviews of the Philippine economy since 2001. Supposedly, this is to educate ourselves ahead of the annual ritual called SONA.   One said that the government did well in sending Filipinos to jo...

Bill Easterly is a libertarian! by FOO Law and Economics on Jul 10, 2009Bill Easterly used to work for the World Bank, not exactly a hotbed of libertarian thinking.  See his latest on the Pope, of all people.

Economics for the rest of us by FOO Law and Economics on Jun 28, 2009Is economics worth studying? I believe that it helps us understand the follies of a society. In a lecture, I did say that a good economist should be able to explain such things as tall fences in poor countries and no fences in rich, the attractivene...

The Philippine unemployment problem – the influence of law and culture by FOO Law and Economics on Jun 25, 2009It’s been some five years since Prof. Sicat wrote about reforming the labor market.  Yet, what he said then still makes the best sense. A main idea propounded by Sicat is that the labor laws protect the already employed but do little for the u...