Monday, October 7, 2013

Some stuff for tomorrow's class session

On wage setting as an application of ideas from the insurance model

Canonical question:  Do wages attach to the job (pooling equilibrium) or the individual (separating equilibrium)?

One story for pooling equilibrium - Akerlof's model of partial gift exchange.

The link is to a fascinating book review on how these issues play out with regard to rewarding K-12 Teachers, contrasting the Diane Ravitch view with the Michelle Rhee view.  

Apropos student blog posts:

In all affairs it's a healthy thing now and then to hang a question mark on the things you have long taken for granted.
Bertrand Russell (1872 - 1970)

PowerPoint on IlliniBucks and Transfer Pricing

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