• ACSPRI has a Summer Program 2012 in Canberra, Australia, on statistics and research methods.
• Who Killed The Electric Car? (2006) explored the market failure of early hybrids and electric cars. Now there’s a sequel: Revenge of the Electric Car (NY Times video clip).
• The New Yorker‘s John Cassidy on the macroeconomist John Maynard Keynes.
• Vanity Fair‘s Michael Lewis on Californian local politics.
The New Yorker‘s James Surowiecki provides an overview of volatility in the global food market. Three insights emerge for me:
(1) Differences between policymakers and food security experts at the problem diagnosis stage may have complicated the implementation of structural adjustment programs. Food security poses solutions that are potentially counterintuitive to policymakers: the former will value food stocks to ensure stability in sovereign nation-state the international political economy whereas the latter may prioritise food flows for international trade, to hedge commodities and currency risks. Surowiecki explores a contemporary scenario of potential market failure due to demand-supply, pricing and other distortions with the allocation mechanisms.
(2) David Ricardo‘s theory of comparative advantage – in which each nation specialises in the efficient production of goods and services to trade with others for maximum payoff – may not be scalable in its simple form to a complex, interconnected and global system. Surowiecki’s analysis suggests tha the over-reliance on a few countries for specific foods will undermine the global system’s resilience and capacity to cope with exogenous shocks and volatility.
(3) Paramaters for investor and market models of the global food market using Vensim simulation software: production supply, demand volatility, pricing, subsidies/tariffs, stocks and flows, and leverage points. Undertake different short- and long-run simulations noting the role of capacities, dynamics and thresholds, and the impacts of exogenous shocks and volatility.