Thursday, April 26, 2012

toxic dixit

Avinash DixitPrinceton emeritus professor Avinash Dixit




When

designing

and

implementing

my

ideal

safety

net,

governments

will

thoughtfully

balance

needs

of

the

short

run

and

the

long

run.

Short

run

economic

and

political

imperatives

are

real

and

should

not

be

neglected,

but

they

often

lead

to

excessive

stimulus

spending,


preservation

of

firms

and

industries

that

should

be

wound

down,

and

so

on.