Sebastian Galiani on the Marginal Revolution (opens in new tab)

The most successful economics blog in the world is called Marginal Revolution. That is not an accident…. Consider a few common mistakes that reappear whenever marginal thinking is abandoned: Treating the owner’s biography—wealth, identity, status—as if it entered the firm’s marginal conditions. It does not. Confusing redistribution with allocation. Redistribution is a legitimate political choice, but […]