Maybe the title of this post should be 'I want to live a long life'. Don't worry, I wont spin you an economic tale about the benefits to passing the century mark, but how long we are going to live will affect the choices we make today; consume today or save for tomorrow. But all financial planning aside (even though it is RRSP season ), eating your greens (ho ho Green Giant) could make you more productive and maybe even happier.
After searching the web, here is the best life expectancy calculator I could find. It is not perfect, but it will give you feedback on how to improve your chances. Here is an example: "Increasing your exercise regimen to 4 days a week could add a year and a half, to 5 days a week could add 3 years, to 6 or 7 days a week could add 5 years to your life expectancy".
So, take it for what it is worth - an American doctor's website. Enough said.
Feel free to share your results, impressions or objections.
I got 84 years and Tasya 86 - Gee I hope we can do better than that ... has anyone seen my track pants? Those are back in style, right?
Tuesday, February 6, 2007
Saturday, February 3, 2007
Music and Me: Currently spinning
Looking at another person's music collection is like going through their closet: the good, bad and the 80s. Here are a few items in my rotation.
Current buzz: on the top left of this page are three music links. Each one is unique and special. City and Colour provides clarity. There is just something about Dallas Green dat I like. You might know their hit "Save your Scissors".
Link #2: Joel Plaskett : locally grown and certified organic. Last summer Joel and the band put on an outdoor show in downtown Halifax. It was me, the big clock tower, and a few thousand people - a great time.
My newest favorite: The Reverb Syndicate's homepage provides everything: solid music, mystery and a great video . Personally, I can't stop watching it. No, really. I have made Tasya watch it 23 time this morning. If that was not enough, one of the band members is an economist. Great eh?
So tell me: what is in your closet? Give me the goods, all the dark secrets. Well the 80s was not that bad, we will always have Paul Revere , right guys?
Current buzz: on the top left of this page are three music links. Each one is unique and special. City and Colour provides clarity. There is just something about Dallas Green dat I like. You might know their hit "Save your Scissors".
Link #2: Joel Plaskett : locally grown and certified organic. Last summer Joel and the band put on an outdoor show in downtown Halifax. It was me, the big clock tower, and a few thousand people - a great time.
My newest favorite: The Reverb Syndicate's homepage provides everything: solid music, mystery and a great video . Personally, I can't stop watching it. No, really. I have made Tasya watch it 23 time this morning. If that was not enough, one of the band members is an economist. Great eh?
So tell me: what is in your closet? Give me the goods, all the dark secrets. Well the 80s was not that bad, we will always have Paul Revere , right guys?
Friday, February 2, 2007
Dylan v.s. Clapton: A classic example of opportunity cost
At the heart of economics is a behavioural science. From the choices of the individual to the aggregate (everyone and their dog), economists focus on relationship between economic variables in complex abstractions called models. If you want to know something about economics, here is a classic lesson on opportunity cost - an important concept in microeconomics.
"Opportunity cost" represents the next-best value you gave up by making a choice.
The test question you always wanted:
You won a free ticket to see an Eric Clapton concert (which has no resale value and zero value to you). Bob Dylan is performing on the same night and is your next-best alternative activity. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan (because he is so cool!). Assume there are no other costs of seeing either performer.
Summary: the cost and benefit of seeing Clapton is zero, while the cost of seeing Dylan is $40 but - because he rocks you world - he is worth $50 to see preform.
Based on this information, what is the opportunity cost of seeing Eric Clapton?
A. $0
B. $10
C. $40
D. $50
Think about it; harder; harder still ...
Here is the answer:
When you go to the Clapton concert, you forgo the $50 in benefits (represented by your willingness to pay) you would have received from going to the Dylan concert. You also forgo the $40 (the costs) you would have pay to go the Dylan concert. In other words, an avoided benefit is a cost, and an avoided cost is a benefit. Thus, the opportunity cost of seeing Clapton, the value you forgo by not going to the Dylan concert, is $10 – i.e., the net benefit forgone.
Fun eh? Now tell me, what is the benefit of having an extra pint on Friday night compared to the Northend Diner breakfast on Saturday morning? To drink or eat, that is the question. Ok, well we know that most people don't need to calculate the opportunity cost of beer v.s. bacon, and that is the point: Opportunity costs concept helps us describes a behaviours we do each day, just people being people. Doing people things; like choosing between beer and, ahhhh bacon.
Opportunity cost: yours to use, talk about, and even to impress people at on the street.
"Opportunity cost" represents the next-best value you gave up by making a choice.
The test question you always wanted:
You won a free ticket to see an Eric Clapton concert (which has no resale value and zero value to you). Bob Dylan is performing on the same night and is your next-best alternative activity. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan (because he is so cool!). Assume there are no other costs of seeing either performer.
Summary: the cost and benefit of seeing Clapton is zero, while the cost of seeing Dylan is $40 but - because he rocks you world - he is worth $50 to see preform.
Based on this information, what is the opportunity cost of seeing Eric Clapton?
A. $0
B. $10
C. $40
D. $50
Think about it; harder; harder still ...
Here is the answer:
When you go to the Clapton concert, you forgo the $50 in benefits (represented by your willingness to pay) you would have received from going to the Dylan concert. You also forgo the $40 (the costs) you would have pay to go the Dylan concert. In other words, an avoided benefit is a cost, and an avoided cost is a benefit. Thus, the opportunity cost of seeing Clapton, the value you forgo by not going to the Dylan concert, is $10 – i.e., the net benefit forgone.
Fun eh? Now tell me, what is the benefit of having an extra pint on Friday night compared to the Northend Diner breakfast on Saturday morning? To drink or eat, that is the question. Ok, well we know that most people don't need to calculate the opportunity cost of beer v.s. bacon, and that is the point: Opportunity costs concept helps us describes a behaviours we do each day, just people being people. Doing people things; like choosing between beer and, ahhhh bacon.
Opportunity cost: yours to use, talk about, and even to impress people at on the street.
Monday, January 29, 2007
Is it getting hot in here, or is it just me?
A poll by TNS Canadian Facts reports that "two-thirds of respondents, or 68 per cent, said they were more concerned now than a year ago [about climate change], while 77 per cent said they were more worried about environmental issues than they were in 2004." In the same week, the Globe and Mail stated that the environment is the most important matter facing our country. Well, count me in; I'm more concerned; I think this is the most important issue. But I need some more answers ...
Dear Reader, I have two questions for you: What is your willingness to pay? And how much has this latest push to save this planet been driven this mild winter?
On the first question: Why don't these polls ask Canadians if they are willing to pay higher taxes, cut funding to other areas, or see a budget deficit to put an AAA Canadian Beef kind of plan in action? It is a good thing to demand a government to be more productive (we all try to do more with less), but is that enough? I am not sure I have an answer, but someone told me that Halifax is going to be underwater if something does not change fast. And, that - to be honest - scares me (whether it is true or not). So I think: more meat is needed.
Tell me: What happens if energy prices fall back to $30US per barrel WTI, Maritimers return home, everyone buys back their SUVs to drive in the snow when we get a "normal winter"? Will people stop caring about climate change as much? (and by 'people' I mean the 78% that cared more now than they did in 2004). Maybe there is no answer for this question and maybe I should not be asking it, but, do you think that if abnormal weather patterns pushed this issue into the open, then will a return of more 'normal conditions' would bring it back down?
If you want an economic solution to climate change, read this: Greg Mankiw's Pigou Club Manifesto . (A great idea that I will promote)
Love it or hate it. Let me know.
Dear Reader, I have two questions for you: What is your willingness to pay? And how much has this latest push to save this planet been driven this mild winter?
On the first question: Why don't these polls ask Canadians if they are willing to pay higher taxes, cut funding to other areas, or see a budget deficit to put an AAA Canadian Beef kind of plan in action? It is a good thing to demand a government to be more productive (we all try to do more with less), but is that enough? I am not sure I have an answer, but someone told me that Halifax is going to be underwater if something does not change fast. And, that - to be honest - scares me (whether it is true or not). So I think: more meat is needed.
Tell me: What happens if energy prices fall back to $30US per barrel WTI, Maritimers return home, everyone buys back their SUVs to drive in the snow when we get a "normal winter"? Will people stop caring about climate change as much? (and by 'people' I mean the 78% that cared more now than they did in 2004). Maybe there is no answer for this question and maybe I should not be asking it, but, do you think that if abnormal weather patterns pushed this issue into the open, then will a return of more 'normal conditions' would bring it back down?
If you want an economic solution to climate change, read this: Greg Mankiw's Pigou Club Manifesto . (A great idea that I will promote)
Love it or hate it. Let me know.
Sunday, January 28, 2007
Teaching: people love crazy, right?
I had no idea that being the professor (or should I say "sessional instructor") could be so much fun. (1.) When you are in front of the class, everyone seems interested in what you have to say (never happened before). (2.) 'chalk and talk': getting more chalk on you than on the board. (3.) It is the only time I have heard a Bluenoser say: 'sorry for being late, sir'. (4.) I can now wake-up people on command: "On the test ...". (5.) Most importantly, I am being the most me I can be!
Let me focus on #5: Ya see, most of da time, talkin' 'bout economics, well ... gets me some blank looks and I feel the need to makeitquick (or I get the "please stop doing this again" look from Tasya). But in the classroom, it is all economics all the time! And, well, I love it; and everyone knows it; and I don't have to hide it anymore; at least in the classroom when it is my turn to teach.
This leads me to #6!
(6.) I am addicted to the smile that says: are you for real? (aka. do you love this stuff that much?) I know you are as surprised as I am that this happens.
I have seen this look a number of times already. It is like no other like it. And, for some reason, it most frequently occurs when I make joke, then pause, smile, then continue - no laughter, just the half baked smile that says: I am not smiling at what you said, I am just blown away at the fact that you said it. Don't get me wrong, this is a good thing. Being me is great - even if people think I am crazy. Because: crazy is loved. People love crazy people. That is, just as long as you are credible too.
So after a few class, I know my mission: be crazy and credible.
So, you try it. Be the most you, that you can be. Practice on your pet or your (our someone else's )children. Or rant to your plants (if they grow faster - you win!). Really.
Let me focus on #5: Ya see, most of da time, talkin' 'bout economics, well ... gets me some blank looks and I feel the need to makeitquick (or I get the "please stop doing this again" look from Tasya). But in the classroom, it is all economics all the time! And, well, I love it; and everyone knows it; and I don't have to hide it anymore; at least in the classroom when it is my turn to teach.
This leads me to #6!
(6.) I am addicted to the smile that says: are you for real? (aka. do you love this stuff that much?) I know you are as surprised as I am that this happens.
I have seen this look a number of times already. It is like no other like it. And, for some reason, it most frequently occurs when I make joke, then pause, smile, then continue - no laughter, just the half baked smile that says: I am not smiling at what you said, I am just blown away at the fact that you said it. Don't get me wrong, this is a good thing. Being me is great - even if people think I am crazy. Because: crazy is loved. People love crazy people. That is, just as long as you are credible too.
So after a few class, I know my mission: be crazy and credible.
So, you try it. Be the most you, that you can be. Practice on your pet or your (our someone else's )children. Or rant to your plants (if they grow faster - you win!). Really.
My hands are where you can see them, and I am not going bald!
O'sure everyone loves the commercial that sings "hands in your pocket, hands in your pocket". Well, not me: I hate it.
As you probably know, each version of this commercial features scene after scene of a '50+-white male-suit wearing-balding-banker' who cannot remove their hands from peoples back pockets. I get it: all banks can be represented by image of a '50+-white male-suit wearing-balding-banker' and we should all see them as evil – they will steal from the rich, poor, young and old, and even your children if they can because they have no soul. Many of my friends and family have told me that they find this commercial so funny - I guess they must have seen the look on my face before they made the link: this will be you someday - ha ha ha. Not funny (me, a.k.a a central banker, and therefore a soon to be '50+-white-male-suit wearing-balding-banker' – too close to home).
Please consider this my formal request for this commercial to be taken off the air and destroyed because it promotes anger towards bankers. Furthermore, because it suggests that if we see a ‘50+-suit wearing-balding-white male’ that he will most likely try to put his hands in your pockets to steal your money. If we don't stop playing this commercial young children will someday be throwing stones at me.
Also, please consider this more formal request to never go bald.
Post-script: For a funnier take on this commercial: Come back to Halifax Rick, we miss you.
As you probably know, each version of this commercial features scene after scene of a '50+-white male-suit wearing-balding-banker' who cannot remove their hands from peoples back pockets. I get it: all banks can be represented by image of a '50+-white male-suit wearing-balding-banker' and we should all see them as evil – they will steal from the rich, poor, young and old, and even your children if they can because they have no soul. Many of my friends and family have told me that they find this commercial so funny - I guess they must have seen the look on my face before they made the link: this will be you someday - ha ha ha. Not funny (me, a.k.a a central banker, and therefore a soon to be '50+-white-male-suit wearing-balding-banker' – too close to home).
Please consider this my formal request for this commercial to be taken off the air and destroyed because it promotes anger towards bankers. Furthermore, because it suggests that if we see a ‘50+-suit wearing-balding-white male’ that he will most likely try to put his hands in your pockets to steal your money. If we don't stop playing this commercial young children will someday be throwing stones at me.
Also, please consider this more formal request to never go bald.
Post-script: For a funnier take on this commercial: Come back to Halifax Rick, we miss you.
Friday, January 5, 2007
The Dollar Store, consumer surplus and economic joy
Does anyone else love the dollar store? Have you ever gone to one of those "Dollar Stores" and felt really good when you bought something for a dollar that you would of paid much more for?
Where does this economic joy come from? The answer is rooted in your 'willingness to pay'. When we buy something, we rarely ask ourselves (except when we are on ebay) what are we willing to pay for this item. For economists, a person's willingness to pay will determine if we purchase a item (everything from milk to haircut) and how we feel about the purchase price. In other words, if you had to buy a bottle of water at auction on a hot day, how much would you pay? The maximum amount you are willing to bid at auction is your 'willingness to pay'. Think of a really big sale ... need some help? Ok, consider the feeling when you buy a $2 pint of Alexander Keith's at happy hour - something I usually pay $4 for on Friday night. What is wonderful about a sale is that we purchase a good below the price we normal pay. And yes, the 'willingness to pay' price maybe different for every person. In economics, we frame this type of idea as consumer surplus.
This feeling, the one I get when I pay less for something that I was willing to pay, is felt each time I make a trip to the dollar store.
Where does this economic joy come from? The answer is rooted in your 'willingness to pay'. When we buy something, we rarely ask ourselves (except when we are on ebay) what are we willing to pay for this item. For economists, a person's willingness to pay will determine if we purchase a item (everything from milk to haircut) and how we feel about the purchase price. In other words, if you had to buy a bottle of water at auction on a hot day, how much would you pay? The maximum amount you are willing to bid at auction is your 'willingness to pay'. Think of a really big sale ... need some help? Ok, consider the feeling when you buy a $2 pint of Alexander Keith's at happy hour - something I usually pay $4 for on Friday night. What is wonderful about a sale is that we purchase a good below the price we normal pay. And yes, the 'willingness to pay' price maybe different for every person. In economics, we frame this type of idea as consumer surplus.
This feeling, the one I get when I pay less for something that I was willing to pay, is felt each time I make a trip to the dollar store.
Subscribe to:
Comments (Atom)