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Entries by David Backus from 11/2012

Theory and Reality in Europe

| Posted 11.29.2012 | World

David Cameron suggested the European Union headquarters in Brussels "continues to exist as if in a parallel universe," in part because its idea of austerity is to increase the workweek from 37.5 hours to 40. How can we possibly make sense of all this?

A Good Theory

| Posted 11.29.2012 | Business

Let's step back for a minute and think about Europe when we strip away the clutter. An economic theorist might view Europe as an illustration of what economists call "risk-sharing": activities that spread or share risk across individuals so that everyone bears only a small amount.