Average, illustrated

(Global) negative externalities, illustrated

US income inequality, pre- and post-taxes

See here and here. Apparently the top (richest) quintile pays for most of federal taxes net of transfers.

Insightful graph of the day

Data shows that average growth in the last 4 years (2010-2013) has been the highest since 1979 or more than 3 decade ago! (Done while rushing Sec Arsi's keynote presentation.)

Source: PSA

Efficiency, illustrated

Dr Gruber, lies, and the policy process

A thought-provoking piece about the necessity of lying in policymaking:

http://keithhennessey.com/2014/11/10/honesty-about-lying/

Quotes:

When you strip away all the complexity, economic policy is ultimately an expression of elected officials making difficult value choices. If over time these officials make value choices that do not reflect the values of the people whom they represent, they can, should, and will be replaced. 

When these same elected officials, and those who advise them, deliberately construct policies to hide value choices that would be unpopular were they transparent and explicit, we end up with two terrible outcomes. We get policies that do not reflect our values, and we re-elect representatives who are lying to us.

Coase theorem, illustrated

Bayes' rule, illustrated

The animated GIF is quite fun to watch.
http://simplystatistics.org/2014/10/17/bayes-rule-in-a-gif/

Merle Hazard - "Dual Mandate"

One of mankind's greatest achievements

80% reduction in extreme poverty in the past 36 years.