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1 Bruno S. Frey David Iselin Editors Economic Ideas You Should Forget Springer
2 Contents Capitalism Daran Acemoglu Sola Protestantism in Economics Rüdiger Bachmann Economics Has Nothing to Do with Religion Sascha 0. Becker More Choice Is Always Better Christine Benesch People Are Outcome Oriented Matthias Benz Deriving People's Trade Policy Preferences firom Macroeconomic Trade Theory Thomas Bernauer Size (of Government) Doesn't Matter Tim Besley Bayesianism Ken Binmore The Return on Equity Urs Birchler vii
3 viii Contents Peak Oil Theory Charles B. Blankart More Choice Is Always Better Alan S. Blinder (Un)Productive Labor Monika Butler Volatility Is Risk Peter Cauwels Robots Will Take All Our Jobs Reto Cueni Economic Growth Increases People's Well-Being Richard A. Easterlin Big Data Predictions Devoid of Theory Thomas Ehrmann Government Debts Are a Bürden on Future Generations Reiner Eichenberger Public Spending Reduces Unemployment Lars P. Feld The Capital Asset Pricing Model Pablo Fernandez Innovation Programs Lead to Innovation Gerd Folkers Factors of Production Are Homogenous Within Categories Nicolai J. Foss Individual Utility Depends Only on Absolute Consumption Robert Frank The Relative Price Effect Explains Behavior Bruno S. Frey The Precedence of Exchange over Production Jetta Frost
4 Contents ix Inequality Reduces Growth Clemens Fuest Contingent Valuation, Willingness to Pay, and Willingness to Accept Victor Ginsburgh Governments Must Reduce Budget Deficit» Michael Graff Reach for Your Dream Allan Guggenbühl The EU's Competiveness Authority Beat Gygi Say's Law Jochen Hartwig Boundedness of Rationality Jürg Helbling Rational Expectations David F. Hendry Letting Insolvent Banks Fall Gerard Hertig Pleasantville Politics: Selecting Politicians According to Ability Bruno Heyndels The Axioms of Revealed Preference John Kay There Ain't No Such Thing as a Free Lunch: The Myth of Expansionary Consolidations Gebhard Kirchgässner Government Hurts the Economy More Than It Helps Margaret Levi The Motivated Armchair Approach to Preferences Siegwart Lindenberg Economics Is Based on Scientific Methods Michael McAleer
5 X Contents The Death of Distance Peter Nijkamp D Dump the Concept of Rationality Into the Deep Ocean 95 Karl-Dieter Opp Pay for Performance Raises Performance 97 Margit Osterloh Home Ownership Is Good 99 Andrew J. Oswald Coase Theorem 191 Eric A. Posner Poverty Is Good for Development 105 Martin Ravallion Markets Are Efficient 107 Jean-Charles Röchet CEOs Are Paid for Talent 109 Katja Rost The Efficiency-Equity Tradeoff 111 Jeffrey D. Sachs Deterministic Trend of Inequality 115 Christoph A. Schaltegger Quantitative Easing 117 Kurt Schiltknecht Hosting the Olympic Games 119 Sascha L. Schmidt Abolishing Cash as Solution Against the Evil 121 Friedrich Schneider Receiving Money and Not Having to Work Raises Happiness 125 Ronnie Schob Saints in Public Office Gerhard Schwarz Helicopter Money Hans-Werner Sinn
6 Contents xi Decisions Are Deterministic 131 Didier Sornette Politicians Systematically Converge to the Median Voter 133 David Stadelmann Artists Are Poor and thus Unhappy 135 Lasse Steiner Returns on Educational Investments Are Highest for Early Childhood Interventions 137 Elsbeth Stern EU Centralization 139 Armin Steuernagel The Alleged Asymmetry in Maintaining a Fixed Exchange Rate 141 Jan-Egbert Sturm Governments Should Maximize the Happiness of the Population 145 Alois Stutzer Okun's Equality-Efficiency Trade-Off 147 Mark Thoma "A Rising Tide Raises All Boats" 149 David Throsby Social Cost Analysis 151 Robert D. Tollison Natural Resources Make Rieh 153 Rick van der Ploeg The Natural Rate of Interest Is Positive 155 Carl Christian von Weizsäcker Europe's "Skill Shortage" 157 Joachim Voth Taxes Are Paid Because of Expected Punishment 159 Hannelore Weck-Hannemann Better Safe than Sorry 161 Antoinette Weibel
7 xii Contents The End of Work Boris Zürcher Postscript Bruno S. Frey and David Iselin
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