Category Archives: Wisconsin

Identities, Parameters and Regressions

A reader comments:

Your final jab in this post regresses the state output gap on the fiscal gap. You then conclude that there is a positive relation between the two and that this somehow implies that a reduction in gov’t spending is a drag on the economy. I’ll just point out that …. that gov’t spending is a component of GSP. Of course they’re positively related.

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Kansas: “This other Eden, demi(Austrian)-paradise”

On reading my recent post on Kansas economic performance in the reign of Brownback, which included this graph:

us_ks_privempl

Figure 1: Private nonfarm payroll employment in Kansas (red), in US (blue), in logs normalized to 2011M01=0. Dashed line at 2011M01, Brownback term begins. Source: BLS, author’s calculations.

A&M Professor/Extension Economist Levi Russell writes “Your analysis is highly flawed”.

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