Politics and Markets (and more Fools)
November 10, 2006 08:30 AM
Perhaps the most widely read economist on the Internet notes the market’s inability to predict the senate election. He writes, "But the idea that there's something magical about market aggregated preferences seems to have infected the minds of too many people. They provide a cute distillation of conventional wisdom, but that's all."
I’m reminded of research that shows that parents pick schools based on factors such as race, religion and ease of commute, (see here, here and here). Given this, I don’t get why people are surprised when voucher subsidization of these choices doesn’t lead to improved student outcomes. And if you don't know it, the title of this post is a shout out to this.
