GREAT BEHAVIORAL ECONOMISTS THINK ALIKE
Greg Mankiw's blog links to an op-ed from a Duke behavioral economist who opines on why our blood boils over rising gas prices, something I also chimed in on in my blog. Of course, in addition to these unique ways in which we follow gas prices, I would also argue we've become addicted to cheap oil, and the thought of paying a more appropriate price gives us the shakes.
PS Let me append to this post a nice summary of the extent to which current gas tax levels do or do not cover the cost of building and maintaining roads, to say nothing of environmental externalities or the opportunity cost of dedicating land for roads.
Greg Mankiw's blog links to an op-ed from a Duke behavioral economist who opines on why our blood boils over rising gas prices, something I also chimed in on in my blog. Of course, in addition to these unique ways in which we follow gas prices, I would also argue we've become addicted to cheap oil, and the thought of paying a more appropriate price gives us the shakes.
PS Let me append to this post a nice summary of the extent to which current gas tax levels do or do not cover the cost of building and maintaining roads, to say nothing of environmental externalities or the opportunity cost of dedicating land for roads.
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