Great post on how there's more than meets the eye on this chart.
I for one would be very interested in a Youtube tutorial! Most familiar with Python myself, but a walkthrough of what you did in R would also be interesting.
I use Mark's chart to suggest lack of innovation. (In a Paul Romer kind of way) That could come from regulatory barriers, investment or ideas. What data set reveals which? Can we map that covariance?
1) Why is "Food away from home" a service but "Alcoholic beverages away from home" a good?
2) "Educational books and supplies" - to the extent that this is driven by college/university assigned text books, (a) there is little check on the demand side since professors drawing up their syllabi have no reason other than concern with student welfare to be concerned with cost & (b) this is a case of monopolistic competition on the supply side for many courses, with a handful of alternatives for many "101" & "201" courses.
3) "Prescription Drugs" - similar to "Education books and supplies". Insurance covers much of the cost of many prescriptions, pharma is highly concentrated & the prices often are the result of lobbying and gaming the patent system.
All of which is to say that regulation of the kind that concerns Andreesen is very much a red herring and the issues are services (Baumol disease?) and market structure: reinforcing the conclusion of the OP
Great post on how there's more than meets the eye on this chart.
I for one would be very interested in a Youtube tutorial! Most familiar with Python myself, but a walkthrough of what you did in R would also be interesting.
I use Mark's chart to suggest lack of innovation. (In a Paul Romer kind of way) That could come from regulatory barriers, investment or ideas. What data set reveals which? Can we map that covariance?
1) Why is "Food away from home" a service but "Alcoholic beverages away from home" a good?
2) "Educational books and supplies" - to the extent that this is driven by college/university assigned text books, (a) there is little check on the demand side since professors drawing up their syllabi have no reason other than concern with student welfare to be concerned with cost & (b) this is a case of monopolistic competition on the supply side for many courses, with a handful of alternatives for many "101" & "201" courses.
3) "Prescription Drugs" - similar to "Education books and supplies". Insurance covers much of the cost of many prescriptions, pharma is highly concentrated & the prices often are the result of lobbying and gaming the patent system.
All of which is to say that regulation of the kind that concerns Andreesen is very much a red herring and the issues are services (Baumol disease?) and market structure: reinforcing the conclusion of the OP