Sunday, May 17, 2015

Thinking of the Terra Cotta Warriors of Xian as Good Fiscal Policy

Tyler Cowen developed a list of six possible explanations for the Terra Cotta Warriors in China while thinking like the economist he is. Number three and four are particularly funny, since we just finished looking at fiscal policy.

Model this, the Terra Cotta Warriors of Xian
3. This was a form of fiscal policy, to stimulate the economy in slow times, by employing craftsmen. 
4. The guild of said craftsmen was an influential interest group.
He is just having some fun, but it is theoretically sound. You could use the same economic reasoning to explain other grand works like the pyramids of Egypt.

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