Wednesday, June 01, 2005

Emirates Economist

Cool -- a blog by an economist living in Dubai! His observations on the discrimination being forbidden by the Constitution (I did not know the UAE had one)while being required by law (and practice) are right on.

There is a dramatic amount of discrimination in the UAE, which absolutely leads to lower profits for employers. I am surprised that Chilton finds this a contradiction though -- the agency problem in business has been well documented, which is why they often indulge in profit reducing activities. And regulatory preference that reduce profits, or transfer rents from one group to another, are the very life blood of politics.

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