In response to a recent paper that was somewhat bullish about the benefits of the European employment model, Bryan Caplan proposes the following bet. It has since been taken up by John Quiggin.
“I’m going to offer the following bet to the authors of the CEPR report:
The average European unemployment rate for 2009-2018 (i.e., the next decade) will be at least 1% higher than U.S. unemployment rate. The bet will be resolved when Eurostat releases its final numbers for 2018.
I’m happy to bet each of the three authors $100 at even odds. Will they accept?
P.S. By 1% I of course meant 1 percentage-point.”