Financial capital forms an integral part of any modern economy. In an ideal world, banks should act as intermediaries that channel the savings of households and firms to borrowers. These borrowed funds can then be used for many purposes that improve society: purchasing the first family home, funding business expansion,
The 2013 Nobel Memorial Prize in Economic Sciences was announced on October 15 and won by a trio of financial economists: Eugene Fama, Robert Shiller and Lars Peter Hansen. Fama is the mastermind behind the ‘efficient-market hypothesis’, which will be familiar to all who have taken at least a first-year
The number of Americans who said, ‘yes, I am happy with my life’ peaked in 1956, but ever since then has fallen slowly but steadily. During this time our levels of world GDP per capita have increased dramatically, and according to the non-satiation principle of conventional microeconomics, our experience of
Consumerism is the tendency to gratify oneself and consume in ever increasing amounts. To that end, planned obsolescence acts as the lynchpin for consumerist behaviour in durable goods, enabling frequent repurchasing and replacement of goods that would otherwise have lasted for much longer. Removed from each individual’s purchasing decision
Having retrospectively decided to write a series on climate change, four weeks after part one of my supposed ‘series’ appeared, here is the third installment exploring the interplay between climate and economics – more specifically, all of my articles look at how to change climate change without really changing climate change.
As university students, the problem of buying a new car may present itself in the near future. The misalignment of incentives between you the buyer and the commission-driven car salesman is always there, hiding insidiously behind the salesman’s phony smile. In fighting this imbalance, economics, more specifically, game theory