Economic Logic

When you think about leisure in the utility function, for most applications you need to take a stand on some properties: is the income effec...

Insurance suffers chronically from the problem that only bad risks want to get insured, which makes the cost of insurance prohibitive and th...

In difficult times, it is easy to blame central banks for everything. Part of their role, after all, is to play the scape goat for policies ...

We are living interesting times in terms of macroeconomic policy: the world faces big shocks and substantial challenges, and many current ci...

Small businesses are thought to be rather inefficient because of fix and because of other issues that hamper the exploitation of increasing ...

There is an active literature that tries to explain the size distribution of cities. It is based on a strong regularity, that the distributi...

Bruno Frey has fallen into disgrace these days as he has been shown to play dangerous games of self-plagiarism, submissions to multiple jou...

Some countries seems to be very poorly located, as they are in the path of all sorts of natural disasters. But some do better than others in...

I dedicated several posts to Bruno Frey and his chronic self-plagiarism. In retrospect, one should have seen that something was fishy from...

We have previous established that the Internet, contrarily to conventional wisdom, makes people more social. Does this also mean that people...

Whenever you see risk, you think insurance. And there are different ways to insure yourself. This may be by buying some contingent claims, o...

It is costly to move, and those costs vary by culture and economic circumstances. International migration is of course hampered by immigrati...

Options are securities that are difficult to price. In particular American options, which can be exercised at any time posed a serious chall...

People in general prefer green products, although they are not always ready to pay a significant markup for a greener product. If they know ...

Americans are proud of their freedoms, political or economic ones. Yet, they are very trigger happy when it comes to takes one's freedom...