Topic

Economics

A collection of 19 issues

Cantillon Effect

Richard Cantillon a Irish-French economist in the 1600’s and the Cantillon effect is one of his creations based on a manuscript by him. The Canitllon effect basically states that, new money entering the economic system is more beneficial for the first hand receivers than the ones following where

Lumber Crisis

2021, among other things like toilet paper, boba tea and pickle jars, saw a shortage in limber. Let’s try to understand what led to the shortage and the subsequent high prices. After the financial crash of 2008, home building took a hit. Causing the lumber prices to fall.

Special Economic Zones

A special economic zone(SEZ) is a designated area in a country with special economic regulations to incentivize foreign direct investment. Usually these incentives are in the form of tax reductions, labour regulations, customs etc. A SEZ became popular in the mid 20th century. The primary purpose were to attract

Big Mac Index

Different currencies around the world have different purchasing powers. Purchasing power is defined as the amount of goods or service you can buy for the same amount of money. Purchasing power not only varies from country to country, but also varies over a period of time. The amount of goods

Comparative Advantage

Comparative advantage describes how trading parties will choose to produce more of a good that they have a comparative advantage of, and use that to trade for other goods that they don’t have a comparative advantage in. Comparative advantage forms a foundation for international trade. Comparative advantage is

Parimutuel Betting

Parimutuel stands for mutual betting. All the bets of a particular type are placed in a pool after deducting the house cost. This kind of betting is different from fixed-odds betting in that the payout is not known at the time of placing a the bet. The payout is determined

Gini Coefficient

The Gini Coefficient is a statistical measure of dispersion. It is an indication of the spread of data similar to standard deviation and variance. In economics, the Gini coefficient is used to represent the income inequality within a demographic. This coefficient was developed by the Italian statistician Corrado Gini. The

Unit Economics

Unit Economics is a neat way to look at the fundamental economics of a business. A sanity check. It starts with defining a “unit”. A “unit” could be a product sold or a customer acquired depending on the kind of business and business model. Unit economics

Perfect Information

Perfect information is a concept related to game theory where every player in the “game” is fully informed of all prior actions. An example of a game that allows for perfect information is Chess. Every move made right from the start of the game is visible to both

Industry Drivers

There is usually an industry or legislation that drives a lot of money towards research and innovation. 2 examples to this is the photography technology and batteries. As smartphones became more and more common and the cost for storage became much cheaper. There came a push to reinvent the camera