economics
10 articles
Behavioral Finance: January Effect, Momentum, and EMH Challenges
Stock market anomalies challenge the efficient market hypothesis. Learn the January effect's tax-loss explanation, Jegadeesh-Titman momentum, the value premium, and limits to arbitrage.
Comparative Advantage: Ricardo's Trade Theory, Opportunity Cost, and the China Paradox
David Ricardo's 1817 Portugal-England model shows trade benefits both partners even when one is better at everything. Learn opportunity cost logic, Heckscher-Ohlin, and the China paradox.
Dutch Disease: How Resource Wealth Destroys Manufacturing
Dutch disease describes how natural resource booms appreciate the exchange rate and deindustrialize economies. Learn the mechanism, Norway's oil fund solution, and Nigeria's failure.
Hyperinflation: Weimar 1923, Zimbabwe 2008, and the Cagan Model
Hyperinflation destroys economies and societies. Learn the Weimar 1923 war reparations mechanism, Zimbabwe's 79.6 billion percent monthly rate, Venezuela's collapse, and Cagan's monetary model.
Monopoly and Oligopoly: HHI Index, OPEC Cartel, and Market Power
When HHI exceeds 2,500, regulators flag concentrated markets. Learn natural monopoly regulation, OPEC cartel coordination, tacit vs. explicit collusion, and Bertrand vs. Cournot competition.
Price Elasticity of Demand: Elastic, Inelastic, and Revenue Implications
Price elasticity measures how quantity demanded responds to price changes. Learn elastic vs. inelastic goods, Giffen paradoxes, drug pricing, cross-price elasticity, and revenue strategy.
Stagflation: The 1970s Oil Shock, Phillips Curve Collapse, and the Volcker Cure
Stagflation combines high inflation with stagnant output. Learn how the 1970s oil shock broke the Phillips curve, why Friedman predicted it, and how Paul Volcker's 21% interest rate ended it.
Supply and Demand Shocks: Oil Crises, COVID-19, and Cobweb Dynamics
Supply shocks slash output; demand shocks move spending. Learn how COVID-19 collapsed global supply chains, how oil shocks transmit through the economy, and what the cobweb model predicts.
Tragedy of the Commons: Hardin's 1968 Theory and Ostrom's Nobel Refutation
Garrett Hardin's 1968 Science paper predicted shared resources must collapse. Elinor Ostrom's Nobel Prize work in 2009 showed communities can self-govern with 8 design principles.
Tulip Mania 1637: Futures Contracts, Bubble Anatomy, and Historical Revision
Dutch tulip mania in 1637 is history's most famous bubble. Learn how futures contracts worked, what Peter Thompson's 2007 revision found, and what tulip mania actually reveals about financial bubbles.