Regulatory Capture

Regulatory capture is a failure of normal government functions in which regulatory agencies become subservient to the industries they are meant to be monitoring and regulating. In these cases, the regulatory bodies end up furthering the (typically economically-motivated) goals and concerns of special interest groups, rather than the public--so the…
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The Economics of Happiness

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of HappinessThe American Declaration of Independence As a Brit, I have always been envious that the US, at its birth, spelt out in no uncertain…
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The Fisher Effect

The Fisher Effect demonstrates the connection between real interest rates, nominal interest rates, and the rate of inflation. According to the Fisher Effect, the real interest rate is equal to the nominal interest rate minus the expected rate of inflation (note that in this equation, all rates used should be compounded).The result, in practice,…
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Inferior Good

The term “inferior good” describes a good for which demand decrease as incomes increase. They are the opposite of “normal goods,” which are goods for which demand increases as incomes increase (e.g. organic food, cars, or name-brand products). Inferior and normal goods are in a relationship with one another—in other words, inferior goods exist when…
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Top 100 Economics Blogs of 2019

Welcome to the 4th Annual Top Economics Blogs list. For the 2019 edition, we’ve added many newcomers, as well as favorites which continue to provide quality insight year after year. Like lists in previous years (2018, 2017, 2016), the new 2019 list features a broad range of quality blogs in practically every economic discipline. Whether you are…
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Opportunity Cost

Opportunity cost is the positive opportunities missed out on by choosing a particular alternative (the next-best option). In other words, it’s what you don’t get to do when you make a choice. For instance, to apply this concept to everyday life: let’s say that one night you’re deciding between going to a party and going to a concert. You end up…
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