In this article, we shall discuss the optimal taxation system. Taxes are collected all over the world, it is a way for the government to collect revenues for development and other purposes. There is various form of taxes and countries all over the world use the different taxation system to optimize their revenues. Over the ... Read more

In this article, we shall discuss the Heckscher-Ohlin theory of International Trade. This theory is very important when it comes to international trade. We shall discuss how this theory can be applied to find the equilibrium of trade and how countries can benefit from imports and exports. The criticism of the theory will also be ... Read more

In this article, we will discuss two very important economic concepts i.e; The Laffer curve and the Phillips curve. Both of the theories plays a very important role in understanding the micro and macro economics concepts. We shall discuss in depth what the two theories explain and how important they are for policy making along ... Read more

In this article, we shall discuss the concept of liquidity traps and how such conditions impact the overall economy. A liquidity trap is an economic situation in which the interest rates become very low almost close to 0%, and on the other hand, the saving rates increase potentially. This dynamic makes monetary policy ineffective. The ... Read more

The Bagehot theory is considered very important in the banking and financial models. The theory explained how central banks can play their parts when a bank or company is on the verge of solvency. The central banks must create conditions safe enough for firms and banks to operate in the economy. In times of financial ... Read more

In this article, we shall discuss the topic of conspicuous consumption, a concept proposed by the famous economist Thorstein Veblen. He proposed that many times people spend on certain products to have a better social standing. He backed his theory with many economic and human psychological factors. What is Conspicuous Consumption  It is human psychology ... Read more

Welfare economics is a branch of economics that takes into consideration the benefit and well-being of society. Welfare economists believe that only economic progress and growth is not sufficient for development, instead, social growth and social well-being are just as important a factor. In this article, we shall carefully study the concepts and teachings of ... Read more

Arrow’s impossibility theorem is very important in welfare economics. The theorem proves that it is impossible to develop a fully fair and transitive system of voting. Kenneth Arrow tried to develop a fair system but failed to do so. In this article, we shall discuss this theorem in detail and will also discuss examples to ... Read more

Game theory is based on human psychology and how humans make decisions. The theory was first introduced by a famous mathematician named John von Neumann and a famous economist Oskar Morgenstern in the year 1940. The layout of the theory is very similar to a game. It portrays an interactive situation between rational players or ... Read more

To eliminate the tragedy of commons one of the main solutions often offered by economists are property rights. The main cause of the tragedy of the commons is the abuse of resources by the common people. This can be solved by privatizing the resource and giving the rights of use to specific parties. In this ... Read more