In economics “incentives matter”, so much so that the bestselling book Freakonomics defines the discipline of economics as the study of incentives. Extrinsic incentives, like cash payments, are familiar forms of incentives and they are often proposed in order to motivate or alter the behavior of individuals. So, should students get financially rewarded for class attendance? Would a... Read More
In Corruption, norms and legal enforcement: Evidence from diplomatic parking tickets, Fisman and Miguel use an interesting example to dissect two of the primary causes of corruption mentioned in the literature. To this end, they examine the behavior of UN diplomats stationed in N... Read More
The large increase in share sell-offs coupled with a troubled Chinese market have led to a global market downturn in recent months. Although most analysts had projected the markets to recover by the beginning of 2016, we instead saw a number of stock markets slip into correction territory. As a result, the global economy as a whole was negatively impacted, and recovery was forecasted to be Read More
Last Monday, for the first time in a decade, our neighbors to the north elected a new head of government. Justin Trudeau and the Liberal Party of Canada won Canada’s federal election by a surprising margin, crossing the finish line with 184 of a possible 338 electoral districts and 39.5% of the popular vote. In a country with three strong political parties and a number of smaller players,... Read More
Welcome back to my blog! This year, as in last, I will be covering economic debate on Capitol Hill.
Since all the pundits are now talking about ISIS, the radical Islamist group surging through Iraq and Syria (or Ebola), I wanted to share an interesting anti-interventionist argument based on Austrian Economics. John Tamny, Read More
The term “Latin America” is broadly used to refer to countries south of United States. However, there are meaningful differences among these countries that are at varying stages of economic, industrial, political and institutional development. The region has come a long way from the days of military dictatorships. Nowadays, with the exception of Cuba, elections are in every ca... Read More
Every story begins with a new chapter and on June 19, 2013 began one such story. This was the story of an impending economic collapse— that of the emerging markets (EMs). The press conference then Fed Chairman Ben Bernanke held that day will forever be etched in our memories for it caused ripples, albeit financial, across the world.
However, what were ripples in the west ... Read More
John Kerry has made his rounds on the Sunday morning talk shows to discuss the much-anticipated interim deal struck between Iran and the P5+1. The atmosphere, reflected by the questions he faced, is full of both anxiety and excitement. The back-and-forth was largely focused on how the deal affects U.S. national security interests. This is not the proper forum to discuss the merits... Read More
In recent years, many Asian economic powerhouses have seen declines in their GDP growth rates, pushing these nations to respond by declaring specific plans to restore their erstwhile robust development. This piece examines four such nations – Japan, Singapore, China, and India – and argues that in all cases, Asian growth strategies will be ineffective at achieving their goals because they a... Read More