By Devin Reese on 12-12-2013
To quote Wikipedia:
The term “stylised facts” was introduced by the economist Nicholas Kaldor in the context of a debate on economic growth theory in 1961, expanding on model assumptions made in a 1957 paper.Criticizing the neoclassical models of economic growth of his time, Kaldor argues that theory construction should begin with a summary of the relevant facts. However, to handle the problem that “facts as recorded by statisticians, are always subject to numerous snags and qualifications, and for that reason are incapable of being summarized”, he suggests that theorists “should be free to start off with a stylised view of the facts – i.e. concentrate on broad tendencies, ignoring individual detail”.With respect to broad tendencies that result from such a process, Kaldor coins the term “stylized facts”.
So, in the spirit of all this, I thought it might be useful to filter down three (long!) blog posts on secular stagnation to six stylised facts and about 300 words on the recent trends in the UK macro-economy.
- Rising GDP growth does not necessarily feed through to rising standards of living for households in the middle and below.
- Periods of growth are associated with a falling household savings ratio.
- Periods of growth are associated with a widening trade deficit.
- Household borrowing is more responsive to low interest rates than corporate borrowing.
- The marginal propensity to invest is falling. There is, in time
By Christopher Odonnell on 12-12-2013
Americans are watching more TV than ever at least according to and . Television remains the biggest chunk of the nearly 60 hours of media consumed every week. Heres how those 60 hours break down across TV, radio, online, and mobile in 2012.
If you did the quick math like I did, yes 35 divided by 7 days is an average of 5 hours of TV per day. Five hours! Even with all the buzz about Netflix, the numbers havent changed all that much over the last few years:
I did some quick searching and found the (ATUS) by the U.S. Bureau of Labor Statistics gave some slightly different numbers:
Watching TV was the leisure activity that occupied the most time (2.8 hours per day), accounting for about half of leisure time, on average, for those age 15 and over.
I dont begrudge anyone the act of decompressing after a day of work. I watch TV to relax too. But sitting for 3-5 hours in front of the TV every single day? I dont see how someone who does that can also complain about being too busy to cook their own food or do other self-improvement projects.
Students would be mainly focused on education and keeping that in mind, they would have applied for a student loan program. Most of the student loan borrowers would not be aware of the nuances of the financial market and they are prone to committing mistakes and sometimes this might look silly too. These mistakes would be mainly committed due to their inexperience. Student loan borrowers would be new to the financial arena and most of them would not be aware of factors such as credit score, defaults, due dates etc.
This is where consolidating loans would make real sense. Loan consolidation is tailor made for those who have overwhelming number of debts. Managing multiple debts is not an easy task to achieve. Presence of multiple debt payments would only confuse the borrower. Different loans would have different repayment period. It is not easy to manage repayment periods such as monthly, annual, bi-weekly, weekly etc. all at once and even managing debts of multiple monthly payments is not an easy job.
- Student loan borrowers would be able to consolidate all their student loans into a single consolidated loan.
- As a result of loan consolidation, borrowers need not worry about managing multiple debts since they would have to manage only one new consolidated loan.
- The terms of the consolidated loan would be entirely different from the terms under which all the older loans were operating on.
By Devin Reese on 06-12-2013
Was Charles Dickens particularly ingenious when he came up with the legendary character Ebenezer Scrooge? Was Dr. Seuss at his creative best when he unveiled the Grinch? Did director Frank Capra and the others involved in assembling the classic film Its a Wonderful Life experience a lightning bolt of inspiration when they dreamed up old man Potter, that conniving rotter?
The answer to all three questions is no, topped by a holiday bow, emblazoned in wrappings of green and red and tied up with a festive ribbon.
No, to create all these immortal, household-name miserly holiday villains, all Dickens, Seuss, Capra and his writers had to do was be inspired by a breed of real people whose greatest joy is embarking on cash grabs through devious means.
This type appears annually around this time of year to appeal for holiday season and end-of-year charitable donations for the organizations they represent.
Folks from coast to coast, touched by emotional appeals at a time of holiday giving, dig deep in their pockets for donations to help less fortunate people, fund disaster relief, care for sick and injured animals and cure childhood cancer.
The only problem with these heart-tugging requests is the charitable organizations being touted are as fictional as the village of Pottersville.
By Christopher Odonnell on 06-12-2013
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In advertisements, on TV, at the supermarket. All over town, shiny new products are sitting on shelves, calling out your name, inundating you with a desire to buy.
Not only does buying something tickle the fancy of our desires, it tickles the receptors of our brains. When we buy something that we like, and go through the act of purchasing, we’re affected in more ways than one.
Similar to smoking, imbibing alcohol, and exercising, we respond physically and mentally to the rush of ownership, possession, or experience. The effect of consumer culture is felt equally by the person who realizes they’re getting into debt thanks to overspending, the person who gets a mortgage they can’t afford, and even the person who can’t get a loan because their isn’t good enough.
However, that answer leaves a lot to be desired because while it’s pithy it’s also largely unreasonable. Being that we can count on interacting with purchasing messages on a regular basis, it’s not a feasible solution. Unless you’re wil