Cobb-Douglas Visualisation – I

I used excel to construct a visualization of the Cobb-Douglas production function (explicitly presented in the graph titles). The production function expresses the output of any given firm as a function of two inputs (labor and capital) and parameters (alpha and beta). When the sum of alpha and beta equals 1, it can be shown … Continue reading Cobb-Douglas Visualisation – I

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Deregulation, Consolidation, and Collusion in American Banking

Deregulation Going into the 1980s, American banks faced heavy M&A, intrastate branching, and interstate banking restrictions. By the end of the 1980s, most states had lifted these M&A and branching restrictions… Consolidation  Consequently, the number of mergers increased while the number of new entrants into the market declined. The cost of entering the market was … Continue reading Deregulation, Consolidation, and Collusion in American Banking

“The Subprime Solution”: a must-read

I purchased this book on a whim a few weeks ago. My high hopes were satisfied as Shiller gave insightful explanations of how the subprime bubble occurred and offered innovative short-run and long-run suggestions for minimized the risk of another crisis. Here are a few of his propositions: Democratize finance. A major cause of the … Continue reading “The Subprime Solution”: a must-read