Tag: Public Policy
-
Productive Bubbles
“Productive Bubbles,” as identified by Bill Janeway, describe financial episodes where heightened speculation funds technological innovations. Though many such ventures falter, the aftermath often yields transformative technologies that impact industries and societies, demonstrating the paradox of wasteful investment leading to lasting advancements.
-
Moral Hazard
Moral hazard refers to situations where a party takes on riskier behavior because they’re shielded from the consequences. It often occurs in insurance, finance, and healthcare, potentially leading to market inefficiencies and higher costs. Strategies exist to mitigate it.
-
Gini Coefficient
The Gini coefficient is a statistical measure used to quantify income or wealth distribution inequality. Ranging from 0 (perfect equality) to 1 (absolute inequality), it’s a widely used tool in economics, despite limitations like not accounting for income levels or inequality sources.