Tag: economics

Nudge, Nudge, Win, Win: The 2017 Nobel Prize in Economics

It’s awards season! Before you get too excited about couture dresses, the red carpet and celebrities’ speeches being cut off by orchestral music, let me explain. The Royal Swedish Academy of Sciences recently awarded the Nobel Prize in Economic Sciences to Richard Thaler, an economist at the University of Chicago, whose work in behavioral economics has revolutionized the way economists analyze the world. To understand Thaler’s contribution to the field, we first need to have a brief lesson in economic theory (I promise that it won’t be too boring). Classical economics is based on the idea that people act...

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Baltimore’s Working Class in Black and White

I worked in downtown Baltimore in the 1980’s, and I work there again now. In walking the streets, the difference is stark, and depressing. The old bustle of Charles Center is gone, and Harborplace is no longer what it was. But the major difference in downtown is the evident lack of prosperity and business occupancy. Even the old grand dame of office buildings, 10 Light Street, which was once the Maryland National Bank Building with exquisite first floor decorations and a huge, gleaming safe, is now condominiums, and the marble banking floor is covered with an artificial surface for...

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The Economist’s Night Before Christmas

‘Twas the night before Christmas, when all through the economy Not a creature was stirring, save for the GDP. The stock trades were hung by the chimney with care, In hopes that low interest rates soon would stay there. Forecasters were nestled all snug in their beds, While visions of employment growth danced in their heads. And Yellen in her ‘kerchief, and I in my cap, Had just settled our brains for a long winter’s nap. When out on the market arose such a clatter, I sprang from the bed to see what was the matter. Away to the...

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The Economics of Elections

The election is almost here, and that means it is the peak of the quadrennial tradition of predicting economic doom if one candidate or the other wins. A report published on October 21 by the Brookings Institution, for example, estimated that a Trump victory would send stock prices 12 percent lower than if Clinton becomes the 45th president. However, there’s little evidence to suggest that the elections truly have such an immediate and drastic impact on the economy, let alone one that persists long-term. For example, the image below shows the FTSE Index, an index tracking the 100 largest...

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My Internship Experience: Mackenzie Rice

This guest post was written by Mackenzie Rice, a junior studying political science and economics at Towson University. She is a member of the Women’s Golf team and interns with the Regional Economic Studies Institute. Many athletes that play Division 1 golf in college are striving to turn professional after their four years of studying and eligibility are over. However, I never saw professional golf in my future. I never wanted to put the pressure of making a pay check on the line, in case it would cause me to fall out of love for the game. As a...

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Brexit: Looking at UK’s EU Referendum

The European Union (EU) has grown from 6 founding members in 1957 to 28 member states in 2016. The original aim of the EU was to prevent future conflict among its member states. To meet this aim, the EU holds the principles of free movement of goods, finance, and labor within the EU as core tenets to increase cohesion. The free movement of goods and finance has traditionally been widely accepted by member states due to the economic advantages associated with it. The free movement of labor has been less accepted by member states as EU migrants can live...

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How the Economist Stole Christmas

Now that Thanksgiving has passed, the holiday season is in full force. In previous blog posts, I’ve considered the economic impact of various holiday events and phenomena. This year, in the spirit of trying something new, I’ve decided to flip my approach and think about the economics that exist in a holiday story. Take, for example, Charles Dickens’s classic A Christmas Carol. A Christmas Carol The novella, first published in 1843, recounts the tale of Ebenezer Scrooge, a miserly accountant. On Christmas Eve, as Scrooge is going to bed, he is visited by the ghost of Marley (Scrooge’s former...

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Martin Luther King Jr.’s Legacy and Economics

The merry revelry of December may be over, but the new year brings new holidays: Martin Luther King, Jr. Day. Proposed in 1968 and officially designated a federal holiday in 1983, MLK Jr. Day was codified as a state holiday in all fifty states in 2000. The third Monday of January (January 19 this year) is designated to honor King and his legacy of challenging racism and the status quo power structure through peaceful protest and civil disobedience. Martin Luther King Jr.’s Advocacy for Economic Causes While King is best known for his civil rights work, he has shaped...

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Snake Eyes: Casino Growth and Declining Gambling Revenues

Later this month, a fifth casino will open its doors in Maryland, and in about two years, a sixth casino will open its doors. My question is this: Is there a sufficient consumer base to support this growth, or are the new casinos cannibalizing revenues in Maryland and the surrounding states in the region (New York, New Jersey, Pennsylvania, Delaware, West Virginia, District of Columbia, and Virginia)? About thirty years ago, two states—New Jersey and Nevada—had casinos. For New Jersey, Atlantic City was the gambling destination for the East Coast; Las Vegas was the gambling destination for everywhere else....

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Unemployment and Spatial Mismatch in Baltimore

Baltimore has long been in a state of transformative flux. The late 1950s gave rise to a growing desire to leave urban areas for suburban ones. Baltimore was one of many urban causalities; recent population estimates for city residents has yet to match that of the late 1950s. However, new economic incentives could reverse this trend. High and long-term unemployment has been a problematic issue for Baltimore for several years. As of 2013, Baltimore had the third highest unemployment rate in Maryland, at 10.1 percent, well above the national average for 2013. A paper released by the National Bureau...

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