Lewis Dual-Sector Model: Why Developing Economies Industrialise
The Lewis Dual-Sector Model divides a developing economy into a low-productivity subsistence sector with surplus labour and a capitalist sector...
Author: Majid Ali Sanghro
Harrod-Domar Growth Model: The First Modern Theory of Economic Growth
The Harrod-Domar Growth Model derives long-run growth from the saving rate divided by the capital-output ratio, producing a knife-edge instability...
Kuhn-Tucker Conditions: Optimisation with Inequality Constraints
The Kuhn-Tucker Conditions extend Lagrangian optimisation to inequality constraints through complementary slackness, the principle that supports modern microeconomics, finance, and...
Student Loans Economics: Education Finance in the US and UK
Student loans economics explains why the US carries $1.8 trillion and the UK £267 billion in education debt, and how...
Capital Structure Decision: Modigliani-Miller in Practice
The Capital Structure Decision balances the tax shield from debt against bankruptcy costs and information frictions, producing real-world leverage ratios...
Kevin Warsh Federal Reserve: The Hawkish Nominee Set to Replace Powell as Fed Chair
Kevin Warsh Federal Reserve nomination cleared the Senate Banking Committee 13-11 on April 29, 2026, setting up a full Senate...
Economics of Mortgages: How the World’s Biggest Loan Market Works
Economics of Mortgages: the largest global loan market, with unique contract structures, securitisation chains, and government guarantees shaping housing finance,...
Equity Risk Premium Puzzle: Why Stocks Beat Bonds by So Much
Excerpt: The equity risk premium puzzle shows the gap between stock and bond returns is far too large to be...
Envelope Theorem: A Shortcut for Optimisation Problems
The Envelope Theorem simplifies comparative statics: the total derivative of a maximised objective equals the partial derivative at the optimum,...
Dixit-Stiglitz Model: The Workhorse of Modern Trade and Macro
The Dixit-Stiglitz model of monopolistic competition uses CES preferences to show how market size determines product variety, explaining intra‑industry trade...