Research Explained

You will discover key economic theories and concepts backed by the latest research, presented clearly, and connected to major economic topics.

Cournot versus Bertrand model comparison with quantity and price as strategic variables in oligopoly.

Research Explained

Bertrand Cournot Model Economics: How Oligopolists Compete on Price vs. Quantity

The Bertrand Cournot model economics framework explains how oligopolists compete. Cournot firms set quantities and earn positive profit. Bertrand firms...

April 29, 2026

Overlapping generations model diagram with young and old agents, pay‑as‑you‑go transfers, and dynamic efficiency conditions.

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Overlapping Generations Model Economics: Why Young and Old Disagree About Policy

The overlapping generations model economics framework, built by Samuelson and Diamond, explains why finite lives produce dynamic inefficiency and intergenerational...

April 29, 2026

Ramsey growth model diagram with optimizing household and saddle path trajectory to steady state.

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Ramsey Growth Model Economics: How Households Choose Their Savings Rate

The Ramsey growth model economics framework replaces Solow's fixed savings rate with optimizing households that choose consumption and savings paths...

April 29, 2026

Median voter theorem overview highlighting single peaked preferences, the decisive role of the median voter, and convergence to the centre.

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Median Voter Theorem: Why Politicians Converge to the Centre

The median voter theorem explains why two candidates in a democracy converge to the centre, when the prediction holds, and...

April 29, 2026

Goodhart’s Law feature with M3 target versus actual data and the key insight that a measure ceases to be good when it becomes a target.

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Goodhart’s Law Economics: Why Targeting a Measure Destroys Its Value

Goodhart's Law economics explains why targeting any economic indicator destroys its informational value, from UK monetary aggregates in the 1980s...

April 29, 2026

Jevons paradox economics illustration with direct rebound, lighting cost decline, and backfire threshold.

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Jevons Paradox Economics: Why Energy Efficiency Doesn’t Always Save Energy

Jevons Paradox economics explains why efficiency gains lower the implicit price of energy services, triggering demand responses that can offset...

April 29, 2026

Revival of industrial policy showing US EU China subsidy race in semiconductors and clean energy.

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Revival of Industrial Policy: Why Governments Are Picking Winners Again

The revival of industrial policy is reshaping global economics as the US, EU, and China commit trillions to chips, clean...

April 27, 2026

Keynesian liquidity trap diagram showing the zero lower bound, expectations channel, and fiscal backup.

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Liquidity Trap Economics: When Monetary Policy Loses Its Power

Liquidity trap economics describes the condition where central banks lose conventional power as policy rates approach zero. From Japan's quarter‑century...

April 26, 2026

Black‑Scholes formula C equals S N d1 minus K e to minus r T N d2 with derivatives market size and Nobel Prize notation.

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Black-Scholes Model Explained: How Maths Revolutionised Financial Markets

The Black-Scholes model explained how to price an option from five inputs, founding modern derivatives markets and transforming how the...

April 22, 2026

Okun's Law diagram showing relationship between output growth and unemployment change.

Research Explained

Okun’s Law Economics: GDP Growth and Unemployment

Okun's Law economics establishes a stable inverse relationship between GDP growth and unemployment. The coefficient, its cross-country variation, and structural...

April 22, 2026