Social and Behavioral Sciences Commons^™

How Default Probability Affects Returns On Loans, Lester G. Telser

Lester G Telser

Even the simplest kind of default as an independent random event poses difficulties. The correct formulas for the nominal return on a default free loan and the revisions to apply for a loan that may default follow from 2 assumptions. 1. A good now is better than a good later because survival from now to later is not sure. 2. Private loans occur only if the probability of default does not exceed an upper bound set by the reciprocal of the nominal return on a default free loan. This upper bound makes sense if and only if the nominal interest …

The Actual Economy Versus A Fictional Economy, Lester G. Telser

Lester G Telser

This note describes some practical problems of the actual economy ignored by the standard theory

An Economist's Analysis Of The Voting Paradox, Lester G. Telser

Lester G Telser

It has been said that democracy is the worst form of government except all the others that have been tried. The best argument against democracy is a five-minute conversation with the average voter. Winston Churchill

Non Profit Suppliers Of Higher Education: Corollaries, Lester G. Telser

Lester G Telser

The American Association for the Advancement of Science bills Harvard University $26,675 for a one year subscription to their weekly publication Science. That anon profit suppliers of higher education is willing to pay such amounts far above the true incremental cost of supplying it with such publications is a corollary of the economic explanation of their behavior. Nonprofit Organizations JEL L30

Digital Storage In The Computer Age And The Irish Potato Famine, Lester G. Telser

Lester G Telser

Intransitivity Shown By An Assignment Problem, Lester G. Telser

Lester G Telser

Ricardian Rent Explains Costs Of Elite Colleges, Lester G. Telser

Lester G Telser

Modern Economics In The Modern World, Lester G. Telser

Lester G Telser

A commodity is a creature of society, its traditions, its experience and, when necessary, its laws. Society defines and controls the legitimate use of commodities almost without exceptions. The three main categories of commodities are private, semi private and non private. An eating apple is a private commodity, an airline seat is a semi private commodity and a computer software program is a non private commodity. This essay describes how modern economics treats these categories.

What Linear Models Of An Economy Can Teach Us, Lester G. Telser

Lester G Telser

What Linear Models of an Economy Can Teach Us The best way to appreciate the importance of convexity in models of the economy is by a careful examination of a linear model. Because a linear model relies on von Neumann's Saddle Value Theorem, this Theorem is the starting point of the model for two reasons. First, it explains its original application to 2-person zero sum games and its use of mixed strategies. Second, it shows why mixed strategies mislead economic analysis of non convexity in production. The linear model of the economy is a valid application of the Saddle Value …

An Economy Is Not A Zero Sum Game: How Economics Uses Game Theory, Lester G. Telser

Lester G Telser

Economics Becomes A Science:1900-1999, Lester G. Telser

Lester G Telser

No abstract provided.