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🔗 Finance & Investment 🔗 Economics 🔗 Food and drink 🔗 Food and drink/Foodservice 🔗 Retailing 🔗 Globalization

The Big Mac Index is a price index published by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible."

The index, created in 1986, takes its name from the Big Mac, a hamburger sold at McDonald's restaurants.

🔗 History 🔗 Economics 🔗 Philosophy 🔗 Business 🔗 Philosophy/Ethics

A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers. The cobra effect is the most direct kind of perverse incentive, typically because the incentive unintentionally rewards people for making the issue worse. The term is used to illustrate how incorrect stimulation in economics and politics can cause unintended consequences.

🔗 Computer science 🔗 Economics 🔗 Engineering 🔗 Gender Studies

Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engineer and economist, who used the concept in his studies of economic efficiency and income distribution. The following three concepts are closely related:

• Given an initial situation, a Pareto improvement is a new situation where some agents will gain, and no agents will lose.
• A situation is called Pareto-dominated or Pareto-inefficient if there is some possible Pareto improvement that has not been made.
• A situation is called Pareto-optimal or Pareto-efficient if no change could lead to improved satisfaction for some agent without some other agent losing or, equivalently, if there is no scope for further Pareto improvement (in other words, the situation is not Pareto-dominated).

The Pareto front (also called Pareto frontier or Pareto set) is the set of all Pareto-efficient situations.

Pareto originally used the word "optimal" for the concept, but as it describes a situation where a limited number of people will be made better off under finite resources, and it does not take equality or social well-being into account, it is in effect a definition of and better captured by "efficiency".

In addition to the context of efficiency in allocation, the concept of Pareto efficiency also arises in the context of efficiency in production vs. x-inefficiency: a set of outputs of goods is Pareto-efficient if there is no feasible re-allocation of productive inputs such that output of one product increases while the outputs of all other goods either increase or remain the same.

Pareto efficiency is measured along the production possibility frontier (PPF), which is a graphical representation of all the possible options of output for two products that can be produced using all factors of production.

Besides economics, the notion of Pareto efficiency has been applied to the selection of alternatives in engineering and biology. Each option is first assessed, under multiple criteria, and then a subset of options is ostensibly identified with the property that no other option can categorically outperform the specified option. It is a statement of impossibility of improving one variable without harming other variables in the subject of multi-objective optimization (also termed Pareto optimization).

🔗 United States 🔗 Finance & Investment 🔗 Economics 🔗 Business

The Panic of 1907 – also known as the 1907 Bankers' Panic or Knickerbocker Crisis – was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on banks and trust companies. The 1907 panic eventually spread throughout the nation when many state and local banks and businesses entered bankruptcy. Primary causes of the run included a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors, exacerbated by unregulated side bets at bucket shops.

The panic was triggered by the failed attempt in October 1907 to corner the market on stock of the United Copper Company. When this bid failed, banks that had lent money to the cornering scheme suffered runs that later spread to affiliated banks and trusts, leading a week later to the downfall of the Knickerbocker Trust Company—New York City's third-largest trust. The collapse of the Knickerbocker spread fear throughout the city's trusts as regional banks withdrew reserves from New York City banks. Panic extended across the nation as vast numbers of people withdrew deposits from their regional banks. It is the 9th largest decline in U.S. stock market history.

The panic might have deepened if not for the intervention of financier J. P. Morgan, who pledged large sums of his own money, and convinced other New York bankers to do the same, to shore up the banking system. This highlighted the impotence of the nation's Independent Treasury system, which managed the nation's money supply yet was unable to inject liquidity back into the market. By November, the financial contagion had largely ended, only to be replaced by a further crisis. This was due to the heavy borrowing of a large brokerage firm that used the stock of Tennessee Coal, Iron and Railroad Company (TC&I) as collateral. Collapse of TC&I's stock price was averted by an emergency takeover by Morgan's U.S. Steel Corporation—a move approved by anti-monopolist president Theodore Roosevelt. The following year, Senator Nelson W. Aldrich, a leading Republican, established and chaired a commission to investigate the crisis and propose future solutions, leading to the creation of the Federal Reserve System.

🔗 Disaster management 🔗 Economics 🔗 Urban studies and planning

The great horse manure crisis of 1894 refers to the idea that the greatest obstacle to urban development at the turn of the century was the difficulty of removing horse manure from the streets. More broadly, it is an analogy for supposedly insuperable extrapolated problems being rendered moot by the introduction of new technologies. The phrase originates from a 2004 article by Stephen Davies entitled "The Great Horse-Manure Crisis of 1894".

The supposed problem of excessive horse-manure collecting in the streets was solved by the proliferation of cars, buses and electrified trams which replaced horses as the means of transportation in big cities. The term great horse manure crisis of 1894 is often used to denote a problem which seems to be impossible to solve because it is being looked at from the wrong direction.

The name refers to a supposed 1894 publication in The Times, which said "In 50 years, every street in London will be buried under nine feet of manure". The reasoning was that more horses are needed to remove the manure, and these horses produce more manure. An urban planning conference in 1898 supposedly broke up before its scheduled end due to a failure to find an answer to this problem. No such statement in the Times, nor conference result, is known, but in 1893 London there was a complaint that horse manure, formerly an economic good that could be sold, had become a disposal problem, an economic bad.

The supposed crisis has since taken on life as a useful analogy.

🔗 Computer science 🔗 Economics 🔗 Engineering

In multi-objective optimization, the Pareto front (also called Pareto frontier or Pareto curve) is the set of all Pareto efficient solutions. The concept is widely used in engineering.^{: 111–148} It allows the designer to restrict attention to the set of efficient choices, and to make tradeoffs within this set, rather than considering the full range of every parameter.^{: 63–65 : 399–412}

🔗 Internet 🔗 Computing 🔗 Computing/Computer hardware 🔗 Finance & Investment 🔗 Economics 🔗 Law 🔗 Computing/Software 🔗 Computing/Free and open-source software 🔗 Computing/Computer science 🔗 Cryptography 🔗 Cryptography/Computer science 🔗 Numismatics 🔗 Guild of Copy Editors 🔗 Numismatics/Cryptocurrency 🔗 Cryptocurrency 🔗 Open 🔗 Computing/Computer Security

Bitcoin (₿) is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its source code was released as open-source software. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.

🔗 Economics 🔗 Taxation

A land value tax (LVT) is a levy on the value of land without regard to buildings, personal property and other improvements. It is also known as a location value tax, a site valuation tax, split rate tax, or a site-value rating,

Land value taxes are generally favored by economists as they do not cause economic inefficiency, and reduce inequality. A land value tax is a progressive tax, in that the tax burden falls on land owners, because land ownership is correlated with wealth and income. The land value tax has been referred to as "the perfect tax" and the economic efficiency of a land value tax has been accepted since the eighteenth century. Economists since Adam Smith and David Ricardo have advocated this tax because it does not hurt economic activity or discourage or subsidize development.

LVT is associated with Henry George, whose ideology became known as Georgism. George argued that taxing the land value is most logical source of public revenue because the supply of land is fixed and because public infrastructure improvements would be reflected in (and thus paid for) by increased land values.

Land value taxation is currently implemented throughout Denmark, Estonia, Lithuania, Russia, Singapore, and Taiwan; it has also been applied to lesser extents in parts of Australia, Mexico (Mexicali), and the United States (e.g., Pennsylvania).

🔗 Finance & Investment 🔗 China 🔗 Economics

Zhima Credit (Chinese: 芝麻信用; pinyin: Zhīma Xìnyòng), also known as Sesame Credit, is a private credit scoring and loyalty program system developed by Ant Financial Services Group (AFSG), an affiliate of the Chinese Alibaba Group. It uses data from Alibaba's services to compile its score. Customers receive a score based on a variety of factors based on social media interactions and purchases carried out on Alibaba Group websites or paid for using its affiliate Ant Financial's Alipay mobile wallet. The rewards of having a high score include easier access to loans from Ant Financial and having a more trustworthy profile on e-commerce sites within the Alibaba Group.

🔗 Medicine 🔗 Economics 🔗 Books 🔗 Politics 🔗 Women writers 🔗 Medicine/Psychiatry

The Shock Doctrine: The Rise of Disaster Capitalism is a 2007 book by the Canadian author and social activist Naomi Klein. In the book, Klein argues that neoliberal free market policies (as advocated by the economist Milton Friedman) have risen to prominence in some developed countries because of a deliberate strategy of "shock therapy". This centers on the exploitation of national crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are excessively distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively. The book suggests that some man-made events, such as the Iraq War, were undertaken with the intention of pushing through such unpopular policies in their wake.

Some reviewers criticized the book for making what they viewed as simplifications of political phenomena, while others lauded it as a compelling and important work. The book served as the main source of a 2009 documentary feature film with the same title directed by Michael Winterbottom.