Oxford Odyssey

Category: Economics

  • Government handouts and its theoretical futility

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    Ricardian equivalence is an economic theory that challenges the effectiveness of government spending as a tool for stimulating economic activity. The theory posits that when a government borrows to finance spending, rational consumers anticipate future tax increases required to repay the debt. As a result, they save more, neutralising the stimulative effect of the spending.…

  • Tragedy of the Commons

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    The tragedy of the commons refers to a situation where individuals, acting in their own self-interest, deplete shared resources, leading to long-term collective harm. This concept highlights issues that arise when externalities—costs or benefits incurred by third parties—are not reflected in market prices. The inherent conflict between individual incentives and collective welfare often demands solutions…

  • Climate Change – explained in economics

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    Climate change has been acknowledged for many years now. A majority of people (about 70% of the population across the Western hemisphere) believe that it is a problem. It’s an impending catastrophe with a solution that is completely within grasp. The problem is man-made, and can hence be stopped if we had the willpower to…

  • Game Theory

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    Game theory is about anticipating the reactions of the other party and making your move based on that reaction, projecting it out into the future. However, it is often reduced to iconic examples like the Prisoner’s Dilemma, a scenario so frequently cited that it risks trivialising the depth and breadth of this field. While the…

  • The Signalling Problem in Higher Education: Why Gen Zs in University have it tough

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    Is a university degree still worth it? For many in Gen Z, the question feels more urgent than ever. Despite skyrocketing tuition fees and growing student debt, university enIs a university degree still worth it? For many in Gen Z, this question shakes the once-unquestionable value of further education. Many were told growing up that…

  • The Beauty of Behavioural Economics

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    Behavioural economics is a fascinating field that bridges psychology and economics, offering insights into how people actually make decisions, often in ways that deviate from traditional economic models. In this article, I walk through some of the main branches of behavioural economics that are covered by the economics department at Oxford: nudges and inertia, as…

  • The Paradox of Risk: Gambling vs. Risky Investments

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    Disclaimer This article is for general educational and informational purposes only. It reflects the author’s personal views and should not be treated as investment, financial, legal, tax, or other professional advice. Investing involves risk, including the possible loss of your entire investment. Past performance is not a reliable indicator of future results, and examples mentioned…