Financial Economics, Mathematical Economics, Microeconomics, Public Economics
Net Present Value: Discounting, Investment Appraisal and the Rate That Decides EverythingA pound today is worth more than a pound next year. Everyone nods at that. Almost nobody appreciates that the exact size of “more” — a single number chosen before any...
Financial Economics, Mathematical Economics, Microeconomics
Compound Interest: Simple vs Compound vs Continuous CompoundingEinstein almost certainly never called compound interest the eighth wonder of the world. The mathematics is remarkable enough without the endorsement — and once you see why the number e turns up uninvited,...
Behavioural Economics, Financial Economics
Introduction: The Most Useful Wrong Idea in Finance In 2013, the Nobel Prize in Economic Sciences was shared by Eugene Fama and Robert Shiller. Fama had spent his career arguing that asset prices efficiently incorporate all available information. Shiller had spent his...
