from the Liberty Street Economics
-- this post authored by Rod Garratt
The 2012 Nobel Prize in economics was awarded to Alvin E. Roth and Lloyd S. Shapley for their work on matching problems. Two-sided matching problems, like assigning jobs to workers or dorm rooms to students, can be complicated enough. But sometimes the matching problem can be even more difficult. It may be that an item supplied by Alice is useful to Bob, but Bob has nothing of value to give to Alice. If, however, the item supplied by Bob is valuable to Charlie, then there is the potential for a matching chain. Charlie gives something to Alice, Alice gives something to Bob, and Bob gives something to Charlie. Such chains can by themselves be very complicated, and work must be done to identify chains that provide the most benefit. The first Nobel laureate mentioned above has done considerable work designing matching mechanisms used in kidney exchange. But why is all of this necessary? Why isn't there simply a market with prices?
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-- this post authored by George Friedman
Happenstance has brought me today to a house on the Austria-Germany border, just south of Salzburg. That puts me about 3 miles from the German town of Berchtesgaden, on the German side of the border. Adolf Hitler's home, the Berghof, was just outside the town, on a mountain in the Bavarian Alps. To the extent that Hitler had a home, this was it, and it was the place where Hitler met with many notables, particularly before the war began.
Infographic Of The Day: Tackling Sleep Deprivation And Other Sleep Maladies
We have identified the 7 deadly sleep depriving monsters from their continued research on dreams and sleep habits.
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by James Rickards, Daily Reckoning
The Federal Reserve uses a complicated econometric model to make its forecasts about the U.S. economy. This model is called 'Federal Reserve Bank U.S.,' nicknamed FERBUS. It shows growth of 5% in the near future.
Article of the Week from Money Morning
by David Zeiler, Associate Editor, Money Morning
Although stocks have recovered somewhat, the six consecutive days of losses have many investors asking, 'Is this a bear market?'
31Aug2015 Market Close: Markets Close Down, Oil Remains High, But Sliding As All Market Indicators A
31Aug2015 Market Update: DOW Off 97 Points, Markets Pausing Previous Bullish Action, Oil Going Crazy
31Aug2015 Pre-Market Commentary: U.S. Futures Down Sharply, Oil Up But Trending Down, September Rate
Written by Steven Hansen
Econintersect's Economic Index improved from last month's lowest index level since April 2010. The tracked sectors of the economy generally improved somewhat or the growth remained unchanged. Still, our economic index has been in a long term decline since late 2014.