The Impact of Egoistic Behavior on Fiscal Policy

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / April 10, 2025 / Economic Blog, Behavioral Economics, Economic Policy, Fiscal Economics, Globalization, Leadership and Management, Macroeconomics, Personality, Public Policy

The Impact of Egoistic Behavior on Fiscal Policy Read Post »

This interdisciplinary study analyzes how egoistic behavior adversely affects fiscal policy, linking institutional economics, political theory, and moral philosophy. The research critiques the structural embedding of self-interest within fiscal systems, highlighting examples such as the Trump presidency and tax reforms. It reveals that egoistic behavior leads to regressive taxation and undermines public services, thus eroding democratic trust. The study also contextualizes fiscal dysfunction historically, urging reforms that emphasize ethical accountability and participatory democracy to restore fiscal policy as a tool for justice and equity. Ultimately, it proposes a roadmap to reclaim fiscal governance as a public instrument reflecting collective needs.

Austerity Politics, Behavioral Economics, Budget Accountability, Campaign Finance, Corporate Capture, Democratic Erosion, Democratic Governance, Democratic Institutions, Egoistic Behavior, Environmental Taxation, Executive Power, Fiscal Federalism, Fiscal Policy, Fiscal Reform, Global Justice, Human Capital, Institutional Economics, Legal Immunity, Legal Impunity, Political Economy, Postcolonial Fiscality, Postcolonial Inequality, Public Finance, Public Goods, Social Equity, Tax Justice, Wealth Inequality

Household Optimization Problem

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / February 22, 2024 / Foundations of Economics, Economic Blog, Economics, Household Economics, Markets, Microeconomics

Household Optimization Problem Read Post »

In this article, you will learn how to formally describe the household optimization problem in your microeconomics. To understand how private households make their consumption and resource allocation decisions in the real world, we shall look at the crucial elements that affect optimal decision-making, e.g., price, income, and preference changes. A private household is one of the primary agents making economic decisions relevant to other economic agents, e.g., government and firms. Here is a revisit of the household maximization problem described in many microeconomic and economics textbooks. But with a clear outline and a better understanding of how households set goals, their opportunity cost optimization process, and the interpretation of outcomes.

Economics, Household, Leisure Consumption, Marginal Rate of Substitution, Maximization, Maximum Principle, Microeconomics, Minimization, Minimum Principle, opportunity costs, Optimization, Private Consumption, Relative Price, Utility

Cosmopolitanism in the EU

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / August 10, 2023 / Globalization, Diversity, Economic Blog, Economics, Mobility, Study in Germany, Sustainability

Cosmopolitanism in the EU Read Post »

Since enacting and implementing the Treaties of the European Union (EU), European citizens enjoy the benefits of Cosmopolitanism in the EU. Cosmopolitanism as a philosophy emphasizes the importance of global Citizenship and the interconnectedness of all people worldwide. In the European context, it should be rooted in the belief that Europeans and the larger global community are all part of a larger community transcending national boundaries and that their actions should reflect pluralism in Society. Cosmopolitanism in Greek Philosophy to Modernity Cosmopolitanism is rooted in ancient Greek philosophy and has been a recurring theme in Western countries. At its core, Cosmopolitanism is

Cosmopolitanism, Economic Policy, Europe, European Citizenship, European Union, Global Citizenship, Globalization, leadership, Nationalism, Political Environment, Political Science

Corona-Crash and the global economy

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / August 8, 2023 / Global Crises, Behavioral Economics, Economic Blog, Economics of Pandemics, Financial Markets, Globalization, Health Economics, International Economics, Macroeconomics, Markets, Microeconomics

Corona-Crash and the global economy Read Post »

The Corona Crash in March 2020 significantly impacted the global economy, with many businesses forced to shut down and millions of people losing their jobs. Looking back, the stock market experienced a sharp decline, and many industries, including travel, hospitality, and entertainment, were hit hard. The pandemic caused a decrease in consumer spending, as people were either unable or unwilling to leave their homes. This led to a reduction in demand for goods and services, which in turn caused many businesses to suffer. The unemployment rate skyrocketed, and many people struggled to make ends meet. Financial Markets adjust to Corona-Crisis

Corona-Crash, COVID-19, Economic Crisis, Economic of Pandemics, English, Financial Crisis, Financial Markets, Global Economy, Global Health Shocks, Globalization, Health Economics, International Economics, Macroeconomics, Market Crisis, Microeconomics, Pandemic, Stock Markets

Preferences and Utility Theory

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / February 21, 2023 / Microeconomics, Behavioral Economics, Business Administration, Economic Blog, Economics, Foundations of Economics, Markets

Preferences and Utility Theory Read Post »

Preferences and utility theory are critical concepts in microeconomics, explaining household decision-making behavior. Preferences refer to how households make choices necessary to satisfy their needs when comparing bundles of goods. Utility theory uses mathematical concepts to express these preferences and elucidate household satisfaction levels. Rational preferences must meet completeness, transitiveness, continuity, convexity, and monotonousness. Various preferences exist, including substitutes, complements, perfect and imperfect substitutes, and perfect compliments. Preference and utility theory ultimately help derive the formal opportunity costs of alternatives in household theory.

decision-making, Economics, Household economics, Marginal Rate of Substitution, opportunity costs, Preferences, Rational Decision, Rationality, Relative Price, Utility Theory

Tale Of A Scout Rumish

By Tommy Gache / September 16, 2022 / Creative Corner, Economic Blog

Tale Of A Scout Rumish Read Post »

Old man Rumish lay in bed, waiting for sleep that never came, the usual susurration and hum of the city the main bother. He decided to get up early as he had a long journey ahead. It was just before dawn when he left the city behind. There was the glimmer of daylight in the cloudless Eastern sky, heralding the hot desert sun. He had saddled his horse and rode off to the south into the undulating dunes and the dry sands. He carried a few supplies; a small bag of dates for himself, a small bag of oats for

Creative Literature, Creative Writing, Short Stories, Short Story, Thriller, Writing skills

Corporate Financing

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / January 14, 2022 / Finance and Investments, Business Administration, Economic Blog, Financial Accounting, Financial Markets, Leadership and Management

Corporate Financing Read Post »

Corporate financing is how companies can obtain funds to invest in their projects. Respectively, there are different ways to raise funds for a business. This article elaborates on the overview of the types of financing available to firms in their financing decision. 1. Introduction to types of corporate financing What types of business financing do you know? Why do businesses need funding? Firms need access to scarce resources to implement their production plans and achieve profitability goals (rationale from economics and business administration). Consequently, that requires that they coordinate cash flows in each business period. Hence, companies can, on the

Corporate Finance, Debt Financing, Equity Financing, External Financing, Financial Markets, Internal Financing

Elasticity in Economics

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / January 6, 2022 / Foundations of Economics, Economic Blog, Economic Policy, Economics, Microeconomics, Public Policy

Elasticity in Economics Read Post »

Elasticity in economics represents the sensitivity of economic parameters like demand, supply, and prices, among others, to changes in affecting factors. It includes price elasticity of demand, which assesses demand changes if prices increase, and income and cross-price elasticity in household theory. Additionally, direct and indirect price elasticity of demand are derived mathematically. Also, firm and market theories apply elasticity to assess the price sensitivity of input demand, production, firm supply, and market representation.

Demand Elasticity, Economics, Elasticity, Household Theory, Market Theory, Microeconomics, Price Elasticity, Theory of the Firm

Accounting Obligation in Germany

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / November 6, 2021 / Financial Accounting, Economic Blog, Economic Consultancy

Accounting Obligation in Germany Read Post »

What is the accounting obligation in Germany for all merchants? This article presents a general description and interpretation of Sections 238 and 239 of the German Commercial Code. Are you planning to start a business in Germany? Familiarize yourself with the legal accounting obligations applied in the German jurisdiction. Accounting Obligation – Section 238 German Commercial Code According to Section 238 of the German Commercial Code, all merchants have an accounting obligation in Germany. That means every merchant must keep books of account. The books of account should show all their commercial transactions. It should also show the status of

Accounting, Accounting Obligation, Accouting Books, Bookkeeping, Business Administration, Financial Accounting, financial accounting basics, German Commercial Code, Startups

Household Optimization Problem

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Cosmopolitanism in the EU

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Corona-Crash and the global economy

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Preferences and Utility Theory

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Tale Of A Scout Rumish

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Corporate Financing

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Elasticity in Economics

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Accounting Obligation in Germany

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Economic Blog

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