The Role of Government in Society

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / March 27, 2025 / Foundations of Economics, Economic Policy, Globalization, International Economics, Macroeconomics, Markets, Microeconomics, Public Policy

The Role of Government in Society Read Post »

Governments play a pivotal role in shaping and sustaining society’s structure. Their influence extends across numerous dimensions, from the economy and lawmaking to public service provision and international relations. This article explores the multifaceted role of government in modern society, emphasizing its responsibility for maintaining social order, protecting individual rights, and fostering economic growth. At the heart of effective governance are democratic principles, the rule of law, and a commitment to social justice.

Accountability in Government, Bureaucratic Inefficiency, Civil Liberties, Constitutionalism, Consumer Protection, Corruption, Democracy, Economic Regulation, Economic Stability, Economics, Ethical Governance, Executive, Fiscal Policy, Global Cooperation, Globalization, Governance, Government, Government Overreach, Human Rights, international trade, Judiciary, Legislature, Market Regulation, Monetary Policy, Participatory Democracy, Personal Liberties, Political Economy, Public Goods, Public Policy, Public Services, Public Trust, Public-Private Partnerships, Redistribution of Wealth, Rogue Government, Rule of Law, Social Justice, social norms, Social Trust, Social welfare, Sustainable Development, Transparency in Government

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

Fundamentals of Microeconomics

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / August 14, 2023 / Foundations of Economics, Behavioral Economics, Economics, Household Economics, Markets, Microeconomics, Mobility, Technology

Fundamentals of Microeconomics Read Post »

Microeconomics is a branch of economic theory that analyzes the decision-making of economic agents, including private households, firms, and government, in an economy. It factors in environmental conditions and various influences that affect choices related to consumption, production, and resource allocation. Microeconomics also explores how coordination mechanisms and social networks influence the outcomes of these decisions, highlighting possible conflicts between individual options and collective decisions.

Behavior, Behavioral Economics, Collective Household, Economics, Firms, Government, Microeconomics, Private Household

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

Competitive and Complete Markets

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / May 15, 2023 / Markets, Economics, Financial Markets, Foundations of Economics, Macroeconomics, Microeconomics

Competitive and Complete Markets Read Post »

Let us discuss the nature of competitive and complete markets in economics. A competitive market is characterized by multiple buyers and sellers who have no control over market prices. Conversely, a complete market involves trade in all possible goods with no future price uncertainty. While both types feature many market participants, they differ substantially regarding certainty about future prices. Markets play a crucial societal role, contributing to efficient resource allocation and allowing freedom of choice. However, market failures like externalities and information asymmetry drive the need for appropriate regulation.

Behavioral Economics, Competitive Markets, Complete Markets, Economics, Equilibrium, Market Theory, Markets, Price Mechanism, Rationality, social interaction

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

Demand in Economics

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / December 9, 2021 / Foundations of Economics, Behavioral Economics, Economics, Markets, Microeconomics

Demand in Economics Read Post »

Demand in economics refers to the quantity of a good that consumers wish to consume under certain conditions. Price levels, income, consumer preferences, and market structures influence it. Economics students must understand the nature of individual household demand and aggregate market demand and its implications in various market situations such as monopsony, oligopoly, and perfect competition. Price and income elasticity, optimality conditions, and social interactions are crucial in shaping demand.

Demand, Individual Demand, Laws of Demand, Market Demand, Monopsony, Oligopoly, Perfect Competition

London and Europe’s Financial Capital

By Tommy Gache / October 21, 2020 / Economic Blog, Financial Markets, Globalization, International Economics, Markets

London and Europe’s Financial Capital Read Post »

Over the last century, London has established herself as Europe’s financial capital by ensuring and developing economic certainty, legal stability, political stability, and globalization. These four major achievements have placed London far above other European cities to attract business and investments and establish London as Europe’s Financial Capital. Which role will London play after Brexit? Which European city will replace London as Europe´s financial capital? Brexit creates economic uncertainty, legal instability, and political instability as Britain implements her new constitution. This instability and further challenges like Euro-clearing and pass-porting, highlight the effects of Brexit on London and her ability to

Amsterdam, Barcelona, Berlin, Brexit, Brussels, Economic Union, Europe, European Cities, European Union, Financial Capital, Financial Markets, Frankfurt am Main, Globalization, Hard Brexit, London, Madrid, Milan, Munich, Paris, Soft Brexit, Zurich

Social Distancing as a Health Risk Management Tool

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / April 1, 2020 / Globalization, Economics of Pandemics, Global Crises, Health Economics, Health risks, Macroeconomics, Markets, Microeconomics

Social Distancing as a Health Risk Management Tool Read Post »

Social distancing measures propagated by health experts and belatedly by governments worldwide as a means of health risk minimizer, are yet to unfold their full impact on health risk management caused by the COVID-19. Nevertheless, social distancing poses a high risk to the economic and social life of affected communities globally. Fears of a global economic slowdown have dominated discussions amongst the public, experts of different disciplines, politicians, entrepreneurs, and others.

COVID-19, Economic Research, Economic risks, Global Economy, Global Health Shocks, Globalization, Health Economics, Health risks, Social Distancing

Household Optimization Problem

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Fundamentals of Microeconomics

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Corona-Crash and the global economy

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Preferences and Utility Theory

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Demand in Economics

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London and Europe’s Financial Capital

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Markets

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