Page 2 - General Equilibrium News Today

An index measuring the ratio of house price to rent has risen to its highest level since 1975. The previous peak occurred during the housing bubble.

Garrett Watson, Alex Durante, Alex Muresianu In December, scholars David Hope and Julian Limberg released a study with the London School of Economics (LSE) examining the economic effects of reducing tax rates for high-income individuals and corporations. The paper illustrates how overlooking an important element of the tax system—the structure of the tax base—can lead to an incomplete understanding of how tax reform impacts the economy. The paper uses data fr...

The Rule of 70, sometimes also referred to as the Rule of 72 or Rule of 69.3, is a method for approximating the number of years it will take for a number to double, given its annual growth rate. As mentioned in the book "Summa de Arithmetica", by the "father of accounting and bookkeeping" Luca Pacioli, in 1494, it is a simple calculation in which the rule number is divided by the annual growth rate to obtain the approximate number of years required for doubling. Using this rule for per capita ...