Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Healthcare – Private vs public sector

Posted on January 17, 2018

A look at some arguments for and against public/private healthcare provision. Should healthcare be left to the free market or should the government provide universal healthcare? Arguments for Public Health Care Healthcare is not a profit maximising industry. Doctors and nurses don’t need financial incentives to do a good job but are motivated by aims …


Herding behaviour

Posted on January 16, 2018

Herding behaviour refers to how individual decisions are influenced by group behaviour. It stems from the observation that if a herd of animals starts moving in one direction, all the animals want to follow the herd. Why herding behaviour occurs Following the crowd. In economics, we can see a similar behaviour. For example, if individuals …


Market Failure in the Housing Market

Posted on

Market failure occurs when the free market leads to an inefficient allocation of resources.  See – types of market failure Potential market failure in housing includes Homelessness – but empty housing Expensive cost of housing and inequality. Geographical immobility (regional difference in house prices) Boom and bust in house prices and effect on macroeconomy Housing …