Education Economics

Economics is a compelling force that has helped shaped countries and empires as far back as history records. Economic trends have had diverse effects which include triggering World War Two, the collapse of the Soviet Economy, the democratisation of South Korea and Japan and many others. The story of successful economies cannot be told with a mention of their respective histories.

Economic History studies the evolution of the phenomena from a historical standpoint. The analysis is taken using a combination of statistical and historical methods and applying theories to historical situations.

Economic historians argued that the two are split into distinct parts:

1. Economic History: The study of how economic phenomena evolved in the past
2. Historical Economics: Testing the generality of theory using historical episodes

This explained in lay terms could be an attempt at a distinction between Arts and Science -the former being primarily an economic history and the latter primarily an economic science.

If you wish you had known more before this economic recession hit and you find yourself brainstorming ways out of this mess, then perhaps pursing a Business Economics major is for you! At an economics college, you’ll learn about many aspects of business, management, finance, marketing and corporate planning, in addition to the money management issues of today. The majority of people working in applied economics hold positions as forecasters, analysts, market researchers, government workers and client support personnel.

As you may have heard, the choice of school and the pursuit of a degree are extremely important in determining your success in economics. Just about every school offers macro economics and microeconomics courses, but to really get ahead, you’ll want to get into a graduate school with the best department of Economics you can find. The best schools may offer more passionate teachers, better internship options, more extensive areas of study and the sort of prestige you’ll need when looking to start your career in the competitive labor market.

Scott Peltzman, an Economics Professor at the University of Chicago, has gained public notoriety for his “Peltzman Effect”. Professor Peltzman believes the benefits of well-intended safety regulations are negated because people adjust behavior in ways that counteract the intended effect of the regulation. They may drive more recklessly, or speed because they feel more protected by seat belts, guard rails, traffic lights, etc. The result may be that risk is redistributed to innocent bystanders.

We live in an ever more risk intolerant world. Government at all levels regularly passes statutes, ordinances and laws to protect citizens. They are always well-intended but often counter-productive. I believe that the Peltzman Effect is as intuitive in economics as it is in the area of government regulation.