Hot answers tagged

7

Part A: how much does the UK contributes to the EU Budget This depends on whether you use fiscal year or calendar year estimates. The figures for the 2015/2016 fiscal year are here. The key is the following graph: The calendar year estimates are here. The following Table summarizes the data: Naturally, the net contribution is what matters for analysis the ...


3

As Tobias said, wages in general only adjust in neighboring regions if people move between the regions until expected utility (of working in either region) equalizes. If there is a (fixed) cost of moving, people will not move until move until expected utility equalizes, but until the difference in expected utilities from moving in either region is equal to ...


3

The underlying reason are probably differences in labor productivity. Assuming decreasing marginal productivity of labor, the real question is why migration flows do not equate labor productivity and wages as would be predicted by simple GE models. I can think of several factors: Moving is costly Czech people in Germany are not as productive as Germans in ...


2

Inflation forecast is higher in the US than the rest of countries. US here: https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/ Spain here: https://www.statista.com/statistics/271077/inflation-rate-in-spain/ Japan here: https://www.statista.com/statistics/270095/inflation-rate-in-japan/ UK here: https://www.statista....


2

The Eurozone has lower interest rates right now as the Federal Reserve in the US has been steadily raising rates in the past two years. The EU is still in a period of low interest rates to encourage spending and spur economic growth/inflation and are only now beginning to eliminate Quantitative Easing. Both of these factors, the low rates and QE, lead to the ...


2

In Europe there is typical more regulations and more and higher taxes on profits, financial transactions, and on products and services. This means there is less incentive for entrepreneurs to create their businesses since they face for example higher yields and higher interest rate coupons, environmental regulations, state bureaucracy which increases the ...


2

The governments want to ensure that there is enough food for their people even if international food trade breaks down (for example due to trade war, war, or famine). A secondary objective is that they want low food prices to make food affordable to people with low/medium income. Politicians that drive up food prices for the masses are less likely to get ...


2

Markets are extremely poor at pricing events that have very low probability and catastrophic impacts. In part because we're very bad at estimating low-probability events: by definition, they're rare. And in part because the catastrophic impacts fall on pretty much all the population, so any single purchase has very widely-spread potential negative ...


Only top voted, non community-wiki answers of a minimum length are eligible