April 2014

Seventeen years ago the Red River flooded caused immense damage in Grand Forks and East Grand Forks. It seems natural to take a look at the state of the economy. Certainly there were major changes, and it is important to note which changes had more impact or longer durations than others. The time patch of the Grand Forks experience is also important. Lessons for other communities about what went right, and what went wrong could be gleaned from this nearby history.

Continue reading Grand Forks, 17 A.F. (after flood)

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Asymmetric information is a feature of many, if not most, transactions. My bank regulation students are particularly tired of hearing about AI issues. Purchase of any product entails some risk, even of a standardized product. There are situations where asymmetric information can create problems for transactions. The classic used car model of Akerloff, the so-called “lemons” problem is one market where there is such a problem. In the past callers to my radio visits expressed a similar concern with donations to charity.

Continue reading Private Solutions to Asymmetric Information Problems

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