• Summary
  • Contents
  • Subject index

Interest in economics is at an all-time high. Among the challenges facing the nation is an economy with rapidly rising unemployment, failures of major businesses and industries, and continued dependence on oil with its wildly fluctuating price. Economists have dealt with such questions for generations, but they have taken on new meaning and significance.Tackling these questions and encompassing analysis of traditional economic theory and topics as well as those that economists have only more recently addressed, 21st Century Economics: A Reference Handbook is a must-have reference resource.Key FeaturesProvides highly readable summaries of theory and models in key areas of micro and macroeconomics, helpful for students trying to get a "big picture" sense of the fieldIncludes introductions to relevant theory as well as empirical evidence, useful for readers interested in learning about economic analysis of an issue as well for students embarking on research projectsFeatures chapters focused on cutting-edge topics with appeal for economists seeking to learn about extensions of analysis into new areas as well as new approaches Presents models in graphical format and summarizes empirical evidence in ways that do not require much background in statistics or econometrics, so as to maximize accessibility to students.

Economics of Information
Economics of information

As Francis Bacon once noted, knowledge is power. The need to acquire and process information is a tremendously important part of human interactions. Economic interactions are no exception. Investors buying stocks or other securities need to analyze the quality and reliability of information supplied to them. Employers must evaluate qualifications of job applicants prior to starting a working relationship with them. Insurance companies must set premiums based on the perceived risks of the insured. Examples of this sort abound in any field of economics.

The purpose of this chapter is to show that the structure of the information environment can have significant consequences for how the markets and the whole economy operate. Standard theories of competitive equilibrium usually avoid these issues ...

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