Keynesian economics was created as a direct response to the great depression in the 1930's. Keynesian economics today is perverted. I doubt that Keynes original idea was Quantitative Easing (QE) to infinity. We will in this paper discuss Keynesian economics and some of the faulty assumptions

This paper will create a dynamic economic model where the objective for the government is to maximize economic growth with respect to the available capital in the economy. The amount of capital in the economy is determined by the capitalists in the model which represent the micro foundation in...

The aim of this study is to facilitate the teaching of optimal control in economics. Understanding optimal control can be challenging to say the least. This study discusses optimal control and its applications in economics. More specifically the famous Keynesian-Ramsey rule will be explored and...

In this paper we will discuss the strength (austerity does not work) and the weakness (Quantitative Easing) of Keynesian economics. We will describe the ergodic hypothesis which plays a critical role in Keynesian economics. We will also try to provide an answer to the question: What role does...

Government usually tends to have two options. They can either pursue a tax revenue maximizing strategy or a growth maximizing strategy. The two approached do not necessarily go hand in hand. This paper derives and empirically estimates a simple laissez faire optimal taxation model from the...

Portfolio Theory has during many decades been considered as the holy grail of investment despite the fact that very few empirical studies in the public domain have shown that portfolio theory outperforms a random equal weighted portfolio. We will in this paper empirically investigate how...

Portfolio Theory has during many decades been considered as the holy grail of investment despite the fact that very few empirical studies in the public domain have shown that portfolio theory outperforms a random equal weighted portfolio. We will in this paper empirically investigate how...

An investment manager can solve portfolio optimizations problems in many different ways. However, he needs to be very careful when it comes to selecting optimization algorithms because the performance can be very different especially when the global universe of assets is large. We will in this...

We will in this paper investigate if a Tactic Asset Allocation (TAA) decision tool such as the slope of a moving average on the asset return will result in a statistical higher profit for an investor compared to a simple random investment strategy. The result indicates that a moving average...

In this paper we will discuss the relationship among volume, volatility and return momentum in global financial markets. It turns out that when the volatility is large i.e. the difference between the daily high price and the daily low price is large then the trading volume is also large. We also...