This paper disproves the “constrained equal award” scheme, which is intended to explain the bankruptcy problem cited in Talmud, the Hebrew bible. While it may fit one purpose, it does not fit another. This paper also confirms that there is no fix rule for any bargaining problem

This paper proves that Krugman's currency crisis model belongs to the medieval time, when commodity money prevailed. This paper also reveals many mistakes of his model. Instead, this paper reconsiders the crisis model offered by Choi (2014). Currency crisis arises from the denial of stealing by...

This paper invokes Fisher (1907) to teach Smets and Wouters (2003) how to work out the consumption solution for their DSGE model. When they have simply used the marginal condition for estimation, they are too lazy. When the solution is worked out, DSGE reduces to a steady-state growth model,...

This paper proves that DSGE model by Kydland, Prescott and Plosser is the repetition of an earlier calculation procedure advocated by Solow, and that its “prediction” is nothing but tautology. Tautology reproduces the original parameters and data, and its fit is naturally perfect, but...

This paper anticipates the downfall of Euro. It reveals two inherent features of doing business with central banks. When some member countries of the ECB are deprived of these rights, they should demand the regain. When each member gets back its right, Euro does not exist any more

This paper unveils how Kydland and Prescott have eliminated the wage rate variable from their labor function to call its fluctuation “real”. The trick is the abuse of constant returns to scale. When all variables of a production function are eliminated this way, the so-called DSGE model is...

This paper shows that economists have so far been applying a wrong model to explain and rectify the agency dilemma. In particular, policing other people is just another agency paradox. Since the agency problem is usually considered a crime problem, this paper applies the new crime prevention...

This paper generalizes the Talmud Rule, and proves that the rule is actually indecisive. Although it gives the impression that the rule is to split a disputed amount equally between two parties, this paper shows that it sometimes split it otherwise. Then, there is no rule any more. This paper...

This paper shows that the current measure to protect environment is either ineffective, or even leads to more severe pollution. Punishment, or tax, does not eliminate or mitigate pollution. Instead, this paper calls for pollution prevention. Measures recommended include: (i) Cheaper legitimate...

This paper shows that environmental economists have misinterpreted and abused the marginal cost pricing theory. The charge corresponding to the marginal cost of abating pollution does not work. On the contrary, it leads to more severe pollution. This paper proves that the cleaning firms should...