Unsolved problems in economics
From Wikipedia, the free encyclopedia
Some unsolved problems in economics include:
- What is the proper size and scope of government? Where can government intervention improve on the market? Does a market failure necessarily mean that government intervention is warranted? Can intervention make things worse? If the government intervenes in a market, how should it intervene? To what extent is public ownership of assets and businesses warranted?
- The Great Depression. What truly caused the Great Depression? Did one single event cause it? Was the United States the cause? What set the stage for it? See also: possible Causes of the Great Depression
- The Equity premium puzzle. Can we explain the Equity Premium Puzzle? Why is it that observed average annual returns on stocks over the past century are higher, by approximately 6 percentage points, than returns on government bonds?
- Futures contract model. Can we create an equivalent of Black-Scholes for futures contract pricing?
- What is the microeconomic foundation of inflation? or How does inflation arise from individual agent decisions?.
- Is the money supply endogenous? Mainstream economics claims that it is; post-Keynesian economics claims that it is not.
- How does price formation occur? Why do some markets achieve Pareto efficiency?
