Fuel subsidies are elitism dressed as populism. Thus, they are irresistible to politicians in developing countries.
Why? They sound like a benefit to the poor; yet, they profit the rich who drive. Somehow, lower classes think that the politicians are assisting them. The rich know the politicians have financed them. Thank you. Therefore, lower oil prices Read More Time to cut fuel subsidies
Last year my economic forecast for 2014 called for a rate of real economic growth of 4% for the U.S., much higher than the prevailing forecast at the time as well as the prevailing rate of economic growth that had existed in the years 2010-2013. Economic growth had only been sputtering along at between 1.8% Read More 2015 Economic Forecast
The objective of firm value maximization is at the heart of corporate financial theory. A company can create value through its operating, investment, and financing decisions. From the financing perspective, a firm can maximize its value by achieving the optimal mix of borrowed capital (debt) and equity; in effect, this optimal balance minimizes the firm’s Read More Financial Policy: What is the optimal capital structure and why does the debt level vary among industries?