The standard
view on income inequality is that the US is a much more unequal society than
Europe. However, once we consider Europe
as a single entity (i.e., United States of Europe) rather than individual
countries, income inequality is much greater in Europe. Given that there is effectively a single
labour market in the EU, it probably makes sense to think of European income inequality
in this manner. You can read more on
this over at Slate.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.
