A Coase Theorem in Action

Credits to Greg Mankiw.

The theorem brings forth the idea that what really matters is that everything is owned by someone and that, initially, who owns what doesn't matter.

There sure is nothing like a free lunch.

It might've been the only sensible conclusion that I would make out from a recent class I sat through in Optimisation Techniques so I take a minute to rewrite it here.
The discussion rotated around functions and the different possible manipulations that make them fancier to suit the economist's intentions as it is for most mathematics for economists.

Concentrating on the cost function for the purpose of making my point, I came to piece it together that one is justified in saying there is nothing like a free lunch because the cost function is an increasing function in all possible domains that it can be extended to cover. The baker definitely incurs expenses and probably due to inflation these rise with time t eventually bring about actual price rises. Not that there'd be free lunch if costs stayed stagnant because I'd still assume that there'd still be fixed costs to be covered. If there was depreciation, then I'd also assume that lunch would get more affordable but not completely free. When a charity gives lunch for free, assuming bread constitutes lunch, there still needs to be someone somewhere who sponsors that meal or the participants themselves donate at their own discretion.

There is no free lunch in deed.

Pareto Efficiency?

Whoever said that a distribution set can be Pareto efficient and disgusting was right on the money. In fact I tend to think that the latter is sufficient for the former, practically. Enough said.

Go Egypt!

The Egyptian people have a real chance to have a go at democracy. Rid themselves of corruption that pervades most if not all institutions in the country and come out a prosperous beckon of the North of Africa and as it has become apparent from the surges in the farther East, a tacit example even to Arab nations. Egypt can achieve a lot if it looks carefully where it treads and chooses to let it's democratic river flow as majestically as only to rival the Nile. Freedom, unity, liberalism and progressiveness should not be taken for granted but rather be allowed to shine in Egypt.

If Egypt is to destabilize, it should not be on the basis of religion. Religious conflict would be grave because that has the potential of retarding every positive move that is to be realised from the deposition of a dictator. If Egyptian are going to strive for anything, it had better been religious tolerance.
The hope for now is that the military does not make the transition difficult. So far the military has been behind the people's wishes and that is commendable and other African armies should borrow many leafs.

Change that is in the air should not be expunged so soon.

Reviewing Kenyan Resilience on Independence Day

Kenya stands out amongst most developing African countries for its resilient, innovative, diverse, savvy, patient, forgiving and intelligible populace. The Kenyan mass has underlying distinguishing features that cut the marks many classes above other nations in the same endowment categories, the immediate neighbours to the East being a classic example.

Whether studied economically, socially, politically or spiritually, the East African pillar that is Kenya embodies characteristics of a potential giant waiting to be realised with time.

A perfect illustration of Kenyan resilience in its raw form can be deduced clearly from the events that were experienced in the country in the 2007 general elections. This election period was different from all others and most bloody of all. The nation underwent the worst ethnic clashes of current times which left hundreds dead and thousands displaced. Despite the state of violence that the nation went through, it took Kenyans a few months to come round and realise how grave the taste of violence is and they let peace reign. Whereas racial tensions are still fife and a reality in Kenya even as this publication goes online, blame can not be placed on the Kenyan people entirely for events that happened at the 2007-8 violence and it is a conceded truth that leadership failure is the big culprit in all of this. The Hague is taking up the case up to this day and it is my sincere belief that justice will be served right. The Kenyan people can be said to be cohesive once more but we must be wary and alert of any political persuasions that might instigate selfish divisive motives in the lead up to the up coming 2012 elections or in the future for that matter.

The question of leadership is one that has to be asked and answers sought tirelessly. Who does it is immaterial to the argument but some answers must be sought if progress is to be realised. Kenyan politics, like most other elsewhere in the world is not free of corruption. It is sometimes labelled as graft, which to me often symbolises something more critical than just corruption, massive anaemic corruption. I believe this culture can be changed primarily by elected officials but have Kenyans not tried this?  Innocent Kenyans have the drive to effect change whenever chance shows up at their doorsteps but change has continually eluded them far too often. What should serve as an attempt to act on this issue comes in the form of elections and these in recent times have only come by to replace corrupt regimes with less corrupt ones. Ultimately the elected officials troll their way to full-blown corruption as if it were routine. Wikileaks have recently released cables detailing corruption scandals in Kenya not to mention the much earlier Kroll Report which most would be familiar with.

Whilst the Kenyan population is very forgiving, it is also the hope of Kenyans that leaders will take a step to do something to stamp out corruption. Change for it to be effective will have to come from up the ranks but since this is not at all times forthcoming, Kenyans have to try to do it their way. I am not saying that what Kenyans should do is take up arms in protest, but they should take it upon themselves to make sure that they lead their lives in less and less corrupt ways in hope that the more people do the same that change will actually be visible. Kenyans must not wait for leaders to boss them into leading less corrupt lives but simple acts can mean great things. A simple admission of a speeding fine in place of a direct bribe to the traffic officer could be a possible starting point for instance.

Whilst Kenyans keep hearing of reports of multimillion shilling corruption or 'graft' cases, they must endeavour to working towards the change they so rightfully desire. The characteristic Kenyan boldness must not stop at winning athletic medals but it must also guide Kenyans to become the less corrupt nation it ought to be in order for it to prosper as a whole. Doing this might maybe, just maybe signal Kenyan leaders to take some form of action as Kenya celebrates its independence on December 12th.

Happy Jamhuri day Kenya.