Crowdfunding – how does it work?

What is crowdfunding? Crowdfunding refers to using many individual people that generally invest small amounts of money into a business, cause or any type of project. The power of the crowd allows raising quite high amounts of money if the idea is appealing or the business promising. There are in principle four different types of

Online brokers – explained in easy words

What is an online broker? Online brokers primarily allow private individuals to buy and sell stocks and other securities such as bonds and mutual funds. Sometimes online brokers are also called discount brokers for their cheaper prices compared to traditional brokers. What does an online broker do? An online broker quite simply passes your orders

Online Brokers in Germany

A variety of online brokers or discount brokers, as they are often referred to, operate on the German market. It is not easy to choose the best one and it certainly depends on your investment needs and habits. In the following we give a short overview of three  interesting online brokers and their advantages and disadvantages.

Efficiency Wages – explained in simple words

  The term efficiency wages describes a labor market theory that tries to explain the real-world observation of wage development. Although the economy fluctuates considerably over time, real wages do not change with the same ups and downs as a pure supply and demand analysis would imply. A possible explanation for this phenomenon is proposed by the

Trade Union model of wage setting and unemployment – Explained in simple words

Similar to the efficiency wage theory, the trade union model illustrates why wages are not set in terms of a traditional supply-and-demand process. The trade union model explains the so called stylized fact (that means a real-world observation), that wages do not fluctuate very much while employment does. The trade union models aims at clarifying those observations. The trade

What ist an EGARCH model?

Exponential General Autoregressive Conditional Heteroskedasticity-EGARCH What is an EGARCH model? EGARCH means Exponential General Autoregressive Conditional Heteroskedasticity and is an empirical approach mostly used in financial modeling. It is often not sufficient to model the first moment (the mean) of a financial time series. The reason is that the second moment (volatility) is not always constant. In fact,

The No-Shirking model – Explained in simple words

The no-shirking model is a labor market theory that is part of the efficiency wage theory and tries to explain why wages are higher than a traditional supply-and-demand analysis would suggest. Whereas the number of people employed changes quite a bit when the economy fluctuates, wages in real terms (that means adjusted to inflation) stay relatively constant over time. Efficiency