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Economics homework help

Visionary Leadership

1. Provide an example of a leadership figure from today’s modern world who, in your opinion, exemplifies the Mathews (2016) definition. a. No leader exemplifies a visionary leader quite like Mahatma Gandhi. While he may not be considered modern anymore, a lot of his beliefs and practices are what inspire and drive most of today’s visionary leaders. Gandhi is popularly referred to as ‘Mahatma’ Gandhi, meaning ‘great soul’, and is commonly called ‘bapu’ in India, meaning ‘father’. He is officially honored in India as the ‘father of the nation’, as it was under his leadership and guidance than the freedom movement in India gained momentum, ultimately leading to India’s independence in 1947. Gandhi was a national leader, a freedom fighter, a visionary, a humanist, and a socialist reformer. He has been a source of inspiration and role-model for not only the common man, but various other leaders such as Martin Luther King and Nelson Mandela as well.

2. Provide reasons why this person meets this definition by showing how they meet the definitions characteristics through their actions and beliefs. a. Gandhi’s biggest quote that lives on today is “be the change, we want to see”. Gandhi’s greatest ability was to walk his talk at every level and in every way. He practiced what he preached at every possible level. Mahatma Gandhi sacrificed his thriving law practice and adopted a simple life to live among the millions who lived in poverty during his freedom struggle. A critical success for Gandhi was the support he got across the nation. A significant part of this was due to his extraordinary persistence once he had articulated his vision and his methods. His determination in following through on what he preached was often at a cost to his own well-being. There were quite several times Gandhi failed; each time he used the failure to improve his leadership skills and to improve himself and the task at hand. Mahatma shows us that even the best leaders still fail and make mistakes. He also shows that the difference between good leaders and great leaders is that the great leaders acknowledge and learn from their mistakes. Gandhi had a way of making sure that everyone in the cause is connected to the goal. He not only had self-belief, but he had the ability to inspire the Indian people to believe in themselves and their goal of freedom. Mahatma believed that challenging his selfdiscipline heightened his commitment to achieving his goals. He was a focused leader that had a “Do or Die” attitude. He ‘would free India or die in the process. Mahatma would do extraordinary things to improve his discipline and commitment.

3. Provide an example of a leadership figure from the modern world that you believe has accomplished all 3 of Mathews (2016) stages of visionary leadership through their actions and policies and outline the context of how. a. Barack Obama fits as a good example of a visionary leader. This is because he has accomplished all the visionary leadership skills for example, He could adopt to the crises and stressful situation. He had ability to think, judge, remember and solve the problems of the country. He also had a skill to relate cultural situations and work so efficiently.

Cultural Intelligence (CQ)

1. Describe CQ.

a. CQ is the ability of an individual to compare and then work effectively within different culturally diverse situation. It is also a very critical part in setting a person to be part of the globalized world which uses artificial intelligence, innovations, and machine learning. It also involves the person’s ability to compare and then work with other people from differing background.

2. Describe your own understanding of your current level of CQ, in relation to how you view other people from other cultures in your immediate surroundings.

3. In my CQ I see people from other cultures as people who are very knowledgeable, motivation and. friendly.

4.The people in my surrounding are good, caring, hardworking and intelligent people.

a. In my CQ, I see people from other cultures as people who are very knowledgeable, motivation and friendly. The people in my surrounding are good, caring, hardworking and intelligent people.

3. What element of it may you be lacking that could improve your CQ?

a. Knowledge of Languages, observation norms and communication modes

Responsible Leadership

1. Briefly describe what the various level of the Outcomes from Voegtlin et al. (2012), in relation to how a leader must encourage their employees to be successful.

a. According to the macro-level outcome of fostering the relations of stakeholders, the leader can encourage the employees to work hard and reduce the corporate scandals to prevent erosion of the corporate legitimacy. leaders will use these outcomes to build relationships with the employees which is very trustful. Other outcome level is the Meso-level, leaders can use these outcomes to propose responsible conducts of leadership which can change the disposition and practices for the organization.

2. Identify 3 of the 8 Propositions on p. 17 from Voegtlin et al. (2012) that you believe are the most important for a leader like yourself in your future career to understand and apply, and why.

a. Proposition 4: Responsible leaders can gradually change the ethical culture of an organization over time. Responsible leadership will thereby encourage a culture of discursive conflict resolution and deliberative practices.

b. This is because, a responsible leader will be fair and ethical to promote the image of the company and be fair to all workers. This will make employees want to work for a company.

c. Proposition 8: Responsible leadership will have a positive effect on followers ’attitudes and cognitions (e.g., job satisfaction, motivation, commitment or organizational citizenship behavior).

d. Proposition 7: Responsible leadership contributes directly and indirectly to the performance of an organization under the caveat of ethical or moral means. This is for the same reasons as proposition 4. The more moral and ethical a leader or company is the more employees will respect you and want to come work for you.

3. What is the main point of the arguments being made about the need for global leaders to incorporate Corporate Social Responsibility in their practices per Voegtlin et al.?

a. The main point is managers to discuss the relations with their stakeholders plus their roles in common good relation

4. Outline your personal understanding of what may limit your ability to process information now as a leader.

a. Lack of direct communication is one thing that limits the ability to process information. Without direct communication it is almost impossible to do the job the right way. Also receiving and giving ineffective feedback will limit the ability to process information.

Works Cited

en world India. (2019). Remembering Gandhiji – 5 Leadership Lessons we can adopt in our modern management. Retrieved 2022, from https://www.enworld.co.in/blog/2019/10/remembering-gandhiji-5-leadership-lesson-wecan-adobt-in-our-modern-management Feinberg, R. E. (2016, July 29). Obama Demonstrates Visionary Leadership in Refashioning U.S. Relations with Cuba. Brookings. https://www.brookings.edu/blog/upfront/2014/12/17/obama-demonstrates-visionary-leadership-in-refashioning-u-s-relationswith-cuba/

Economics homework help

Question 1: True/False [15 points]

i. When people are stuck in a poverty trap, no aid or intervention can help them.

£ True

£ False

ii. Famine—that is, extreme scarcity of food in a particular geographic area—is becoming less common over time.

£ True

£ False

iii. Most children in developing countries today are not enrolled in school.

£ True

£ False

iv. In many developing countries, the poor spend a significant proportion of their budgets on food.

£ True

£ False

v. Books for Africa is a non-profit organization that ships used textbooks to primary school students in Africa. Based on the evidence we saw in class, this program is likely to be highly effective at improving learning outcomes for students who receive the donated books.

£ True

£ False

vi.

Question 2: Multiple choice [15 points]

i.
A key contribution of the Miguel & Kremer (2004) paper on mass deworming was that their design accounted for externalities of the treatment. Because of externalities, previous papers that used individual-level randomization:

a)
Understated the effect of deworming on educational outcomes (made it seem less effective than it really was)

b) Overstated the effect of deworming on educational outcomes (made it seem more effective than it really was)

c) Were biased, but the direction of bias is unclear

d) Provided unbiased estimates of the effect of deworming on educational outcomes

e) It is not possible to say.

ii. A good for which consumption decreases as the price decreases is called a “Giffen” good. Which of the following is most likely to be a Giffen good for the poor in a developing country?

a) Meat

b) Fish

c) Chocolate

d) Rice

e) All of the above

iii. Based on the evidence we saw in class, which of the following policies or programs have been successful at improving school enrollment?

a) Providing cash to families who enroll their children in school

b) Providing cash to families with no strings attached

c) Providing information about job opportunities for educated people

d) a) and b)

e) a) and c)

iv. In class and in the reading, we saw good evidence for a nutrition-based poverty trap in which of the following areas?

a) Adults experiencing extreme undernutrition (insufficient calories) in Indonesia

b) Floriculture workers who received extra meals in Ethiopia

c) Children experiencing micronutrient deficiency in Kenya

d) Poor households consuming rice and wheat in China

e) All of the above

v. What has been the main cause of famine in the current century?

a) Insufficient global food production

b) Conflict and war

c) Government corruption and elite capture of resources

d) The poor choosing not to buy food

e) All of the above


Question 3 [10 points]

1. Please define a poverty trap. (2)

2. The following figures depict potential relationships between an individual’s income today and income tomorrow. In which figures could a poverty trap occur? Select ALL that apply (4)

Shape  Description automatically generated with medium confidence

a)

Shape  Description automatically generated with medium confidence

b)

Shape  Description automatically generated with medium confidence

c)

Shape  Description automatically generated with medium confidence

d)

3. In class, we discussed an example of how adult undernutrition could create an “S-shaped” relationship between poor laborers’ income today and work hours tomorrow. Describe one other example of how we could see an S-shaped relationship between income today and income, work hours, or work capacity in the future (for example, related to child nutrition, education investments, or agriculture). (4)


Question 4 [20 points]

The below questions are based on Jensen (2012), “Do Labor Market Opportunities Affect Young Women’s Work and Family Decisions?” which studies the impact of informing young women in rural India about new job opportunities in the business process outsourcing (BPO) sector.




i. This study is a test of the human capital model. The human capital model says that an individual will complete an additional year of schooling if:


where the variables are the same as defined in class: is the direct cost of schooling, is the indirect cost of schooling, is the wage in time t if you obtain schooling, and is the wage in time t if you do not obtain schooling. In 2-3 sentences, explain what this expression means (that is, explain the intuition behind this result). (4)

ii. The study tests the human capital model because the intervention changes people’s beliefs about one of the variables in the expression above. Which variable is this? (2)

iii. The study found that, in treatment villages, girls aged 6-17 were more likely to be enrolled in school, even though the intervention targeted young women aged 18-24. Is this result consistent with the human capital model? Why or why not? (4)

iv. Imagine a program similar to the one in the study, where recruiters came to villages to inform young women about labor market opportunities. However, suppose this program focuses on agricultural day labor rather than call center jobs. How do you think this program would affect whether young girls are enrolled in school? Explain why, using the human capital model. (5)

v. Now imagine that the village was exposed to a disease epidemic primarily affecting people in their 20s and 30s. How do you think this program would affect whether young girls are enrolled in school? Explain why, again using the human capital model. (5)

Question 5 [20 points]

Between 2010 and 2015, a government rolls out a school lunch program to different schools. Suppose you are the lead researcher on an impact evaluation of the new schools. You are given the table below. The number in each cell is the average weight in pounds for 8 year olds.



Average weight of 8 year olds:




School received program between 2010 and 2015?

Yes: Lunch program

No lunch program

Data collected in 2015

43

50

i.
Using only the data above, compute an estimate of the impact of the school lunch program. That is, if we take this estimate at face value, how does participating in the school lunch program change children’s weight? (2)

ii. Provide one specific and concrete reason that this a poor estimate of the impact of the program. (4)

Fortunately, you are able to obtain additional data from 2009, before the lunch program started were built:

Average weight of 8 year olds:

School received program between 2010 and 2015?

Yes: Lunch program

No lunch program

2015 Data

43

50

2009 Data

41

49.5

iii. Is this new data consistent with the problem you identified in (ii)? Why or why not? (4)

iv. Compute the Difference-in-Differences estimate of the effect of the school building program schooling attainment. (4)

v. Now, suppose you learn that in some regions, children who live on the border of two school districts were randomly chosen to go to either a school that got the new program, or a school that didn’t. You are able to obtain data on these children as follows. Use these data to calculate your best estimate of the impact of the school lunch program. (4)

Randomly assigned to attend school that received lunch program between 2010 and 2015?

Yes: attended lunch program

No lunch program

2015 Data

43.3

40.01

2013 Data

42.5

40.02

vi. Explain why you calculated the impact the way that you did. (2)


Question 6: Short Answer [10 points each]

Answer only TWO of the following questions. If you answer more than two, only the first two will be graded. Each answer should be about 5 sentences.



a) Jensen and Miller randomize the prices of staple foods in China. They find that when they reduce prices, demand for staple foods decreases, and in fact total calories consumed also decrease. Explain what this implies about the income elasticity of demand for calories. Then, explain whether this is consistent or inconsistent with the idea of a nutrition-based poverty trap. A complete answer will include a discussion of why Giffen goods violate the law of demand.

b)
Discuss one current demand-side issue and one current supply-side issue in education in developing countries. Provide examples of two promising programs to address one or both of these issues.

c) Carter, Laajaj and Yang, studied temporary agricultural input subsidies to improve farmers’ productivity. Briefly summarize the key elements of the program and the results of the evaluation. Then, discuss whether the results are consistent or inconsistent with the idea of a poverty trap and justify your answer.

d) What is the “transportation problem” in randomized controlled trials and related methods? Explain in detail. Then, discuss how it affects our interpretation of the results of the studies we have learned about in class.

1

Economics homework help

Please choose a topic of your interest from the following chapters for the presentation:

Chapter 30: Government Budgets and Fiscal Policy

Chapter 31: The Impact of Government Borrowing

Chapter 32: Macroeconomic Policy Around the World

Chapter 23: The International Trade and Capital Flows

Chapter 33: International Trade

Chapter 34: Globalization and Protectionism

Some topics:

Government Borrowing

Why do governments borrow money?

Comparison of Macroeconomic policies in different countries

International trade, its impact on the economy, and challenges

Tariffs and why are they enforced?

Global trade agreements (NAFTA, Trans-Pacific Partnership(TPP), etc.,)

Role of WTO, IMF, and the EU

The above list is only for your reference. Please feel free to choose a topic of interest from the chapters covered.

You can do a PowerPoint presentation, video, visual, audio-visual, infographics, skit, etc., on one of the topics. 


Group Presentation Rubric

Please check the link below for library resources for different presentation styles, citations, library databases, and scheduling an online session with the librarian for research help:

 https://research.library.gsu.edu/econ

Economics homework help

Visionary Leadership

1. Provide an example of a leadership figure from today’s modern world who, in your opinion, exemplifies the Mathews (2016) definition. a. No leader exemplifies a visionary leader quite like Mahatma Gandhi. While he may not be considered modern anymore, a lot of his beliefs and practices are what inspire and drive most of today’s visionary leaders. Gandhi is popularly referred to as ‘Mahatma’ Gandhi, meaning ‘great soul’, and is commonly called ‘bapu’ in India, meaning ‘father’. He is officially honored in India as the ‘father of the nation’, as it was under his leadership and guidance than the freedom movement in India gained momentum, ultimately leading to India’s independence in 1947. Gandhi was a national leader, a freedom fighter, a visionary, a humanist, and a socialist reformer. He has been a source of inspiration and role-model for not only the common man, but various other leaders such as Martin Luther King and Nelson Mandela as well.

2. Provide reasons why this person meets this definition by showing how they meet the definitions characteristics through their actions and beliefs. a. Gandhi’s biggest quote that lives on today is “be the change, we want to see”. Gandhi’s greatest ability was to walk his talk at every level and in every way. He practiced what he preached at every possible level. Mahatma Gandhi sacrificed his thriving law practice and adopted a simple life to live among the millions who lived in poverty during his freedom struggle. A critical success for Gandhi was the support he got across the nation. A significant part of this was due to his extraordinary persistence once he had articulated his vision and his methods. His determination in following through on what he preached was often at a cost to his own well-being. There were quite several times Gandhi failed; each time he used the failure to improve his leadership skills and to improve himself and the task at hand. Mahatma shows us that even the best leaders still fail and make mistakes. He also shows that the difference between good leaders and great leaders is that the great leaders acknowledge and learn from their mistakes. Gandhi had a way of making sure that everyone in the cause is connected to the goal. He not only had self-belief, but he had the ability to inspire the Indian people to believe in themselves and their goal of freedom. Mahatma believed that challenging his selfdiscipline heightened his commitment to achieving his goals. He was a focused leader that had a “Do or Die” attitude. He ‘would free India or die in the process. Mahatma would do extraordinary things to improve his discipline and commitment.

3. Provide an example of a leadership figure from the modern world that you believe has accomplished all 3 of Mathews (2016) stages of visionary leadership through their actions and policies and outline the context of how. a. Barack Obama fits as a good example of a visionary leader. This is because he has accomplished all the visionary leadership skills for example, He could adopt to the crises and stressful situation. He had ability to think, judge, remember and solve the problems of the country. He also had a skill to relate cultural situations and work so efficiently.

Cultural Intelligence (CQ)

1. Describe CQ.

a. CQ is the ability of an individual to compare and then work effectively within different culturally diverse situation. It is also a very critical part in setting a person to be part of the globalized world which uses artificial intelligence, innovations, and machine learning. It also involves the person’s ability to compare and then work with other people from differing background.

2. Describe your own understanding of your current level of CQ, in relation to how you view other people from other cultures in your immediate surroundings.

3. In my CQ I see people from other cultures as people who are very knowledgeable, motivation and. friendly.

4.The people in my surrounding are good, caring, hardworking and intelligent people.

a. In my CQ, I see people from other cultures as people who are very knowledgeable, motivation and friendly. The people in my surrounding are good, caring, hardworking and intelligent people.

3. What element of it may you be lacking that could improve your CQ?

a. Knowledge of Languages, observation norms and communication modes

Responsible Leadership

1. Briefly describe what the various level of the Outcomes from Voegtlin et al. (2012), in relation to how a leader must encourage their employees to be successful.

a. According to the macro-level outcome of fostering the relations of stakeholders, the leader can encourage the employees to work hard and reduce the corporate scandals to prevent erosion of the corporate legitimacy. leaders will use these outcomes to build relationships with the employees which is very trustful. Other outcome level is the Meso-level, leaders can use these outcomes to propose responsible conducts of leadership which can change the disposition and practices for the organization.

2. Identify 3 of the 8 Propositions on p. 17 from Voegtlin et al. (2012) that you believe are the most important for a leader like yourself in your future career to understand and apply, and why.

a. Proposition 4: Responsible leaders can gradually change the ethical culture of an organization over time. Responsible leadership will thereby encourage a culture of discursive conflict resolution and deliberative practices.

b. This is because, a responsible leader will be fair and ethical to promote the image of the company and be fair to all workers. This will make employees want to work for a company.

c. Proposition 8: Responsible leadership will have a positive effect on followers ’attitudes and cognitions (e.g., job satisfaction, motivation, commitment or organizational citizenship behavior).

d. Proposition 7: Responsible leadership contributes directly and indirectly to the performance of an organization under the caveat of ethical or moral means. This is for the same reasons as proposition 4. The more moral and ethical a leader or company is the more employees will respect you and want to come work for you.

3. What is the main point of the arguments being made about the need for global leaders to incorporate Corporate Social Responsibility in their practices per Voegtlin et al.?

a. The main point is managers to discuss the relations with their stakeholders plus their roles in common good relation

4. Outline your personal understanding of what may limit your ability to process information now as a leader.

a. Lack of direct communication is one thing that limits the ability to process information. Without direct communication it is almost impossible to do the job the right way. Also receiving and giving ineffective feedback will limit the ability to process information.

Works Cited

en world India. (2019). Remembering Gandhiji – 5 Leadership Lessons we can adopt in our modern management. Retrieved 2022, from https://www.enworld.co.in/blog/2019/10/remembering-gandhiji-5-leadership-lesson-wecan-adobt-in-our-modern-management Feinberg, R. E. (2016, July 29). Obama Demonstrates Visionary Leadership in Refashioning U.S. Relations with Cuba. Brookings. https://www.brookings.edu/blog/upfront/2014/12/17/obama-demonstrates-visionary-leadership-in-refashioning-u-s-relationswith-cuba/

Economics homework help

BCO121 GLOBAL ECONOMICS – Task brief & rubrics

Final assignment

Task:

· Individual task

· In the week 13 class on May 2nd you will have to submit your final assignment through turnitin on the Moodle page of this course

· You must complete the task in class on your computer and submit it before the end of your class

· You must submit your work as a word document and any other type of document will not be accepted as other types of documents will not give turnitin scores

Question:

· With reference to real world examples assess the pros and cons of different exchange rate systems. In your answer you should refer to:

· Floating exchange rate regimes – you should in particular consider whether floating currencies are condusive to promoting international trade.

· Pegged exchange rate regimes and pegged with bands exchange rate regimes – you should consider the possibility of currency crises in relation to the pegged with bands currency regimes and should consider an actual currency crisis such as the 1992 Black Wednesday Crisis for the pound and its membership of the ERM.

· Single currencies – in relation to single currencies you should consider the pros and cons of the Euro, you should bring in the Optimal Currency Area argument, and you should in particular consider whether a nation like Greece in the aftermath of the 2008 Financial Crisis suffered more than it would have if it had not been a part of the Eurozone (due to its inability to devalue its currency or implement a looser monetary policy) and you should also consider whether the ECB has reponsed adequately to the economic challenges of the current coronavirus crisis (i.e. should the ECB be implementing a looser monetary policy in particular right now). You should consider whether a one size monetary policy does fit all.

Formalities:

· The minimum amount of words to be used is 2000 and the maximum is 2500

· You may want to include images/graphics etc. (for example from their website) to make your reasoning and argumention more visual and explicative

· Font: Arial. Size: 12,5pts. Line spacing: 1,5. Text align: Justified.

· Appendices and References, do not count towards the final wordcount but are strongly recommended (referencing websites, articles, books etc.)

· In text references and and a bibliogrpahy are expected and must follow the Harvard citation style.

Submission: is due on Turnitin by 18:00 on 2nd May 2022. Submission can not be completed before the start of your class on 2nd May 2022.

Weight: This task is worth 40% of your overall grade for this subject.


Outcomes: This task assesses the following learning outcomes:

· develop a complex understanding of the main concepts of international economics and how to apply them;

· understand and analyze the different global economic theories;

· distinguish between the different international economic systems;

· explore economic integration in different economic areas

Exceptional

90-100

Good

80-89

Fair

70-79

Marginal fail

60-69

Knowledge and Identification of the main Issues

20%

Identifies and demonstrates a sophisticated understanding of the main issues / problems in the case study

Identifies and demonstrates an accomplished understanding of most of the issues/problems.

Identifies and demonstrates acceptable understanding of some of the issues/problems in the case study

Does not identify or demonstrate an acceptable understanding of the issues/problems in the case study

Application

30%

Student applies fully relevant knowledge to the situation provided

Student applies mostly relevant knowledge to the situation provided

Student applies some relevant knowledge to the situation provided. Some minor misunderstandings may be evident.

Student applies little relevant knowledge to the situation provided. Misunderstandings are evident.

Evaluation

30%

Student assembles a coherent response to the question, providing a range of support and justification that leads to a well-reasoned conclusion

Student assembles a good response to the question, providing support and justification that lead to a well-reasoned conclusion

Student assembles a fair response to the question, providing some support and justification that lead to a well-reasoned conclusion. Minor misunderstandings may be evident

Student’s response to the question lacks coherence. Limited support and justification are provided that may or may not be well linked to the conclusion

Communication

20%

Student communicates ideas extremely clearly and concisely. Compliance with the guidelines on font, size, line spacing and text align will also be taken into account.

Student communicates ideas clearly and concisely. Compliance with the guidelines on font, size, line spacing and text align will also be taken into account.

Student communicates ideas fairly clearly and concisely. Compliance with the guidelines on font, size, line spacing and text align will also be taken into account.

Student attempts to communicate ideas clearly and concisely, with some problems. Student does not follow the guidelines on font, size, line spacing and text align.

Rubrics

Economics homework help

Macroeconomic Theory

1 Chapter 15: Monetary Policy in the Intertemporal Framework

Our dynamic framework has had no role for money, which acts as a medium of exchange, unit

of account, and store of value. We introduce money into the in�nite-period framework as a store

of value. This feature allows for us to use the model to study how the monetary policy of central

banks may in�uence real economic activity and con�ict with the classical dichotomy.

→ Introducing money requires us to consider an additional market, The Money Market.
• Money Demand: The nominal quantity demanded of money demanded by households

(as well as �rms and the government).

• Money Supply: The nominal quantity of money in circulation (e�ectively determined by
the banking system)

⇒ Equilibrium in the Money Market occurs when the nominal quantity of money supplied equals
nominal quantity of money demanded.

→ To generate money demand for households, we will use the Money-in-the-Utility (MIU)
approach, where demand for real money holdings is an explicit argument in the households’

utility function. For any given period t:

u

(
ct, lt,

MDt
Pt

)
(1)

where MDt is the nominal money demand (so that M
D
t /Pt is real money demand).

1.1 MIU Model

1.1.1 Households

max
{ct+s,lt+s,MDt+s}


s=0

V =
∞∑
s=0

βsu

(
ct+s, lt+s,

MDt+s
Pt+s

)
(2)

subject to the nominal period-t budget constraint:1

Ptct + At + M
D
t = (1 + it)At−1 + M

D
t−1 + Wt(1− lt) (3)

→ The intratemporal and intertemporal conditions, along with a new `consumption-money’
optimality condition, can be derived by setting up the sequential Lagrangian, and taking the

�rst-order conditions with respect to ct,ct+1, lt,At, and M
D
t :

L =
∞∑
s=0

{βsu
(
ct+s, lt+s,

MDt+s
Pt+s

)
+λt+s(Pt+sct+s + At+s + M

D
t+s − (1 + it+s)At+s−1

−MDt+s−1 −Wt+s(1− lt+s))}

1
recall that for any nominal variable X, the real quantity is de�ned as x = X/P

1

Writing this out for s = 0,1:

L =u
(
ct, lt,

MDt
Pt

)
+ λt

(
Ptct + At + M

D
t − (1 + it)At−1 −M

D
t−1 −Wt(1− lt)

)
+ βu

(
ct+1, lt+1,

MDt+1
Pt+1

)
+ λt+1

(
Pt+1ct+1 + At+1 + M

D
t+1 − (1 + it+1)At −M

D
t −Wt+1(1− lt+1)

)
+ …

Taking FOCs:

∂L
∂ct

= 0 −→
∂u

∂ct
+ λtPt = 0 −→

∂u

∂ct

1

Pt
= −λt (4)

∂L
∂ct+1

= 0 −→ β
∂u

∂ct+1
+ λt+1Pt+1 = 0 −→ β

∂u

∂ct+1

1

Pt+1
= −λt+1 (5)

∂L
∂lt

= 0 −→
∂u

∂lt
+ λtWt = 0 −→

∂u

∂lt

1

Wt
= −λt (6)

∂L
∂At

= 0 −→ λt − (1 + it+1)λt+1 = 0 −→−λt = −(1 + it+1)λt+1 (7)

∂L
∂MDt

= 0 −→
∂u

∂MDt

1

Pt
+ λt −λt+1 = 0 −→

∂u

∂MDt

1

Pt
+ λt = λt+1 (8)

→ Intratemporal Optimality Condition (Nominal terms): Using Equations (4) and (6):

∂u

∂ct

1

Pt
=
∂u

∂lt

1

Wt


∂u/∂lt
∂u/∂ct

=
Wt
Pt

(9)

→ Intertemporal Optimality Condition (Nominal terms): Using Equations (4)-(5) into (7):

−λt = −(1 + it+1)λt+1

∂u

∂ct

1

Pt
= (1 + it+1)β

∂u

∂ct+1

1

Pt+1


∂u/∂ct

β∂u/∂ct+1
=

Pt
Pt+1

(1 + it+1) (10)

2

→ Consumption-Money Optimality Condition: Using Equation (7) into (8):

∂u

∂MDt

1

Pt
+ λt = λt+1

∂u

∂MDt

1

Pt
+ λt =

λt
(1 + it+1)

∂u

∂MDt

1

λtPt
+ 1 =

1

(1 + it+1)

∂u

∂MDt

1

λtPt
=

1

(1 + it+1)
−1

∂u

∂MDt

1

λtPt
=

1−1− it+1
(1 + it+1)

∂u

∂MDt

1

λtPt
=

−it+1
(1 + it+1)

Using Equation (4) into the above:

(
∂u

∂MDt

) −Pt(∂u
∂ct

)
Pt


 = −it+1(1 + it+1)


∂u/∂MDt
∂u/∂ct

=
it+1

(1 + it+1)
(11)

⇒ Equation (11) is the new consumption-money optimality condition.
→ Intuition: The household desires to have real money holdings such that the MRS of money

for consumption is equal to the relative price of holding money to consumption, each in terms of

their opportunity cost (i.e. savings in interest bearing asset).

⇒ This optimality condition characterizes the households’ demand for money:
→ An increase in the nominal interest increases the right-hand side of Equation (11), which
implies that the rate of exchange of money for consumption increases.

→ Assuming a dominant substitution e�ect, the household responds by reducing their money
holdings relative to their consumption.

→ Graphically, the household’s money demand function is expressed in (Mt, it+1) space:

3

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1.1.2 Central Bank

⇒ The central bank (exogenous) is assumed to be able control the nominal money supply2 with
the intent of achieving a speci�c nominal interest rate in the money market.

→ Buys (sells) nominal quantities of interest bearing assets from households with money to
increase (decrease) the money supply as desired.

→ The money supply is assumed to be exogenous absent a monetary policy shock.
→ Graphically, the money supply function is shown in (Mt, it+1) space:

1.1.3 Firms

In nominal terms, the �rm’s problem is:

max
{nt+s,kt+s+1}∞s=0

Profit =
∞∑
s=0

(1+it+s)
−s{Pt+sf(kt+s,nt+s)−Pt+s(kt+1+s−(1−δ)kt+s)−Wt+snt+s}

(12)

→ Taking the �rst-order condition with respect to labor and future capital yields the usual
labor demand and investment demand optimality conditions for the �rm:

∂f/∂nt =
Wt
Pt

(13)

∂f/∂kt+1 + (1−δ) =
Pt
Pt+1

(1 + it+1) (14)

2
Reality is of course much more complex. The banking system as a whole is thought to determine the

outstanding nominal quantity of money through the creation of bank deposits. Since we are not modeling

commercial banks explicitly, it is common to assume for simplicity that the central bank can attain any desired

quantity of money supply.

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1.1.4 General Equilibrium

With the addition of the money market, we have four equilibrium conditions: Labor Market,

Financial Market, Goods Market, and the Money Market.

⇒ Money Market Equilibrium: Occurs at a nominal interest rate it+1∗ such that MDt =
MSt , where M

D
t is determined by the households’ consumption-money optimality condition and

MSt is determined by Central Bank policy. Graphically:

⇒ Financial Market Equilibrium: Occurs at real interest rate rt+1∗. such that st = invt.
As usual, it’s characterized using households’ and �rms intertemporal optimality conditions to

obtain:
∂u/∂ct

β∂u/∂ct+1
= 1 +

∂f

∂kt+1
−δ

⇒ Labor Market Equilibrium: Occurs at wt∗ such that nSt = nDt . As usual, it’s charac-
terized using the households’ and �rms’ intratemporal optimality condition to obtain:

∂u/∂lt
∂u/∂ct

=
∂f

∂nt

⇒ Goods Market Equilibrium: Occurs when ADt = ASt. As usual without a federal
government:

f(kt,nt) = ct ∗+invt∗

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1.2 Short-run Monetary Policy Analysis with the MIU model

1.2.1 A Closer Look at Money Demand

Note that real money balances MDt /Pt appear in the households’ utility function while the house-

hold chooses nominal money balances.

→ This implies that the price level will appear in the consumption-money optimality condition.

EXAMPLE: Suppose that the sub-utility function takes the natural log form so that:

u

(
ct, lt,

MDt
Pt

)
= log ct + log lt + log

MDt
Pt

Evaluated at this utility function, the consumption-money optimality condition becomes:

∂u/∂MDt
∂u/∂ct

=
it+1

1 + it+1

1/(MDt /Pt)

1/ct
=

it+1
1 + it+1

ct

(MDt /Pt)
=

it+1
1 + it+1

⇒ MDt =
(
1 + it+1
it+1

)
Ptct

⇒ Implications of the Money Demand Condition: Since the money market equilibrium condition

MSt = M
D
t =

(
1 + it+1
it+1

)
Ptct always holds in general equilibrium changes to M

S
t must change

one or more of it+1, Pt, and ct.

→ The extent to which real variables are a�ected depends on the speed which Pt adjusts within
a given period.

1.2.2 Monetary Policy Shocks

• A Monetary Policy Shock will unexpectedly increase or decrease MSt .

EXAMPLE: Suppose the Central Bank increases MSt . Use a money market and goods market

diagram to graphically show how output and/or the price level is a�ected when Aggregate Supply

is Classical, and when it is Keynesian.

⇒ Classical Aggregate Supply: No speci�ed relationship between Pt and qt

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• Monetary Neutrality: monetary policy shocks have no e�ect on real economic activity.
→ Occurs when goods prices and wages are fully �exible
⇒ Intuition: Despite the initial reduction in it+1, which acts to increase desired ct given the

households’ intertemporal optimality condition, the within-period increase in Pt exactly o�sets

the e�ect of the decrease in it+1 on ct.

→ Since consumption is una�ected, the �nancial market equilibrium remains unchanged.
→ Since there are no changes to the supply or demand schedules, nominal wages adjust so

that the labor market equilibrium remains unchanged.

⇒Keynesian Aggregate Supply: Assumed that Pt may not change within a given period.

• Monetary Non-Neutrality: monetary policy shocks a�ect real economic activity.
→ Occurs when goods prices and/or wages are `sticky’.
⇒ Intuition: The initial reduction in it+1 increases desired ct given the households’ intertem-

poral optimality condition, which is not o�set by an increase in Pt.

→ Since current consumption changes, there will be a decrease in supply schedule in the �-
nancial market and an increase in the labor supply schedule in the labor market (both resulting

from the households’ inter- and intratemporal optimality conditions).

→ There will be a change to real economic variables in general equilibrium.

1.3 Limits to Conventional Monetary Policy

• The Lower Bound: Nominal interest rates cannot fall below some lower bound i.
→ As nominal interest rates approach i, typically to be a rate close to zero, the household becomes
indi�erent between holding money or interest-bearing assets as a store of value.

⇒ At the lower bound, increases in the money supply cannot e�ect real economic activity
through changes to the nominal interest rate.

→ Consumption-money condition becomes
∂u/∂MDt
∂u/∂ct

=
i

(1 + i)
, which implies that money

demand becomes horizonal over i.

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  • Chapter 15: Monetary Policy in the Intertemporal Framework
  • MIU Model
  • Short-run Monetary Policy Analysis with the MIU model
  • Limits to Conventional Monetary Policy

    Economics homework help

    ACTIVITY BRIEF FOR ASSESSMENT CHOOSE AN ASSESSMENT CATEGORY

    ACADEMIC YEAR 2021 – 2022 – SPRING

    Course BCO221 – Global Economics (3CH/4ECTS)
    Instructor Dr. Neus Vila Brunet

    Participation in all assessment activities stated in this document is required. An overall course total of 70
    points is required to pass the course. Due dates and times are always in Geneva time.

    Assessment Choose an assessment category

    Description Due date and
    time

    Weight of
    course total

    Task 3.1: Quiz 3
    Assessment type: Quiz
    Description: The quiz checks the level of understanding of the
    seventh and eight units
    For further details of this assessment task, please consult the activity
    description on the relevant week of the course site.

    25 Mar. 22
    17:00

    5%

    Task 3.2: Quiz 4
    Assessment type: Quiz
    Description: The quiz checks the level of understanding of the nineth,
    tenth and eleventh units
    For further details of this assessment task, please consult the activity
    description on the relevant week of the course site.

    08 Apr. 22
    17:00

    5%

    Main task
    Task 3.3: Final Exam
    Assessment type: Exam
    Description: 4th industrial revolution and economic development
    See sections below for further details.

    13 May. 22
    17:00

    30%

    INSTRUCTIONS

    Main task
    Write a report following the below points:

    1. Cover
    2. Table of contents
    3. Brief description of the 4th industrial revolution
    4. How the 4th industrial revolution is contributing to the globalization process – provide DATA to back up

    your answers, and explain the CONNECTION of the X and M with the 4th industrial revolution:
    a. amount of X and M of goods per year
    b. amount of X and M of services per year
    c. amount of X and M of intangible capital per year
    d. amount of X and M of money per year
    e. amount of movement of people per year

    5. Which are the countries that are benefiting the most of the 4th industrial revolution? WHY? Back up
    your answers with DATA.

    6. Conclusions
    7. References

    FORMAT

    Your submission must meet the following formatting requirements:

    • Submit one file(s) only.
    • Required file format for main submission: PDF.
    • Additional file format for additional deliverables: Choose an option.
    • Additional file requirements: Type additional requirement info or “None”.

    Other details:

    • Font size 12
    • Single-spaced
    • Add references along the text to know where the data and information comes from. See Harvard-in-

    text citation guidelines: https://www.bcu.ac.uk/library/services-and-support/referencing/harvard/in-text-
    citations

    • Number of words: 1750

    All refencing and citations require Harvard referencing style.

    LEARNING OUTCOMES

    • develop a complex understanding of the main concepts of international economics and how to apply
    them;

    • understand and analyze the different global economic theories;

    • distinguish between the different international economic systems;

    • understand balance of payments and its influencers;

    • explore economic integration in different economic areas

    ASSESSMENT CRITERIA

    Tasks 3.1, 3.2

    Each quiz consists of 10 multiple choice questions covering the topics of the corresponding weeks
    indicated clearly in the description of the activity with the following formalities:

    • Attempts allowed: 2
    • No points deducted for incorrect answers
    • Time limit: without time limit
    • Grading method: Highest grade
    • Tasks 2.1 and 2.2 are assessed based on the right and wrong answer in the Quiz. The passing grade

    is 70/100.

    Task 3.3 is assessed based on the below rubric

    Rubric: written assignments

    Criteria Accomplished
    (A)

    Proficient (B) Partially
    proficient (C)

    Borderline (D) Fail (F) Weight
    on

    grade

    Problem
    identification

    The business issue
    has been correctly
    identified, with a
    competent and
    comprehensive
    explanation of key
    driving forces and
    considerations.
    Impact on company
    operations has been
    correctly identified.
    Thorough analysis of
    the issue is
    presented.

    The student correctly
    identified the
    issue(s), taking into
    account a variety of
    environmental and
    contextual drivers.
    Key case information
    has been identified
    and analyzed.

    The student
    correctly identified
    the case (issues),
    considering obvious
    environmental/conte
    xtual drivers. There
    is evidence of
    analysis, but it lacks
    depth.

    The student
    correctly identified
    the issue(s) but
    analysis was
    weak. An absence
    of context – the
    work is basically
    descriptive with
    little analysis.

    The student failed
    to correctly
    identify the
    issue(s); analysis
    was incorrect or
    too superficial to
    be of use;
    information was
    misinterpreted.

    30%

    Information
    gathering

    The student showed
    skill in gathering
    information and
    analyzing it for the
    purposes of filling the
    information gaps
    identified.
    Comprehensive and
    relevant.

    Relevant information
    gaps were identified
    and additional
    relevant information
    was found to fill
    them. At least two
    different types of
    sources were used.
    The student
    demonstrates
    coherent criteria for
    selecting information
    but needs greater
    depth.

    The student
    correctly identified at
    least one
    information gap and
    found relevant
    information, but
    which was limited in
    scope. Some
    evidence of sound
    criteria for selecting
    information but not
    consistent
    throughout. Needs
    expansion.

    An information
    gap was identified
    and the student
    found additional
    information to fill it.
    However, this was
    limited in scope.
    Weak criteria for
    the selection of
    necessary
    information.

    Information was
    taken at face
    value with no
    questioning of its
    relevance or
    value. Gaps in
    the information
    were not
    identified or were
    incorrect.

    30%

    Conclusions The student
    evaluated, analyzed,
    synthesized all
    information provided
    to create a perceptive
    set of conclusions to
    support the decisions
    and solutions.

    The student
    evaluated, analyzed
    and synthesized to
    create a
    conclusion(s) which
    support decisions
    and solutions.

    The student reached
    conclusions, but
    they were limited
    and provided
    minimal direction for
    decision-making and
    solutions.

    The conclusion
    was reasonable
    but lacked depth
    and would not be
    a basis for suitable
    strategy
    development.

    The student
    formed a
    conclusion, but it
    was not
    reasonable. It
    was either
    unjustified,
    incorrect or
    unrelated to the
    case in hand.

    40%

    ADDITIONAL INFORMATION

    If required, please add further details of your assessment here (e.g., case study, list of questions, etc.).

    Economics homework help

    Macroeconomic Theory

    1 Chapter 15: Monetary Policy in the Intertemporal Framework

    Our dynamic framework has had no role for money, which acts as a medium of exchange, unit

    of account, and store of value. We introduce money into the in�nite-period framework as a store

    of value. This feature allows for us to use the model to study how the monetary policy of central

    banks may in�uence real economic activity and con�ict with the classical dichotomy.

    → Introducing money requires us to consider an additional market, The Money Market.
    • Money Demand: The nominal quantity demanded of money demanded by households

    (as well as �rms and the government).

    • Money Supply: The nominal quantity of money in circulation (e�ectively determined by
    the banking system)

    ⇒ Equilibrium in the Money Market occurs when the nominal quantity of money supplied equals
    nominal quantity of money demanded.

    → To generate money demand for households, we will use the Money-in-the-Utility (MIU)
    approach, where demand for real money holdings is an explicit argument in the households’

    utility function. For any given period t:

    u

    (
    ct, lt,

    MDt
    Pt

    )
    (1)

    where MDt is the nominal money demand (so that M
    D
    t /Pt is real money demand).

    1.1 MIU Model

    1.1.1 Households

    max
    {ct+s,lt+s,MDt+s}


    s=0

    V =
    ∞∑
    s=0

    βsu

    (
    ct+s, lt+s,

    MDt+s
    Pt+s

    )
    (2)

    subject to the nominal period-t budget constraint:1

    Ptct + At + M
    D
    t = (1 + it)At−1 + M

    D
    t−1 + Wt(1− lt) (3)

    → The intratemporal and intertemporal conditions, along with a new `consumption-money’
    optimality condition, can be derived by setting up the sequential Lagrangian, and taking the

    �rst-order conditions with respect to ct,ct+1, lt,At, and M
    D
    t :

    L =
    ∞∑
    s=0

    {βsu
    (
    ct+s, lt+s,

    MDt+s
    Pt+s

    )
    +λt+s(Pt+sct+s + At+s + M

    D
    t+s − (1 + it+s)At+s−1

    −MDt+s−1 −Wt+s(1− lt+s))}

    1
    recall that for any nominal variable X, the real quantity is de�ned as x = X/P

    1

    Writing this out for s = 0,1:

    L =u
    (
    ct, lt,

    MDt
    Pt

    )
    + λt

    (
    Ptct + At + M

    D
    t − (1 + it)At−1 −M

    D
    t−1 −Wt(1− lt)

    )
    + βu

    (
    ct+1, lt+1,

    MDt+1
    Pt+1

    )
    + λt+1

    (
    Pt+1ct+1 + At+1 + M

    D
    t+1 − (1 + it+1)At −M

    D
    t −Wt+1(1− lt+1)

    )
    + …

    Taking FOCs:

    ∂L
    ∂ct

    = 0 −→
    ∂u

    ∂ct
    + λtPt = 0 −→

    ∂u

    ∂ct

    1

    Pt
    = −λt (4)

    ∂L
    ∂ct+1

    = 0 −→ β
    ∂u

    ∂ct+1
    + λt+1Pt+1 = 0 −→ β

    ∂u

    ∂ct+1

    1

    Pt+1
    = −λt+1 (5)

    ∂L
    ∂lt

    = 0 −→
    ∂u

    ∂lt
    + λtWt = 0 −→

    ∂u

    ∂lt

    1

    Wt
    = −λt (6)

    ∂L
    ∂At

    = 0 −→ λt − (1 + it+1)λt+1 = 0 −→−λt = −(1 + it+1)λt+1 (7)

    ∂L
    ∂MDt

    = 0 −→
    ∂u

    ∂MDt

    1

    Pt
    + λt −λt+1 = 0 −→

    ∂u

    ∂MDt

    1

    Pt
    + λt = λt+1 (8)

    → Intratemporal Optimality Condition (Nominal terms): Using Equations (4) and (6):

    ∂u

    ∂ct

    1

    Pt
    =
    ∂u

    ∂lt

    1

    Wt


    ∂u/∂lt
    ∂u/∂ct

    =
    Wt
    Pt

    (9)

    → Intertemporal Optimality Condition (Nominal terms): Using Equations (4)-(5) into (7):

    −λt = −(1 + it+1)λt+1

    ∂u

    ∂ct

    1

    Pt
    = (1 + it+1)β

    ∂u

    ∂ct+1

    1

    Pt+1


    ∂u/∂ct

    β∂u/∂ct+1
    =

    Pt
    Pt+1

    (1 + it+1) (10)

    2

    → Consumption-Money Optimality Condition: Using Equation (7) into (8):

    ∂u

    ∂MDt

    1

    Pt
    + λt = λt+1

    ∂u

    ∂MDt

    1

    Pt
    + λt =

    λt
    (1 + it+1)

    ∂u

    ∂MDt

    1

    λtPt
    + 1 =

    1

    (1 + it+1)

    ∂u

    ∂MDt

    1

    λtPt
    =

    1

    (1 + it+1)
    −1

    ∂u

    ∂MDt

    1

    λtPt
    =

    1−1− it+1
    (1 + it+1)

    ∂u

    ∂MDt

    1

    λtPt
    =

    −it+1
    (1 + it+1)

    Using Equation (4) into the above:

    (
    ∂u

    ∂MDt

    ) −Pt(∂u
    ∂ct

    )
    Pt


     = −it+1(1 + it+1)


    ∂u/∂MDt
    ∂u/∂ct

    =
    it+1

    (1 + it+1)
    (11)

    ⇒ Equation (11) is the new consumption-money optimality condition.
    → Intuition: The household desires to have real money holdings such that the MRS of money

    for consumption is equal to the relative price of holding money to consumption, each in terms of

    their opportunity cost (i.e. savings in interest bearing asset).

    ⇒ This optimality condition characterizes the households’ demand for money:
    → An increase in the nominal interest increases the right-hand side of Equation (11), which
    implies that the rate of exchange of money for consumption increases.

    → Assuming a dominant substitution e�ect, the household responds by reducing their money
    holdings relative to their consumption.

    → Graphically, the household’s money demand function is expressed in (Mt, it+1) space:

    3

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    1.1.2 Central Bank

    ⇒ The central bank (exogenous) is assumed to be able control the nominal money supply2 with
    the intent of achieving a speci�c nominal interest rate in the money market.

    → Buys (sells) nominal quantities of interest bearing assets from households with money to
    increase (decrease) the money supply as desired.

    → The money supply is assumed to be exogenous absent a monetary policy shock.
    → Graphically, the money supply function is shown in (Mt, it+1) space:

    1.1.3 Firms

    In nominal terms, the �rm’s problem is:

    max
    {nt+s,kt+s+1}∞s=0

    Profit =
    ∞∑
    s=0

    (1+it+s)
    −s{Pt+sf(kt+s,nt+s)−Pt+s(kt+1+s−(1−δ)kt+s)−Wt+snt+s}

    (12)

    → Taking the �rst-order condition with respect to labor and future capital yields the usual
    labor demand and investment demand optimality conditions for the �rm:

    ∂f/∂nt =
    Wt
    Pt

    (13)

    ∂f/∂kt+1 + (1−δ) =
    Pt
    Pt+1

    (1 + it+1) (14)

    2
    Reality is of course much more complex. The banking system as a whole is thought to determine the

    outstanding nominal quantity of money through the creation of bank deposits. Since we are not modeling

    commercial banks explicitly, it is common to assume for simplicity that the central bank can attain any desired

    quantity of money supply.

    4

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    1.1.4 General Equilibrium

    With the addition of the money market, we have four equilibrium conditions: Labor Market,

    Financial Market, Goods Market, and the Money Market.

    ⇒ Money Market Equilibrium: Occurs at a nominal interest rate it+1∗ such that MDt =
    MSt , where M

    D
    t is determined by the households’ consumption-money optimality condition and

    MSt is determined by Central Bank policy. Graphically:

    ⇒ Financial Market Equilibrium: Occurs at real interest rate rt+1∗. such that st = invt.
    As usual, it’s characterized using households’ and �rms intertemporal optimality conditions to

    obtain:
    ∂u/∂ct

    β∂u/∂ct+1
    = 1 +

    ∂f

    ∂kt+1
    −δ

    ⇒ Labor Market Equilibrium: Occurs at wt∗ such that nSt = nDt . As usual, it’s charac-
    terized using the households’ and �rms’ intratemporal optimality condition to obtain:

    ∂u/∂lt
    ∂u/∂ct

    =
    ∂f

    ∂nt

    ⇒ Goods Market Equilibrium: Occurs when ADt = ASt. As usual without a federal
    government:

    f(kt,nt) = ct ∗+invt∗

    5

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    1.2 Short-run Monetary Policy Analysis with the MIU model

    1.2.1 A Closer Look at Money Demand

    Note that real money balances MDt /Pt appear in the households’ utility function while the house-

    hold chooses nominal money balances.

    → This implies that the price level will appear in the consumption-money optimality condition.

    EXAMPLE: Suppose that the sub-utility function takes the natural log form so that:

    u

    (
    ct, lt,

    MDt
    Pt

    )
    = log ct + log lt + log

    MDt
    Pt

    Evaluated at this utility function, the consumption-money optimality condition becomes:

    ∂u/∂MDt
    ∂u/∂ct

    =
    it+1

    1 + it+1

    1/(MDt /Pt)

    1/ct
    =

    it+1
    1 + it+1

    ct

    (MDt /Pt)
    =

    it+1
    1 + it+1

    ⇒ MDt =
    (
    1 + it+1
    it+1

    )
    Ptct

    ⇒ Implications of the Money Demand Condition: Since the money market equilibrium condition

    MSt = M
    D
    t =

    (
    1 + it+1
    it+1

    )
    Ptct always holds in general equilibrium changes to M

    S
    t must change

    one or more of it+1, Pt, and ct.

    → The extent to which real variables are a�ected depends on the speed which Pt adjusts within
    a given period.

    1.2.2 Monetary Policy Shocks

    • A Monetary Policy Shock will unexpectedly increase or decrease MSt .

    EXAMPLE: Suppose the Central Bank increases MSt . Use a money market and goods market

    diagram to graphically show how output and/or the price level is a�ected when Aggregate Supply

    is Classical, and when it is Keynesian.

    ⇒ Classical Aggregate Supply: No speci�ed relationship between Pt and qt

    6

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    • Monetary Neutrality: monetary policy shocks have no e�ect on real economic activity.
    → Occurs when goods prices and wages are fully �exible
    ⇒ Intuition: Despite the initial reduction in it+1, which acts to increase desired ct given the

    households’ intertemporal optimality condition, the within-period increase in Pt exactly o�sets

    the e�ect of the decrease in it+1 on ct.

    → Since consumption is una�ected, the �nancial market equilibrium remains unchanged.
    → Since there are no changes to the supply or demand schedules, nominal wages adjust so

    that the labor market equilibrium remains unchanged.

    ⇒Keynesian Aggregate Supply: Assumed that Pt may not change within a given period.

    • Monetary Non-Neutrality: monetary policy shocks a�ect real economic activity.
    → Occurs when goods prices and/or wages are `sticky’.
    ⇒ Intuition: The initial reduction in it+1 increases desired ct given the households’ intertem-

    poral optimality condition, which is not o�set by an increase in Pt.

    → Since current consumption changes, there will be a decrease in supply schedule in the �-
    nancial market and an increase in the labor supply schedule in the labor market (both resulting

    from the households’ inter- and intratemporal optimality conditions).

    → There will be a change to real economic variables in general equilibrium.

    1.3 Limits to Conventional Monetary Policy

    • The Lower Bound: Nominal interest rates cannot fall below some lower bound i.
    → As nominal interest rates approach i, typically to be a rate close to zero, the household becomes
    indi�erent between holding money or interest-bearing assets as a store of value.

    ⇒ At the lower bound, increases in the money supply cannot e�ect real economic activity
    through changes to the nominal interest rate.

    → Consumption-money condition becomes
    ∂u/∂MDt
    ∂u/∂ct

    =
    i

    (1 + i)
    , which implies that money

    demand becomes horizonal over i.

    7

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  • Chapter 15: Monetary Policy in the Intertemporal Framework
  • MIU Model
  • Short-run Monetary Policy Analysis with the MIU model
  • Limits to Conventional Monetary Policy

    Economics homework help

    National Tax Journal, December 2016,69(4), 883-904 https://doi.O rg/10 .1 7310 /n tj.2 0 1 6.4.08

    W H A T C A N TA X DATA TELL US A B O U T T H E U N IN S U R E D ?
    E V ID E N C E F R O M 2 0 1 4

    Ithai Z. Lurie and Janet McCubbin

    About 14 percent o f fam ilies that file d tax returns fo r 2014 reported a spell o f
    uninsurance fo r at least one fam ily member. Uninsurance rates were higher fo r
    young adults, unmarried persons, low-income families, and fam ilies in states that
    did not expand eligibility fo r Medicaid. These results are generally consistent with
    estimates from survey data. M any fam ilies who were uninsured in 2014 appear
    eligible fo r M edicaid or Premium Tax Credits. Outreach to these fam ilies coidd ef­
    fectively reduce the number o f uninsured. Better data fo r 2015 and later years will
    allow fo r more comprehensive and detailed estimates about uninsured Americans.

    Keywords: ISRP, exemption, uninsured

    JEL Codes: H22, H24,113

    I. INTRODUCTION

    he Affordable Care Act o f 2010 (ACA) intersects with the tax system in several
    ways. Most importantly, the ACA created subsidies, including the Premium Tax

    Credit (PTC), to help low- and moderate-income people obtain affordable health insur­
    ance. The AC A also requires individuals to obtain health insurance coverage, receive an
    exemption from the coverage requirement, or pay a penalty. In addition, large employers
    that do not provide affordable coverage to full-time employees may owe an assessable
    payment if one or more full-time employees receive the PTC.

    In this paper we use tax return data to learn about the characteristics of the uninsured
    in 2014. Data on the insured and uninsured can help us understand the efficacy of
    subsidies and penalties in inducing health insurance coverage. In addition, information
    about the reporting of insurance status will help the Internal Revenue Service (IRS)
    improve tax forms and instructions. Information about the characteristics and behavior
    of the uninsured will also help IRS and others to improve outreach efforts aimed at

    Ithai Z. Lurie: O ffice o f Tax Analysis, U.S. D e p a rtm e n t o f theTreasury, W ashington, DC, USA (lthai.Lurie@
    treasury.gov)

    Janet M cC ubbin: O ffice o f Tax Analysis, U.S. D e p a rtm e n t o f th e Treasury, W ashington, DC, USA (Janet.
    M cC ubbin@ treasury.gov)

    884 National Tax Journal

    encouraging coverage. Finally, tax data on the uninsured can corroborate and supple­
    ment survey data about health insurance coverage — data that are widely used for tax
    expenditure modeling and myriad other purposes.

    We find that 14.5 percent of families that filed tax returns for 2014 reported a spell of
    uninsurance for at least one family member. Uninsurance rates were higher for young
    adults, unmarried persons, low-income families, and families in states that did not
    expand eligibility for Medicaid. These results are generally consistent with estimates
    from survey data. Many families who remained uninsured in 2014 appear to be eligible
    for Medicaid or PTC. Outreach to these families could effectively reduce the number
    o f uninsured. Our findings to date are tentative, because information about insurance
    status on 2014 returns is limited. Better data for 2015 and later years will allow for
    more comprehensive and detailed estimates about uninsured Americans.

    II. DATA

    Taxpayers who have full-year coverage for all of the individuals on their tax returns
    report this by checking a box on Form 1040. Tax return filers who are uninsured any
    part o f the year, or who have a dependent who is uninsured for any part of the year,
    may claim exemptions from the health coverage requirement on Form 8965. Taxpayers
    who do not have coverage for themselves or for a dependent for at least one month, and
    who do not claim an exemption, report the individual shared responsibility payment
    (i.e., the penalty) on Form 1040. In this paper we use tax year 2014 data to examine
    the characteristics o f tax return filers in 2014. Specifically, we analyze the population
    o f tax year 2014 returns processed by IRS through March 2016. We define uninsured
    families or persons as those who claim an exemption from the health care coverage
    requirement or who pay a penalty for failure to have coverage or both for at least one
    month.

    Taxpayers are responsible for providing coverage, claiming exemptions, and receiving
    PTCs for themselves and for any person they may claim as a dependent. Dependents
    generally do not report on their own health insurance status, even if they file tax returns.
    Thus, we exclude returns filed by dependents from our analysis and define a tax family
    as a non-dependent return, including the primary and secondary filers and all dependents.

    Relying on tax return data creates analytical challenges and important limitations
    to our findings. First, because insurance status was not reported on tax returns before
    2014, we cannot show the effect o f the AC A on coverage.1 Second, the 2014 data are
    largely self-reported, and taxpayers face incentives to over-report coverage. However,
    we find several indications that the self-reported data are largely accurate. Third, our
    data are limited to families that file tax returns, and exclude the approximately 10 percent

    1 Data from the Current Population Survey and other sources find that rates o f uninsurance fell significantly
    between 2013 and 2014, in a manner that is consistent with the intent of the ACA (Smith and Medalia,
    2015).

    What Can Tax Data Tell Us about the Uninsured? Evidence from 2014 885

    of the U S. population (including 7 percent o f the non-elderly population) that does
    not appear on an income tax return. Lastly, the tax return data do not provide insur­
    ance status for each person or the duration of any spell of uninsurance; in many cases
    we know only that at least one family member was uninsured for at least part of the
    year.2

    III. EXEMPTIONS FROM THE COVERAGE REQUIREMENT

    Exemptions from the coverage requirement are available for several specific cir­
    cumstances provided under the statute and for general hardship, as determined by the
    Marketplaces (under the purview o f the Department o f Health and Human Services).3
    Some exemptions are granted only by the Marketplaces, some are claimed only on the
    tax return, and some can be taken in either way.

    Exemptions granted by the Marketplace are reported to IRS by the Marketplace and
    reported by tax return filers on Part I of Form 8965. The data reported to IRS by the
    Marketplace include the specific individual and months for which each exemption applies
    and the type o f exemption. In 2014, nearly all Marketplace exemptions reported to IRS
    were applicable for the full year. Exemptions that may be granted by the Marketplace
    include those for: general hardship (e.g., bankruptcy, fire, homelessness, death of a
    family member); unaffordable coverage based on projected income;4 membership in a
    religious sect that objects to accepting insurance benefits; individuals unable to renew
    2013 coverage; and certain other exceptions available only for 2014.

    Exemptions that may be claimed only on the tax return are reported in Parts II or
    III of Form 8965. These include exemptions for. income below the filing requirement
    (but nevertheless filing a tax return);5 unaffordable coverage, based on actual income or

    2 More complete information will be available for future years. To facilitate IR S’s administration o f the
    ACA tax provisions and to help taxpayers correctly report on their coverage status, insurers and employ­
    ers provide information about health coverage to enrollees and to IRS. This information includes the type
    o f coverage and months o f coverage for each person enrolled in insurance that meets the ACA coverage
    requirement. Coverage through a health insurance Marketplace (which is required in order to obtain the
    PTC) is reported by the Marketplaces on Form 1095-A. Large employers report offers o f coverage and
    enrollment in self-insured plans on Form 1095-C. Other insurers, government health programs, and small
    employers providing self-insured coverage report monthly enrollment for each person on Form 1095-B.
    While Marketplace data are available for 2014, employer and insurer reporting on Forms 1095-B and C
    did not begin until this year, for coverage in tax year 2015.

    3 See Internal Revenue Code §5000A, 45 CFR 155.605 and 26 CFR 1,5000Afor the health insurance cover­
    age requirement, penalty calculation, and exemptions.

    4 The exemption for coverage unaffordable based on projected income is allowed: (1) if an individual is
    eligible for employer-sponsored coverage but the required employee contribution for the coverage exceeds
    8 percent o f projected household income for the year; or (2) if the required contribution (after accounting
    for PTC) for the lowest-cost bronze Marketplace plan that would cover all family members who are not
    eligible to purchase employer-sponsored coverage or have not received another exemption exceeds 8
    percent of projected household income.

    5 Families who do not file tax returns do not need to claim exemptions.

    886 N a t io n a l T a x J o u r n a l

    based on aggregate self-only coverage;6 citizens living abroad or certain non-citizens;
    short gaps in coverage o f three months or less; and a few other exceptions that apply
    in 2014 only.

    Some exemptions may be granted by the Marketplace (in which case they may be
    reported in Part I of Form 8965) or claimed on the tax return (in which case they are
    reported in Part III of Form 8965). These include exemptions for: income below 138
    percent of the Federal poverty level (FPL) and resident of a state that did not expand
    Medicaid; member of a health care sharing ministry; member of an Indian Tribe or
    recipient o f Indian Flealth Services care; and incarceration.

    Exemptions are generally reported for each person and each month, and we provide
    results for both families and individuals below. However, the exemption for having
    income below the filing requirement applies to the entire tax family for the entire year,
    and uninsurance for specific family members or months is not reported. Therefore, we
    categorize every person on a tax return with this exemption as exempt and uninsured
    for the entire year when analyzing the data at a person-level. Interpreting every person
    who qualifies for this exemption as uninsured will overstate the number o f uninsured
    persons.

    Individuals may be eligible for more than one type of exemption for a given month,
    and in some cases are instructed to report all of the exemptions for which they qualify.
    However, taxpayers are not required to determine or report all of the exemptions for
    which they qualify. Therefore, we use an ordering rule to place individuals in mutually
    exclusive categories o f the type o f exemption used. We first identify who claims the
    exemption for having income below the filing requirement, followed by those who
    have low incomes and reside in a state that did not expand Medicaid, citizens abroad
    and certain non-citizens, persons with a short-coverage gap, persons with unaffordable
    coverage, and other exemptions. Placing persons in mutually exclusive categories sim­
    plifies the analysis. But as a result, the exemption for having income below the filing
    requirement will appear more frequently and the exemption for unaffordable coverage
    less frequently than would be the case if we used a different ordering rule or none at all.

    In addition, some codes used on Form 8965 may refer to more than one type of
    exemption. In particular, code “G” may indicate that coverage is unaffordable based on
    aggregate self-only coverage that the individual has low income and resides in a state
    that did not expand eligibility for Medicaid, or that other special cases for 2014 apply.
    We assume that a code G on a return with income below 138 percent of the poverty
    level filed from a state that did not expand Medicaid is explicitly for that exemption and
    that the remaining code G entries indicate that coverage was unaffordable.

    6 The exemption allowed because coverage is unaffordable based on actual income is similar to that de­
    scribed in footnote 4 above, but is based on actual household income rather than projected income. The
    exemption for unaffordable aggregate self-only coverage is allowed for the year if for any month: (1)
    the cost of employer-sponsored self-only coverage for two or more members is affordable when tested
    individually, (2) the cost of employer-sponsored family coverage is unaffordable, and (3) the combined
    cost of employer-sponsored individual coverage is unaffordable.

    W h a t Can Tax D ata Tell Us a b o u t th e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 887

    IV. CALCULATION OF THE INDIVIDUAL PAYMENT RESPONSIBILITY

    Taxpayers who are uninsured for all or part of the year (or who have an uninsured
    dependent) and who do not qualify for an exemption from the coverage requirement
    must make an individual responsibility payment. The amount of this payment, or pen­
    alty, depends on the number o f persons without qualifying health insurance coverage
    per month, income, and the family’s filing threshold. Specifically, for 2014 the penalty
    for each month is

    (1) (l/12)xm ax|m in[95x(A ?<i +0.5A?J,95×3],

    0.01 x( household income – filing threshold} } ,

    where AMs the number o f uninsured adults for the month, JV is the number of uninsured
    children under age 18, and household income is adjusted gross income (AGI) plus tax
    exempt interest and amounts o f foreign earned income or foreign housing excluded
    from AGI.

    The penalty for the year is the sum of the monthly amounts, limited to the cost of
    the national average bronze plan that could cover the uninsured, non-exempt family
    members for all months of uninsurance, up to a maximum of five persons. For 2014, the
    national average bronze plan is $204 per person per month, for a maximum of $1,020
    per family per month.7 In 2014, the average annual penalty per return with a penalty
    was about $210 (Internal Revenue Service, 2016).

    Only the total penalty for the year is reported by the taxpayer on the tax return. In
    some cases, the number o f uninsured persons by month can be inferred from the pen­
    alty amount. In other cases, we know only that at least one person was uninsured for
    at least part of the year. For the analysis in this paper, we present information about
    tax families who pay any amount o f penalty. In addition, we present information
    about families who pay the maximum amount of penalty conditional on their income
    and family size. If a family is paying the maximum amount, we know that the family
    paid some penalty every month, meaning that at least one person was uninsured each
    month. For a single person, this amounts to being fully uninsured. In addition, for most
    families who are paying a maximum penalty that exactly equals $95x(Na + 0.5A ),
    we know that the family is fully uninsured. Flowever, for families o f two or more
    people who are paying 1 percent o f income over the filing threshold, we cannot discern
    the number of uninsured persons. Thus, paying the maximum amount might best be
    thought of as correlated with fully uninsured status or as indicating a greater intensity
    o f uninsurance.

    7 The $95 amount is increased to $325 for 2015 and $695 for 2016, and indexed to inflation thereafter.
    The 1 percent of income is increased to 2 percent for 2015 and 2.5 percent for 2016 and thereafter. The
    national average bronze plan premium is based on the average o f the median premium for a 21-year old
    non-tobacco user in each county, weighted by county populations. Internal Revenue Service (2014) provides
    more details.

    888 N ational Tax Journal

    In the next section, we examine rates o f uninsurance among different types o f families
    and the distribution of uninsured families by filing status, age, income relative to the
    poverty level, and other characteristics. Specifically, we tabulate the number o f families
    paying a penalty, claiming an exemption, or both. Then we look more closely at the
    types of exemptions claimed, at the individual (rather than family) level.

    V. RESULTS

    We find that of tax year 2014 returns processed through the end of March 2016,11.7
    million claimed an exemption only, 7.2 million paid a penalty only, and 0.8 million
    reported both for tax year 2014 (Figure 1). Thus, in total, 19.7 million families reported
    at least one month o f uninsurance for at least one family member. This amounts to 14.5
    percent of the 135.5 million families who filed 2014 returns.8

    It is difficult to interpret this rate o f uninsurance, because it may reflect spells as
    short as one month or as long as a year, and it may reflect uninsurance for only some
    family members or for the whole family. Thus, our measure is expected to overstate
    the share of individuals who are uninsured all year or at any point in time. On the other
    hand, because our data exclude very low-income families who do not file tax returns,

    F ig u re 1

    N u m b e r o f R eturns w ith P enalty, E x e m p tio n , o r Both

    Penalty Only Exemption Only
    Category

    Both

    8 This is nearly identical to tabulations reported by IRS for tax year 2014 returns processed through October
    2015 (Internal Revenue Service, 2016).

    W h a t Can Tax D ata Tell Us a b o u t t h e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 889

    our measure could understate the true rate of uninsurance, at least among the non-
    elderly. The Bureau of the Census reports that for 2014 an estimated 10.4 percent o f
    individuals were uninsured all year and nearly 12 percent were uninsured at the time
    they were surveyed.5 * * * 9 While our measure is conceptually different and excludes very
    low-income persons, it is o f the same order of magnitude and suggests that taxpayers
    accurately reported their status on their tax returns, in a manner similar to what they
    report in survey data.

    Figure 2A shows that unmarried taxpayers are more likely to be uninsured. This is
    consistent with Census tabulations. Somewhat surprising to us, families with children
    are more likely than those without children to report a spell of uninsurance. About 20
    percent o f head of household filers, that is, unmarried persons with children, report a
    spell of uninsurance, compared to 17 percent of single filers without children, 12 percent
    of married couples filing jointly with children and only 7 percent o f joint filers without
    children. The higher rate of uninsurance among filers with children may be due to the
    age composition o f the family. It does not necessarily mean the children were uninsured,
    and may indicate that a parent was uninsured. Figure 2B shows that single taxpayers
    without children account for about half o f all tax returns reporting a spell of uninsurance.

    The rate of uninsurance was highest for families in which the primary taxpayer was
    under age 25 (22 percent) or age 25 to 29 (22.5 percent), and declined steadily after age
    29. Families in the under-30 age group account for about one-third o f uninsured families.
    As expected, the rate of uninsurance drops markedly, tojust 3 percent, when the primary
    taxpayer reaches age 65 and becomes eligible for Medicare (Figures 3A and 3B).

    Lower-income families are more likely to be uninsured, and are more likely to claim
    an exemption than to pay a penalty (Figure 4A).10 About 28 percent of families with
    incomes below 100 percent of the federal poverty level (FPL) claimed an exemption
    only, 4 percent paid a penalty only, and 1 percent did both. Among those with incomes
    between 100 and 138 percent of the poverty level, about 18 percent claimed an exemp­
    tion only, 11 percent reported a penalty only, and 2 percent did both. While taxpayers
    with income below the filing threshold are exempt from the coverage requirement, it
    is nonetheless possible for poor families to be subject to the penalty. This can occur
    because the filing threshold is below the FPL for single and head of household filers,
    and for married couples with two or more children.” Thus, some poor families may
    indeed be subject to a penalty. However, it also appears that some families paid a penalty
    when they could have claimed an exemption. In fact, IRS has contacted about 400,000
    families to notify them that they might have paid too much for tax year 2014.

    Families with incomes below the poverty level account for 37 percent of uninsured
    families, and those between 100 and 13 8 percent of the poverty level account for another
    16 percent (Figure 4B).

    5 See Smith and Medalia (2015) for the Census data cited in this paper.
    10 For all figures showing income as a percentage o f FPL, income is defined as AGI plus tax-exempt interest,

    foreign earned income and housing, and Social Security income that is otherwise excluded from AGI. This
    is the definition used to determine eligibility for Medicaid and PTC.

    11 For example, for a single person in 2014, the filing threshold was $10,150 and the poverty level was
    $11,490.

    890 National Tax Journal

    Figure 2A

    ■ Penalty Only Exemption Only “B oth

    Figure 2B

    Distribution of Uninsured Returns by Family Type

    C/)c
    CDO’

    ■ O0)
    3

    c
    ’ c
    3
    o
    0l_
    03

    SZ
    i f )

    0.60

    0.50

    0.40

    0.30

    0.20

    0.10

    0

    Family Type

    W hat Can Tax Data Tell Us a b o u t th e U ninsured? Evidence fro m 2014 891

    Figure 3A
    Share o f Families that is Uninsured by Age

    Age

    ■ Penalty Only Exemption Only ■ Both

    Figure 3B
    D istribution o f Uninsured Families by Age

    Age

    892 NationalTax Journal

    Figure 4A

    Share o f Families that is Uninsured by FPL

    0.35 ■

    « 0.25

    1 0.20 –
    LL

    O
    <u 0.15

    Income as a Share of FPL (l/FPL)

    ■ Penalty Only Exemption Only a* Both

    Figure 4B

    D istribution of Uninsured Families by FPL

    Income as a Share of FPL (l/FPL)

    W h a t Can Tax D ata Tell Us a b o u t t h e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 893

    Prior to 2014, most states did not provide Medicaid to non-disabled adults without
    children. The ACA provides incentives for states to extend eligibility for Medicaid to
    all persons with incomes below 138 percent o f the poverty level, but 23 states decided
    not to do so for 2014.12 Taxpayers in these states with incomes below 100 percent of
    the poverty level are generally not eligible for Medicaid or for subsidized Marketplace
    coverage. Taxpayers in these states with incomes between 100 and 138 percent o f the
    poverty level are not eligible for Medicaid but may receive subsidized Marketplace
    coverage, including both PTC and help with out-of-pocket costs.13 All persons with
    incomes below 138 percent of the poverty level and residing in a state that did not expand
    Medicaid are exempt from the coverage requirement. Many received this exemption
    when they went to the Marketplace seeking coverage. In addition, this exemption may
    be claimed on the tax return.

    Other researchers (Council of Economic Advisers, 2016) have found that rates of
    uninsurance are lower in states that expanded Medicaid, both before and after 2014.
    Similarly, we find that uninsurance rates are 12 percent in states that expanded Medicaid
    eligibility and 18 percent in those that did not. Families in states that did not expand
    Medicaid were more likely than others to claim an exemption from the coverage require­
    ment (11 percent versus 7 percent). Families filing from a state that did not expand
    Medicaid eligibility account for 44 percent of all families and 54 percent o f uninsured
    families (Figures 5A and 5B).

    As expected, much of this difference in uninsurance rates is attributable to poor
    families who could receive Medicaid if they resided in a state that expanded eligibility
    (Figures 6A and 6B). For example, the rate o f uninsurance among families with incomes
    below 100 percent o f the poverty level is 42 percent in states that did not expand Med­
    icaid and 26 percent in states that did expand Medicaid. The rate o f uninsurance among
    families with incomes between 100 and 138 percent of the poverty level is 37 percent
    in non-expansion states and 25 percent in expansion states. However, even at higher
    income levels, rates o f uninsurance are slightly higher (1 to 5 percentage points higher)
    in non-expansion states. This suggests that the lower rates of uninsurance are partly
    due to the Medicaid expansion directly, partly to spillover effects such as increased

    12 The 23 states that did not expand Medicaid eligibility for 2014 include: Alabama, Alaska, Florida, Georgia,
    Idaho, Indiana, Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, North Carolina,
    Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming.
    Wisconsin expanded eligibility to include adults with incomes up to 100 percent o f the poverty level and
    New Hampshire expanded eligibility effective August 15, 2014. These are included as expansion states,
    although low-income taxpayers residing in these states could claim an exemption from the coverage re­
    quirement for 2014. Categorizing Wisconsin and New Hampshire as non-expansion states does not make
    a noticeable change in the results. Alaska, Indiana, and Pennsylvania subsequently expanded Medicaid
    eligibility beginning with all or part of 2015; Montana for 2016; and Louisiana is expected to expand in
    June 2016. Thus, by the latter h alf o f 2016 there will be 18 states that have not extended Medicaid eligibil­
    ity to all poor adults (those below 100 percent o f the poverty level).

    13 In addition to being eligible for PTC, families who obtain Marketplace coverage and who have incomes
    below 250 percent o f the poverty level may be eligible for cost-sharing reductions, which reduce their
    out-of-pocket copayments and deductibles.

    894 National Tax Journal

    Figure 5A

    Share o f Families that is Uninsured by Expansion Status

    No Expansion Expansion

    Expansion Status

    ■ Penalty Only Exemption Only * Both

    Figure 5B

    D istribution o f Families by Expansion Status

    No Expansion Expansion

    Expansion Status

    S
    h

    a
    re

    o
    f

    F
    a

    m
    ili

    e
    s

    W h a t Can Tax Data Tell Us a b o u t th e U ninsured? Evidence fro m 2014 895

    Figure 6A

    Share that is Uninsured by FPL Non-Expansion States

    Income as a Share o f FPL (l/FPL)

    ■ Penalty Only Exemption Only B B o th

    Figure 6B

    Share that is Uninsured by FPL Expansion States

    Income as a Share o f FPL (l/FPL)

    ■ Penalty Only Exemption Only ■ Both

    896 N a tio n a l T a x J o u r n a l

    outreach generating more coverage among families with slightly higher incomes, and
    partly to underlying state characteristics that are correlated with the choice to expand.

    Reported insurance status does not vary much by tax preparation mode. About 55
    percent of families use a paid preparer to file their tax returns and 38 percent prepare
    their own returns with the help o f software. This is true for both insured families and
    uninsured tax return filers. Families that prepare their own returns using software are
    less likely to report a penalty (4 percent) and more likely to claim an exemption (10
    percent) than are other groups, but the difference is not large. Those who prepare their
    own returns without software are less likely to report that they are uninsured (5 percent),
    and those using volunteer assistance that primarily serves low-income families are more
    likely to be uninsured (16 percent), but both of these groups are very small, accounting
    for less than 7 percent of families.

    We focus next on families who paid a penalty. Many families who pay a penalty
    are likely to be eligible for subsidized Marketplace coverage. We find that 11 percent
    o f primary taxpayers who reported a penalty for anyone in their family in 2014 were
    Marketplace policyholders at some point in 2015, indicating that someone in the family
    had Marketplace coverage.14 Primary taxpayers who paid a penalty and had incomes
    between 138 and 200 percent of the poverty level in 2014 were most likely to appear as
    Marketplace policyholders in 2015, at 14 percent. But lower-income and higher-income
    families subject to penalties in 2014 also appear to have moved into the Marketplace
    in 2015 (at least as measured by observing the primary taxpayer as a policyholder),
    including 8 percent below poverty in 2014 and 9 percent o f the uninsured with incomes
    over 400 percent of the poverty level (Figure 7).

    As noted earlier, we cannot infer the duration of uninsurance or the number of unin­
    sured family members from the amount of the penalty in many cases. However, we
    know that a family that paid the maximum amount conditional on the family’s income
    and family size had at least one uninsured family member in every month. About 56
    percent of families paid the maximum amount. This includes 68 percent of single filers
    with a penalty, who we know were uninsured all year

    We next analyze the types o f exemptions that are claimed at the individual level. A
    total of 22.2 million people were represented on Forms 8965 filed for tax year 2014;
    that is, for each of these 22.2 million people, an exemption was claimed for them at the
    individual level or the exemption for income below the filing threshold that applies to
    the whole family was claimed. About 46 percent of people with exemptions are associ­
    ated with a family claiming the exemption for income below the filing threshold. This
    result is driven in part by the fact that we count every person on returns claiming the
    filing requirement exemption as exempt, and because we count this exemption first.
    Other relatively common exemptions are those for residents o f Medicaid non-expansion

    Some of these primary taxpayers were also policyholders in 2014, since part of a family may be insured
    and another part uninsured in any month, or the family may be uninsured for only part o f the year.

    W hat Can Tax Data Tell Us about the Uninsured? Evidence from 2014 897

    F ig u re 7

    Percent of Penalty-paying Families with Primary Found as Policyholder in the
    2015 Marketplace, by FPL

    0.20

    0 .1 8

    M 0 .1 6
    .CD

    I 0 .1 4
    li­
    en

    . £ 0.12
    > x
    0 3Q_

    0.10
    co
    | 0 .0 8
    o

    0 .0 6
    co

    w 0 .0 4
    0.02

    0.00
    llillll

    Income as a Share of FPL

    states, citizens abroad and certain non-citizens, and lack o f affordable coverage options,
    each accounting for about 15 percent o f exemptions claimed (Figure 8).

    Most individuals claiming an exemption, 84 percent, claim to be exempt from the
    coverage requirement for the full year. Again this is driven in part by the fact that, by
    definition, income below the filing requirement qualifies every individual in the family
    for an exemption for the entire year, even if the family had coverage for part of the year
    or for some members of the family. However, most other exemptions are also claimed
    for the entire year. T

    Economics homework help

    National Tax Journal, December 2016,69(4), 883-904 https://doi.O rg/10 .1 7310 /n tj.2 0 1 6.4.08

    W H A T C A N TA X DATA TELL US A B O U T T H E U N IN S U R E D ?
    E V ID E N C E F R O M 2 0 1 4

    Ithai Z. Lurie and Janet McCubbin

    About 14 percent o f fam ilies that file d tax returns fo r 2014 reported a spell o f
    uninsurance fo r at least one fam ily member. Uninsurance rates were higher fo r
    young adults, unmarried persons, low-income families, and fam ilies in states that
    did not expand eligibility fo r Medicaid. These results are generally consistent with
    estimates from survey data. M any fam ilies who were uninsured in 2014 appear
    eligible fo r M edicaid or Premium Tax Credits. Outreach to these fam ilies coidd ef­
    fectively reduce the number o f uninsured. Better data fo r 2015 and later years will
    allow fo r more comprehensive and detailed estimates about uninsured Americans.

    Keywords: ISRP, exemption, uninsured

    JEL Codes: H22, H24,113

    I. INTRODUCTION

    he Affordable Care Act o f 2010 (ACA) intersects with the tax system in several
    ways. Most importantly, the ACA created subsidies, including the Premium Tax

    Credit (PTC), to help low- and moderate-income people obtain affordable health insur­
    ance. The AC A also requires individuals to obtain health insurance coverage, receive an
    exemption from the coverage requirement, or pay a penalty. In addition, large employers
    that do not provide affordable coverage to full-time employees may owe an assessable
    payment if one or more full-time employees receive the PTC.

    In this paper we use tax return data to learn about the characteristics of the uninsured
    in 2014. Data on the insured and uninsured can help us understand the efficacy of
    subsidies and penalties in inducing health insurance coverage. In addition, information
    about the reporting of insurance status will help the Internal Revenue Service (IRS)
    improve tax forms and instructions. Information about the characteristics and behavior
    of the uninsured will also help IRS and others to improve outreach efforts aimed at

    Ithai Z. Lurie: O ffice o f Tax Analysis, U.S. D e p a rtm e n t o f theTreasury, W ashington, DC, USA (lthai.Lurie@
    treasury.gov)

    Janet M cC ubbin: O ffice o f Tax Analysis, U.S. D e p a rtm e n t o f th e Treasury, W ashington, DC, USA (Janet.
    M cC ubbin@ treasury.gov)

    884 National Tax Journal

    encouraging coverage. Finally, tax data on the uninsured can corroborate and supple­
    ment survey data about health insurance coverage — data that are widely used for tax
    expenditure modeling and myriad other purposes.

    We find that 14.5 percent of families that filed tax returns for 2014 reported a spell of
    uninsurance for at least one family member. Uninsurance rates were higher for young
    adults, unmarried persons, low-income families, and families in states that did not
    expand eligibility for Medicaid. These results are generally consistent with estimates
    from survey data. Many families who remained uninsured in 2014 appear to be eligible
    for Medicaid or PTC. Outreach to these families could effectively reduce the number
    o f uninsured. Our findings to date are tentative, because information about insurance
    status on 2014 returns is limited. Better data for 2015 and later years will allow for
    more comprehensive and detailed estimates about uninsured Americans.

    II. DATA

    Taxpayers who have full-year coverage for all of the individuals on their tax returns
    report this by checking a box on Form 1040. Tax return filers who are uninsured any
    part o f the year, or who have a dependent who is uninsured for any part of the year,
    may claim exemptions from the health coverage requirement on Form 8965. Taxpayers
    who do not have coverage for themselves or for a dependent for at least one month, and
    who do not claim an exemption, report the individual shared responsibility payment
    (i.e., the penalty) on Form 1040. In this paper we use tax year 2014 data to examine
    the characteristics o f tax return filers in 2014. Specifically, we analyze the population
    o f tax year 2014 returns processed by IRS through March 2016. We define uninsured
    families or persons as those who claim an exemption from the health care coverage
    requirement or who pay a penalty for failure to have coverage or both for at least one
    month.

    Taxpayers are responsible for providing coverage, claiming exemptions, and receiving
    PTCs for themselves and for any person they may claim as a dependent. Dependents
    generally do not report on their own health insurance status, even if they file tax returns.
    Thus, we exclude returns filed by dependents from our analysis and define a tax family
    as a non-dependent return, including the primary and secondary filers and all dependents.

    Relying on tax return data creates analytical challenges and important limitations
    to our findings. First, because insurance status was not reported on tax returns before
    2014, we cannot show the effect o f the AC A on coverage.1 Second, the 2014 data are
    largely self-reported, and taxpayers face incentives to over-report coverage. However,
    we find several indications that the self-reported data are largely accurate. Third, our
    data are limited to families that file tax returns, and exclude the approximately 10 percent

    1 Data from the Current Population Survey and other sources find that rates o f uninsurance fell significantly
    between 2013 and 2014, in a manner that is consistent with the intent of the ACA (Smith and Medalia,
    2015).

    What Can Tax Data Tell Us about the Uninsured? Evidence from 2014 885

    of the U S. population (including 7 percent o f the non-elderly population) that does
    not appear on an income tax return. Lastly, the tax return data do not provide insur­
    ance status for each person or the duration of any spell of uninsurance; in many cases
    we know only that at least one family member was uninsured for at least part of the
    year.2

    III. EXEMPTIONS FROM THE COVERAGE REQUIREMENT

    Exemptions from the coverage requirement are available for several specific cir­
    cumstances provided under the statute and for general hardship, as determined by the
    Marketplaces (under the purview o f the Department o f Health and Human Services).3
    Some exemptions are granted only by the Marketplaces, some are claimed only on the
    tax return, and some can be taken in either way.

    Exemptions granted by the Marketplace are reported to IRS by the Marketplace and
    reported by tax return filers on Part I of Form 8965. The data reported to IRS by the
    Marketplace include the specific individual and months for which each exemption applies
    and the type o f exemption. In 2014, nearly all Marketplace exemptions reported to IRS
    were applicable for the full year. Exemptions that may be granted by the Marketplace
    include those for: general hardship (e.g., bankruptcy, fire, homelessness, death of a
    family member); unaffordable coverage based on projected income;4 membership in a
    religious sect that objects to accepting insurance benefits; individuals unable to renew
    2013 coverage; and certain other exceptions available only for 2014.

    Exemptions that may be claimed only on the tax return are reported in Parts II or
    III of Form 8965. These include exemptions for. income below the filing requirement
    (but nevertheless filing a tax return);5 unaffordable coverage, based on actual income or

    2 More complete information will be available for future years. To facilitate IR S’s administration o f the
    ACA tax provisions and to help taxpayers correctly report on their coverage status, insurers and employ­
    ers provide information about health coverage to enrollees and to IRS. This information includes the type
    o f coverage and months o f coverage for each person enrolled in insurance that meets the ACA coverage
    requirement. Coverage through a health insurance Marketplace (which is required in order to obtain the
    PTC) is reported by the Marketplaces on Form 1095-A. Large employers report offers o f coverage and
    enrollment in self-insured plans on Form 1095-C. Other insurers, government health programs, and small
    employers providing self-insured coverage report monthly enrollment for each person on Form 1095-B.
    While Marketplace data are available for 2014, employer and insurer reporting on Forms 1095-B and C
    did not begin until this year, for coverage in tax year 2015.

    3 See Internal Revenue Code §5000A, 45 CFR 155.605 and 26 CFR 1,5000Afor the health insurance cover­
    age requirement, penalty calculation, and exemptions.

    4 The exemption for coverage unaffordable based on projected income is allowed: (1) if an individual is
    eligible for employer-sponsored coverage but the required employee contribution for the coverage exceeds
    8 percent o f projected household income for the year; or (2) if the required contribution (after accounting
    for PTC) for the lowest-cost bronze Marketplace plan that would cover all family members who are not
    eligible to purchase employer-sponsored coverage or have not received another exemption exceeds 8
    percent of projected household income.

    5 Families who do not file tax returns do not need to claim exemptions.

    886 N a t io n a l T a x J o u r n a l

    based on aggregate self-only coverage;6 citizens living abroad or certain non-citizens;
    short gaps in coverage o f three months or less; and a few other exceptions that apply
    in 2014 only.

    Some exemptions may be granted by the Marketplace (in which case they may be
    reported in Part I of Form 8965) or claimed on the tax return (in which case they are
    reported in Part III of Form 8965). These include exemptions for: income below 138
    percent of the Federal poverty level (FPL) and resident of a state that did not expand
    Medicaid; member of a health care sharing ministry; member of an Indian Tribe or
    recipient o f Indian Flealth Services care; and incarceration.

    Exemptions are generally reported for each person and each month, and we provide
    results for both families and individuals below. However, the exemption for having
    income below the filing requirement applies to the entire tax family for the entire year,
    and uninsurance for specific family members or months is not reported. Therefore, we
    categorize every person on a tax return with this exemption as exempt and uninsured
    for the entire year when analyzing the data at a person-level. Interpreting every person
    who qualifies for this exemption as uninsured will overstate the number o f uninsured
    persons.

    Individuals may be eligible for more than one type of exemption for a given month,
    and in some cases are instructed to report all of the exemptions for which they qualify.
    However, taxpayers are not required to determine or report all of the exemptions for
    which they qualify. Therefore, we use an ordering rule to place individuals in mutually
    exclusive categories o f the type o f exemption used. We first identify who claims the
    exemption for having income below the filing requirement, followed by those who
    have low incomes and reside in a state that did not expand Medicaid, citizens abroad
    and certain non-citizens, persons with a short-coverage gap, persons with unaffordable
    coverage, and other exemptions. Placing persons in mutually exclusive categories sim­
    plifies the analysis. But as a result, the exemption for having income below the filing
    requirement will appear more frequently and the exemption for unaffordable coverage
    less frequently than would be the case if we used a different ordering rule or none at all.

    In addition, some codes used on Form 8965 may refer to more than one type of
    exemption. In particular, code “G” may indicate that coverage is unaffordable based on
    aggregate self-only coverage that the individual has low income and resides in a state
    that did not expand eligibility for Medicaid, or that other special cases for 2014 apply.
    We assume that a code G on a return with income below 138 percent of the poverty
    level filed from a state that did not expand Medicaid is explicitly for that exemption and
    that the remaining code G entries indicate that coverage was unaffordable.

    6 The exemption allowed because coverage is unaffordable based on actual income is similar to that de­
    scribed in footnote 4 above, but is based on actual household income rather than projected income. The
    exemption for unaffordable aggregate self-only coverage is allowed for the year if for any month: (1)
    the cost of employer-sponsored self-only coverage for two or more members is affordable when tested
    individually, (2) the cost of employer-sponsored family coverage is unaffordable, and (3) the combined
    cost of employer-sponsored individual coverage is unaffordable.

    W h a t Can Tax D ata Tell Us a b o u t th e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 887

    IV. CALCULATION OF THE INDIVIDUAL PAYMENT RESPONSIBILITY

    Taxpayers who are uninsured for all or part of the year (or who have an uninsured
    dependent) and who do not qualify for an exemption from the coverage requirement
    must make an individual responsibility payment. The amount of this payment, or pen­
    alty, depends on the number o f persons without qualifying health insurance coverage
    per month, income, and the family’s filing threshold. Specifically, for 2014 the penalty
    for each month is

    (1) (l/12)xm ax|m in[95x(A ?<i +0.5A?J,95×3],

    0.01 x( household income – filing threshold} } ,

    where AMs the number o f uninsured adults for the month, JV is the number of uninsured
    children under age 18, and household income is adjusted gross income (AGI) plus tax
    exempt interest and amounts o f foreign earned income or foreign housing excluded
    from AGI.

    The penalty for the year is the sum of the monthly amounts, limited to the cost of
    the national average bronze plan that could cover the uninsured, non-exempt family
    members for all months of uninsurance, up to a maximum of five persons. For 2014, the
    national average bronze plan is $204 per person per month, for a maximum of $1,020
    per family per month.7 In 2014, the average annual penalty per return with a penalty
    was about $210 (Internal Revenue Service, 2016).

    Only the total penalty for the year is reported by the taxpayer on the tax return. In
    some cases, the number o f uninsured persons by month can be inferred from the pen­
    alty amount. In other cases, we know only that at least one person was uninsured for
    at least part of the year. For the analysis in this paper, we present information about
    tax families who pay any amount o f penalty. In addition, we present information
    about families who pay the maximum amount of penalty conditional on their income
    and family size. If a family is paying the maximum amount, we know that the family
    paid some penalty every month, meaning that at least one person was uninsured each
    month. For a single person, this amounts to being fully uninsured. In addition, for most
    families who are paying a maximum penalty that exactly equals $95x(Na + 0.5A ),
    we know that the family is fully uninsured. Flowever, for families o f two or more
    people who are paying 1 percent o f income over the filing threshold, we cannot discern
    the number of uninsured persons. Thus, paying the maximum amount might best be
    thought of as correlated with fully uninsured status or as indicating a greater intensity
    o f uninsurance.

    7 The $95 amount is increased to $325 for 2015 and $695 for 2016, and indexed to inflation thereafter.
    The 1 percent of income is increased to 2 percent for 2015 and 2.5 percent for 2016 and thereafter. The
    national average bronze plan premium is based on the average o f the median premium for a 21-year old
    non-tobacco user in each county, weighted by county populations. Internal Revenue Service (2014) provides
    more details.

    888 N ational Tax Journal

    In the next section, we examine rates o f uninsurance among different types o f families
    and the distribution of uninsured families by filing status, age, income relative to the
    poverty level, and other characteristics. Specifically, we tabulate the number o f families
    paying a penalty, claiming an exemption, or both. Then we look more closely at the
    types of exemptions claimed, at the individual (rather than family) level.

    V. RESULTS

    We find that of tax year 2014 returns processed through the end of March 2016,11.7
    million claimed an exemption only, 7.2 million paid a penalty only, and 0.8 million
    reported both for tax year 2014 (Figure 1). Thus, in total, 19.7 million families reported
    at least one month o f uninsurance for at least one family member. This amounts to 14.5
    percent of the 135.5 million families who filed 2014 returns.8

    It is difficult to interpret this rate o f uninsurance, because it may reflect spells as
    short as one month or as long as a year, and it may reflect uninsurance for only some
    family members or for the whole family. Thus, our measure is expected to overstate
    the share of individuals who are uninsured all year or at any point in time. On the other
    hand, because our data exclude very low-income families who do not file tax returns,

    F ig u re 1

    N u m b e r o f R eturns w ith P enalty, E x e m p tio n , o r Both

    Penalty Only Exemption Only
    Category

    Both

    8 This is nearly identical to tabulations reported by IRS for tax year 2014 returns processed through October
    2015 (Internal Revenue Service, 2016).

    W h a t Can Tax D ata Tell Us a b o u t t h e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 889

    our measure could understate the true rate of uninsurance, at least among the non-
    elderly. The Bureau of the Census reports that for 2014 an estimated 10.4 percent o f
    individuals were uninsured all year and nearly 12 percent were uninsured at the time
    they were surveyed.5 * * * 9 While our measure is conceptually different and excludes very
    low-income persons, it is o f the same order of magnitude and suggests that taxpayers
    accurately reported their status on their tax returns, in a manner similar to what they
    report in survey data.

    Figure 2A shows that unmarried taxpayers are more likely to be uninsured. This is
    consistent with Census tabulations. Somewhat surprising to us, families with children
    are more likely than those without children to report a spell of uninsurance. About 20
    percent o f head of household filers, that is, unmarried persons with children, report a
    spell of uninsurance, compared to 17 percent of single filers without children, 12 percent
    of married couples filing jointly with children and only 7 percent o f joint filers without
    children. The higher rate of uninsurance among filers with children may be due to the
    age composition o f the family. It does not necessarily mean the children were uninsured,
    and may indicate that a parent was uninsured. Figure 2B shows that single taxpayers
    without children account for about half o f all tax returns reporting a spell of uninsurance.

    The rate of uninsurance was highest for families in which the primary taxpayer was
    under age 25 (22 percent) or age 25 to 29 (22.5 percent), and declined steadily after age
    29. Families in the under-30 age group account for about one-third o f uninsured families.
    As expected, the rate of uninsurance drops markedly, tojust 3 percent, when the primary
    taxpayer reaches age 65 and becomes eligible for Medicare (Figures 3A and 3B).

    Lower-income families are more likely to be uninsured, and are more likely to claim
    an exemption than to pay a penalty (Figure 4A).10 About 28 percent of families with
    incomes below 100 percent of the federal poverty level (FPL) claimed an exemption
    only, 4 percent paid a penalty only, and 1 percent did both. Among those with incomes
    between 100 and 138 percent of the poverty level, about 18 percent claimed an exemp­
    tion only, 11 percent reported a penalty only, and 2 percent did both. While taxpayers
    with income below the filing threshold are exempt from the coverage requirement, it
    is nonetheless possible for poor families to be subject to the penalty. This can occur
    because the filing threshold is below the FPL for single and head of household filers,
    and for married couples with two or more children.” Thus, some poor families may
    indeed be subject to a penalty. However, it also appears that some families paid a penalty
    when they could have claimed an exemption. In fact, IRS has contacted about 400,000
    families to notify them that they might have paid too much for tax year 2014.

    Families with incomes below the poverty level account for 37 percent of uninsured
    families, and those between 100 and 13 8 percent of the poverty level account for another
    16 percent (Figure 4B).

    5 See Smith and Medalia (2015) for the Census data cited in this paper.
    10 For all figures showing income as a percentage o f FPL, income is defined as AGI plus tax-exempt interest,

    foreign earned income and housing, and Social Security income that is otherwise excluded from AGI. This
    is the definition used to determine eligibility for Medicaid and PTC.

    11 For example, for a single person in 2014, the filing threshold was $10,150 and the poverty level was
    $11,490.

    890 National Tax Journal

    Figure 2A

    ■ Penalty Only Exemption Only “B oth

    Figure 2B

    Distribution of Uninsured Returns by Family Type

    C/)c
    CDO’

    ■ O0)
    3

    c
    ’ c
    3
    o
    0l_
    03

    SZ
    i f )

    0.60

    0.50

    0.40

    0.30

    0.20

    0.10

    0

    Family Type

    W hat Can Tax Data Tell Us a b o u t th e U ninsured? Evidence fro m 2014 891

    Figure 3A
    Share o f Families that is Uninsured by Age

    Age

    ■ Penalty Only Exemption Only ■ Both

    Figure 3B
    D istribution o f Uninsured Families by Age

    Age

    892 NationalTax Journal

    Figure 4A

    Share o f Families that is Uninsured by FPL

    0.35 ■

    « 0.25

    1 0.20 –
    LL

    O
    <u 0.15

    Income as a Share of FPL (l/FPL)

    ■ Penalty Only Exemption Only a* Both

    Figure 4B

    D istribution of Uninsured Families by FPL

    Income as a Share of FPL (l/FPL)

    W h a t Can Tax D ata Tell Us a b o u t t h e U n in s u re d ? E v id e n c e fr o m 2 0 1 4 893

    Prior to 2014, most states did not provide Medicaid to non-disabled adults without
    children. The ACA provides incentives for states to extend eligibility for Medicaid to
    all persons with incomes below 138 percent o f the poverty level, but 23 states decided
    not to do so for 2014.12 Taxpayers in these states with incomes below 100 percent of
    the poverty level are generally not eligible for Medicaid or for subsidized Marketplace
    coverage. Taxpayers in these states with incomes between 100 and 138 percent o f the
    poverty level are not eligible for Medicaid but may receive subsidized Marketplace
    coverage, including both PTC and help with out-of-pocket costs.13 All persons with
    incomes below 138 percent of the poverty level and residing in a state that did not expand
    Medicaid are exempt from the coverage requirement. Many received this exemption
    when they went to the Marketplace seeking coverage. In addition, this exemption may
    be claimed on the tax return.

    Other researchers (Council of Economic Advisers, 2016) have found that rates of
    uninsurance are lower in states that expanded Medicaid, both before and after 2014.
    Similarly, we find that uninsurance rates are 12 percent in states that expanded Medicaid
    eligibility and 18 percent in those that did not. Families in states that did not expand
    Medicaid were more likely than others to claim an exemption from the coverage require­
    ment (11 percent versus 7 percent). Families filing from a state that did not expand
    Medicaid eligibility account for 44 percent of all families and 54 percent o f uninsured
    families (Figures 5A and 5B).

    As expected, much of this difference in uninsurance rates is attributable to poor
    families who could receive Medicaid if they resided in a state that expanded eligibility
    (Figures 6A and 6B). For example, the rate o f uninsurance among families with incomes
    below 100 percent o f the poverty level is 42 percent in states that did not expand Med­
    icaid and 26 percent in states that did expand Medicaid. The rate o f uninsurance among
    families with incomes between 100 and 138 percent of the poverty level is 37 percent
    in non-expansion states and 25 percent in expansion states. However, even at higher
    income levels, rates o f uninsurance are slightly higher (1 to 5 percentage points higher)
    in non-expansion states. This suggests that the lower rates of uninsurance are partly
    due to the Medicaid expansion directly, partly to spillover effects such as increased

    12 The 23 states that did not expand Medicaid eligibility for 2014 include: Alabama, Alaska, Florida, Georgia,
    Idaho, Indiana, Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, North Carolina,
    Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming.
    Wisconsin expanded eligibility to include adults with incomes up to 100 percent o f the poverty level and
    New Hampshire expanded eligibility effective August 15, 2014. These are included as expansion states,
    although low-income taxpayers residing in these states could claim an exemption from the coverage re­
    quirement for 2014. Categorizing Wisconsin and New Hampshire as non-expansion states does not make
    a noticeable change in the results. Alaska, Indiana, and Pennsylvania subsequently expanded Medicaid
    eligibility beginning with all or part of 2015; Montana for 2016; and Louisiana is expected to expand in
    June 2016. Thus, by the latter h alf o f 2016 there will be 18 states that have not extended Medicaid eligibil­
    ity to all poor adults (those below 100 percent o f the poverty level).

    13 In addition to being eligible for PTC, families who obtain Marketplace coverage and who have incomes
    below 250 percent o f the poverty level may be eligible for cost-sharing reductions, which reduce their
    out-of-pocket copayments and deductibles.

    894 National Tax Journal

    Figure 5A

    Share o f Families that is Uninsured by Expansion Status

    No Expansion Expansion

    Expansion Status

    ■ Penalty Only Exemption Only * Both

    Figure 5B

    D istribution o f Families by Expansion Status

    No Expansion Expansion

    Expansion Status

    S
    h

    a
    re

    o
    f

    F
    a

    m
    ili

    e
    s

    W h a t Can Tax Data Tell Us a b o u t th e U ninsured? Evidence fro m 2014 895

    Figure 6A

    Share that is Uninsured by FPL Non-Expansion States

    Income as a Share o f FPL (l/FPL)

    ■ Penalty Only Exemption Only B B o th

    Figure 6B

    Share that is Uninsured by FPL Expansion States

    Income as a Share o f FPL (l/FPL)

    ■ Penalty Only Exemption Only ■ Both

    896 N a tio n a l T a x J o u r n a l

    outreach generating more coverage among families with slightly higher incomes, and
    partly to underlying state characteristics that are correlated with the choice to expand.

    Reported insurance status does not vary much by tax preparation mode. About 55
    percent of families use a paid preparer to file their tax returns and 38 percent prepare
    their own returns with the help o f software. This is true for both insured families and
    uninsured tax return filers. Families that prepare their own returns using software are
    less likely to report a penalty (4 percent) and more likely to claim an exemption (10
    percent) than are other groups, but the difference is not large. Those who prepare their
    own returns without software are less likely to report that they are uninsured (5 percent),
    and those using volunteer assistance that primarily serves low-income families are more
    likely to be uninsured (16 percent), but both of these groups are very small, accounting
    for less than 7 percent of families.

    We focus next on families who paid a penalty. Many families who pay a penalty
    are likely to be eligible for subsidized Marketplace coverage. We find that 11 percent
    o f primary taxpayers who reported a penalty for anyone in their family in 2014 were
    Marketplace policyholders at some point in 2015, indicating that someone in the family
    had Marketplace coverage.14 Primary taxpayers who paid a penalty and had incomes
    between 138 and 200 percent of the poverty level in 2014 were most likely to appear as
    Marketplace policyholders in 2015, at 14 percent. But lower-income and higher-income
    families subject to penalties in 2014 also appear to have moved into the Marketplace
    in 2015 (at least as measured by observing the primary taxpayer as a policyholder),
    including 8 percent below poverty in 2014 and 9 percent o f the uninsured with incomes
    over 400 percent of the poverty level (Figure 7).

    As noted earlier, we cannot infer the duration of uninsurance or the number of unin­
    sured family members from the amount of the penalty in many cases. However, we
    know that a family that paid the maximum amount conditional on the family’s income
    and family size had at least one uninsured family member in every month. About 56
    percent of families paid the maximum amount. This includes 68 percent of single filers
    with a penalty, who we know were uninsured all year

    We next analyze the types o f exemptions that are claimed at the individual level. A
    total of 22.2 million people were represented on Forms 8965 filed for tax year 2014;
    that is, for each of these 22.2 million people, an exemption was claimed for them at the
    individual level or the exemption for income below the filing threshold that applies to
    the whole family was claimed. About 46 percent of people with exemptions are associ­
    ated with a family claiming the exemption for income below the filing threshold. This
    result is driven in part by the fact that we count every person on returns claiming the
    filing requirement exemption as exempt, and because we count this exemption first.
    Other relatively common exemptions are those for residents o f Medicaid non-expansion

    Some of these primary taxpayers were also policyholders in 2014, since part of a family may be insured
    and another part uninsured in any month, or the family may be uninsured for only part o f the year.

    W hat Can Tax Data Tell Us about the Uninsured? Evidence from 2014 897

    F ig u re 7

    Percent of Penalty-paying Families with Primary Found as Policyholder in the
    2015 Marketplace, by FPL

    0.20

    0 .1 8

    M 0 .1 6
    .CD

    I 0 .1 4
    li­
    en

    . £ 0.12
    > x
    0 3Q_

    0.10
    co
    | 0 .0 8
    o

    0 .0 6
    co

    w 0 .0 4
    0.02

    0.00
    llillll

    Income as a Share of FPL

    states, citizens abroad and certain non-citizens, and lack o f affordable coverage options,
    each accounting for about 15 percent o f exemptions claimed (Figure 8).

    Most individuals claiming an exemption, 84 percent, claim to be exempt from the
    coverage requirement for the full year. Again this is driven in part by the fact that, by
    definition, income below the filing requirement qualifies every individual in the family
    for an exemption for the entire year, even if the family had coverage for part of the year
    or for some members of the family. However, most other exemptions are also claimed
    for the entire year. T

    Economics homework help

    BCO221 GLOBAL ECONOMICS Final Assignment Task brief & rubrics

    Task

    This task is worth 40% of your overall grade for this subject and substitutes the final exam.

    Due date: Sunday the 11th of May

    Formalities

    • Minimum length of the assignment 1500 words – Maximum 2000 words.

    • Essay form

    • Relate your answers to the concepts delivered in class.

    • Font: Arial 12,5pts. Line-spacing: default. Text-align: Justified.

    • Bibliography/References in Harvard style.

    • You may use Appendixes. These and the References do not count for the total wordcount.

    Look at the following discussion topic and answer the related questions:

    Topic

    Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They have a presence in many markets /
    Europe, North America, Brazil, Russia, China and they have recently established a regional office for the Gulf Area in Dubai in the UAE. Their biggest market, though, in
    this area is Saudi Arabia and the company is coming under pressure from the Saudi Ministry of Trade to relocate its Gulf office to Riyadh.

    Question 1

    Identify the economic indicators you consider would be of most relevance to the company in making a decision like this and use them to compare the two

    economies. (Related to the first evaluation criteria – see table below)

    Question 2

    Consider the political stability of both countries – what factors contribute to its stability/volatility? (Related to the second evaluation criteria – see table below)

    Question 3

    Analyse the market for beauty treatments in the two countries and compare the needs of the women for dibimilano products and services. (Related to the third

    evaluation criteria – see table below)

    Question 4

    On the basis of your analysis, recommend whether dibimilano should maintain their headquarters in Dubai, move them to Riyadh or look for another alternative.

    Remember to support your conclusions with your previous analysis.

    It assesses the following learning outcomes:

    • Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of

    exchange rates.

    • Evaluate, analyze and contrast economic decisions and their impact of the global business context.

    Rubrics

    Excellent
    90-100%

    Good
    80-89%

    Fair
    70-79%

    Marginal fail
    60-69%

    Fail
    <60%

    Relates the case to
    the specific
    knowledge
    delivered

    (20%)

    Demonstrates

    exceptional

    knowledge and

    understanding of

    concepts.

    Demonstrate good

    knowledge and

    understanding of key

    concepts-

    The report

    demonstrates a

    satisfactory level of

    knowledge and

    understanding of

    concepts at this basic

    level.

    Demonstrates limited

    knowledge and

    understanding of the

    key concepts.

    Demonstrates

    extremely poor

    knowledge and lack

    of understanding of

    the key concepts.

    Application
    (30%)

    All analytical tools are

    applied very well, and

    highly relevant insight

    is drawn from them.

    Most analytical tools

    are applied well, and

    relevant insight is

    drawn from them.

    Some analytical tools

    are applied well

    although there may be

    some minor

    misunderstandings.

    Some relevant insight

    may be drawn.

    Some

    misunderstandings

    may be in evidence for

    one or two tools.

    Limited insight drawn

    from analysis.

    There is almost no

    attempt to apply

    tools

    Evaluation
    (40%)

    There is exceptional

    evidence of

    evaluation and

    justification of

    recommendations

    There is some good

    evidence of

    evaluations of

    concepts and

    There is some evidence

    of evaluation of the

    concepts and

    justification of

    recommendations

    There is little evidence

    of evaluation of

    concepts and

    justification of

    recommendations

    There is virtually no

    evidence of

    evaluation of

    concepts and

    justification of

    recommendations

    justification of

    recommendations

    Critical skills

    (X%)

    Exceptional critical

    engagement using a

    range of sound,

    literature and data-

    based criteria to

    assess the effects

    Exceptional critical

    engagement and

    analysis of complex

    ideas.

    Excellent conclusions

    based on evaluation.

    Good critical

    engagement using

    some sound,

    literature and data-

    based criteria to

    assess the effects

    Good critical

    engagement and

    analysis of complex

    ideas.

    Well justified

    conclusions based on

    evaluation.

    Fair critical

    engagement using

    some criteria but the

    links to literature or

    data of these is not

    mentioned.

    Fair critical

    engagement and

    analysis of some ideas.

    Fair conclusions

    somewhat based on

    evaluation.

    Marginally inadequate

    critical engagement.

    Scarce attempt to

    question the concepts

    and analyze facts.

    Conclusions are very

    short and loosely

    linked to the data and

    facts.

    Inadequate critical

    engagement.

    Concepts and case

    completely taken at

    face value

    No conclusions or

    conclusions are

    completely unrelated

    to evaluation.

    Communication
    (10%)

    The assignment is

    communicated

    extremely coherently,

    and referencing is

    accurate throughout

    The assignment is

    communicated quite

    clearly, and

    referencing is

    accurate but there

    are some issues in

    terms of spelling and

    structure

    The assignment

    communicates the

    ideas in a mostly

    coherent way but there

    are some errors and

    some errors in

    referencing which are

    not accurate

    The assignment is

    understandable but is

    communicated poorly

    and referencing is

    inaccurate

    The assignment is

    extremely poor in

    terms of referencing

    (inaccurate or absent)

    and tends to be

    incoherent or

    insufficient (length) in

    terms of conveying

    ideas

    Economics homework help

    Macroeconomic Theory

    1 Chapter 18: Economic E�ciency

    • Economic E�ciency, roughly speaking, is an equilibrium where nothing can be improved
    without something else being made worse o�.

    → The concept of e�ciency has nothing to with fairness.
    • The Social Planner: a �ctitious, `all-knowing’, benevolent entity that is perfectly able to
    control and allocate all resources of the economy.

    → Theoretical construct used to obtain e�cient outcomes, which can be used as a benchmark
    against sub-optimal outcomes.

    1.1 E�ciency in the In�nite-Period General Equilibrium Framework

    → For simplicity, we will assume that labor supply is exogenously �xed at n̄ so that we do not
    have to optimize over it (which also means leisure is �xed at l̄)

    → If we had endogenous labor, we would have to optimize over leisure/labor as usual

    1.1.1 The Social Planner

    → The Social Planner uses the households’ preferences and the �rms’ production technology to
    allocate the economy’s resources to obtain an e�cient equilibrium outcome.

    For t = 1, 2, …

    Household’s Preferences: V = u(ct, l̄) + βu(ct+1, l̄) + …

    Firm’s Production and Investment Technology: f(kt, n̄); invt = kt+1 − (1 −δ)kt

    Resource Constraint: f(kt, n̄) = ct + invt

    ⇒ The Social Planners Optimization Problem:

    max
    {ct+s,kt+1+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, l̄)

    subject to:

    f(kt, n̄) − ct − (kt+1 − (1 −δ)kt) = 0 for all t

    → Note that we are only optimizing over the intertemporal dimension. Thus we only need to
    take �rst-order condition with respect to ct,ct+1, and kt+1

    1

    → One can obtain the e�ciency condition by setting up a sequential Lagrangian and taking the
    relevant �rst-order conditions:

    L =
    ∞∑
    s=0

    {βsu(ct+s, l̄) + λt+s (f(kt+s, n̄) − ct+s − (kt+1+s − (1 − δ)kt+s))}

    Writing this out for s = 0 and s = 1:

    L = u(ct, l̄) + λt (f(kt, n̄) − ct − (kt+1 − (1 − δ)kt)

    + βu(ct+1, l̄) + λt+1 (f(kt+1, n̄) − ct+1 − (kt+2 − (1 −δ)kt+1)) + …

    FOCs:

    ∂L
    ∂ct

    = 0 −→
    ∂u

    ∂ct
    −λt = 0 −→

    ∂u

    ∂ct
    = λt (1)

    ∂L
    ∂ct+1

    = 0 −→ β
    ∂u

    ∂ct+1
    −λt+1 = 0 −→ β

    ∂u

    ∂ct+1
    = λt+1 (2)

    ∂L
    ∂kt+1

    = 0 −→−λt + λt+1
    (

    ∂f

    ∂kt+1
    + (1 − δ)

    )
    = 0 −→ λt+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    = λt (3)

    Using Equation (1) and (2) into Equation (3):

    λt+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    = λt

    β
    ∂u

    ∂ct+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    =
    ∂u

    ∂ct


    ∂u/∂ct

    β∂u/∂ct+1
    =

    ∂f

    ∂kt+1
    + (1 −δ) (4)

    ⇒ Equation (4) is the E�ciency condition from the Social Planner’s problem.
    → Economic intuition: It is e�cient when the households’ marginal rate of substitution of ct

    for ct+1 is equal to the �rm’s marginal product of capital in period t+1 plus the undepreciated

    portion of that marginal unit of capital.

    ⇒ Note that this is equivalent to the �nancial market equilibrium condition from the `de-
    centralized’ in�nite-period framework where households and �rms had their own optimization

    problems, and equilibrium obtained from market forces.

    • First Welfare Theorem of Economics: The equilibrium behavior of households and �rms
    in a decentralized framework is economically e�cient.

    → This fails if:

    1. distortionary taxes are present (e.g. wage income, interest income taxes)

    2. `externalities’ are present

    3. �rms or households have `market power’ to in�uence prices

    2

    • Chapter 18: Economic Efficiency
      • Efficiency in the Infinite-Period General Equilibrium Framework

    Economics homework help

    BCO221 GLOBAL ECONOMICS Final Assignment Task brief & rubrics

    Task

    This task is worth 40% of your overall grade for this subject and substitutes the final exam.

    Due date: Sunday the 11th of May

    Formalities

    • Minimum length of the assignment 1500 words – Maximum 2000 words.

    • Essay form

    • Relate your answers to the concepts delivered in class.

    • Font: Arial 12,5pts. Line-spacing: default. Text-align: Justified.

    • Bibliography/References in Harvard style.

    • You may use Appendixes. These and the References do not count for the total wordcount.

    Look at the following discussion topic and answer the related questions:

    Topic

    Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They have a presence in many markets /
    Europe, North America, Brazil, Russia, China and they have recently established a regional office for the Gulf Area in Dubai in the UAE. Their biggest market, though, in
    this area is Saudi Arabia and the company is coming under pressure from the Saudi Ministry of Trade to relocate its Gulf office to Riyadh.

    Question 1

    Identify the economic indicators you consider would be of most relevance to the company in making a decision like this and use them to compare the two

    economies. (Related to the first evaluation criteria – see table below)

    Question 2

    Consider the political stability of both countries – what factors contribute to its stability/volatility? (Related to the second evaluation criteria – see table below)

    Question 3

    Analyse the market for beauty treatments in the two countries and compare the needs of the women for dibimilano products and services. (Related to the third

    evaluation criteria – see table below)

    Question 4

    On the basis of your analysis, recommend whether dibimilano should maintain their headquarters in Dubai, move them to Riyadh or look for another alternative.

    Remember to support your conclusions with your previous analysis.

    It assesses the following learning outcomes:

    • Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of

    exchange rates.

    • Evaluate, analyze and contrast economic decisions and their impact of the global business context.

    Rubrics

    Excellent
    90-100%

    Good
    80-89%

    Fair
    70-79%

    Marginal fail
    60-69%

    Fail
    <60%

    Relates the case to
    the specific
    knowledge
    delivered

    (20%)

    Demonstrates

    exceptional

    knowledge and

    understanding of

    concepts.

    Demonstrate good

    knowledge and

    understanding of key

    concepts-

    The report

    demonstrates a

    satisfactory level of

    knowledge and

    understanding of

    concepts at this basic

    level.

    Demonstrates limited

    knowledge and

    understanding of the

    key concepts.

    Demonstrates

    extremely poor

    knowledge and lack

    of understanding of

    the key concepts.

    Application
    (30%)

    All analytical tools are

    applied very well, and

    highly relevant insight

    is drawn from them.

    Most analytical tools

    are applied well, and

    relevant insight is

    drawn from them.

    Some analytical tools

    are applied well

    although there may be

    some minor

    misunderstandings.

    Some relevant insight

    may be drawn.

    Some

    misunderstandings

    may be in evidence for

    one or two tools.

    Limited insight drawn

    from analysis.

    There is almost no

    attempt to apply

    tools

    Evaluation
    (40%)

    There is exceptional

    evidence of

    evaluation and

    justification of

    recommendations

    There is some good

    evidence of

    evaluations of

    concepts and

    There is some evidence

    of evaluation of the

    concepts and

    justification of

    recommendations

    There is little evidence

    of evaluation of

    concepts and

    justification of

    recommendations

    There is virtually no

    evidence of

    evaluation of

    concepts and

    justification of

    recommendations

    justification of

    recommendations

    Critical skills

    (X%)

    Exceptional critical

    engagement using a

    range of sound,

    literature and data-

    based criteria to

    assess the effects

    Exceptional critical

    engagement and

    analysis of complex

    ideas.

    Excellent conclusions

    based on evaluation.

    Good critical

    engagement using

    some sound,

    literature and data-

    based criteria to

    assess the effects

    Good critical

    engagement and

    analysis of complex

    ideas.

    Well justified

    conclusions based on

    evaluation.

    Fair critical

    engagement using

    some criteria but the

    links to literature or

    data of these is not

    mentioned.

    Fair critical

    engagement and

    analysis of some ideas.

    Fair conclusions

    somewhat based on

    evaluation.

    Marginally inadequate

    critical engagement.

    Scarce attempt to

    question the concepts

    and analyze facts.

    Conclusions are very

    short and loosely

    linked to the data and

    facts.

    Inadequate critical

    engagement.

    Concepts and case

    completely taken at

    face value

    No conclusions or

    conclusions are

    completely unrelated

    to evaluation.

    Communication
    (10%)

    The assignment is

    communicated

    extremely coherently,

    and referencing is

    accurate throughout

    The assignment is

    communicated quite

    clearly, and

    referencing is

    accurate but there

    are some issues in

    terms of spelling and

    structure

    The assignment

    communicates the

    ideas in a mostly

    coherent way but there

    are some errors and

    some errors in

    referencing which are

    not accurate

    The assignment is

    understandable but is

    communicated poorly

    and referencing is

    inaccurate

    The assignment is

    extremely poor in

    terms of referencing

    (inaccurate or absent)

    and tends to be

    incoherent or

    insufficient (length) in

    terms of conveying

    ideas

    Economics homework help

    Macroeconomic Theory

    1 Chapter 18: Economic E�ciency

    • Economic E�ciency, roughly speaking, is an equilibrium where nothing can be improved
    without something else being made worse o�.

    → The concept of e�ciency has nothing to with fairness.
    • The Social Planner: a �ctitious, `all-knowing’, benevolent entity that is perfectly able to
    control and allocate all resources of the economy.

    → Theoretical construct used to obtain e�cient outcomes, which can be used as a benchmark
    against sub-optimal outcomes.

    1.1 E�ciency in the In�nite-Period General Equilibrium Framework

    → For simplicity, we will assume that labor supply is exogenously �xed at n̄ so that we do not
    have to optimize over it (which also means leisure is �xed at l̄)

    → If we had endogenous labor, we would have to optimize over leisure/labor as usual

    1.1.1 The Social Planner

    → The Social Planner uses the households’ preferences and the �rms’ production technology to
    allocate the economy’s resources to obtain an e�cient equilibrium outcome.

    For t = 1, 2, …

    Household’s Preferences: V = u(ct, l̄) + βu(ct+1, l̄) + …

    Firm’s Production and Investment Technology: f(kt, n̄); invt = kt+1 − (1 −δ)kt

    Resource Constraint: f(kt, n̄) = ct + invt

    ⇒ The Social Planners Optimization Problem:

    max
    {ct+s,kt+1+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, l̄)

    subject to:

    f(kt, n̄) − ct − (kt+1 − (1 −δ)kt) = 0 for all t

    → Note that we are only optimizing over the intertemporal dimension. Thus we only need to
    take �rst-order condition with respect to ct,ct+1, and kt+1

    1

    → One can obtain the e�ciency condition by setting up a sequential Lagrangian and taking the
    relevant �rst-order conditions:

    L =
    ∞∑
    s=0

    {βsu(ct+s, l̄) + λt+s (f(kt+s, n̄) − ct+s − (kt+1+s − (1 − δ)kt+s))}

    Writing this out for s = 0 and s = 1:

    L = u(ct, l̄) + λt (f(kt, n̄) − ct − (kt+1 − (1 − δ)kt)

    + βu(ct+1, l̄) + λt+1 (f(kt+1, n̄) − ct+1 − (kt+2 − (1 −δ)kt+1)) + …

    FOCs:

    ∂L
    ∂ct

    = 0 −→
    ∂u

    ∂ct
    −λt = 0 −→

    ∂u

    ∂ct
    = λt (1)

    ∂L
    ∂ct+1

    = 0 −→ β
    ∂u

    ∂ct+1
    −λt+1 = 0 −→ β

    ∂u

    ∂ct+1
    = λt+1 (2)

    ∂L
    ∂kt+1

    = 0 −→−λt + λt+1
    (

    ∂f

    ∂kt+1
    + (1 − δ)

    )
    = 0 −→ λt+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    = λt (3)

    Using Equation (1) and (2) into Equation (3):

    λt+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    = λt

    β
    ∂u

    ∂ct+1

    (
    ∂f

    ∂kt+1
    + (1 −δ)

    )
    =
    ∂u

    ∂ct


    ∂u/∂ct

    β∂u/∂ct+1
    =

    ∂f

    ∂kt+1
    + (1 −δ) (4)

    ⇒ Equation (4) is the E�ciency condition from the Social Planner’s problem.
    → Economic intuition: It is e�cient when the households’ marginal rate of substitution of ct

    for ct+1 is equal to the �rm’s marginal product of capital in period t+1 plus the undepreciated

    portion of that marginal unit of capital.

    ⇒ Note that this is equivalent to the �nancial market equilibrium condition from the `de-
    centralized’ in�nite-period framework where households and �rms had their own optimization

    problems, and equilibrium obtained from market forces.

    • First Welfare Theorem of Economics: The equilibrium behavior of households and �rms
    in a decentralized framework is economically e�cient.

    → This fails if:

    1. distortionary taxes are present (e.g. wage income, interest income taxes)

    2. `externalities’ are present

    3. �rms or households have `market power’ to in�uence prices

    2

    • Chapter 18: Economic Efficiency
      • Efficiency in the Infinite-Period General Equilibrium Framework

    Economics homework help

    Intro Micro Your Name(s):__________________________________________

    Professor Kane


    Problem Set 3


    For graphs, it is often best to use Excel or draw your graph and attach the picture

    Total 19 points.

    1. (4 points) Production Possibility Frontiers: apples and wheat

    https://upload.wikimedia.org/wikipedia/commons/2/26/Felsoetold_Wheat_field%2C_Hungary.jpg
    See the source imageTable 1. Production of apples and wheat

    Apples

    Wheat

    0

    500

    1

    499

    2

    495

    3

    489

    4

    476

    5

    453

    6

    415

    7

    358

    8

    275

    9

    160

    10

    5

    a. (1 point) Draw a production possibilities curve for your two-acre farm between growing apples and wheat. Is there a tradeoff between these two? How is a tradeoff shown in your graph? (Make sure you label you axes.)

    b. (1 point) Is the trade-off constant or does it change as you have more or less apples and wheat? How is the trade-off represented in the slope of the line? Why does the trade-off change?

    c. (1 point) What is the price of apples? What is the price of wheat? Add a column to Table 1 and give the price of additional bushels of wheat or apples. Where is the price of wheat on your graph? What happens to the price of wheat as you are growing more wheat and fewer apples? Why does the relative price change and how does this relate to the neoclassical theory of production?

    d. (1 point) Suppose instead of producing wheat, you produce honey where you attract bees to your apple blossoms and the bees make honey for you using the apples’ pollen? What happens to your production possibility frontier? Does this mean that you have a free lunch?

    2. (4 points) Capitalism

    a. (1 point) How hard do people work when they are working for themselves? What determines how much they work? New England farmers owned their land. Use the Marxist circuit of capital language (e.g. C-M-C’) to explain how hard they worked and how much they produced.

    b. (1 point) How do things change when these farmers lost control of the means of production (their land) and have to sell their labor power to a capitalist? Will the formally independent workers now stop working when they have enough money for the desired consumption? Will they produce more output?

    c. (1 point) How does the capitalist make a profit from a relationship where he pays the workers a fair value for their time and sells at a fair price? Are capitalists guaranteed a profit? How could the capitalist not make a profit?

    d. (1 point) What do capitalists do with their profits, and how does this explain the expansion of capitalism throughout the world and into areas of household production?

    3. See the source image(5 points)
    Externalities
    . The Trump administration has been reversing many of the measures taken by the Obama administration to protect clean air and water. The effect has been to increase profits for some industries (notably chemical and fossil fuels) while reducing profits for other industries as well as public health and safety.

    a. (1.5 points) How should we evaluate these policy changes? How can we tell if they are good or bad?

    b. (1.5 points) If people don’t like the Trump Administration’s actions, how might they get the industries that benefit to stop polluting? Could the market lead to the efficient level of pollution if there are full and clear property rights?

    c. (2 points) By themselves, the United States, the People’s Republic of China and India account for almost half of world greenhouse gas emissions causing catastrophic climate change. Many of the poorest countries, including those producing the fewest greenhouse gases, will suffer the most from climate change.

    i. Why don’t countries most threatened, pay the polluters to stop?

    ii. Even the rich will suffer from climate change. Use game theory and the prisoners dilemma to explain why China, India, and the United States don’t agree to stop polluting.

    4. (6 points) Is inequality necessary? Is it good?

    a. (2 points) Describe economic inequality in America.

    i. Compared with other countries or with the United States in the past, how unequal is the distribution of income?

    ii. Who is rich and who is poor ? Are there demographic differences between rich and poor Americans?

    b. (2 points) Should we equalize income for all Americans? Explain the utilitarian argument for egalitarian social policies.

    c. (2 points) Arthur Okun argues that we can redistribute income from rich to poor only in a “leaky bucket” where some is lost along the way. Why does Okun think there is a trade-off between equality and efficiency? Is he right?

    1

    Economics homework help

    Discussion

    175words more

    1.(Article 6. 1) Chen and Isikara argue that capitalism is systematically unable to address the great challenge of climate change. What do they propose as a broad means of addressing this looming disaster?

    1. (Article 6. 6) Two possible explanations for disparities in environmental condi- tions along lines of income or race are “selection”and “move-in.“Selection means that polluting industries make decisions to locate in predominantly low- income or non-white areas. Move-in” means that people with fewer resources are more likely to move into areas where environmental quality is lower. What you think of these two explanations? Would your views of environmental injustice ” differ depending on which factor is more important?

    2. (Article 7. 5) What kind of correlation appears in the data between the propor- tion of workers engaged in social control relative to internal economic inequality? What could account for this correlation?

    3. (Article 8. 6) It is common for people to view racial disparities in society( like job discrimination or racial profiling) as a consequence of racial biases. Wicks-Lim argues that biases are a consequence of racial disparities. Explain

    4. (Article 8. 7) Are policies aimed at boosting the growth of productivity a good way to address poverty? / hy would someone think so? What evidence does John Miller present to think they are not

    6.10. (Article 8. 8) Consider the following quotation I think we’ve been through a period where too many people have been given to understand that if they have a problem, it’s the government’s job to cope with it… . They’re casting their problem on society. And, you know, there is no such thing as society. There are individual men and women, and there are families. – British Prime Minister Margaret Thatcher, talking to Womans Oun magazine, October 31, 1987 After reading Alperovitz and Daly’s article TThe Undeserving Rich, how do you think the authors would respond to Thatcher? How would you respond?

    Economics homework help

    Individual Presentation Rubric

    Total possible points: 12

    Trait

    Criteria

    Points

    1

    2

    3

    Content

    Did the presentation have valuable material?

    Presentation contained little to no valuable material.

    Presentation had a good amount of material and benefited the class.

    Presentation had an exceptional amount of valuable material and was extremely beneficial to the class.

    Collaboration/Teamwork

    Did everyone contribute to the presentation?

    Did everyone seem well prepared?

    The teammates never worked from others’ ideas. It seems as though only a few people worked on the presentation

    The teammates worked from others’ ideas most of the time. And it seems like every did some work, but some people are carrying the presentation.

    The teammates always worked from others’ ideas. It was evident that all of the group members contributed equally to the presentation.

    Organization

    Was the presentation well organized and easy to follow?

    The presentation lacked organization and had little evidence of preparation.

    The presentation had organizing ideas but could have been much stronger with better preparation.

    The presentation was well organized, well prepared and easy to follow.

    Presentation

    Did the presenters Speak clearly? Did the engage the audience? Was it obvious the material had been rehearsed?

    Presenters were not confident and demonstrated little evidence of planning prior to presentation.

    Presenters were occasionally confident with their presentation however the presentation was not as engaging as it could have been for the class

    Presenters were all very confident in delivery and they did an excellent job of engaging the class. Preparation is very evident

    Economics homework help

    Intro Micro Your Name(s):__________________________________________

    Professor Kane


    Problem Set 3


    For graphs, it is often best to use Excel or draw your graph and attach the picture

    Total 19 points.

    1. (4 points) Production Possibility Frontiers: apples and wheat

    https://upload.wikimedia.org/wikipedia/commons/2/26/Felsoetold_Wheat_field%2C_Hungary.jpg
    See the source imageTable 1. Production of apples and wheat

    Apples

    Wheat

    0

    500

    1

    499

    2

    495

    3

    489

    4

    476

    5

    453

    6

    415

    7

    358

    8

    275

    9

    160

    10

    5

    a. (1 point) Draw a production possibilities curve for your two-acre farm between growing apples and wheat. Is there a tradeoff between these two? How is a tradeoff shown in your graph? (Make sure you label you axes.)

    b. (1 point) Is the trade-off constant or does it change as you have more or less apples and wheat? How is the trade-off represented in the slope of the line? Why does the trade-off change?

    c. (1 point) What is the price of apples? What is the price of wheat? Add a column to Table 1 and give the price of additional bushels of wheat or apples. Where is the price of wheat on your graph? What happens to the price of wheat as you are growing more wheat and fewer apples? Why does the relative price change and how does this relate to the neoclassical theory of production?

    d. (1 point) Suppose instead of producing wheat, you produce honey where you attract bees to your apple blossoms and the bees make honey for you using the apples’ pollen? What happens to your production possibility frontier? Does this mean that you have a free lunch?

    2. (4 points) Capitalism

    a. (1 point) How hard do people work when they are working for themselves? What determines how much they work? New England farmers owned their land. Use the Marxist circuit of capital language (e.g. C-M-C’) to explain how hard they worked and how much they produced.

    b. (1 point) How do things change when these farmers lost control of the means of production (their land) and have to sell their labor power to a capitalist? Will the formally independent workers now stop working when they have enough money for the desired consumption? Will they produce more output?

    c. (1 point) How does the capitalist make a profit from a relationship where he pays the workers a fair value for their time and sells at a fair price? Are capitalists guaranteed a profit? How could the capitalist not make a profit?

    d. (1 point) What do capitalists do with their profits, and how does this explain the expansion of capitalism throughout the world and into areas of household production?

    3. See the source image(5 points)
    Externalities
    . The Trump administration has been reversing many of the measures taken by the Obama administration to protect clean air and water. The effect has been to increase profits for some industries (notably chemical and fossil fuels) while reducing profits for other industries as well as public health and safety.

    a. (1.5 points) How should we evaluate these policy changes? How can we tell if they are good or bad?

    b. (1.5 points) If people don’t like the Trump Administration’s actions, how might they get the industries that benefit to stop polluting? Could the market lead to the efficient level of pollution if there are full and clear property rights?

    c. (2 points) By themselves, the United States, the People’s Republic of China and India account for almost half of world greenhouse gas emissions causing catastrophic climate change. Many of the poorest countries, including those producing the fewest greenhouse gases, will suffer the most from climate change.

    i. Why don’t countries most threatened, pay the polluters to stop?

    ii. Even the rich will suffer from climate change. Use game theory and the prisoners dilemma to explain why China, India, and the United States don’t agree to stop polluting.

    4. (6 points) Is inequality necessary? Is it good?

    a. (2 points) Describe economic inequality in America.

    i. Compared with other countries or with the United States in the past, how unequal is the distribution of income?

    ii. Who is rich and who is poor ? Are there demographic differences between rich and poor Americans?

    b. (2 points) Should we equalize income for all Americans? Explain the utilitarian argument for egalitarian social policies.

    c. (2 points) Arthur Okun argues that we can redistribute income from rich to poor only in a “leaky bucket” where some is lost along the way. Why does Okun think there is a trade-off between equality and efficiency? Is he right?

    1

    Economics homework help

    Discussion

    175words more

    1.(Article 6. 1) Chen and Isikara argue that capitalism is systematically unable to address the great challenge of climate change. What do they propose as a broad means of addressing this looming disaster?

    1. (Article 6. 6) Two possible explanations for disparities in environmental condi- tions along lines of income or race are “selection”and “move-in.“Selection means that polluting industries make decisions to locate in predominantly low- income or non-white areas. Move-in” means that people with fewer resources are more likely to move into areas where environmental quality is lower. What you think of these two explanations? Would your views of environmental injustice ” differ depending on which factor is more important?

    2. (Article 7. 5) What kind of correlation appears in the data between the propor- tion of workers engaged in social control relative to internal economic inequality? What could account for this correlation?

    3. (Article 8. 6) It is common for people to view racial disparities in society( like job discrimination or racial profiling) as a consequence of racial biases. Wicks-Lim argues that biases are a consequence of racial disparities. Explain

    4. (Article 8. 7) Are policies aimed at boosting the growth of productivity a good way to address poverty? / hy would someone think so? What evidence does John Miller present to think they are not

    6.10. (Article 8. 8) Consider the following quotation I think we’ve been through a period where too many people have been given to understand that if they have a problem, it’s the government’s job to cope with it… . They’re casting their problem on society. And, you know, there is no such thing as society. There are individual men and women, and there are families. – British Prime Minister Margaret Thatcher, talking to Womans Oun magazine, October 31, 1987 After reading Alperovitz and Daly’s article TThe Undeserving Rich, how do you think the authors would respond to Thatcher? How would you respond?

    Economics homework help

    1 – Describe and discuss three (3) concepts that you have learned in this course.  Define the concept and discuss how you demonstrated/learned the concept in course activities. (45 points at 15 points per concept discussed)

    Potential aspects to include:

    · What three new concepts did you learn?

    · What new skills did you learn as a result of working with the concepts?

    · What was exciting, surprising, frustrating, or new about what you learned?

    2 – For each concept you detailed in question #1, discuss how you can relate the concept to a situation outside of this class, such as other courses in either undergraduate or graduate studies or activities (e.g., work or personal setting) and describe how you can apply the concept from class (45 points at 15 points per concept discussed)

    Potential aspects to include:

    · What is the concept?

    · How does the concept relate to the situation outside of this class?

    · How can you apply the concept learned?

    3 – Discuss any aspects of the course you enjoyed or would like to see improved to provide a better learning experience (10 points – this question is graded based on the presence of a response.  If you write a response, you will receive the 10 points.  There is no grading of the content of the response.)

    4-1

    2

    Economics homework help

    Bond ratings

    Answer these questions in a 1–2 page paper.

    You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest.

    Calculate the present value of the payments you will receive. Show your calculations using formulas in your paper or in an attached spreadsheet file.

    Explain why there is a difference between the present value of the Strayer lottery jackpot and the future value of the 26 annual payments based on your calculations and the information provided.

    Compare the information about risk and return indicated by different bond ratings. Support your answer with references to research.

    Use various bond websites to locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Research the differences between the bond ratings, the required interest rates, and the risk. List the websites used as sources for this research.

    Identify the strengths and weaknesses of each rating.

    This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

    Economics homework help

    Macroeconomic Theory

    1 Chapter 7: Intertemporal Fiscal Policy

    We introduce a central government that collects taxes from households (and/or �rms) and makes

    consumption expenditures. In doing so, we discuss the government’s intertemporal budget con-

    straint which involves saving or borrowing across periods when taxes are unequal to expenditures.

    • Primary Budget De�cit (Surplus): exists in any period where tax revenue is smaller
    (larger) than government expenditures.

    • Secondary Budget De�cit (Surplus): exists in any period where tax revenue plus net
    interest income is smaller (larger) than government expenditures.

    → We will generally refer to a secondary ‘budget de�cit (surplus)

    ⇒ Let sgovt denote the (secondary) budget surplus, tt denote tax revenue, gt denote govern-
    ment expenditures and bt denote net government wealth (all in real terms). Then:

    s
    gov
    t ≡ tt + rtbt−1 −gt (1)

    → if sgovt > 0 then government is running a surplus
    → if sgovt < 0 then government is running a de�cit

    1.1 Two-Period Partial Equilibrium Fiscal Model

    We will start with a dynamic two-period model of the government’s intertemporal budget for

    simplicity. We later generalize this to the in�nite-period framework.

    Figure 1: Timeline of Events

    Spring 2014 | © Sanjay K. Chugh 119

    Period 1 Period 2

    b0 b2

    Government activities
    during period 1:

    government spending
    and tax collection

    b1

    Government activities
    during period 2:

    government spending
    and tax collection

    Beginning
    of analysis

    End of
    analysis

    Figure 39. Timing of events for the government.

    Unlike household or �rm, there is assume to be no utility or pro�t maximization here. Tax

    and spending policies are assumed to be exogenous.

    1

    1.1.1 Government Budget Constraint

    ⇒ Periods t=1,2
    → Resources available to government: real tax revenue, tt; real wealth, bt−1; net real interest

    income, bt−1rt

    → Possible expenditures: real expenditures, gt; real wealth for beginning of next period, bt
    −→ Thus the period-t budget constraint is:

    gt + bt = bt−1(1 + rt) + tt (2)

    ⇒ Lifetime Budget Constraint
    Evaluating Equation (2) for t = 1,2 we have:

    g1 + b1 = b0(1 + r1) + t1

    g2 + b2 = b1(1 + r2) + t2

    → We can derive the lifetime budget constraint for the government by combining periods-1 and -2
    budget constraints and imposing the corresponding initial and terminal conditions b0 = b2 = 0:

    g2 + b2 = (t1 + b0(1 + r1)−g1) (1 + r2) + t2
    g2 = (t1 −g1) (1 + r2) + t2

    g2
    1 + r2

    = t1 −g1 +
    t2

    1 + r2

    ⇒ g1 +
    g2

    1 + r2
    = t1 +

    t2
    1 + r2

    (3)

    → Equation (3) is the Lifetime Budget Constraint (LBC) for the government, which equates
    the present discounted value of lifetime expenditures to the present discounted value of lifetime

    resources.

    ⇒ Implication of the LBC for Tax Policy: For a given path of real interest rates and govern-
    ment expenditures, any changes to tax revenue now must be o�set by tax changes in the future.

    → Re-arranging Equation (3) for t2:

    t2 = g1(1 + r2) + g2 − t1(1 + r2)

    Di�erentiating with respect to t1:

    dt2
    dt1

    = −(1 + r2)

    ⇒ dt2 = −(1 + r2)dt1 (4)

    → Intuition: Since the left-hand side of Equation (3) does not change when t1 changes, t2 must
    change in an o�setting fashion so that the LBC holds.

    2

    1.1.2 Ricardian Equivalence

    As special case in our dynamic framework, the Ricardian-Equivalence Proposition asserts

    that the timing of taxes do not matter for private agent’s economic behavior because they in-

    ternalize the government’s lifetime budget constraint into their own.

    → Requires all taxes to be lump-sum (or non-distortionary) taxes, where the amount
    owed by an economic agent does not depend on their choices.

    EXAMPLE: Consider the representative household in the two-period consumption-savings model

    with exogenous labor income. Suppose that the government collects lump-sum taxes tt from

    them. Their period-t budget constraint would then be:

    ct + at = (1 + rt)at−1 + yt − tt (5)

    This yields a lifetime budget constraint for the household of:

    c1 +
    c2

    1 + r2
    = y1 +

    y2
    1 + r2

    − t1 −
    t2

    1 + r2
    (6)

    where the initial and terminal conditions a0 = a2 = 0 have been imposed.

    → Consider the intertemporal dimension for c1 and c2. The relevant price for optimal choice
    is given by the slope of the LBC, ∂c2/∂c1. Using Equation (6) to compute that slope:

    c2 = y1(1 + r2) + y2 − c1(1 + r2)− t1(1 + r2)− t2


    ∂c2
    ∂c1

    = −(1 + r2)

    (i) From above, the relevant price for the intertemporal decision does not depend on taxes

    (ii) From equation (4), changes to timing of will not change the PDV of lifetime resources

    ⇒ Because of (i) and (ii), Ricardian Equivalence holds.

    EXAMPLE: Suppose that the government collects distortionary taxes on the representative

    households’ consumption so that tt = τtct for t = 1,2. Using this expression into Equation (6),

    and re-arranging for c2 to compute the intertemporal price of consumption:

    c1 +
    c2

    1 + r2
    = y1 +

    y2
    1 + r2

    − τ1c2 −
    τ2c2
    1 + r2

    c1(1 + τ1) +
    c2(1 + τ2)

    1 + r2
    = y1 +

    y2
    1 + r2

    c2 =

    (
    1 + r2
    1 + τ2

    ) (
    y1 +

    y2
    1 + r2

    )
    − c1

    (1 + τ1)

    (1 + τ2)
    (1 + r2)


    ∂c2
    ∂c1

    = −
    (1 + τ1)

    (1 + τ2)
    (1 + r2)

    ⇒ Since the distortionary tax a�ects the intertemporal price of consumption, tax changes will
    a�ect private behavior and Ricardian Equivalence will fail.

    3

    1.2 National Savings and Generalization to the In�nite-Period Framework

    Whether using the two-period model or the in�nite period framework, we de�ne real national

    savings as the sum of private savings and government savings for a given period t.

    → Recall the de�nition of real private savings:

    s
    priv
    t ≡ at −at−1

    → Using the general expression for the household’s period-t budget constraint with labor
    and interest income, in addition to lump-sum taxes, we have:1

    s
    priv
    t = wtnt + rtat−1 − ct − tt (7)

    → Using our de�nition of the real budget surplus for government savings, we have:

    s
    gov
    t ≡ tt + rtbt−1 −gt (8)

    ⇒ National Savings, snatt , is the sum of private and government savings for a given period t :

    snatt = s
    priv
    t + s

    gov
    t

    snatt = (wtnt + rtat−1 − ct − tt) + (tt + rtbt−1 −gt)

    snatt = wtnt + rtat−1 − ct + rtbt−1 −gt (9)

    Intuitively: National savings is household income less consumption, plus government income less

    expenditures.

    1.2.1 Ricardian Equivalence and National Savings

    ⇒ Under non-distortionary taxation, Ricardian Equivalence will hold:
    → From inspection of Equation (7), a decrease in tt will increase private savings.
    → From inspection of Equation (8), a decrease in tt will decrease government savings
    → From inspection of Equation (9), a decrease in tt will not a�ect national savings because

    the increase in private savings and government savings are exactly o�setting.

    ⇒ Under distortionary taxation, Ricardian Equivalence will fail, and changes to the timing
    of taxation will a�ect national savings through the impact on private savings.

    1
    Note that yt = wtnt in the previous example with exogenous labor income

    4

    1.2.2 Financial Market Equilibrium With Government

    Recall that real private savings is increasing in the future real interest rate, rt+1. Since real

    government expenditures and tax rates are assumed to be exogenous, real national savings is

    then also increasing in the future real interest rate:

    ⇒ Financial market equilibrium occurs at the real interest rate rt+1∗ that equates the quan-
    tity supplied of national savings snatt ∗ with the quantity demanded of investment invt∗.

    EXAMPLE: Suppose that a government taxing consumption in a distortionary fashion tem-

    porarily reduces the period t tax rate. Holding constant current government expenditures, there

    will be a reduction in the budget surplus (or increase in the budget de�cit).

    → Since Ricardian Equivalence fails, there will be an increase in current consumption and
    decrease in current saving at every possible future real interest rate:

    • Crowding Out: The decrease in private investment that results from an increase in the
    equilibrium real interest rate caused by government policy.

    5

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    1.2.3 Distortionary Taxes in General Equilibrium

    Consider a government in the in�nite-period framework that levies a proportional tax on house-

    holds’ real wage income and real interest income at rates τnt and τ
    i
    t respectively. The represen-

    tative household will then have the following intra- and intertemporal optimality conditions in

    real terms:

    ∂u/∂lt
    ∂u/∂ct

    = (1− τnt )wt

    ∂u/∂ct
    β∂u/∂ct+1

    = (1 + (1− τit+1)rt+1)

    → How do changes in these distortionary tax rates a�ect market activity?

    EXAMPLE: Suppose that the government temporarily increases τnt and τ
    i
    t+1. Use the optimality

    conditions to explain what happens in the labor and �nancial markets.

    ⇒ Labor Market: From the household’s intratemporal optimality condition, the reduction in
    the after-tax real wage rate will cause the household to reduce labor supply (assuming SE>IE).

    ⇒ Financial Market: From the household’s intertemporal optimality condition, the reduction
    in the after-tax real interest rate will cause the household to increase current consumption and

    reduce future consumption, thereby reducing savings (assuming SE>IE)

    Graphically in the labor market, �nancial market, and goods market diagrams:

    6

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    Economics homework help

    Individual Presentation Rubric

    Total possible points: 12

    Trait

    Criteria

    Points

    1

    2

    3

    Content

    Did the presentation have valuable material?

    Presentation contained little to no valuable material.

    Presentation had a good amount of material and benefited the class.

    Presentation had an exceptional amount of valuable material and was extremely beneficial to the class.

    Collaboration/Teamwork

    Did everyone contribute to the presentation?

    Did everyone seem well prepared?

    The teammates never worked from others’ ideas. It seems as though only a few people worked on the presentation

    The teammates worked from others’ ideas most of the time. And it seems like every did some work, but some people are carrying the presentation.

    The teammates always worked from others’ ideas. It was evident that all of the group members contributed equally to the presentation.

    Organization

    Was the presentation well organized and easy to follow?

    The presentation lacked organization and had little evidence of preparation.

    The presentation had organizing ideas but could have been much stronger with better preparation.

    The presentation was well organized, well prepared and easy to follow.

    Presentation

    Did the presenters Speak clearly? Did the engage the audience? Was it obvious the material had been rehearsed?

    Presenters were not confident and demonstrated little evidence of planning prior to presentation.

    Presenters were occasionally confident with their presentation however the presentation was not as engaging as it could have been for the class

    Presenters were all very confident in delivery and they did an excellent job of engaging the class. Preparation is very evident

    Economics homework help


    Module Eight Online Assignment

    Managing by the Numbers

    Katherine Potter knew a good thing when she saw it. At least, it seemed so at first. She was traveling in Italy when she spotted pottery shops that made beautiful products ranging from ashtrays to lamps. Some of the pottery was stunning in design.

    Katherine began importing the products to the United States, and sales took off. Customers immediately realized the quality of the items and were willing to pay top price. Katherine decided to keep prices moderate to expand rapidly, and she did. Sales in the second three months were double those of the first few months. Sales in the second year were double those of the first year.

    Every few months, Katherine had to run to the bank to borrow more money. She didn’t really discuss her financial situation with her banker because she had no problems getting larger loans. You see, she always paid promptly. To save on the cost of buying goods, Katherine always took trade discounts. That is, she paid all bills within 10 days to save the 2% offered by her suppliers for paying so quickly.

    Most customers bought Katherine’s products on credit. They would buy a couple of lamps and a pot, and Katherine would allow them to pay over time. Some were very slow in paying her, taking six months or more.

    After three years, Katherine noticed a small drop in her business. The local economy was not doing well, and many people were being laid off from their jobs. Nonetheless, Katherine’s business stayed level. One day, the bank called Katherine and told her she was late in her payments. She told them she had been so busy that she didn’t notice the bills. The problem was that Katherine had no cash available to pay the bank. She frantically called several customers for payment, but they were not able to pay her, either. Katherine was in a classic cash flow bind.

    Katherine immediately raised her prices and refused to make sales on credit. She started delaying payment on her bills and paid the extra costs. Then she went to the bank and went over her financial condition with the banker. The banker noted her accounts receivable and assets. He then prepared a cash budget and loaned Katherine more money. Her import business grew much more slowly thereafter, but her financial condition improved greatly. Katherine had nearly gone bankrupt, but she recovered at the last minute.

    Answer the following questions about the Managing By The Numbers Case Study:

    1. How is it possible to have high sales and high profits and run out of cash?

    2. Why did Katherine do better when she raised her prices and refused to sell on credit?

    3. What was the nature of Katherine’s problem? Was she correct to go to the banker for help, even though she owed the bank money? How could she have prevented some of the problems she eventually found herself faced with?

    Economics homework help

    Macroeconomic Theory

    1 Chapter 7: Intertemporal Fiscal Policy

    We introduce a central government that collects taxes from households (and/or �rms) and makes

    consumption expenditures. In doing so, we discuss the government’s intertemporal budget con-

    straint which involves saving or borrowing across periods when taxes are unequal to expenditures.

    • Primary Budget De�cit (Surplus): exists in any period where tax revenue is smaller
    (larger) than government expenditures.

    • Secondary Budget De�cit (Surplus): exists in any period where tax revenue plus net
    interest income is smaller (larger) than government expenditures.

    → We will generally refer to a secondary ‘budget de�cit (surplus)

    ⇒ Let sgovt denote the (secondary) budget surplus, tt denote tax revenue, gt denote govern-
    ment expenditures and bt denote net government wealth (all in real terms). Then:

    s
    gov
    t ≡ tt + rtbt−1 −gt (1)

    → if sgovt > 0 then government is running a surplus
    → if sgovt < 0 then government is running a de�cit

    1.1 Two-Period Partial Equilibrium Fiscal Model

    We will start with a dynamic two-period model of the government’s intertemporal budget for

    simplicity. We later generalize this to the in�nite-period framework.

    Figure 1: Timeline of Events

    Spring 2014 | © Sanjay K. Chugh 119

    Period 1 Period 2

    b0 b2

    Government activities
    during period 1:

    government spending
    and tax collection

    b1

    Government activities
    during period 2:

    government spending
    and tax collection

    Beginning
    of analysis

    End of
    analysis

    Figure 39. Timing of events for the government.

    Unlike household or �rm, there is assume to be no utility or pro�t maximization here. Tax

    and spending policies are assumed to be exogenous.

    1

    1.1.1 Government Budget Constraint

    ⇒ Periods t=1,2
    → Resources available to government: real tax revenue, tt; real wealth, bt−1; net real interest

    income, bt−1rt

    → Possible expenditures: real expenditures, gt; real wealth for beginning of next period, bt
    −→ Thus the period-t budget constraint is:

    gt + bt = bt−1(1 + rt) + tt (2)

    ⇒ Lifetime Budget Constraint
    Evaluating Equation (2) for t = 1,2 we have:

    g1 + b1 = b0(1 + r1) + t1

    g2 + b2 = b1(1 + r2) + t2

    → We can derive the lifetime budget constraint for the government by combining periods-1 and -2
    budget constraints and imposing the corresponding initial and terminal conditions b0 = b2 = 0:

    g2 + b2 = (t1 + b0(1 + r1)−g1) (1 + r2) + t2
    g2 = (t1 −g1) (1 + r2) + t2

    g2
    1 + r2

    = t1 −g1 +
    t2

    1 + r2

    ⇒ g1 +
    g2

    1 + r2
    = t1 +

    t2
    1 + r2

    (3)

    → Equation (3) is the Lifetime Budget Constraint (LBC) for the government, which equates
    the present discounted value of lifetime expenditures to the present discounted value of lifetime

    resources.

    ⇒ Implication of the LBC for Tax Policy: For a given path of real interest rates and govern-
    ment expenditures, any changes to tax revenue now must be o�set by tax changes in the future.

    → Re-arranging Equation (3) for t2:

    t2 = g1(1 + r2) + g2 − t1(1 + r2)

    Di�erentiating with respect to t1:

    dt2
    dt1

    = −(1 + r2)

    ⇒ dt2 = −(1 + r2)dt1 (4)

    → Intuition: Since the left-hand side of Equation (3) does not change when t1 changes, t2 must
    change in an o�setting fashion so that the LBC holds.

    2

    1.1.2 Ricardian Equivalence

    As special case in our dynamic framework, the Ricardian-Equivalence Proposition asserts

    that the timing of taxes do not matter for private agent’s economic behavior because they in-

    ternalize the government’s lifetime budget constraint into their own.

    → Requires all taxes to be lump-sum (or non-distortionary) taxes, where the amount
    owed by an economic agent does not depend on their choices.

    EXAMPLE: Consider the representative household in the two-period consumption-savings model

    with exogenous labor income. Suppose that the government collects lump-sum taxes tt from

    them. Their period-t budget constraint would then be:

    ct + at = (1 + rt)at−1 + yt − tt (5)

    This yields a lifetime budget constraint for the household of:

    c1 +
    c2

    1 + r2
    = y1 +

    y2
    1 + r2

    − t1 −
    t2

    1 + r2
    (6)

    where the initial and terminal conditions a0 = a2 = 0 have been imposed.

    → Consider the intertemporal dimension for c1 and c2. The relevant price for optimal choice
    is given by the slope of the LBC, ∂c2/∂c1. Using Equation (6) to compute that slope:

    c2 = y1(1 + r2) + y2 − c1(1 + r2)− t1(1 + r2)− t2


    ∂c2
    ∂c1

    = −(1 + r2)

    (i) From above, the relevant price for the intertemporal decision does not depend on taxes

    (ii) From equation (4), changes to timing of will not change the PDV of lifetime resources

    ⇒ Because of (i) and (ii), Ricardian Equivalence holds.

    EXAMPLE: Suppose that the government collects distortionary taxes on the representative

    households’ consumption so that tt = τtct for t = 1,2. Using this expression into Equation (6),

    and re-arranging for c2 to compute the intertemporal price of consumption:

    c1 +
    c2

    1 + r2
    = y1 +

    y2
    1 + r2

    − τ1c2 −
    τ2c2
    1 + r2

    c1(1 + τ1) +
    c2(1 + τ2)

    1 + r2
    = y1 +

    y2
    1 + r2

    c2 =

    (
    1 + r2
    1 + τ2

    ) (
    y1 +

    y2
    1 + r2

    )
    − c1

    (1 + τ1)

    (1 + τ2)
    (1 + r2)


    ∂c2
    ∂c1

    = −
    (1 + τ1)

    (1 + τ2)
    (1 + r2)

    ⇒ Since the distortionary tax a�ects the intertemporal price of consumption, tax changes will
    a�ect private behavior and Ricardian Equivalence will fail.

    3

    1.2 National Savings and Generalization to the In�nite-Period Framework

    Whether using the two-period model or the in�nite period framework, we de�ne real national

    savings as the sum of private savings and government savings for a given period t.

    → Recall the de�nition of real private savings:

    s
    priv
    t ≡ at −at−1

    → Using the general expression for the household’s period-t budget constraint with labor
    and interest income, in addition to lump-sum taxes, we have:1

    s
    priv
    t = wtnt + rtat−1 − ct − tt (7)

    → Using our de�nition of the real budget surplus for government savings, we have:

    s
    gov
    t ≡ tt + rtbt−1 −gt (8)

    ⇒ National Savings, snatt , is the sum of private and government savings for a given period t :

    snatt = s
    priv
    t + s

    gov
    t

    snatt = (wtnt + rtat−1 − ct − tt) + (tt + rtbt−1 −gt)

    snatt = wtnt + rtat−1 − ct + rtbt−1 −gt (9)

    Intuitively: National savings is household income less consumption, plus government income less

    expenditures.

    1.2.1 Ricardian Equivalence and National Savings

    ⇒ Under non-distortionary taxation, Ricardian Equivalence will hold:
    → From inspection of Equation (7), a decrease in tt will increase private savings.
    → From inspection of Equation (8), a decrease in tt will decrease government savings
    → From inspection of Equation (9), a decrease in tt will not a�ect national savings because

    the increase in private savings and government savings are exactly o�setting.

    ⇒ Under distortionary taxation, Ricardian Equivalence will fail, and changes to the timing
    of taxation will a�ect national savings through the impact on private savings.

    1
    Note that yt = wtnt in the previous example with exogenous labor income

    4

    1.2.2 Financial Market Equilibrium With Government

    Recall that real private savings is increasing in the future real interest rate, rt+1. Since real

    government expenditures and tax rates are assumed to be exogenous, real national savings is

    then also increasing in the future real interest rate:

    ⇒ Financial market equilibrium occurs at the real interest rate rt+1∗ that equates the quan-
    tity supplied of national savings snatt ∗ with the quantity demanded of investment invt∗.

    EXAMPLE: Suppose that a government taxing consumption in a distortionary fashion tem-

    porarily reduces the period t tax rate. Holding constant current government expenditures, there

    will be a reduction in the budget surplus (or increase in the budget de�cit).

    → Since Ricardian Equivalence fails, there will be an increase in current consumption and
    decrease in current saving at every possible future real interest rate:

    • Crowding Out: The decrease in private investment that results from an increase in the
    equilibrium real interest rate caused by government policy.

    5

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    1.2.3 Distortionary Taxes in General Equilibrium

    Consider a government in the in�nite-period framework that levies a proportional tax on house-

    holds’ real wage income and real interest income at rates τnt and τ
    i
    t respectively. The represen-

    tative household will then have the following intra- and intertemporal optimality conditions in

    real terms:

    ∂u/∂lt
    ∂u/∂ct

    = (1− τnt )wt

    ∂u/∂ct
    β∂u/∂ct+1

    = (1 + (1− τit+1)rt+1)

    → How do changes in these distortionary tax rates a�ect market activity?

    EXAMPLE: Suppose that the government temporarily increases τnt and τ
    i
    t+1. Use the optimality

    conditions to explain what happens in the labor and �nancial markets.

    ⇒ Labor Market: From the household’s intratemporal optimality condition, the reduction in
    the after-tax real wage rate will cause the household to reduce labor supply (assuming SE>IE).

    ⇒ Financial Market: From the household’s intertemporal optimality condition, the reduction
    in the after-tax real interest rate will cause the household to increase current consumption and

    reduce future consumption, thereby reducing savings (assuming SE>IE)

    Graphically in the labor market, �nancial market, and goods market diagrams:

    6

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    Get professional nursing essay writing service and professional nursing term paper writing service

    Economics homework help

    Topic:The performance of gender discrimination in consumer market(In China)

    Intention:In China, many people joke about ranking by consumption power. Women come first, children second, dogs third, and men last. However, in China, both the average salary and professional status of men are higher than that of women. I am very interested in why this happens and I want to explore this problem through this article.

    Format: Article(MLA)

    Sources:

    1.

    “Income vs. education” revisited – the roles of “family face” and gender in Chinese consumers’ luxury consumption

    https://www-emerald-com.aurarialibrary.idm.oclc.org/insight/content/doi/10.1108/APJML-12-2019-0733/full/html

    2.

    The Gender Effect on Consumer Attitudes Toward Payment Methods: The Case of Online Chinese Customers

    https://www-tandfonline-com.aurarialibrary.idm.oclc.org/doi/full/10.1080/15332861.2019.1584010


    Economics homework help

    ProjectSchedule

    Create a Project Schedule in this worksheet.
    Enter title of this project in cell B1.
    Information about how to use this worksheet, including instructions for screen readers and the author of this workbook is in the About worksheet.
    Continue navigating down column A to hear further instructions.
    PROJECT TITLE SIMPLE GANTT CHART by Vertex42.com
    Enter Company Name in cell B2. Company Name https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html
    Enter the name of the Project Lead in cell B3. Enter the Project Start date in cell E3. Pooject Start: label is in cell C3. Project Lead Project Start: Wed, 16/02/2022
    The Display Week in cell E4 represents the starting week to display in the project schedule in cell I4. The project start date is considered Week 1. To change the display week, simply enter a new week number in cell E4.
    The starting date for each week, starting with the display week from cell E4, starts in cell I4 and is auto calculated. There are 8 weeks represented in this view from cell I4 through cell BF4.
    You should not modify these cells.
    Display Week: label is in cell C4.
    Display Week: 1 14 Feb 2022 21 Feb 2022 28 Feb 2022 7 Mar 2022 14 Mar 2022 21 Mar 2022 28 Mar 2022 4 Apr 2022
    Cells I5 through BL5 contain the day number for the week represented in the cell block above each date cell and are auto calculated.
    You should not modify these cells.
    Today’s date is outlined in Red (hex #AD3815) from today’s date in row 5 through the entire date column to the end of the project schedule.
    14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10
    This row contains headers for the project schedule that follows below them.
    Navigate from B6 through BL 6 to hear the content. The first letter of each day of the week for the date above that heading, starts in cell I6 and continues through cell BL6.
    All project timeline charting is auto generated based on the start and end dates entered, using conditional formats.
    Do not modify content in cells within columns after column I starting with cell I7.
    TASK ASSIGNED
    TO
    PROGRESS START END DAYS M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S
    Do not delete this row. This row is hidden to preserve a formula that is used to highlight the curren day within the project schedule.
    Cell B8 contains the Phase 1 sample title.
    Enter a new Title in cell B8.
    Enter a name to assign the phase to, if it applies for your project, in cell C8.
    Enter Progress for the entire phase, if it applies for your project, in cell D8.
    Enter the start and end dates for the entire phase, if it applies for your project, in cells E8 and F8.
    The Gantt chart will automatically fill in the appropriate dates and shade according to the progress entered.
    To delete the phase and work only from tasks, simply delete this row.
    Phase 1 Title
    Cell B9 contains the sample task “Task 1.”
    Enter a new task name in cell B9.
    Enter a person to assign the task to in cell C9.
    Enter progres of the task in cell D9. A progress bar appears in the cell and is shaded according to the number in the cell. For example, 50 percent progress would shade half of the cell.
    Enter task start date in cell E9.
    Enter task end date in cell F9.
    A status bar shaded for the dates entered appears in blocks starting from cell I9 through BL9.
    Task 1 Name 50% 16/2/22 19/2/22 4
    Rows 10 through 13 repeat the pattern from row 9.
    Repeat the instructions from cell A9 for all task rows in this worksheet. Overwrite any sample data.
    A sample of another phase starts in cell A14.
    Continue entering tasks in cells A10 through A13 or go to cell A14 to learn more.
    Task 2 60% 19/2/22 21/2/22 3
    Task 3 50% 21/2/22 25/2/22 5
    Task 4 25% 25/2/22 2/3/22 6
    Task 5 20/2/22 22/2/22 3
    The cell at right contains the Phase 2 sample title.
    You can create a new phase at any time within column B. This project schedule does not require phases. To remove the phase, simply delete the row.
    To create a new phase block in this row, enter a new Title in cell at right.
    To continue adding tasks to the phase above, enter a new row above this one and fill in the task data as in cell A9’s instruction.
    Update the Phase details in cell at right based on cell A8’s instruction.
    Continue navigating down column A cells to learn more.
    If you haven’t added any new rows in this worksheet, you will find 2 additional sample phase blocks have been created for you in cells B20 and B26. Otherwise, navigate through column A cells to find the additional blocks.
    Repeat the instructions from cells A8 and A9 whenever you need to.
    Phase 2 Title
    Task 1 50% 21/2/22 25/2/22 5
    Task 2 50% 23/2/22 28/2/22 6
    Task 3 28/2/22 3/3/22 4
    Task 4 28/2/22 2/3/22 3
    Task 5 28/2/22 3/3/22 4
    Sample phase title block Phase 3 Title
    Task 1 3/3/22 8/3/22 6
    Task 2 9/3/22 13/3/22 5
    Task 3 14/3/22 19/3/22 6
    Task 4 20/3/22 24/3/22 5
    Task 5 14/3/22 18/3/22 5
    Sample phase title block Phase 4 Title
    Task 1 date date ERROR:#VALUE!
    Task 2 date date ERROR:#VALUE!
    Task 3 date date ERROR:#VALUE!
    Task 4 date date ERROR:#VALUE!
    Task 5 date date ERROR:#VALUE!
    This is an empty row
    This row marks the end of the Project Schedule. DO NOT enter anything in this row.
    Insert new rows ABOVE this one to continue building out your Project Schedule.
    Insert new rows ABOVE this one

    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=url
    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=text

    About

    SIMPLE GANTT CHART by Vertex42.com
    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html
    About This Template
    This template provides a simple way to create a Gantt chart to help visualise and track your project. Simply enter your tasks and start and end dates – no formulae required. The bars in the Gantt chart represent the duration of the task and are displayed using conditional formatting. Insert new tasks by inserting new rows.
    Guide for Screen Readers
    There are 2 worksheets in this workbook.

    TimeSheet
    About

    The instructions for each worksheet are in the A column starting in cell A1 of each worksheet. They are written with hidden text. Each step guides you through the information in that row. Each subsequent step continues in cell A2, A3, and so on, unless otherwise explicitly directed. For example, instruction text might say “continue to cell A6” for the next step.

    This hidden text will not print.

    To remove these instructions from the worksheet, simply delete column A.

    Additional Help
    Click on the link below to visit vertex42.com and learn more about how to use this template, such as how to calculate days and work days, create task dependencies, change the colours of the bars, add a scroll bar to make it easier to change the display week, extend the date range displayed in the chart, etc.
    How to Use the Simple Gantt Chart
    More Project Management Templates
    Visit Vertex42.com to download other project management templates, including different types of project schedules, Gantt charts, tasks lists, etc.
    Project Management Templates
    About Vertex42
    Vertex42.com provides over 300 professionally designed spreadsheet templates for business, home, and education – most of which are free to download. Their collection includes a variety of calendars, planners, and schedules as well as personal finance spreadsheets for budgeting, debt reduction, and loan amortisation.
    Businesses will find invoices, time sheets, inventory trackers, financial statements, and project planning templates. Teachers and students will find resources such as class schedules, grade books, and attendance sheets. Organise your family life with meal planners, checklists, and exercise logs. Each template is thoroughly researched, refined, and improved over time through feedback from thousands of users.

    https://www.vertex42.com/ExcelTemplates/excel-project-management.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=text
    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=help
    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=url
    https://www.vertex42.com/ExcelTemplates/simple-gantt-chart.html?utm_source=ms&utm_medium=file&utm_campaign=office&utm_content=text

    Economics homework help

    Topic:The performance of gender discrimination in consumer market(In China)

    Intention:In China, many people joke about ranking by consumption power. Women come first, children second, dogs third, and men last. However, in China, both the average salary and professional status of men are higher than that of women. I am very interested in why this happens and I want to explore this problem through this article.

    Format: Article(MLA)

    Sources:

    1.

    “Income vs. education” revisited – the roles of “family face” and gender in Chinese consumers’ luxury consumption

    https://www-emerald-com.aurarialibrary.idm.oclc.org/insight/content/doi/10.1108/APJML-12-2019-0733/full/html

    2.

    The Gender Effect on Consumer Attitudes Toward Payment Methods: The Case of Online Chinese Customers

    https://www-tandfonline-com.aurarialibrary.idm.oclc.org/doi/full/10.1080/15332861.2019.1584010


    Economics homework help

    Sheet1

    https://www.amacad.org/humanities-indicators/public-life/art-museum-attendance#31768
    Year Age Level Percentage of Americans Who Visited an Art Museum in the Previous 12 Months Under 18 Above 35 SUMMARY OUTPUT
    1982 Under 18 29.7 1 0
    Between 18-35 24.6 0 0 Regression Statistics
    Above 35 18.7 0 1 Multiple R 0.7117058936
    1987 Under 18 29.9 1 0 R Square 0.506525279
    Between 18-35 26.7 0 0 Adjusted R Square 0.4654023856
    Above 35 23.6 0 1 Standard Error 2.3984176883
    1992 Under 18 32.2 1 0 Observations 27
    Between 18-35 29.1 0 0
    Above 35 28.9 0 1 ANOVA
    1997 Under 18 29.6 1 0 df SS MS F Significance F
    Between 18-35 26.5 0 0 Regression 2 141.7088888889 70.8544444444 12.3173550526 0.000208535
    Above 35 25.6 0 1 Residual 24 138.0577777778 5.7524074074
    2002 Under 18 29.1 1 0 Total 26 279.7666666667
    Between 18-35 24.7 0 0
    Above 35 22.5 0 1 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
    2007 Under 18 27.6 1 0 Intercept 25.1222222222 0.7994725628 31.4234951799 5.19272358118699E-21 23.4721919499 26.7722524946 23.4721919499 26.7722524946
    Between 18-35 22.5 0 0 Under 18 3.5222222222 1.130624941 3.1152879213 0.0047113614 1.1887270328 5.8557174117 1.1887270328 5.8557174117
    Above 35 20.3 0 1 Above 35 -2.0222222222 1.130624941 -1.7885880179 0.0863130529 -4.3557174117 0.3112729672 -4.3557174117 0.3112729672
    2012 Under 18 26.1 1 0
    Between 18-35 22.0 0 0
    Above 35 21.7 0 1
    2017 Under 18 26.7 1 0
    Between 18-35 24.8 0 0
    Above 35 23.5 0 1
    2019 Under 18 26.9 1 0
    Between 18-35 25.2 0 0
    Above 35 23.1 0 1
    Note:
    Under 18 = Art museum visitors who are under 18 years old (visited outside school)
    Between 18-35 = Art museum visitors who are between 18 to 35 years old
    Above 35 = Art museum visitors who are above 35 years old

    Sheet2

    Copy values from the regression output table:
    Coefficients SE
    Intercept 25.1222222222 0.7994725628
    Under 18 3.5222222222 1.130624941
    Above 35 -2.0222222222 1.130624941
    Question: Is there significant evidence that art museum attendance rate for American visitor who under 18 years old is higher than the age between 18-35 years old? Use α = 0.05.
    H0 Ha
    Step 1 Hypothesis β1 = 0 β1 > 0
    Tested value 0
    Step 2 Sample size 27
    b (β estimate) 3.52222
    SE 1.13062
    t-value 3.1153
    Step 3 DF 24
    α 0.05
    Type of test upper one tailed
    Upper CV 1.7109 (from the CV calculator)
    Lower CV n/a (from the CV calculator)
    Decision rule Reject H0 in favor of Ha if the t-value > the upper CV.
    Step 4 Decision Reject H0 in favor of Ha at α = 0.05.
    Conclusion: There is significant evidence that art museum attendance rate for American visitor who under 18 years old is higher than the age between 18-35 years old (α = 0.05).

    Sheet3

    Copy values from the regression output table:
    Coefficients SE
    Intercept 25.1222222222 0.7994725628
    Under 18 3.5222222222 1.130624941
    Above 35 -2.0222222222 1.130624941
    Question: Is there significant evidence that American visitors who are above 35 years old tend to have a lower art museum attendance rate compared to the American visitors who are between 18-35 years old? Use α = 0.05.
    H0 Ha
    Step 1 Hypothesis β2 = 0 β2 < 0
    Tested value 0
    Step 2 Sample size 27
    b (β estimate) -2.02222
    SE 1.13062
    t-value -1.7886
    Step 3 DF 24
    α 0.05
    Type of test lower one tailed
    Upper CV n/a (from the CV calculator)
    Lower CV -1.7109 (from the CV calculator)
    Decision rule Reject H0 in favor of Ha if the t-value < the lower CV.
    Step 4 Decision Reject H0 in favor of Ha at α = 0.01.
    Conclusion: There is significant evidence that American visitors who are above 35 years old tend to have a lower art museum attendance rate compared to the American visitors who are between 18-35 years old (α = 0.05).

    Sheet4

    Copy values from the regression output table:
    Coefficients SE LB of 95% CI UB of 95% CI
    Intercept 25.1222222222 0.7994725628 23.4721919499 26.7722524946
    Under 18 3.5222222222 1.130624941 1.1887270328 5.8557174117
    Above 35 -2.0222222222 1.130624941 -4.3557174117 0.3112729672
    Question: Show how to calculate a 95% confidence interval for the β1 coefficient. How do you interpret the interval estimate in the context of the problem here?
    Output Table: LB of the CI 1.189
    UB of the CI 5.856
    Verifying with Our Own Calculation
    Sample size 27
    b (β estimate) 3.5222
    SE 1.1306
    DF 24
    a 0.05
    Upper CV 2.0639 (from the CV calculator)
    Lower CV -2.0639 (from the CV calculator)
    CI Calculation: MOE 2.3335
    LB of the CI 1.189
    UB of the CI 5.856
    Interpretation: The 95% CI for β1 = [1.189, 5.856]. It is estimated that the art museums attendance rate under the age of 18 is generally higher than that of those between the ages of 18 and 24 by an average 1.189 to 5.856 percentage points.

    Sheet5

    From the Regression Output Table:
    Statistic
    R2 0.506525279
    Question: What does the R2 value tell us? Interpret the R2 value in the context of the problem here.
    Interpretation: The model’s R2 value is around 0.5065. It means that age factor can account for about 50.65% of the variation in the data for art museum attendance rate by American visitors.

    Sheet6

    Copy values from the regression output table:
    Coefficients SE
    Intercept 25.1222222222 0.7994725628
    Under 18 3.5222222222 1.130624941
    Above 35 -2.0222222222 1.130624941
    Question: Provide average estimates for Americans art museum attendance rate in the age group of under 18 years old, between 18-35 years old, and above 35 years old.
    Coefficient Estimates from Excel’s Output Table:
    b0 b1 b2
    25.12222 3.52222 -2.02222
    Values for Predicting Variables: E(HSTART) = b0 + b1×SPRING + b2×SUMMER + b3×FALL
    Age Group Under 18 Above 35 Estimates Formula used:
    Under 18 1 0 28.644 =$B$15 + SUMPRODUCT($C$15:$E$15,C18:E18)
    Between 18-35 0 0 25.122 =$B$15 + SUMPRODUCT($C$15:$E$15,C19:E19)
    Above 35 0 1 23.100 =$B$15 + SUMPRODUCT($C$15:$E$15,C20:E20)
    Conclusion: The average estimates of Americans art museum attendance rate are 28.6% for the age under 18 years old , 25.1% for the age between 18-35 years old, and 23.1% for the age above 35 years old.

    Economics homework help

    Macroeconomic Theory

    1 Chapter 8: Infinite-Period Framework

    All of the dynamic models we have build thus far consist of only two periods. Here we expand
    those models to an infinite amount of periods. The main takeaway is that the economic intuition
    gained from the simplified two-period framework holds when the number of periods is expanded.

    • Infinite-period Framework: an infinite sequence of overlapping two-period frameworks.
    → The representative household or firm has an “Infinite Planning Horizon”
    →We use indices t,t + 1, t + 2, … instead of 1,2,3, …
    → Nothing before period t can be changed

    1.1 Households

    Households choose consumption/savings and labor/leisure each period over an infinite horizon
    to maximize utility subject to a budget constraint.

    1.1.1 Preferences

    Preferences are represented by:

    V (ct, lt,ct+1, lt+1,ct+2, lt+2…) = u(ct, lt) + βu(ct+1, lt+1) + β
    2u(ct+2, lt+2) + …

    or more compactly:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s) (1)

    where each sub-utility function u(·) has the usual properties.

    1.1.2 Budget Constraint

    In the absence of taxes, households have the following period-t real budget constraint:

    ct + at = (1 + rt)at−1 + wtnt (2)

    with the unitary time endowment:

    1 = lt + nt (3)

    → One could use this period-t budget constraint to derive a lifetime budget constraint over infinite
    periods. We will not be doing that in course.1

    1If you are curious, the infinite period LBC can be derived by expressing the budget constraint as a difference
    equation and solving forward to get:

    ∑∞
    s=0

    ct+s/(1 + rt+1+s)
    s =

    ∑∞
    s=0

    (wt+snt+s)/(1 + rt+1+s)
    s with the usual

    terminal and initial conditions imposed.

    1

    1.1.3 Optimal Choice

    Since the model as a recursive structure where the events occur each period, we can derive a single
    intertemporal and a single intratemporal optimality condition that will hold for each period using
    a sequential Lagrangian.

    max
    {ct+s,at+s,lt+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1− lt) = 0 for all t = 1,2,3, …

    The sequential Langrangian can be written in the same form we learned for two periods, but for
    an infinite amount of periods as follows:

    L =
    ∞∑
    s=0

    {βsu(ct+s, lt+s) + λt+s (ct+s + at+s − (1 + rt+s)at−1+s −wt+s(1− lt+s))} (4)

    Equation (4) might look intimidating, and you might be thinking ‘How do do I take for the first
    order conditions for this?’ It could be helpful to first write out the summation for a few periods:

    L = u(ct, lt) + λt (ct + at − (1 + rt)at−1 −wt(1− lt))

    + βu(ct+1, lt+1) + λt+1 (ct+1 + at+1 − (1 + rt+1)at −wt+1(1− lt+1))

    + β2u(ct+2, lt+2) + λt+2 (ct+2 + at+2 − (1 + rt+2)at+1 −wt+2(1− lt+2)) + …

    The summation would go on forever in this pattern as s approaches ∞, but writing it out until
    s = 2 as above is sufficient for our purposes. So now what? The key thing to keep in mind is
    that since the model has a recursive structure, the optimality conditions hold for any t period.
    This means that we could take the FOCs as usual for any t period:

    → For intertemporal optimality condition we need to optimize over ct and ct+1.
    → For intratemporal optimality condition we need to optimize over ct and lt.
    → Note that we can take these FOCs while ignoring the expanded Lagrangian for s > 1.

    2

    Taking FOCs:

    ∂L
    ∂ct

    = 0 −→
    ∂u

    ∂ct
    + λt = 0 −→

    ∂u

    ∂ct
    = −λt (5)

    ∂L
    ∂ct+1

    = 0 −→ β
    ∂u

    ∂ct+1
    + λt+1 = 0 −→ β

    ∂u

    ∂ct+1
    = −λt+1 (6)

    ∂L
    ∂lt

    = 0 −→
    ∂u

    ∂lt
    + λtwt = 0 −→

    ∂u

    ∂lt

    1

    wt
    = −λt (7)

    ∂L
    ∂at

    = 0 −→ λt − (1 + rt+1)λt+1 = 0 −→ λt = (1 + rt+1)λt+1 (8)

    Remember that with the sequential Lagrangian we need to optimize over at to get an expres-
    sion that links together the Lagrange multipliers across periods.

    Combining the FOCs:

    → Intertemporal Optimality Condition: Using Equations (5) and (6) into (8):

    −λt = −(1 + rt+1)λt+1

    ∂u

    ∂ct
    = β

    ∂u

    ∂ct+1
    (1 + rt+1)


    ∂u/∂ct

    β∂u/∂ct+1
    = (1 + rt+1) (9)

    → Intratemporal Optimality Condition: Using Equations (5) and (7):

    ∂u

    ∂ct
    =
    ∂u

    ∂lt

    1

    wt


    ∂u/∂lt
    ∂u/∂ct

    = wt (10)

    → The solution to the model, {ct+s∗, lt+s∗}∞s=0, is fully characterized with an intertemporal
    and intratemporal optimality condition for each period and a LBC with initial and terminal
    conditions on wealth.
    → We will not be solving the infinite period models in this class. With the exception of a few

    special cases, computational methods are typically needed to obtain the solution.

    3

    2 Firms

    The representative firm chooses labor and capital inputs to produce output at profit maximizing
    levels over an infinite horizon.

    → The firm’s real profit function over an infinite horizon:

    Profit =
    ∞∑
    s=0

    (1 + rt+s)
    −s{f(kt+s,nt+s)− (kt+1+s − (1− δ)kt+s)−wt+snt+s} (11)

    As with the households’ optimization problem, it will help to write out the summation for a
    few periods. We’ll again expand to s = 2.

    Profit =f(kt,nt)− (kt+1 − (1−δ)kt)−wtnt

    +

    (
    1

    1 + rt+1

    )
    (f(kt+1,nt+1)− (kt+2 − (1−δ)kt+1)−wt+1nt+1)

    +

    (
    1

    1 + rt+2

    )2
    (f(kt+2,nt+2)− (kt+3 − (1−δ)kt+2)−wt+2nt+2) + …

    → For intertemporal optimality condition we need to optimize over kt+1.
    → For intratemporal optimality condition we need to optimize over nt.
    → Note that we can take these FOCs while ignoring the expanded profit function for s > 1.

    Taking FOCs:

    nt :
    ∂f

    ∂nt
    −wt = 0 ⇒

    ∂f

    ∂nt
    = wt (12)

    kt+1 : −1 +
    (

    1

    1 + rt+1

    )(
    ∂f

    ∂kt+1
    + (1−δ)

    )
    = 0 ⇒

    ∂f

    ∂kt+1
    = rt+1 + δ (13)

    where Equations (12) and (13) are the firms intratemporal and intertemporal optimality condi-
    tions, which hold for all t.

    → The solution to the model, {nt+s∗,kt+1+s∗}∞s=0, is fully characterized by the optimality
    conditions for each period, and initial and terminal conditions of the capital stock given demand
    for the firms’ output.

    ⇒ If the economic intuition from two-period models is the same as that from infinite period
    models, why bother with more complex infinite period models? When using macroeconomic mod-
    els to make quantitative statements about the dynamics of aggregates — such as consumption,
    savings, capital, labor, and output — the infinite period framework is more useful because it allows
    for multiple periods that reasonably correspond to a monthly, quarterly, or annual frequency.

    4

    • Chapter 8: Infinite-Period Framework
      • Households
    • Firms

    Economics homework help

    FOSSIL GROUP

    Promoting Benefits

    2

    Table of Contents

    Executive

    Summary……………………………………………………..…3

    Introductio……………………………………………………..3-5

    Proven Research…………………..………………………….5-6

    What Others Employees Offer……………………….……….6-7

    Fossil Benefits…………………………………………………..7

    Increating Brand Appeal…………………………..…………..8-9

    Conclusion……………………………………………….…….9

    3

    Executive Summary

    Research has proven many individuals will take a pay cut for better benefits and work life balance. Taken

    that information we know employees care about their own well being and the work they put into a

    company they believe in. Heavy consideration placed into health insurance, vacation time, flexible

    schedule, and student loan assistance are highly important categories applicants look for in a company.

    Fossil offers competitive benefits for new and existing employees. Investing in “benefits in kind” is

    obviously costly to Fossil however the company will greatly benefit more by investing in its employees

    longevity. One of the effects of offering better benefits is the increase in employee productivity. Although

    Fossil offers a 50% tuition reimbursement for employees pursuing higher education some companies

    already pay for 75% or 100% of an their employees tuition. Knowing that these workers will receive

    compensation by staying at their jobs and working diligently allows for deeper brand loyalty. This in turn

    increases a company’s productivity, sales revenues, customer retention, company appeal, and employee

    happiness. Fossil needs to be even more competitive in its benefits in order to stay relevant in the retail

    market. Fossil needs to act now rather than later in addressing it’s lack offerings. Implementing new

    benefits immediately allows for a positive work environment, increases in work productivity and revenue

    for the company. All in all a winning idea for Fossil.

    Introduction

    People always consider the type of benefits a company offers when applying for a job. Benefit packages

    usually include a retirement plan, health, life, dental insurance along with paid time off. These usually are

    a given but other companies can offer an abundance of other options. Due to a tight job market and the

    difficulties of hiring qualified people, maintaining current employees is important for Fossil’s brand

    success. Nurturing and retaining current employees are the only ways we can ensure that the brand

    thrives.

    Offering outstanding benefits and allows us to compete in the retail market. This in turn will attract more

    qualified individuals.

    To create the foundation to better sell our company image we will need to be proactive in what is

    important to individuals. From Harvard Business Review an article The Most Desirable Employee

    Benefits surveys two thousand U.S. workers that ranged between ages 18-81 years old. The results

    4

    showed individuals prefer better health insurance along with more flexible hours and additional vacation

    time. These benefits are costly to companies and some cannot always afford to cover all health insurance

    plans. It is important to note that these three topics, health, time off and flexible hours are the main

    benefits that Fossil needs to focus greatly on in order to retain and attract new talent.

    Figure 1.1

    Attracti

    ng new

    and

    better

    talent

    isn’t the

    only

    reason

    why

    most

    compan

    ies offer

    these

    types of

    benefits

    , they

    also do

    it to

    boost morale, increase company appeal, and minimize turnover rate while creating a better work

    atmosphere. Below are a few outcomes on how a benefits package can impact a company.

    5

    Proven Research

    Boosting Morale

    Boosting morale or a

    person’s well being in the

    workplace is important

    for a healthy

    environment. Having a

    healthier environment in

    the workplace gives employees the opportunity to perform well and succeed in their daily tasks. Tom

    Write who is an industrial-organizational psychologist and management professor at Kansas State

    University states, “Not only can also psychological well-being benefit organizations by reducing lost

    productivity due to sick days, but organizations can also benefit from the fact that healthy employees tend

    to work both harder and “smarter” on the job.” Therefore, boosting the morale makes a difference in the

    workplace, as shown in the diagram above you can see more detail on improvements in the workplace.

    Increasing Brand Appeal

    Retaining current employees and bringing in new talent increases our brand appeal and establishes a

    strong foundation for Fossil’s future. The company need to increase our appeal to be competitive in the

    retail job market. Fossil needs to offer an enticing benefits package and not something that only includes

    minimal health insurance coverage, 401K, and paid time off. Fossil has to offer additional benefits such as

    paying for a more than 50% tuition reimbursement, a higher matching percentage in employees 401K,

    creating an onsite gym, offering discounted housing for new employees, or amenities discounts on

    amenities such as haircuts, movies and free car washes. These can all retain employees that the company

    current have and while appealing to new talent. In addition this in turn will decrease the turnover rate and

    increase employee performance and morale.

    Minimizing Turnover Rate

    Offering more benefits will allow the company to retain their current employees and encourage others to

    apply. Having a high turnover rate can cost a company $8,000 – $200,000 or higher depending on the

    employee’s position and salary. This amount comes from loss of productivity hours, the amount of time

    retraining a new hire and the time spent recruiting a replacement for the loss position. Not to mention

    employees often question the “real reason” for people’s resignation creating a negative cultural

    6

    environment. Minimizing the turnover rate will lower unnecessary costs. Fossil can divert those savings

    into investing in additional benefits to retain their current staff and using new benefits to appeal to future

    hires.

    What Other Employers Offer

    Starbucks

    Starbucks offers a program called the “Starbucks College Achievement Plan” in which they provide part

    time and full time employees full tuition reimbursement from Arizona State University (ASU). Though it

    is specifically through ASU, ASU is known for their growing online bachelor degrees. This is an

    opportunity for employees to finish some credits needed for another school or to earn a degree to further

    their career with Starbucks or pursue their dream job.

    Facebook

    The tech giant is known to have over 30,000 full-time employees. These full-time employees benefit

    many offerings from the company and interns can have in on it too. Interns enjoy free healthcare coverage

    and free housing. Keep in mind that on average a Facebook intern is reported to make $7,000 per month.

    Not a bad way to begin a new job!

    Genentech

    This biotech company is well known in the bay area and also retains many of its employees. The main

    benefits not well known to many are its on-site amenities, including car washes, refueling your gas for

    half the price it cost to fuel in a regular gas station, haircuts, child care, and a mobile spa with a dentist!

    These are benefits that many do not think about but are additional considerations when a new an applicant

    shows interest with Genentech.

    Goldman Sachs

    Though this company may seem dull to many, the investment banker offers life changing benefits for

    some. Goldman Sachs offers gender reassignment surgery, a benefit the company has offered since 2008.

    Goldman Sachs is also the first financial firm to offer to cover sex-change reassignment surgery medical

    program to its employees. This shows Goldman Sachs’ devotion to its employees personal development.

    Fossil Benefits

    ❖ Health Insurance

    7

    ❖ Life and Accidental Benefits

    ❖ Disability Benefits

    ❖ Flexible Spending Account Plans

    ❖ Retirements Savings plan + Company Matching Program

    ❖ Employee Assistance Program

    ❖ Wellness Benefits

    ❖ Tuition Reimbursement Program

    ❖ Transit Program

    ❖ Paid Time Off + Observed Holidays

    ❖ Volunteer Time Off

    ❖ Paid Sick Leave Benefits (applicable only in certain locations)

    ❖ Service Award Program

    ❖ Business Travel Benefits

    ❖ Employee Merchandise Discount

    ❖ Employee Hardship Assistance Fun

    Beating the Competition
    Starting Small

    Though Fossil offers various amounts of benefits compared to lower end companies, the higher end

    companies are ahead. Tech companies offer endless amenities in which Fossil can pick up on. Starting

    with small amenities such as:

    ❖ On site haircuts

    ❖ Office massages

    ❖ On site lunch or happy hour

    ❖ Tickets to events

    These small amenities create excitement in the workplace and bring employees together. This also

    benefits the company as a free advertisement. Millennials often enjoy broadcasting their entire lives in

    social media. Creating business hashtags allows Fossil to jump on board with the tech companies.

    8

    Improving Benefits Offered

    While Fossil offers many benefits, it can sprouse up the benefits it offers in order to attract more attention

    in the job market. Starting with the tuition reimbursement program, Fossil covers up to 50% of of college

    degree costs and courses for any employee’s current or future role. This is great, but taking that 50% and

    paying 100% is more appealing and will only benefit the company. Covering 100% will encourage

    employees to study a field that will benefit not only them but will allow Fossil to retain its own talent. In

    addition to this, restrictions such as working for minimum of two years in the company and pursuing

    courses that can translate to future roles in Fossil allows the company to benefit from the benefits it

    offers.

    Financial benefits are important to employees and affect their morale inside and outside of the workplace.

    As of now, if an employee puts in 6% of his/her salary, Fossil will match 100%. This is a generous

    program and can still be improved. In regards to an employee being loyal to the company, Fossil should

    implement a higher match such as 7%-9% depending on performance. This will encourage employees to

    perform well and know that their hard work will be rewarded.

    Having a service award program is nice within any company to show appreciationbut seeing it in their

    paychecks is even more effective. Employee are then reminded twice a week that hard work truly pays

    off. Following protocol, yearly evaluations should involve whether the employee has met all the job

    requirements. Getting a raise is what every employee thinks when getting a yearly evaluation. Even

    though we might not be able to afford a $4-$5 increase, having an increase of .50 – $1.00 can increase a

    full time employees pay to an extra $1,920 a year. Changing the sales awards program from receiving gift

    cards for exceeding quotas to yearly bonuses offers a more attractive incentive.

    Conclusion

    Fossil is a great technological brand. The company has integrated enhanced smart watches and not to

    mention recently partnered with BMW to design, develop and distribute their watch and smart watches for

    the next five years. By being competitive and offering better benefits, Fossil can take control and rule the

    job market. Happiness is personal state of being that is powerful in and outside of any company. Let

    Fossil lead the way in retaining and developing its current employees and attracting new and diverse

    talents. No one can say no to increases in and profits, productivity and overall customer satisfaction.

    9

    References

    D. (2008, February 08). Another Goldman Perk: Sex Changes. Retrieved August 6, 2018, from

    Bramwell, E. (2018, February 22). Employee morale is a year-round priority. From

    https://www.interact-intranet.com/blog/employee-morale-is-a-year-round-priority/

    College Plan. (n.d.). Retrieved August 6, 2018 from

    https://www.starbucks.com/careers/college-plan

    Jones, K. (2017, February 15). The Most Desirable Employee Benefits. Retrieved August 4,

    2018, from https://hbr.org/2017/02/the-most-desirable-employee-benefits
    Novotney, A. (2010, December). Boosting Morale. Retrieved August, 2018, from

    http://www.apa.org/monitor/2010/12/morale.aspx

    Economics homework help

    ECON 401

    Advanced Macroeconomics

    Midterm Exam

    Fabio Ghironi
    University of Washington

    April 29, 2022

    Instructions:

    You have 5 hours to work on this exam. It is worth 100 points, contributing to your overall

    score for the course as described in the Syllabus. You may consult all course materials and standard

    Internet resources while working on the exam, but your work must be original and you may not

    solicit or obtain assistance from or provide assistance to other people for any specific content of the

    exam. Activities considered cheating include copying or closely paraphrasing content from websites

    and discussing exam questions with other students. All exams will be checked for originality and

    copied content, and anyone found cheating will be assigned a zero score for the exam. Read

    carefully each step of each problem before you jump into working on it and do not panic if you

    cannot complete everything. The exam is intended also to stretch your knowledge by forcing you

    to use the tools and information you have acquired to think about some things we have not talked

    about in class. I want to see how you think about those things based on what you learned.

    Problem 1: The RBC Model with Endogenous Labor Supply (50 Points)

    The figure in the next page shows the responses to a one-percent innovation to technology at time 0

    in the basic RBC model with fixed labor supply with the following parameter values: g = 0.005,β =

    0.99,γ = σ = 1,r = − logβ +γg,α = 0.667,δ = 0.025, and φ = 0.95 (this value of persistence may

    seem very high to you, but it is actually a conventional value that is often used in quantitative

    applications of models with technology shocks).

    The log-linearized version of the RBC model with endogenous labor supply in the slides boils

    down to the following equations:

    kt+1 ≈ λ1kt + λ2 (at + nt)+(1− λ1 − λ2)ct,

    Et (ct+1 − ct) ≈ λ3Et (at+1 + nt+1 − kt+1) ,

    nt ≈ µ [(1− α)kt + αat − ct] ,

    at = φat−1 + εt,

    where all the variables, parameters, and coeffi cients are defined in the slides. These four equa-

    tions allow us to solve for the dynamics of capital, consumption, and employment in response to

    technology shocks. The solution takes the form:

    kt+1 = ηkkkt + ηkaat,

    ct = ηckkt + ηcaat,

    nt = ηnkkt + ηnaat,

    with:

    at = φat−1 + ε,

    where the expressions of the η’s are in the slides.

    Given the solution for capital, consumption, and employment, we can solve for other variables

    of interest: output:

    yt = α(at + nt)+(1− α)kt,

    2

    ‐0.2

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    1.4

    1.6

    1.8

    2

    ‐1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

    Basic RBC Model Impulse Response Example

    a k c y r i

    the return to investment:

    rt+1 ≈ λ3 (at+1 + nt+1 − kt+1) ,

    investment:

    i =
    r + δ

    (1− α)(g + δ)
    y −

    [
    r + δ

    (1− α)(g + δ)
    −1
    ]
    c,

    and the real wage:

    ωt = αat +(1− α)(kt − nt) .

    • Use the solution and the equations for other variables of interest to set up an

    Excel file that allows you to compute and show in a figure the impulse responses of

    capital, consumption, employment, output, the return to investment, investment,

    and the real wage to a one-percent innovation to technology at time 0. Assume

    that the economy was at trend up to and including period −1 and use the same

    values of parameters as those indicated above for the model with fixed labor

    supply. In addition, assume that γn = σn = 1 and
    _
    N = 1/3 (these assumptions are

    suffi cient for you to calculate the value of µ). Submit your Excel file in addition

    to your written answers to this problem and those below.

    • Explain your intuitions for the responses in the figure that your file generates

    and for any noticeable difference in the responses relative to those in the figure

    for the model with fixed labor supply.

    Problem 2: Indifference Across Assets (20 Points)

    Suppose the representative consumer can invest in three assets: nominal bonds, stocks, and physical

    capital. The consumer supplies one unit of labor inelastically in each period, lives in a world of

    perfect foresight, and wants to maximize the intertemporal utility function:

    ∞∑
    s=t

    βs−tu(Cs) ,

    where Cs is consumption in period s and β is a discount factor strictly between 0 and 1.

    The budget constraint in period t is:

    PtCt + PtIt + Bt+1 + Vtxt+1 = Wt + RtKt +(1+ it)Bt +(Vt + Dt)xt.

    3

    Going right to left in this equation: The consumer begins period t with stock holdings xt, receives

    nominal dividends (Dt) and the value of selling the stocks at the nominal price Vt; the consumer

    begins the period with nominal bond holdings Bt and receives the nominal interest rate it on these

    bonds; the consumer begins the period with capital Kt and receives income from renting this capital

    to firms at the nominal rental rate Rt; and the consumer receives nominal wage income Wt. The

    consumer then uses these resources to buy stocks and bonds to be carried into t+1 (xt+1 and Bt+1),

    to buy investment goods (It), and consumption (Ct). Pt is the nominal price of consumption and

    investment (the underlying assumption here is that the same good or bundle of goods can be used

    for consumption or investment). There is one such budget constraint in each period.

    Capital evolves according to the law of motion:

    Kt+1 = (1− δ)Kt + It,

    where δ is a depreciation rate between 0 and 1. A similar law of motion holds in each period.

    • Find the Euler equations for the consumer’s optimal decisions about capital ac-

    cumulation, bond holdings, and stock holdings. Use your favorite method (La-

    grangian or constraint substitution), but do the math.

    • Show that when all three Euler equations hold the consumer is indifferent between

    the three assets (capital, bonds, stocks).

    Problem 3: Tax Policy and Monetary Policy in the New Keynesian Model (30

    Points)

    Suppose the representative consumer maximizes the intertemporal utility function:

    Et

    ∞∑
    s=t

    βs−tu(Cs,1− Ns) ,

    where Et denotes the expectation conditional on information available at time t, Cs is consumption

    in period s, Ns is labor effort supplied in the same period, the duration of the period has been

    normalized to 1, and β is a discount factor strictly between 0 and 1.

    The budget constraint in period t is:

    PtCt + Bt+1 = (1− τt)WtNt +(1+ it)Bt + Tt,

    4

    where Pt is the consumer price level, Wt is the nominal wage, Bt denotes nominal bonds at the

    beginning of period t, it is the nominal interest rate, τt is the rate of taxation of labor income, and

    Tt is a lump-sum transfer with which the government rebates the revenue from taxation back to

    the consumer. The tax rate τt and the transfer Tt are the only instruments of government policy in

    this exercise. Note that τt can be negative, in which case τt is a subsidy rate and Tt is a lump-sum

    tax that finances the subsidy. Both the tax (or subsidy) rate τt and the lump-sum transfer (or

    tax) Tt are taken as given by the consumer. There is one budget constraint like that above in each

    period.

    • Write the Euler equation for the consumer’s choice between consumption and

    bond accumulation and the optimality condition for labor supply. Explain the

    reasoning that led you to write these equations as you did.

    Assume that consumption consists of a bundle of differentiated goods produced by firms that

    operate under monopolistic competition:

    Ct =

    [∫ 1
    0
    ct (j)

    θ−1
    θ dj

    ] θ
    θ−1

    ,

    where ct (j) is consumption of the differentiated product j (produced by firm j), there is a continuum

    between 0 and 1 of such firms, and θ > 1 is the elasticity of substitution between their products.

    • Let pt (j) denote the price of product j. Given the amount of consumption Ct
    determined by the Euler equation, what is the expression for the consumer’s

    demand of product j in period t? Explain this expression intuitively.

    Suppose that firm j’s production function is:

    yt (j) = ZtNt (j) ,

    where yt (j) is the output of good j, Nt (j) is the amount of labor employed by firm j, and Zt is

    exogenous labor productivity.

    Given this production function, firm j’s marginal cost is wt/Zt, where wt is the real wage

    (Wt/Pt).

    • Why is wt/Zt the expression for marginal cost?

    5

    Suppose that firms set prices subject to a cost of price adjustment equal to:

    ψ

    2

    (
    pt (j)

    pt−1 (j)
    −1
    )2

    ,

    with ψ ≥ 0. This cost is measured in units of the consumption basket. It implies that the price of

    product j will be set as a time-varying markup over (nominal) marginal cost:

    pt (j) = µt (j)Pt
    wt
    Zt
    ,

    where µt (j) > 1. If prices are flexible, the markup is constant and equal to θ/(θ −1).

    Imposing symmetry across firms in equilibrium, pt (j) = Pt and µt (j) = µt. It follows that:

    wt =
    1

    µt
    Zt.

    There is a wedge between the real wage and labor productivity equal to the reciprocal of the

    markup.

    • Use the last equation and the first-order condition for the optimal choice of labor

    supply to find the level of the labor income tax rate τt that removes the impact of

    monopoly power and nominal rigidity on the labor market (i.e., the labor income

    tax rate that delivers labor market effi ciency).

    • What is the expression of this tax rate if prices are flexible?

    • If you did things right, you found that the labor income tax rate that removes

    the effects of distortions on the labor market is negative. This means that, in

    order to restore labor market effi ciency, the government must actually subsidize

    labor (instead of taxing it). In other words, the government must tax leisure.

    What is your intuition for this result?

    • Suppose that the government is indeed setting the labor income tax rate at the

    level that implies labor market effi ciency in each period. Does this mean that

    there is nothing left to do for monetary policy to improve the outcome of markets?

    Why? If there is anything left for the central bank to do, what should it do?

    • Whereas monetary policy can be adjusted frequently, it is diffi cult for govern-

    6

    ments to adjust tax rates frequently because it involves a legislative process.

    Suppose now that this is the case here and that the government sets the tax rate

    in every period at the constant level that delivers labor market effi ciency under

    flexible prices (in other words, the tax rate cannot deviate from this level even if

    the economy is outside the steady state and all the other variables are changing

    over time). What inflation rate should the central bank set? Why?

    7

    Economics homework help

    Macroeconomic Theory

    1 Chapter 8: Infinite-Period Framework

    All of the dynamic models we have build thus far consist of only two periods. Here we expand
    those models to an infinite amount of periods. The main takeaway is that the economic intuition
    gained from the simplified two-period framework holds when the number of periods is expanded.

    • Infinite-period Framework: an infinite sequence of overlapping two-period frameworks.
    → The representative household or firm has an “Infinite Planning Horizon”
    →We use indices t,t + 1, t + 2, … instead of 1,2,3, …
    → Nothing before period t can be changed

    1.1 Households

    Households choose consumption/savings and labor/leisure each period over an infinite horizon
    to maximize utility subject to a budget constraint.

    1.1.1 Preferences

    Preferences are represented by:

    V (ct, lt,ct+1, lt+1,ct+2, lt+2…) = u(ct, lt) + βu(ct+1, lt+1) + β
    2u(ct+2, lt+2) + …

    or more compactly:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s) (1)

    where each sub-utility function u(·) has the usual properties.

    1.1.2 Budget Constraint

    In the absence of taxes, households have the following period-t real budget constraint:

    ct + at = (1 + rt)at−1 + wtnt (2)

    with the unitary time endowment:

    1 = lt + nt (3)

    → One could use this period-t budget constraint to derive a lifetime budget constraint over infinite
    periods. We will not be doing that in course.1

    1If you are curious, the infinite period LBC can be derived by expressing the budget constraint as a difference
    equation and solving forward to get:

    ∑∞
    s=0

    ct+s/(1 + rt+1+s)
    s =

    ∑∞
    s=0

    (wt+snt+s)/(1 + rt+1+s)
    s with the usual

    terminal and initial conditions imposed.

    1

    1.1.3 Optimal Choice

    Since the model as a recursive structure where the events occur each period, we can derive a single
    intertemporal and a single intratemporal optimality condition that will hold for each period using
    a sequential Lagrangian.

    max
    {ct+s,at+s,lt+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1− lt) = 0 for all t = 1,2,3, …

    The sequential Langrangian can be written in the same form we learned for two periods, but for
    an infinite amount of periods as follows:

    L =
    ∞∑
    s=0

    {βsu(ct+s, lt+s) + λt+s (ct+s + at+s − (1 + rt+s)at−1+s −wt+s(1− lt+s))} (4)

    Equation (4) might look intimidating, and you might be thinking ‘How do do I take for the first
    order conditions for this?’ It could be helpful to first write out the summation for a few periods:

    L = u(ct, lt) + λt (ct + at − (1 + rt)at−1 −wt(1− lt))

    + βu(ct+1, lt+1) + λt+1 (ct+1 + at+1 − (1 + rt+1)at −wt+1(1− lt+1))

    + β2u(ct+2, lt+2) + λt+2 (ct+2 + at+2 − (1 + rt+2)at+1 −wt+2(1− lt+2)) + …

    The summation would go on forever in this pattern as s approaches ∞, but writing it out until
    s = 2 as above is sufficient for our purposes. So now what? The key thing to keep in mind is
    that since the model has a recursive structure, the optimality conditions hold for any t period.
    This means that we could take the FOCs as usual for any t period:

    → For intertemporal optimality condition we need to optimize over ct and ct+1.
    → For intratemporal optimality condition we need to optimize over ct and lt.
    → Note that we can take these FOCs while ignoring the expanded Lagrangian for s > 1.

    2

    Taking FOCs:

    ∂L
    ∂ct

    = 0 −→
    ∂u

    ∂ct
    + λt = 0 −→

    ∂u

    ∂ct
    = −λt (5)

    ∂L
    ∂ct+1

    = 0 −→ β
    ∂u

    ∂ct+1
    + λt+1 = 0 −→ β

    ∂u

    ∂ct+1
    = −λt+1 (6)

    ∂L
    ∂lt

    = 0 −→
    ∂u

    ∂lt
    + λtwt = 0 −→

    ∂u

    ∂lt

    1

    wt
    = −λt (7)

    ∂L
    ∂at

    = 0 −→ λt − (1 + rt+1)λt+1 = 0 −→ λt = (1 + rt+1)λt+1 (8)

    Remember that with the sequential Lagrangian we need to optimize over at to get an expres-
    sion that links together the Lagrange multipliers across periods.

    Combining the FOCs:

    → Intertemporal Optimality Condition: Using Equations (5) and (6) into (8):

    −λt = −(1 + rt+1)λt+1

    ∂u

    ∂ct
    = β

    ∂u

    ∂ct+1
    (1 + rt+1)


    ∂u/∂ct

    β∂u/∂ct+1
    = (1 + rt+1) (9)

    → Intratemporal Optimality Condition: Using Equations (5) and (7):

    ∂u

    ∂ct
    =
    ∂u

    ∂lt

    1

    wt


    ∂u/∂lt
    ∂u/∂ct

    = wt (10)

    → The solution to the model, {ct+s∗, lt+s∗}∞s=0, is fully characterized with an intertemporal
    and intratemporal optimality condition for each period and a LBC with initial and terminal
    conditions on wealth.
    → We will not be solving the infinite period models in this class. With the exception of a few

    special cases, computational methods are typically needed to obtain the solution.

    3

    2 Firms

    The representative firm chooses labor and capital inputs to produce output at profit maximizing
    levels over an infinite horizon.

    → The firm’s real profit function over an infinite horizon:

    Profit =
    ∞∑
    s=0

    (1 + rt+s)
    −s{f(kt+s,nt+s)− (kt+1+s − (1− δ)kt+s)−wt+snt+s} (11)

    As with the households’ optimization problem, it will help to write out the summation for a
    few periods. We’ll again expand to s = 2.

    Profit =f(kt,nt)− (kt+1 − (1−δ)kt)−wtnt

    +

    (
    1

    1 + rt+1

    )
    (f(kt+1,nt+1)− (kt+2 − (1−δ)kt+1)−wt+1nt+1)

    +

    (
    1

    1 + rt+2

    )2
    (f(kt+2,nt+2)− (kt+3 − (1−δ)kt+2)−wt+2nt+2) + …

    → For intertemporal optimality condition we need to optimize over kt+1.
    → For intratemporal optimality condition we need to optimize over nt.
    → Note that we can take these FOCs while ignoring the expanded profit function for s > 1.

    Taking FOCs:

    nt :
    ∂f

    ∂nt
    −wt = 0 ⇒

    ∂f

    ∂nt
    = wt (12)

    kt+1 : −1 +
    (

    1

    1 + rt+1

    )(
    ∂f

    ∂kt+1
    + (1−δ)

    )
    = 0 ⇒

    ∂f

    ∂kt+1
    = rt+1 + δ (13)

    where Equations (12) and (13) are the firms intratemporal and intertemporal optimality condi-
    tions, which hold for all t.

    → The solution to the model, {nt+s∗,kt+1+s∗}∞s=0, is fully characterized by the optimality
    conditions for each period, and initial and terminal conditions of the capital stock given demand
    for the firms’ output.

    ⇒ If the economic intuition from two-period models is the same as that from infinite period
    models, why bother with more complex infinite period models? When using macroeconomic mod-
    els to make quantitative statements about the dynamics of aggregates — such as consumption,
    savings, capital, labor, and output — the infinite period framework is more useful because it allows
    for multiple periods that reasonably correspond to a monthly, quarterly, or annual frequency.

    4

    • Chapter 8: Infinite-Period Framework
      • Households
    • Firms

    Economics homework help

    Macroeconomic Theory

    1 Interlude: General Equilibrium Macroeconomics

    All of the models that we have used thus far have been partial equilibrium, as we have looked at the

    behavior of agents one side of each market in isolation. We now move to a general equilibrium

    setting where we study states of the model where each market has reached a `market-clearing’

    state where quantity supplied equals quantity demanded.

    ⇒ Each of our three macro markets � labor market, �nancial market, and goods market �
    will have an associated Equilibrium Condition that describes a situation where markets clear

    such that quantity supplied equals quantity demanded.

    1.1 Labor Market Equilibrium

    Representative household supplies labor and representative �rm demands labor, the interaction

    of which determines market-clearing equilibrium real wage rate wt∗ and labor nt*.

    Household Labor Supply Optimality Condition:
    ∂u/∂lt
    ∂u/∂ct

    = wt (1)

    Firm Labor Demand Optimality Condition:
    ∂f

    ∂nt
    = wt (2)

    → Setting Equation (2) and (1) equal, yields the labor market equilibrium condition.

    ∂u/∂lt
    ∂u/∂ct

    =
    ∂f

    ∂nt
    (3)

    Economic Intuition: When the representative household and �rm face the same real wage rate,

    quantity of labor supplied and demanded are equal because the labor supply function is strictly

    increasing in the wage rate and that the labor demand function is strictly decreasing in the wage

    rate, i.e. they intersect at that wage rate. In the labor market equilibrium, households are paid

    the marginal product of their labor.

    → Graphically, labor market equilibrium in (nt,wt) space:

    1

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    1.2 Financial Market Equilibrium

    Representative household supplies savings and representative �rm demands savings for invest-

    ment, the interaction of which determines market-clearing equilibrium real interest rate rt+1∗
    and supply of savings st* and investment invt∗.

    Household Savings Supply Optimality Condition:
    ∂u/∂ct

    β∂u/∂ct+1
    = 1 + rt+1 (4)

    Firm Capital Demand Optimality Condition:
    ∂f

    ∂kt+1
    = rt+1 + δ (5)

    → Using Equation (4) and (5) to eliminate the real interest rate, yields the �nancial market
    equilibrium condition:

    ∂u/∂ct
    β∂u/∂ct+1

    = 1 +
    ∂f

    ∂kt+1
    −δ (6)

    Economic Intuition: When the representative household and �rm face the same real interest rate,

    quantity of savings supplied is equal to the quantity of savings demanded for investment because

    the savings supply function is strictly increasing in the real interest rate and that the investment

    demand function is strictly decreasing in the real interest rate, i.e. they intersect at that real

    interest rate. In the �nancial market equilibrium, households receive an interest rate on their

    principal equal to the marginal product of capital less the marginal value of capital depreciated.

    → Graphically, �nancial market equilibrium in ({st, invt},rt+1) space:

    2

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    1.3 Goods Market Equilibrium

    The interaction aggregate demand and aggregate supply of goods and services, which determines

    market-clearing equilibrium goods price Pt∗ and level of total real output qt ∗.

    • Aggregate Demand (AD): The desired quantity demanded for all goods and services by
    households, �rms, and government.

    ADt ≡ ct ∗+invt∗ (7)

    Note that if there were taxes in the model to fund government spending, gt, we would add gt to

    the expression for aggregate demand.

    → How does ADt vary with Pt?

    Household Savings Supply Nominal Optimality Condition:
    ∂u/∂ct

    β∂u/∂ct+1
    =

    Pt
    Pt+1

    (1 + it+1)

    → If Pt ↑, then ct∗ ↓ if substitution e�ect dominates income e�ect

    Firm Investment Demand Nominal Optimality Condition:
    ∂f

    ∂kt+1
    =

    Pt
    Pt+1

    (1 + it+1)

    → If Pt ↑, then kt+1∗ and invt∗ ↓

    ⇒ Because ct∗ and invt∗ decrease as Pt increase, ADt is downward sloping in (qt,Pt) space:

    3

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    • Aggregate Supply (AS): The desired quantity supplied by �rms.

    ASt ≡ f(kt∗,nt∗) (8)

    → In our current framework, the AS function has no relationship with Pt, and therefore is
    vertical in (qt,Pt) space. This is called the `classical’ AS function.

    → Setting ADt = ASt as in Equations (7) and (8) yields the goods market equilibrium condition:

    f(kt∗,nt∗) = ct ∗+invt ∗ (9)

    ⇒ When the goods market equilibrium condition (9), the labor market equilibrium condition
    (3), and the �nancial market equilibrium condition (6) simultaneously hold, the model is said

    to be in general equilibrium.

    → Along with budget constraints of all economic agents, these conditions completely char-
    acterize the general equilibrium solution.

    → In other frameworks the AS function is completely horizontal (Keynesian AS) or upwards
    sloping (New-Keynesian AS) over Pt. The slope of the AS curve in these models depends on

    how quickly Pt adjusts relative to other prices (wt and rt+1). If Pt does not change at our model

    frequency (referred to as `sticky prices’) then the AS function is completely horizontal. The

    implication of the classical AS function is therefore that Pt adjusts instantaneously in response

    to changes to costs of production.

    4

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    • Interlude: General Equilibrium Macroeconomics
      • Labor Market Equilibrium
      • Financial Market Equilibrium
      • Goods Market Equilibrium

    Economics homework help

    DC

    Washington DC Memoreal Visiters
    Source: https://irma.nps.gov/Stats/Reports/Park/FRDE
    Year Completed 2002 2007 2012 2017 Trend
    Lincoln Memorial 1922 3,551,973 4,214,167 6,191,361 7,956,117
    World War II Memorial 2004 – 0 4,079,606 4,161,685 4,876,842
    Vietnam Veterans Memorial 1982 3,296,596 3,633,793 4,424,407 5,072,589
    Korean War Veterans Memorial 1994 2,675,205 3,433,663 3,267,124 4,155,947
    Franklin Delano Roosevelt Memorial 1997 2,493,089 2,751,725 2,764,459 3,507,402
    Thomas Jefferson Memorial 1943 2,066,932 2,327,254 2,613,131 3,366,571

    Places

    Sightseeing Locations City Fee Time Needed
    Edgar Allan Poe National Historic Site Philadelphia $0.00 120
    White House Washington DC $0.00 120
    King’s Chapel Burial Ground BOS $0.00 30
    Park Street Church BOS $0.00 30
    City Hall Philadelphia $12.00 120
    Fireman’s Hall Philadelphia $0.00 60
    Vietnam Veterans Memorial Washington DC $0.00 60
    Korean War Veterans Memorial Washington DC $0.00 60
    Faneuil Hall Marketplace BOS $0.00 120
    Powel House Philadelphia $5.00 60
    Old City Hall Philadelphia $0.00 60
    Washington Monument Washington DC $0.00 60
    Cathedral Basilica of Saint Peter and Paul Philadelphia $0.00 60
    Martin Luther King, Jr., Memorial Washington DC $0.00 60
    Elfreth’s Alley Philadelphia $5.00 60
    Fenway Park BOS $25.00 60
    Christ Church Philadelphia $5.00 60
    Old State House BOS $10.00 75
    Arlington National Cemetery Washington DC $0.00 180
    Franklin Delano Roosevelt Memorial Washington DC $0.00 60
    Old South Meeting House BOS $6.00 60
    USS Constitution Museum BOS $10.00 75
    BOS Massacre Site BOS $0.00 30
    Washington Square Park Philadelphia $0.00 30
    National World War II Memorial Washington DC $0.00 45
    Jefferson Monument Washington DC $0.00 30
    Bunker Hill Monument BOS $0.00 75
    Congress Hall Philadelphia $0.00 30
    Independence Hall Philadelphia $0.00 90
    United States Capitol Washington DC $0.00 120
    Betsy Ross House Philadelphia $5.00 60
    Library of Congress Washington DC $0.00 60
    Ford’s Theatre Washington DC $3.00 120
    Paul Revere House BOS $3.50 60
    Todd House Philadelphia $0.00 60
    Massachusetts State House BOS $0.00 120
    Lincoln Memorial Washington DC $0.00 45
    Supreme Court Washington DC $0.00 90
    Old North Church BOS $3.00 30

    Cities

    Departure Date 6/17/21 Ground Transportation Summary Trip Costs
    Return Date 6/22/21 Round-trip Shuttle $ 50 Average
    Rental Car per Day $ 35 Lowest
    Lodging Base/Night $ 125 Rental Car Total Highest
    Total Base Lodging $ 625
    City COL
    1 95%
    2 110%
    3 125%
    4 140%
    Destination City City Type Rental Car? Airfare Shuttle or Rental Lodging Meals Total Cost
    Boston 3 No $ 367 $ 375
    Miami 2 Yes 392 330
    Orlando 1 Yes 299 285
    Philadelphia 3 No 479 375
    San Antonio 1 Yes 218 285
    Washington DC 4 No 469 420

    Economics homework help

    Please read “Here’s how the Fed raising interest rates can help get inflation lower and why it could fail” written by Jeff Cox and found here: https://www.cnbc.com/2022/04/08/heres-how-the-fed-raising-interest-rates-can-help-get-inflation-lower-and-why-it-could-fail.html.

    According to the article, policymakers are going to try to slow down the economy and subdue inflation. Do you believe this to be good policy? Why or why not?

    What is stagflation?

    The article also says inflation is thought to be something of a self-fulfilling prophecy. What did the author mean by that?

    What Fed policy was enacted under the direction of Fed Chair Paul Volker? Do you think such a policy is called for today?

    For full credit, you will include a well-reasoned and well-written defense of all your answers. Your reflection essay will be approximately 1-2 paragraphs in length and will be devoid of typographical and grammatical errors.

    Grading Rubric for Reflection Essays

    Content

    Low Scores (0-3)

    Average Scores (4-5)

    High Score (6-7)

    The reflection essay is missing content, i.e., a significant number of questions are left unanswered or are answered in a cursory manner.

    The reflection essay contains adequate content, but a few questions are left unanswered or are answered in a cursory manner.

    The reflection essay addresses all questions in a thoughtful and substantive manner.

    Sentence-level Conventions

    Low Scores (0-1)

    Average Scores (2)

    High Scores (3)

    There are 8 or more errors in spelling, grammar, and punctuation.

    There are 6-7 errors in spelling, grammar, and punctuation.

    There are 5 or fewer errors in spelling, grammar, and punctuation.

    Economics homework help

    https://www.nakedcapitalism.com/

    Episodes

    https://robertreich.org/

    https://cepr.net/blog/dean-bakers-beat-the-press/

    https://adamtooze.substack.com/

    https://www.propublica.org/

    https://www.dissentmagazine.org/

    https://www.epi.org/blog/

    https://www.ineteconomics.org/perspectives/podcasts

    https://evonomics.com/

    https://theintercept.com/

    https://equitablegrowth.org/insights-expertise/value-added/

    Economics homework help

    Macroeconomic Theory

    1 Interlude: General Equilibrium Macroeconomics

    All of the models that we have used thus far have been partial equilibrium, as we have looked at the

    behavior of agents one side of each market in isolation. We now move to a general equilibrium

    setting where we study states of the model where each market has reached a `market-clearing’

    state where quantity supplied equals quantity demanded.

    ⇒ Each of our three macro markets � labor market, �nancial market, and goods market �
    will have an associated Equilibrium Condition that describes a situation where markets clear

    such that quantity supplied equals quantity demanded.

    1.1 Labor Market Equilibrium

    Representative household supplies labor and representative �rm demands labor, the interaction

    of which determines market-clearing equilibrium real wage rate wt∗ and labor nt*.

    Household Labor Supply Optimality Condition:
    ∂u/∂lt
    ∂u/∂ct

    = wt (1)

    Firm Labor Demand Optimality Condition:
    ∂f

    ∂nt
    = wt (2)

    → Setting Equation (2) and (1) equal, yields the labor market equilibrium condition.

    ∂u/∂lt
    ∂u/∂ct

    =
    ∂f

    ∂nt
    (3)

    Economic Intuition: When the representative household and �rm face the same real wage rate,

    quantity of labor supplied and demanded are equal because the labor supply function is strictly

    increasing in the wage rate and that the labor demand function is strictly decreasing in the wage

    rate, i.e. they intersect at that wage rate. In the labor market equilibrium, households are paid

    the marginal product of their labor.

    → Graphically, labor market equilibrium in (nt,wt) space:

    1

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    1.2 Financial Market Equilibrium

    Representative household supplies savings and representative �rm demands savings for invest-

    ment, the interaction of which determines market-clearing equilibrium real interest rate rt+1∗
    and supply of savings st* and investment invt∗.

    Household Savings Supply Optimality Condition:
    ∂u/∂ct

    β∂u/∂ct+1
    = 1 + rt+1 (4)

    Firm Capital Demand Optimality Condition:
    ∂f

    ∂kt+1
    = rt+1 + δ (5)

    → Using Equation (4) and (5) to eliminate the real interest rate, yields the �nancial market
    equilibrium condition:

    ∂u/∂ct
    β∂u/∂ct+1

    = 1 +
    ∂f

    ∂kt+1
    −δ (6)

    Economic Intuition: When the representative household and �rm face the same real interest rate,

    quantity of savings supplied is equal to the quantity of savings demanded for investment because

    the savings supply function is strictly increasing in the real interest rate and that the investment

    demand function is strictly decreasing in the real interest rate, i.e. they intersect at that real

    interest rate. In the �nancial market equilibrium, households receive an interest rate on their

    principal equal to the marginal product of capital less the marginal value of capital depreciated.

    → Graphically, �nancial market equilibrium in ({st, invt},rt+1) space:

    2

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    1.3 Goods Market Equilibrium

    The interaction aggregate demand and aggregate supply of goods and services, which determines

    market-clearing equilibrium goods price Pt∗ and level of total real output qt ∗.

    • Aggregate Demand (AD): The desired quantity demanded for all goods and services by
    households, �rms, and government.

    ADt ≡ ct ∗+invt∗ (7)

    Note that if there were taxes in the model to fund government spending, gt, we would add gt to

    the expression for aggregate demand.

    → How does ADt vary with Pt?

    Household Savings Supply Nominal Optimality Condition:
    ∂u/∂ct

    β∂u/∂ct+1
    =

    Pt
    Pt+1

    (1 + it+1)

    → If Pt ↑, then ct∗ ↓ if substitution e�ect dominates income e�ect

    Firm Investment Demand Nominal Optimality Condition:
    ∂f

    ∂kt+1
    =

    Pt
    Pt+1

    (1 + it+1)

    → If Pt ↑, then kt+1∗ and invt∗ ↓

    ⇒ Because ct∗ and invt∗ decrease as Pt increase, ADt is downward sloping in (qt,Pt) space:

    3

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    • Aggregate Supply (AS): The desired quantity supplied by �rms.

    ASt ≡ f(kt∗,nt∗) (8)

    → In our current framework, the AS function has no relationship with Pt, and therefore is
    vertical in (qt,Pt) space. This is called the `classical’ AS function.

    → Setting ADt = ASt as in Equations (7) and (8) yields the goods market equilibrium condition:

    f(kt∗,nt∗) = ct ∗+invt ∗ (9)

    ⇒ When the goods market equilibrium condition (9), the labor market equilibrium condition
    (3), and the �nancial market equilibrium condition (6) simultaneously hold, the model is said

    to be in general equilibrium.

    → Along with budget constraints of all economic agents, these conditions completely char-
    acterize the general equilibrium solution.

    → In other frameworks the AS function is completely horizontal (Keynesian AS) or upwards
    sloping (New-Keynesian AS) over Pt. The slope of the AS curve in these models depends on

    how quickly Pt adjusts relative to other prices (wt and rt+1). If Pt does not change at our model

    frequency (referred to as `sticky prices’) then the AS function is completely horizontal. The

    implication of the classical AS function is therefore that Pt adjusts instantaneously in response

    to changes to costs of production.

    4

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    • Interlude: General Equilibrium Macroeconomics
      • Labor Market Equilibrium
      • Financial Market Equilibrium
      • Goods Market Equilibrium

    Economics homework help

    I. Identifying Information:

    Date of Recording

    04/01/2022

    Date of Session

    04/01/2022

    Student

    Jesse Nunez

    Field Instructor

    Deidre Summers

    II. Background:

    Initials or Fictitious Name of Person (People) Served:

    A.S

    Gender Identity, Ethnic Identity, and Age:

    48-year-old white female

    Source and Reason for Referral:

    Writer scheduled session with A.S because she stated that she is in dire need of a job.

    Family Background

    A.S is from a Jewish Orthodox family who currently lives in White Plains NY, and is originally from Flatbush, Brooklyn N,Y.

    Setting and Who is Present:

    Writer and A.S met in writer’s office.

    Brief Summary of Work with Person (People) to Date:

    This was our first one on one session to date.

    III. Summary of Clinical Impressions (Analytical Thinking About the Experience of the Entire Interview)

    A.S is a 48 year old Jewish woman that was raised in a Orthodox Jewish family. Due to her culture, dynamics of family structure, and learning disability she felt hindered and believed that her life is the way it is because of her parents. A.S spoke loud, also associated with rapid speech, and needed redirection to focus on one type of job, and understand that in order to address her needs, there is a process.

    IV. Summary of Affective Process (Feelings Associated with the Experience of the Entire Interview)

    Writer felt confident that we can assist A.S with finding a job. Writer empathized with A.S about the thought, and feeling of being alone, and no one being present to help out in specific situations where assistance was needed.

    V. Next Steps (Unaddressed Issues, Identification of Short- and Long-Term Goals)

    A.S goal is to find a job that is meaningful.

    VI. Questions for Field Instructor, Field Liaison or Peers During Seminar Related to Convening?

    Process Recording Format

    Record and Analyze a 45 Minute Interaction with a Person or Group Receiving Services.

    Dialogue

    Your feelings

    Analysis

    Field Instructor’s comments


    Jesse: A.S. good morning, how are you feeling?


    A.S.: Not good, I need a job and I was told that you’re the person to help me with that. .

    Okay, he wants to get right into it


    Jesse: Okay, have you worked before, and what type of job are you looking for?


    A.S.: Yes, I currently work at Marshalls, it’s only 4 hours. I don’t like the job, and it’s not doing anything for me. I was a peer advocate for 17 years at Rockland psychiatric. I’d like to do something more meaningful.

    He talks very fast

    Clients speech was pressured, and tone was loud.


    Jesse: Okay, I know I can help you. Do you have a resume?


    J.D.: We have this system she cooks and then after dinner I end up loading the dishes in the dishwasher, wipe down the table, and sweep up the floor. Yesterday I ate my lunch at 4:30pm so I considered it my dinner. Then when I get home I got into an argument with her about it and she said she would be up all night doing it but she was up anyway and she finished at 9:30pm so not late for her. I am upset that she said “do you not want to live here” I feel that it was wrong of her to say, I am living there because of my financial situation at the moment and I do want to be there but it felt like an unnecessary statement.

    Wow he gives a lot of unnecessary details

    Writer did not have any issues understanding the words, but he occasionally went off into too much unnecessary detail. Client’s face occasionally became red and he appeared to run out of breath on a couple of occasions.


    Louis: so, your mother became upset that you did not call her and tell her you ate dinner?


    D.J.: No, I called her and told her I wasn’t eating at home.

    He gave all the details except the important one

    Writer was initially confused as to what the clients mother was upset about. Writer should have asked “what was your mother upset about” instead of making an assumption here.


    Louis okay, so because you didn’t eat dinner you did not clean up afterward like you usually do?


    D.J.: no I don’t think that I should have had to clean up plus it didn’t take her long to do so I feel like she was out of line, and I told her that she needs to think before she says something. Why would she say that?

    He takes things very literally.

    Client believed that doing his chore was predicated on whether or not he ate dinner that his mother cooked. Since he did not eat dinner that evening the conditions for doing the chores were not met and he believed that he did not need to do the chore.


    Louis: Do you do the chores daily?


    D.J.: Yes every day.

    He doesn’t get it

    Client did not understand why his mother said what she said.


    Louis: but only because you also eat?


    D.J.: Yes.

    He believes that the chores are conditional to him also eating dinner

    Client believes the chores are a condition of eating and did not understand why his mother would become upset that she had to do it.


    Louis: Does your mother know that you completing the chores are conditional on whether you ate dinner that night?


    D.J.: No, I did not say that to her.

    Of course, he wouldn’t have told her because he is so literal minded. It is obvious to him that he only does the chores because he also ate.

    Writer made an assumption here about the client’s diagnosis of being on the autism spectrum.


    Louis: How do you think your mother would see the situation from her perspective? Do you think she believes the chores should be done only if you eat?


    D.J.: When you put it that way, I think maybe I can see why she would become upset. I will speak with her about it when I get home.

    Wow, he had poor insight initially but picked that up fast.

    Writer was surprised that the client was able to understand his mother’s perspective on the situation so quickly.


    Louis: Okay, is there anything else you would like to talk about?


    D.J.: Yes, I also seem to be having a problem with my little brother. He called me up and we got into an argument. I try to teach him respect but he does not want to listen. This happened after a get together at his house over the weekend. He is mad at me because of a funny joke I told and is angry over Chinese food. His wife’s sister is pregnant, and we were supposed to go over there for a gender reveal but because of covid they rescheduled, and I couldn’t make it on the changed day. My brother told me that the Chinese food that they served wasn’t that good and so I suggested to my brothers mother in law another Chinese place that they should use in the future and then after my brother calls me and is upset with me about it, it’s just Chinese food and I was trying to be helpful.

    Again, he is over explaining the details

    Pressured speech and unnecessary details continued throughout the session


    Louis: You’re brother told you that the Chinese food served at his sister-in-laws gender reveal party wasn’t good, and when you were at his house this past weekend with the family you told his mother in law about your brother’s feelings on the Chinese food that was served, am I correct?

    He threw his brother under the bus

    Client did not understand that he shared information his brother gave him without his brother’s consent. Could be a contributing factor to how his brother spoke with him following the event.


    D.J.: Yes.


    Louis: And your brother told you this when?


    D.J.: A few days before over the phone.


    Louis: Why did you speak with your brother’s mother-in-law about the Chinese food?


    D.J.: I was just trying to suggest an excellent place for them to use next time so that they don’t serve Chinese food that isn’t good.

    He was trying to be helpful but isn’t understanding that is insulting

    Client was trying to be helpful by speaking with his brother’s mother-in-law about a good Chinese restaurant he knew of. He did not understand that doing this could be insulting.


    Louis: Okay DJ, lets say that you are hosting a party for family and you provide the food then you find out that people at the party were telling other people that you served bad food, how would that make you feel?

    I’ll ask how he thinks he would feel if it was him

    Asking to look at this from another’s perspective previously helped him understand his mother’s response to him not doing after dinner chores so I used that tactic again.


    D.J.: Oh wow not very good. I see where you are going with this, I thought I was being helpful but I can see that would make someone feel bad. Thank you I had not thought about it that way. I can see how it was something I should not have done. But I don’t understand why he was mad at me also that I told a funny joke.

    He eventually gets it when perspective is switched

    Again he initially showed a lack of insight but is quick to understand when looking at the situation from someone involved with a different perspective.


    Louis: Well it depends on the joke and the people who are there what may be funny to you may be considered inappropriate to others depending on where you are?

    Oh man how bad is this joke?


    D.J.: What do you mean?


    Louis: Well for example some jokes are appropriate for mixed company where there are like grand parents and children present and some jokes are appropriate when you are out with your friends at a bar. If you are willing to tell it again, what was the joke?

    Hopefully not too bad a joke


    D.J.: Okay so two of his sister-in-laws are pregnant and when we were sitting around the table eating with their husbands and children, I made a joke about how Gynecologists have the best job in the world.

    Oh boy, bad start


    Louis: Uh hmm

    Uh oh, where is this going


    D.J.: But then after they have the baby it is like going into a cave. (client laughs at his joke)

    Wow that is an inappropriate joke to tell in front of anyone let alone your entire family and your sister-in- law’s family, especially with kids there

    Client told an inappropriate joke in front of his family his sister-in-law’s family with the children in the family present. Client does not understand that there is a time and a place for certain “jokes” or language.


    Louis: DJ remember when I stated that jokes are situational, depending on the company you are with?


    D.J.: Yes


    Louis: So DJ, where do you think would be a more appropriate place for that joke to be told? At a dinner with your and your sister-in-law’s families around grand parents and children or in a bar?

    No initial insight on this one too.

    Client again shows issues with reading social situations.


    D.J.: That’s what my father said, he was upset with me as well but everybody in my sister-in-laws family laughed at the joke, but I see what you are saying, I will apologize to my brother even though I thought it was funny. Thank you, Louis.

    Laughing does not mean they thought it was funny. I almost laughed at how bad and how awkward the joke was.

    Writer almost laughed the punchline of the joke due to the absurdity of the joke and the situation. Client believed that it was okay since people laughed. Writer did not want to reinforce to the client that the joke was funny and therefore appropriate. Client had more trouble with this situation because of the laughter to the joke but stated that he would apologize to his brother.


    Louis: You’re welcome. Is there anything else that you would like to talk about before we end the session?


    D.J.: Not right now I have to go meet a friend in the city for dinner in a little bit.


    Louis: Okay enjoy your night out, if there is anything else you would like to talk about come find me.


    D.J.: Okay I will.

    Economics homework help

    https://www.nakedcapitalism.com/

    Episodes

    https://robertreich.org/

    https://cepr.net/blog/dean-bakers-beat-the-press/

    https://adamtooze.substack.com/

    https://www.propublica.org/

    https://www.dissentmagazine.org/

    https://www.epi.org/blog/

    https://www.ineteconomics.org/perspectives/podcasts

    https://evonomics.com/

    https://theintercept.com/

    https://equitablegrowth.org/insights-expertise/value-added/

    Economics homework help

    Macroeconomic Theory

    1 Neoclassical Growth

    The Neoclassical Growth Model is a variant of our in�nite-period framework that is a applied

    to study the determinants of long-run growth in economic output. The main take-away is the

    neoclassical growth model asserts that long-run economic growth is driven by increases in `tech-

    nological capabilities’ and population growth.

    1.1 The �Long-Run”

    • Steady State: a situation in the in�nite-period framework where all real variables stop
    �uctuating (or grow at a constant rate) over time absent external disturbances.

    → For any variable xt, in a steady state xt = xt+1 = xt+2 = … = x̄
    ⇒ Why does the model converge to a steady state?
    → Consider the economy’s intertemporal optimality condition (i.e. �nancial market equilib-

    rium condition):

    ∂u/∂ct
    ∂u/∂ct+1

    = β

    (
    ∂f

    ∂kt+1
    + 1 −δ

    )
    (1)

    • Case 1: Growing Economy → ct < ct+1 < … and kt+1 < kt+2 < …
    → This implies that the left-hand side (LHS) of Equation 1 is greater than 1, which itself

    implies that the right-hand side (RHS) is also greater than 1.

    → if k is growing, then ∂f/∂k is shrinking over time −→ RHS decreases towards 1, which
    implies that LHS is also decreasing towards 1.

    • Case 2: Shrinking Economy → ct > ct+1 > … and kt+1 > kt+2 > …
    → This implies that LHS of Equation 1 is less than 1, which itself implies that RHS is also

    less than 1.

    → if k is shrinking, then ∂f/∂k is growing over time −→ RHS increases towards 1, which
    implies that LHS is also increasing towards 1.

    ⇒ Putting together the implications from Cases 1 and 2, the positive but diminishing
    marginal product of capital implies that the economy settles at a steady state.

    1.2 Technological Progress in Neoclassical Growth Model

    • Technological Progress: increases in the productivity of the factors of production
    → more output for a given amount of inputs to the production function.

    • Labor-Augmenting Technological Progress: Technological progress is modeled as in-
    creases in `e�ective’ labor input. (required for existence of steady state)

    1

    → Let Zt be the level of technology embodied by the labor input, nt. Then the `e�ective’
    labor input is Ztnt, and total output is given by f(kt,Ztnt).

    → Assume that Zt grows by a rate of γz in the steady state such that
    dZ̄/dt


    = γz

    1.

    1.3 Neoclassical Growth Model

    → For simplicity, we will assume that labor supply is exogenous, n̄, but grows at a rate of γn in

    steady state such that
    dn̄/dt


    = γn. (Loosely thought of as population growth)

    → Exogenous labor means that leisure is also exogenous, l̄.

    Households:

    max
    {ct+s,at+s}∞s=0

    V =
    ∞∑
    s=0

    βsu(ct+s, l̄)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1 − l̄) = 0 for all t = 1, 2, 3, …

    Firms:

    max
    {kt+1+s}∞s=0

    Profit =
    ∞∑
    s=0

    (1 + rt+s)
    −s{f(kt+s,Zt+sn̄) − (kt+1+s − (1 − δ)kt+s) −wt+sn̄}

    ⇒ Since the First Welfare Theorem will hold, the economy’s optimality conditions can be
    obtained either by solving for general equilibrium in a decentralized fashion using the house-

    holds’ and �rms’ problems one at a time, or by using the Social Planner’s framework.

    → With exogenous labor, we need two equilibrium conditions for the economy:

    Intertemporal Optimality Condition (Financial Market Equilibrium Condition):

    ∂u/∂ct
    β∂u/∂ct+1

    =

    (
    ∂f(kt+1,Zt+1n̄)

    ∂kt+1
    + 1 −δ

    )
    (2)

    Aggregate Resource Constraint (Goods Market Equilibrium Condition):

    f(kt,Ztn̄) = ct + (kt+1 − (1 −δ)kt) (3)

    →With endogenous labor we would also need the economy’s intratemporal optimality condition
    (i.e. labor market equilibrium condition)

    1
    Since for any variable, x,

    dx̄/dt


    is the instantaneous rate of growth, this tells us that steady capital grows

    continuously at the rate of technological progress plus the rate of labor supply growth.

    2

    → With a functional form for the production function, we can solve directly for the steady
    state capital stock, output, and consumption.

    EXAMPLE: Suppose f(kt,Ztn̄) = k
    α
    t (Ztn̄)

    1−α. Solve for steady state capital and output.

    → Impose steady state on intertemporal optimality condition:

    ∂u/∂ct
    β∂u/∂ct+1

    =
    (
    αkα−1t (Ztn̄)

    1−α + 1 −δ
    )

    ∂u/∂c̄

    β∂u/∂c̄
    =
    (
    αk̄α−1(Z̄n̄)1−α + 1 −δ

    )
    1

    β
    =
    (
    αk̄α−1(Z̄n̄)1−α + 1 −δ

    )

    → Solve for k̄:

    1

    β
    − 1 + δ = αk̄α−1(Z̄n̄)1−α

    
    1

    β
    − 1 + δ

    α


     =

    (

    Z̄n̄

    )α−1

    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    =

    Z̄n̄

    ⇒ k̄∗ = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    (4)

    → Use expression for k̄ into the production function:

    f(k̄∗, Z̄n̄) =


    Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    
    α

    (Z̄n̄)1−α

    f(k̄∗, Z̄n̄) = (Z̄n̄)α(Z̄n̄)1−α


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    ⇒ f(k̄∗, Z̄n̄) = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    (5)

    3

    → Equations (4) and (5) are the expressions for steady state capital and output. Using these
    expressions into the resource constraint evaluated at the steady state, one can also obtain an

    expression for steady state consumption:

    f(k̄, Z̄n̄) = c̄ + (k̄ − (1 −δ)k̄)

    f(k̄, Z̄n̄) = c̄ + δk̄

    ⇒ c̄∗ = f(k̄∗, Z̄n̄) −δk̄∗

    1.3.1 Technological Progress and Economic Growth

    What does technological progress (and population growth) imply for steady state growth of capital

    stock and output?

    → Want steady state growth rate of capital in terms of steady state growth rates of technology
    and labor.

    → Consider the expression for the steady state capital stock:

    k̄ = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    → Taking the natural log of both side yields:

    log k̄ = log Z̄ + log n̄ + ((1/(α− 1)) log


    

    1

    β
    − 1 + δ

    α


    

    → Next, taking the total derivative of the above equation with respect to time:

    dk̄/dt


    =
    dZ̄/dt


    +
    dn̄/dt


    dk̄/dt


    = γz + γn (6)

    ⇒ Steady state capital grows at the rate of technological progress plus population growth.
    → Intuition: The marginal product of capital increases as e�ective labor input exogenously

    grows, which increases the desired future capital stock by the �rm thereby lowering the marginal

    product of capital. In a steady state these two e�ects on the marginal product of capital cancel

    each other out.

    4

    → Repeating this process for our expression for steady state output:

    f(k̄, Z̄n̄) = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    log f(k̄, Z̄n̄) = log Z̄ + log n̄ + ((α/(α− 1)) log


    

    1

    β
    − 1 + δ

    α


    

    df̄/dt


    =
    dZ̄/dt


    +
    dn̄/dt

    df̄/dt


    = γz + γn

    ⇒ Steady state growth in output is determined by growth rates in technology and population.
    → Intuition: Steady state output grows at same rate as each of the factors of production.

    5

    Macroeconomic Theory

    1 Chapter 14: Real Business Cycles

    We utilize the in�nite-period general equilibrium framework to study a theory of business cycles.

    • Real Business Cycle (RBC) Theory asserts that short-run �uctuations to economic ac-
    tivity are �e�cient� responses to temporary technological shocks.

    1.1 Technological Shocks in Real Business Cycle Model

    • Technological Shock: unexpected, temporary changes to `total factor productivity’
    • Total Factor Productivity (TFP): Portion of output not determined by capital or labor.
    → Let Θt be the level of TFP, then output is modeled as Θtf(kt,nt).
    → Graphically, TFP shocks look as follows:

    1.2 Real Business Cycle Model

    Households:

    max
    {ct+s,at+s,lt+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1 − lt+s) = 0 for all t = 1, 2, 3, …

    Firms:

    max
    {kt+1+s,nt+s}∞s=0

    Profit =

    ∞∑
    s=0

    (1 + rt+s)
    −s{Θt+sf(kt+s,nt+s)−(kt+1+s−(1−δ)kt+s)−wt+snt+s}

    ⇒ Since the First Welfare Theorem will hold, the economy’s optimality conditions can be
    obtained either by solving for general equilibrium in a decentralized fashion using the house-

    holds’ and �rms’ problems one at a time, or by using the Social Planner’s framework.

    1

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    → We need three equilibrium conditions for the economy:

    Intratemporal Optimality Condition (Labor Market Equilibrium Condition):

    ∂u/∂lt
    ∂u/∂ct

    =
    ∂Θtf(kt,nt)

    ∂nt
    (1)

    Intertemporal Optimality Condition (Financial Market Equilibrium Condition):

    ∂u/∂ct
    β∂u/∂ct+1

    =

    (
    ∂Θt+1f(kt+1,nt+1)

    ∂kt+1
    + 1 −δ

    )
    (2)

    Aggregate Resource Constraint (Goods Market Equilibrium Condition):

    Θtf(kt,nt) = ct + (kt+1 − (1 −δ)kt) (3)

    → Unlike the steady state of Neoclassical Growth Model, we cannot solve analytically for the
    equilibrium values of economic aggregates in the RBC model. However, we can use the economy’s

    optimality conditions to characterize what happens following a TFP shock.

    ⇒ How does a temporary increase in Θt and Θt+1 a�ect equilibrium in the model?

    → First, recall that �rms hire labor and invest into future capital until each respective marginal
    product equals its marginal cost:

    ∂Θtf(kt,nt)

    ∂nt
    = wt

    ∂Θt+1f(kt+1,nt+1)

    ∂kt+1
    = rt+1 + δ

    where Θ directly a�ects each marginal product. From the above �rm’s optimality conditions:

    → Θt ↑ → MPn ↑ −→ �rm’s demand for labor increases at wage rate
    → Θt+1 ↑ → MPk ↑ −→ �rm’s demand for investment increases at real interest rate

    → Second, an increase in the marginal products of labor and capital will increase the RHS of
    the labor market and �nancial market equilibrium conditions.

    → MPN ↑→ return to labor increases −→ quantity of n
    supply
    t ↑ along given supply function,

    which causes MRSl,c ↑ so that Equation (1) holds in equilibrium
    → MPK ↑ → return to capital increases −→ quantity of s

    supply
    t ↑ along given supply func-

    tion, which causes MRS1,2 ↑ so that Equation (2) holds in equilibrium

    → Third, an increase in nt,t+1,kt+1, and Θt,t+1 increases AS in t = 1, 2
    → AD↑ (from increase in investment demand) so that Equation (3) holds in equilibrium.

    2

    → Graphically this change looks as follows in the labor, �nancial, and goods markets:

    ⇒ This is considered to be an e�cient response to the technological shock because the social
    planner would choose the change to resource allocation that would be obtained from �rms and

    households interacting in decentralized markets.

    3

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    Get professional nursing essay writing service and professional nursing term paper writing service

    Economics homework help

    I. Identifying Information:

    Date of Recording

    04/01/2022

    Date of Session

    04/01/2022

    Student

    Jesse Nunez

    Field Instructor

    Deidre Summers

    II. Background:

    Initials or Fictitious Name of Person (People) Served:

    A.S

    Gender Identity, Ethnic Identity, and Age:

    48-year-old white female

    Source and Reason for Referral:

    Writer scheduled session with A.S because she stated that she is in dire need of a job.

    Family Background

    A.S is from a Jewish Orthodox family who currently lives in White Plains NY, and is originally from Flatbush, Brooklyn N,Y.

    Setting and Who is Present:

    Writer and A.S met in writer’s office.

    Brief Summary of Work with Person (People) to Date:

    This was our first one on one session to date.

    III. Summary of Clinical Impressions (Analytical Thinking About the Experience of the Entire Interview)

    A.S is a 48 year old Jewish woman that was raised in a Orthodox Jewish family. Due to her culture, dynamics of family structure, and learning disability she felt hindered and believed that her life is the way it is because of her parents. A.S spoke loud, also associated with rapid speech, and needed redirection to focus on one type of job, and understand that in order to address her needs, there is a process.

    IV. Summary of Affective Process (Feelings Associated with the Experience of the Entire Interview)

    Writer felt confident that we can assist A.S with finding a job. Writer empathized with A.S about the thought, and feeling of being alone, and no one being present to help out in specific situations where assistance was needed.

    V. Next Steps (Unaddressed Issues, Identification of Short- and Long-Term Goals)

    A.S goal is to find a job that is meaningful.

    VI. Questions for Field Instructor, Field Liaison or Peers During Seminar Related to Convening?

    Process Recording Format

    Record and Analyze a 45 Minute Interaction with a Person or Group Receiving Services.

    Dialogue

    Your feelings

    Analysis

    Field Instructor’s comments


    Jesse: A.S. good morning, how are you feeling?


    A.S.: Not good, I need a job and I was told that you’re the person to help me with that. .

    Okay, he wants to get right into it


    Jesse: Okay, have you worked before, and what type of job are you looking for?


    A.S.: Yes, I currently work at Marshalls, it’s only 4 hours. I don’t like the job, and it’s not doing anything for me. I was a peer advocate for 17 years at Rockland psychiatric. I’d like to do something more meaningful.

    He talks very fast

    Clients speech was pressured, and tone was loud.


    Jesse: Okay, I know I can help you. Do you have a resume?


    J.D.: We have this system she cooks and then after dinner I end up loading the dishes in the dishwasher, wipe down the table, and sweep up the floor. Yesterday I ate my lunch at 4:30pm so I considered it my dinner. Then when I get home I got into an argument with her about it and she said she would be up all night doing it but she was up anyway and she finished at 9:30pm so not late for her. I am upset that she said “do you not want to live here” I feel that it was wrong of her to say, I am living there because of my financial situation at the moment and I do want to be there but it felt like an unnecessary statement.

    Wow he gives a lot of unnecessary details

    Writer did not have any issues understanding the words, but he occasionally went off into too much unnecessary detail. Client’s face occasionally became red and he appeared to run out of breath on a couple of occasions.


    Louis: so, your mother became upset that you did not call her and tell her you ate dinner?


    D.J.: No, I called her and told her I wasn’t eating at home.

    He gave all the details except the important one

    Writer was initially confused as to what the clients mother was upset about. Writer should have asked “what was your mother upset about” instead of making an assumption here.


    Louis okay, so because you didn’t eat dinner you did not clean up afterward like you usually do?


    D.J.: no I don’t think that I should have had to clean up plus it didn’t take her long to do so I feel like she was out of line, and I told her that she needs to think before she says something. Why would she say that?

    He takes things very literally.

    Client believed that doing his chore was predicated on whether or not he ate dinner that his mother cooked. Since he did not eat dinner that evening the conditions for doing the chores were not met and he believed that he did not need to do the chore.


    Louis: Do you do the chores daily?


    D.J.: Yes every day.

    He doesn’t get it

    Client did not understand why his mother said what she said.


    Louis: but only because you also eat?


    D.J.: Yes.

    He believes that the chores are conditional to him also eating dinner

    Client believes the chores are a condition of eating and did not understand why his mother would become upset that she had to do it.


    Louis: Does your mother know that you completing the chores are conditional on whether you ate dinner that night?


    D.J.: No, I did not say that to her.

    Of course, he wouldn’t have told her because he is so literal minded. It is obvious to him that he only does the chores because he also ate.

    Writer made an assumption here about the client’s diagnosis of being on the autism spectrum.


    Louis: How do you think your mother would see the situation from her perspective? Do you think she believes the chores should be done only if you eat?


    D.J.: When you put it that way, I think maybe I can see why she would become upset. I will speak with her about it when I get home.

    Wow, he had poor insight initially but picked that up fast.

    Writer was surprised that the client was able to understand his mother’s perspective on the situation so quickly.


    Louis: Okay, is there anything else you would like to talk about?


    D.J.: Yes, I also seem to be having a problem with my little brother. He called me up and we got into an argument. I try to teach him respect but he does not want to listen. This happened after a get together at his house over the weekend. He is mad at me because of a funny joke I told and is angry over Chinese food. His wife’s sister is pregnant, and we were supposed to go over there for a gender reveal but because of covid they rescheduled, and I couldn’t make it on the changed day. My brother told me that the Chinese food that they served wasn’t that good and so I suggested to my brothers mother in law another Chinese place that they should use in the future and then after my brother calls me and is upset with me about it, it’s just Chinese food and I was trying to be helpful.

    Again, he is over explaining the details

    Pressured speech and unnecessary details continued throughout the session


    Louis: You’re brother told you that the Chinese food served at his sister-in-laws gender reveal party wasn’t good, and when you were at his house this past weekend with the family you told his mother in law about your brother’s feelings on the Chinese food that was served, am I correct?

    He threw his brother under the bus

    Client did not understand that he shared information his brother gave him without his brother’s consent. Could be a contributing factor to how his brother spoke with him following the event.


    D.J.: Yes.


    Louis: And your brother told you this when?


    D.J.: A few days before over the phone.


    Louis: Why did you speak with your brother’s mother-in-law about the Chinese food?


    D.J.: I was just trying to suggest an excellent place for them to use next time so that they don’t serve Chinese food that isn’t good.

    He was trying to be helpful but isn’t understanding that is insulting

    Client was trying to be helpful by speaking with his brother’s mother-in-law about a good Chinese restaurant he knew of. He did not understand that doing this could be insulting.


    Louis: Okay DJ, lets say that you are hosting a party for family and you provide the food then you find out that people at the party were telling other people that you served bad food, how would that make you feel?

    I’ll ask how he thinks he would feel if it was him

    Asking to look at this from another’s perspective previously helped him understand his mother’s response to him not doing after dinner chores so I used that tactic again.


    D.J.: Oh wow not very good. I see where you are going with this, I thought I was being helpful but I can see that would make someone feel bad. Thank you I had not thought about it that way. I can see how it was something I should not have done. But I don’t understand why he was mad at me also that I told a funny joke.

    He eventually gets it when perspective is switched

    Again he initially showed a lack of insight but is quick to understand when looking at the situation from someone involved with a different perspective.


    Louis: Well it depends on the joke and the people who are there what may be funny to you may be considered inappropriate to others depending on where you are?

    Oh man how bad is this joke?


    D.J.: What do you mean?


    Louis: Well for example some jokes are appropriate for mixed company where there are like grand parents and children present and some jokes are appropriate when you are out with your friends at a bar. If you are willing to tell it again, what was the joke?

    Hopefully not too bad a joke


    D.J.: Okay so two of his sister-in-laws are pregnant and when we were sitting around the table eating with their husbands and children, I made a joke about how Gynecologists have the best job in the world.

    Oh boy, bad start


    Louis: Uh hmm

    Uh oh, where is this going


    D.J.: But then after they have the baby it is like going into a cave. (client laughs at his joke)

    Wow that is an inappropriate joke to tell in front of anyone let alone your entire family and your sister-in- law’s family, especially with kids there

    Client told an inappropriate joke in front of his family his sister-in-law’s family with the children in the family present. Client does not understand that there is a time and a place for certain “jokes” or language.


    Louis: DJ remember when I stated that jokes are situational, depending on the company you are with?


    D.J.: Yes


    Louis: So DJ, where do you think would be a more appropriate place for that joke to be told? At a dinner with your and your sister-in-law’s families around grand parents and children or in a bar?

    No initial insight on this one too.

    Client again shows issues with reading social situations.


    D.J.: That’s what my father said, he was upset with me as well but everybody in my sister-in-laws family laughed at the joke, but I see what you are saying, I will apologize to my brother even though I thought it was funny. Thank you, Louis.

    Laughing does not mean they thought it was funny. I almost laughed at how bad and how awkward the joke was.

    Writer almost laughed the punchline of the joke due to the absurdity of the joke and the situation. Client believed that it was okay since people laughed. Writer did not want to reinforce to the client that the joke was funny and therefore appropriate. Client had more trouble with this situation because of the laughter to the joke but stated that he would apologize to his brother.


    Louis: You’re welcome. Is there anything else that you would like to talk about before we end the session?


    D.J.: Not right now I have to go meet a friend in the city for dinner in a little bit.


    Louis: Okay enjoy your night out, if there is anything else you would like to talk about come find me.


    D.J.: Okay I will.

    Economics homework help

    Let’s discuss the political, economic, and legal systems of some countries around the world. Sharing how other countries approach their politics, handled their economy, and what laws govern them can be interesting in comparison to the United States.

    Using the Multi-National Corporation (Toyota). Research and discuss the triumvirate of political, economic, and legal systems in the home country of MNC.

    Discuss how these factors can affect economic progress.

    2 pages

    Economics homework help

    Study of the Age of Art Museums Visitors in the U.S.

    Art museums are crucial for conserving culture and history and educating and gathering the community. Museums are places that carry human civilization and are an important part of basic education. Improve the cognitive and aesthetic level of visitors in the development and guidance. However, today art museums are facing the challenge of the multitude of alternatives for entertainment and education, including online streaming, Instagrammable pop-ups, and the easy online accessibility of content previously exclusive to museums.

    In additional, museums are economic engines. Before the pandemic, museums support over 726,000 American jobs and contribute $50 billion to the US economy each year. The economic activity of museums generates over $12 billion in tax revenue, one-third of it going to state and local governments. Each job created by the museum sector results in $16,495 in additional tax revenue. The future of museums depends on securing current, but, more importantly, the future visitors. The only way to do this is by understanding the audiences art museums attract as well as the ones they do not. This study is to understand the American visitors of domestic art museums by ago in 1982 to 2019. Therefrom, we can know the potential relationship between age and art museum attendance from this study.

    https://www.sciencedirect.com/science/article/abs/pii/S0304422X18300792

    Economics homework help

    Learning Outcomes

    Assessment Criteria

    Assessment Criteria Met

    1. Be able to identify, define and justify an academic study related to the Diploma Title that you will choose . 

    1. Identify and justify a researchable area suitable for an independent academic study.

    2. Produce clear aim(s) related to a chosen study.

    Y/N

    1. Be able to design an academic study based on identified aim(s)

    1. Justify the research methodology for a chosen study.

    2. Produce a research plan for a chosen study.

    Y/N

    1. Be able to undertake primary and/or secondary research into a chosen study area.

    1. Undertake a critical review of published sources relevant to the chosen study.

    2. Conduct primary or secondary research into the chosen study topic, adhering to any ethical guidelines as appropriate.

    Y/N

    1. Be able to interpret and organise information from the research undertaken.

    1. Deploy accurate, detailed and relevant knowledge of the subject in support of a coherent analysis of the study with reference to any relevant theoretical perspectives.

    Y/N

    1. Be able to consider the findings and reach conclusions.

    1. Draw relevant conclusions which are supported by academic evidence.

    2. Use academic knowledge to explain and clarify the conclusions.

    Y/N

    1. Be able to produce a research report using academic conventions appropriately.

    1. Produce a portfolio of research evidence  that follows academic conventions including:

    a. a critical application of skills and knowledge

    b. accurate and consistent referencing
    appropriate academic style and ‘voice’.

    Y/N

    1. Be able to evaluate the study process and research findings.

    1. Evaluate the study, discussing the main strengths, weaknesses and/or limitations.

    2. Propose how improvements could be made as appropriate. 

    3. Make recommendations for further study as appropriate.

    Y/N

    1. Know how to present research and engage in academic dialogue

    8.1 Produce an appropriate format and plan to present the completed research task relevant to the intended target group.

    Y/N

    Description of Assessment Task (mapped to Assessment Criteria)

    In completing this assignment students are required to undertake / complete the following tasks:

    1. Research Project (2,000-3,000 words): This project should be between 2,000 and 3,000 words (with a 10% either way margin).  The completed project can be presented in a variety of formats, which could include a report format, mini-dissertation or extended essay.  It should be business focussed and you should adopt the most appropriate format for your chosen topic whilst also evidencing each of the assessment criteria.  

    Please follow the learning outcome and the assessment criteria in order to write the project you have to choose the title in order to complete the report …

    You should follow in details the learning outcomes and the assessment criteria to write a perfect report.

    I have attached a previous report/assignments written by my teacher so you can have a look at it in order to write about the title that you will choose.

    Economics homework help

    Macroeconomic Theory

    1 Neoclassical Growth

    The Neoclassical Growth Model is a variant of our in�nite-period framework that is a applied

    to study the determinants of long-run growth in economic output. The main take-away is the

    neoclassical growth model asserts that long-run economic growth is driven by increases in `tech-

    nological capabilities’ and population growth.

    1.1 The �Long-Run”

    • Steady State: a situation in the in�nite-period framework where all real variables stop
    �uctuating (or grow at a constant rate) over time absent external disturbances.

    → For any variable xt, in a steady state xt = xt+1 = xt+2 = … = x̄
    ⇒ Why does the model converge to a steady state?
    → Consider the economy’s intertemporal optimality condition (i.e. �nancial market equilib-

    rium condition):

    ∂u/∂ct
    ∂u/∂ct+1

    = β

    (
    ∂f

    ∂kt+1
    + 1 −δ

    )
    (1)

    • Case 1: Growing Economy → ct < ct+1 < … and kt+1 < kt+2 < …
    → This implies that the left-hand side (LHS) of Equation 1 is greater than 1, which itself

    implies that the right-hand side (RHS) is also greater than 1.

    → if k is growing, then ∂f/∂k is shrinking over time −→ RHS decreases towards 1, which
    implies that LHS is also decreasing towards 1.

    • Case 2: Shrinking Economy → ct > ct+1 > … and kt+1 > kt+2 > …
    → This implies that LHS of Equation 1 is less than 1, which itself implies that RHS is also

    less than 1.

    → if k is shrinking, then ∂f/∂k is growing over time −→ RHS increases towards 1, which
    implies that LHS is also increasing towards 1.

    ⇒ Putting together the implications from Cases 1 and 2, the positive but diminishing
    marginal product of capital implies that the economy settles at a steady state.

    1.2 Technological Progress in Neoclassical Growth Model

    • Technological Progress: increases in the productivity of the factors of production
    → more output for a given amount of inputs to the production function.

    • Labor-Augmenting Technological Progress: Technological progress is modeled as in-
    creases in `e�ective’ labor input. (required for existence of steady state)

    1

    → Let Zt be the level of technology embodied by the labor input, nt. Then the `e�ective’
    labor input is Ztnt, and total output is given by f(kt,Ztnt).

    → Assume that Zt grows by a rate of γz in the steady state such that
    dZ̄/dt


    = γz

    1.

    1.3 Neoclassical Growth Model

    → For simplicity, we will assume that labor supply is exogenous, n̄, but grows at a rate of γn in

    steady state such that
    dn̄/dt


    = γn. (Loosely thought of as population growth)

    → Exogenous labor means that leisure is also exogenous, l̄.

    Households:

    max
    {ct+s,at+s}∞s=0

    V =
    ∞∑
    s=0

    βsu(ct+s, l̄)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1 − l̄) = 0 for all t = 1, 2, 3, …

    Firms:

    max
    {kt+1+s}∞s=0

    Profit =
    ∞∑
    s=0

    (1 + rt+s)
    −s{f(kt+s,Zt+sn̄) − (kt+1+s − (1 − δ)kt+s) −wt+sn̄}

    ⇒ Since the First Welfare Theorem will hold, the economy’s optimality conditions can be
    obtained either by solving for general equilibrium in a decentralized fashion using the house-

    holds’ and �rms’ problems one at a time, or by using the Social Planner’s framework.

    → With exogenous labor, we need two equilibrium conditions for the economy:

    Intertemporal Optimality Condition (Financial Market Equilibrium Condition):

    ∂u/∂ct
    β∂u/∂ct+1

    =

    (
    ∂f(kt+1,Zt+1n̄)

    ∂kt+1
    + 1 −δ

    )
    (2)

    Aggregate Resource Constraint (Goods Market Equilibrium Condition):

    f(kt,Ztn̄) = ct + (kt+1 − (1 −δ)kt) (3)

    →With endogenous labor we would also need the economy’s intratemporal optimality condition
    (i.e. labor market equilibrium condition)

    1
    Since for any variable, x,

    dx̄/dt


    is the instantaneous rate of growth, this tells us that steady capital grows

    continuously at the rate of technological progress plus the rate of labor supply growth.

    2

    → With a functional form for the production function, we can solve directly for the steady
    state capital stock, output, and consumption.

    EXAMPLE: Suppose f(kt,Ztn̄) = k
    α
    t (Ztn̄)

    1−α. Solve for steady state capital and output.

    → Impose steady state on intertemporal optimality condition:

    ∂u/∂ct
    β∂u/∂ct+1

    =
    (
    αkα−1t (Ztn̄)

    1−α + 1 −δ
    )

    ∂u/∂c̄

    β∂u/∂c̄
    =
    (
    αk̄α−1(Z̄n̄)1−α + 1 −δ

    )
    1

    β
    =
    (
    αk̄α−1(Z̄n̄)1−α + 1 −δ

    )

    → Solve for k̄:

    1

    β
    − 1 + δ = αk̄α−1(Z̄n̄)1−α

    
    1

    β
    − 1 + δ

    α


     =

    (

    Z̄n̄

    )α−1

    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    =

    Z̄n̄

    ⇒ k̄∗ = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    (4)

    → Use expression for k̄ into the production function:

    f(k̄∗, Z̄n̄) =


    Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    
    α

    (Z̄n̄)1−α

    f(k̄∗, Z̄n̄) = (Z̄n̄)α(Z̄n̄)1−α


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    ⇒ f(k̄∗, Z̄n̄) = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    (5)

    3

    → Equations (4) and (5) are the expressions for steady state capital and output. Using these
    expressions into the resource constraint evaluated at the steady state, one can also obtain an

    expression for steady state consumption:

    f(k̄, Z̄n̄) = c̄ + (k̄ − (1 −δ)k̄)

    f(k̄, Z̄n̄) = c̄ + δk̄

    ⇒ c̄∗ = f(k̄∗, Z̄n̄) −δk̄∗

    1.3.1 Technological Progress and Economic Growth

    What does technological progress (and population growth) imply for steady state growth of capital

    stock and output?

    → Want steady state growth rate of capital in terms of steady state growth rates of technology
    and labor.

    → Consider the expression for the steady state capital stock:

    k̄ = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    

    1/(α−1)

    → Taking the natural log of both side yields:

    log k̄ = log Z̄ + log n̄ + ((1/(α− 1)) log


    

    1

    β
    − 1 + δ

    α


    

    → Next, taking the total derivative of the above equation with respect to time:

    dk̄/dt


    =
    dZ̄/dt


    +
    dn̄/dt


    dk̄/dt


    = γz + γn (6)

    ⇒ Steady state capital grows at the rate of technological progress plus population growth.
    → Intuition: The marginal product of capital increases as e�ective labor input exogenously

    grows, which increases the desired future capital stock by the �rm thereby lowering the marginal

    product of capital. In a steady state these two e�ects on the marginal product of capital cancel

    each other out.

    4

    → Repeating this process for our expression for steady state output:

    f(k̄, Z̄n̄) = Z̄n̄


    

    1

    β
    − 1 + δ

    α


    
    α/(α−1)

    log f(k̄, Z̄n̄) = log Z̄ + log n̄ + ((α/(α− 1)) log


    

    1

    β
    − 1 + δ

    α


    

    df̄/dt


    =
    dZ̄/dt


    +
    dn̄/dt

    df̄/dt


    = γz + γn

    ⇒ Steady state growth in output is determined by growth rates in technology and population.
    → Intuition: Steady state output grows at same rate as each of the factors of production.

    5

    Macroeconomic Theory

    1 Chapter 14: Real Business Cycles

    We utilize the in�nite-period general equilibrium framework to study a theory of business cycles.

    • Real Business Cycle (RBC) Theory asserts that short-run �uctuations to economic ac-
    tivity are �e�cient� responses to temporary technological shocks.

    1.1 Technological Shocks in Real Business Cycle Model

    • Technological Shock: unexpected, temporary changes to `total factor productivity’
    • Total Factor Productivity (TFP): Portion of output not determined by capital or labor.
    → Let Θt be the level of TFP, then output is modeled as Θtf(kt,nt).
    → Graphically, TFP shocks look as follows:

    1.2 Real Business Cycle Model

    Households:

    max
    {ct+s,at+s,lt+s}∞s=0

    V =

    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to:

    ct + at − (1 + rt)at−1 −wt(1 − lt+s) = 0 for all t = 1, 2, 3, …

    Firms:

    max
    {kt+1+s,nt+s}∞s=0

    Profit =

    ∞∑
    s=0

    (1 + rt+s)
    −s{Θt+sf(kt+s,nt+s)−(kt+1+s−(1−δ)kt+s)−wt+snt+s}

    ⇒ Since the First Welfare Theorem will hold, the economy’s optimality conditions can be
    obtained either by solving for general equilibrium in a decentralized fashion using the house-

    holds’ and �rms’ problems one at a time, or by using the Social Planner’s framework.

    1

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    → We need three equilibrium conditions for the economy:

    Intratemporal Optimality Condition (Labor Market Equilibrium Condition):

    ∂u/∂lt
    ∂u/∂ct

    =
    ∂Θtf(kt,nt)

    ∂nt
    (1)

    Intertemporal Optimality Condition (Financial Market Equilibrium Condition):

    ∂u/∂ct
    β∂u/∂ct+1

    =

    (
    ∂Θt+1f(kt+1,nt+1)

    ∂kt+1
    + 1 −δ

    )
    (2)

    Aggregate Resource Constraint (Goods Market Equilibrium Condition):

    Θtf(kt,nt) = ct + (kt+1 − (1 −δ)kt) (3)

    → Unlike the steady state of Neoclassical Growth Model, we cannot solve analytically for the
    equilibrium values of economic aggregates in the RBC model. However, we can use the economy’s

    optimality conditions to characterize what happens following a TFP shock.

    ⇒ How does a temporary increase in Θt and Θt+1 a�ect equilibrium in the model?

    → First, recall that �rms hire labor and invest into future capital until each respective marginal
    product equals its marginal cost:

    ∂Θtf(kt,nt)

    ∂nt
    = wt

    ∂Θt+1f(kt+1,nt+1)

    ∂kt+1
    = rt+1 + δ

    where Θ directly a�ects each marginal product. From the above �rm’s optimality conditions:

    → Θt ↑ → MPn ↑ −→ �rm’s demand for labor increases at wage rate
    → Θt+1 ↑ → MPk ↑ −→ �rm’s demand for investment increases at real interest rate

    → Second, an increase in the marginal products of labor and capital will increase the RHS of
    the labor market and �nancial market equilibrium conditions.

    → MPN ↑→ return to labor increases −→ quantity of n
    supply
    t ↑ along given supply function,

    which causes MRSl,c ↑ so that Equation (1) holds in equilibrium
    → MPK ↑ → return to capital increases −→ quantity of s

    supply
    t ↑ along given supply func-

    tion, which causes MRS1,2 ↑ so that Equation (2) holds in equilibrium

    → Third, an increase in nt,t+1,kt+1, and Θt,t+1 increases AS in t = 1, 2
    → AD↑ (from increase in investment demand) so that Equation (3) holds in equilibrium.

    2

    → Graphically this change looks as follows in the labor, �nancial, and goods markets:

    ⇒ This is considered to be an e�cient response to the technological shock because the social
    planner would choose the change to resource allocation that would be obtained from �rms and

    households interacting in decentralized markets.

    3

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    Get professional nursing essay writing service and professional nursing term paper writing service

    Economics homework help

    Barreda 2

    Barreda 2

    Interview Mid-Point

    Arnoldo Barreda

    Interview

    04/17/2022

    AEDV 310

    Dr. Tina Buck

    INTERVIEW MID POINT 310

    Write one paragraph to introduce the leader you have chosen and explain why you have chosen this person to interview.

    I spoke with Michelle Smith, a nurse leader in a local healthcare facility. Throughout my life, she has been an inspiration and a great friend. She inspires, encourages, and serves as a professional role model for me. For the last twenty years, she’s worked as a nurse at this healthcare facility, and she is now a nurse manager in this facility. As a nurse manager, she is an expert in her field due to her extensive training and credentials. There aren’t many nurse managers who care about the health and safety of their workers as much as Smith does. I interview her to get more insight into Nursing Leadership.

    2. List your interview questions, with a transcription of the answers from your interview.

    Q: What is your style of leadership?

    Ans: my style of leadership is servant leadership. According to the Servant Leadership school of thought, the most influential leaders put their followers’ needs ahead of their own (Pawar, et al., 2020). To achieve results for their organization, servant leaders devote themselves entirely to the demands of their followers and those of the organization at large. In contrast to other models, service leadership emphasizes teamwork, trust, empathy, and ethics rather than strategies for influencing and motivating others below the leader’s level.

    Q: what is the most important culture of leadership? 

    Ans: Leadership requires a strong innovation culture. Companies’ internal pressures produce their external competitors, and this company’s corporate culture ensures that its people can fulfill those expectations (Grunberg,et al., 2021). Both official and informal means improve cultural assets as part of a proactive strategy. To keep its corporate culture fresh and distinct, the company is always looking for methods to strengthen its organizational structure.

    Q: What is your thought about leadership innovation and creativity in nursing?

    Ans: nursing has always been an inventive profession – by its very nature, as such a job requires nurses to continually examine, evaluate, and develop answers to issues that may vary considerably in an ever-changing environment. Hospitals and healthcare systems lag behind other businesses when it comes to innovation. According to current statistics, a recent study shows that it takes an average of 17 years to make it into routine nursing practice. Consequently, nursing leaders have banded together to discover more innovative and efficient practices that benefit their patients and the healthcare system. Nurses are not at the forefront of healthcare innovation, despite using several pieces of medical technology, documenting in electronic health records, and providing holistic patient care to patients. There have been several instances in which impediments to innovation have hindered many nursing leaders from realizing their creative potential. Some of the challenges include:  

    · Nursing education relies mostly on clinical knowledge, excluding the creation and promotion of new concepts.

    · Patients’ “pain spots” are dealt with by nurses instead of being regarded as part of the solution.

    · Hierarchies often rely on nurse participation rather than nurturing and executing solution-finding strategies for organizational buy-in.

    Q: what is the role of nurse leaders in ensuring that there is an innovative nursing work environment?

    Ans: every stakeholder has a role to play in ensuring innovation in the healthcare industry. For new ideas to flourish, an inclusive work atmosphere is necessary. To positively impact the workplace, nurse leaders must be real and successful in their actions.

    Q: What does emotional competence mean to you?

    Ans: Emotional competence is the skill of effectively controlling and communicating one’s feelings. The influence on patient care, working relationships, and the healthcare environment are particularly significant in nursing practice, and it may be an important ability to model and teach patients. It is important to understand one’s feelings as well as one’s motivations, as well as to have empathy for others.

    References

    Grunberg, N. E., Barry, E. S., Morrow-Fox, M., & Metcalf, M. (2021). Optimizing Innovative Leadership and Followership. retrieved from: Optimizing Innovative Leadership and Followership | IntechOpen

    Pawar, A., Sudan, K., Satini, S., & Sunarsi, D. (2020). Organizational Servant Leadership. International Journal of Educational Administration, Management, and Leadership, 63-76.retrieved from: Organizational Servant Leadership | International Journal of Educational Administration, Management, and Leadership (harpressid.com)

    Economics homework help

    Let’s discuss the political, economic, and legal systems of some countries around the world. Sharing how other countries approach their politics, handled their economy, and what laws govern them can be interesting in comparison to the United States.

    Using the Multi-National Corporation (Toyota). Research and discuss the triumvirate of political, economic, and legal systems in the home country of MNC.

    Discuss how these factors can affect economic progress.

    2 pages

    Economics homework help

    Study of the Age of Art Museums Visitors in the U.S.

    Art museums are crucial for conserving culture and history and educating and gathering the community. Museums are places that carry human civilization and are an important part of basic education. Improve the cognitive and aesthetic level of visitors in the development and guidance. However, today art museums are facing the challenge of the multitude of alternatives for entertainment and education, including online streaming, Instagrammable pop-ups, and the easy online accessibility of content previously exclusive to museums.

    In additional, museums are economic engines. Before the pandemic, museums support over 726,000 American jobs and contribute $50 billion to the US economy each year. The economic activity of museums generates over $12 billion in tax revenue, one-third of it going to state and local governments. Each job created by the museum sector results in $16,495 in additional tax revenue. The future of museums depends on securing current, but, more importantly, the future visitors. The only way to do this is by understanding the audiences art museums attract as well as the ones they do not. This study is to understand the American visitors of domestic art museums by ago in 1982 to 2019. Therefrom, we can know the potential relationship between age and art museum attendance from this study.

    https://www.sciencedirect.com/science/article/abs/pii/S0304422X18300792

    Economics homework help

    35.7%
    Results of plagiarism analysis from 2022-05-02 22:24 UTC

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    Whitelist: —

    1. In your perspective, give an example of a modern-day leader who best fits
    Mathews’ (2016) criteria. Mahatma Gandhi is the epitome of what it means to be a
    visionary leader. Many of the visionary leaders of today are inspired and motivated
    by many of his views and behaviors, even though they are no longer considered
    modern. ‘Mahatma’ Gandhi is a popular name representing ‘bapu’, or ‘father.’ His
    leadership and advice, India’s liberation struggle gained pace and culminated in
    its independence in 1947, making him an official honoree in India. In addition to

    [3]

    being a national leader, a freedom warrior, a visionary, a humanist, and a
    socialist reformer, Gandhi was a human being. He has served as a role model and
    inspiration for a wide range of leaders, including Martin Luther King Jr. and
    Nelson Mandela.
    2. Show how this person’s behaviors and views align with the traits listed in the
    description to give support for your claim that they meet it. a. “Be the change, we
    want to see” is one of Gandhi’s most resonant words. This capacity to walk his talk
    was Gandhi’s greatest strength. To the fullest extent possible, he put into action
    what he preached. In the midst of his struggle for liberation, Mahatma Gandhi
    focused on a simple lifestyle abandoning the law career so that he could live among
    the millions of people living in poverty. The successes that Gandhi had include
    understanding the challenges that people have and focused on expressing his
    political goals towards assisting them resulting to a massive support. In part, it
    was based on his tenacity after having expressed his future goals and his
    methodology in detail. As a result of his unwavering commitment to what he
    preached, his health and well-being frequently suffered. Gandhi failed numerous
    times, but he learned from each one, honing his leadership abilities and improving
    them progressively. Mahatma teaches us that even the best leaders can make mistakes
    and have their share of failures. According to him, excellent leaders are those who
    recognize and take responsibility for their mistakes. Everyone in Gandhi’s movement
    had a method of connecting to the end goal. When it came to his own self-
    confidence, as well as inspiring the Indian people to believe in their own
    abilities, he was a natural leader. It was Mahatma’s belief that pushing his self-
    discipline made him more determined to achieve his goals. “Do or Die” was the
    mantra of his leadership style. For him, freedom or death was a choice. Mahatma
    would go to extreme lengths to improve his self-discipline and resolve.
    3. Identify a contemporary leader who you believe has fulfilled all three stages of

    [0]

    Mathews (2016) visionary leadership by their actions and policies and explain how.
    When it comes to visionary leaders, it’s hard to do better than Barack Obama. In
    part, this is due to his mastery of the visionary leadership characteristics, such
    as adaptability in times of stress and crisis. Think, judge, remember and solve
    country’s problems were all in his power. He was also adept at relating to other
    cultures and getting things done quickly.
    Cultural Intelligence (CQ)
    1. Describe CQ.
    a. CQ is the ability of an individual to compare and then work effectively within

    [0]

    different culturally diverse situation. It is also a very critical part in setting
    [0]

    a person to be part of the globalized world which uses artificial intelligence,
    innovations, and machine learning. It also involves the person’s ability to compare

    [0]

    and then work with other people from differing background.
    2. Describe your own understanding of your current level of CQ, in relation to how

    [0]

    you view other people from other cultures in your immediate surroundings.
    3. In my CQ I see people from other cultures as people who are very knowledgeable,

    [0]

    motivation and. friendly.
    4.The people in my surrounding are good, caring, hardworking and intelligent

    [0]

    people.
    a. In my CQ, I see people from other cultures as people who are very

    [0]

    knowledgeable, motivation and friendly. The people in my surrounding are good,
    caring, hardworking and intelligent people.
    3. What element of it may you be lacking that could improve your CQ?

    [0]

    a. Knowledge of Languages, observation norms and communication modes
    [0]

    Responsible Leadership

    1. Briefly describe what the various level of the Outcomes from Voegtlin et al.
    [0]

    (2012), in relation to how a leader must encourage their employees to be
    [0]

    successful.
    a. According to the macro-level outcome of fostering the relations of stakeholders,

    [0]

    the leader can encourage the employees to work hard and reduce the corporate
    scandals to prevent erosion of the corporate legitimacy. Leaders will use these

    [0]

    outcomes to build relationships with the employees which is very trustful. Other
    [0]

    outcome level is the Meso-level, leaders can use these outcomes to propose
    responsible conducts of leadership which can change the disposition and practices
    for the organization.
    2. Identify 3 of the 8 Propositions on p. 17 from Voegtlin et al. (2012) that you

    [0] [0] [0]

    believe are the most important for a leader like yourself in your future career to
    understand and apply, and why.
    a. Proposition 4 over time, the moral organization’s culture can be steadily
    changed by responsible leaders. When leaders take responsibility for their actions,
    a culture of thoughtful dispute resolution and discourse will flourish.
    b. This is because, a responsible leader will be fair and ethical to promote the
    image of the company and be fair to all workers. This will make employees want to
    work for a company.
    c. Proposition 8: For example, employees’ attitudes and cognitions (e.g., work

    [0]

    satisfaction, motivation, dedication or organizational commitment) will be
    positively influenced by responsible leadership.
    d. Proposition 7: Under the condition of ethical or moral methods, servant leader
    helps intrinsically and extrinsically to the organizational performance. This is
    for the same reasons as proposition 4. The more moral and ethical a leader or
    company is the more employees will respect you and want to come work for you.
    3. What is the main point of the arguments being made about the need for global

    [0]

    leaders to incorporate Corporate Social Responsibility in their practices per
    (Voegtlin et al., 2012)
    a. The main point is managers to discuss the relations with their stakeholders

    [0]

    plus their roles in common good relation
    4. Outline your personal understanding of what may limit your ability to process

    [0]

    information now as a leader.
    a. Lack of direct communication is one thing that limits the ability to process
    information. Without direct communication it is almost impossible to do the job the
    right way. Also receiving and giving ineffective feedback will limit the ability to
    process information.

    Economics homework help

    I. PROJECT PAPER REQUIREMENTS

    A project paper: you will come up with a research question to investigate. You will apply regression analysis, a popular statistical method, to study the potential relationship between three variables. For example, how much does the increase in major greenhouse gases such as carbon dioxide and methane in the atmosphere affect Earth’s temperature? How important are the inflation and unemployment rates in driving interest rate changes? How significant are the gender and age factors in determining the ratings of a TV show? How much do the state of the economy and advertising expenses affect retail sales?

    In general, you should select a topic that is neither too technical nor too broad. It would be best to narrow your investigation to a specific (testable) relationship between a few variables. You will need to locate and document your data sources yourself. Data availability should be considered in selecting which research question to pursue. You can use any three data variables you want for your estimated relationship so long as you can justify their relevance for inclusion. There is no restriction on your choice of variables.

    After all, all you need is to identify three possibly related variables and gather their data for
    your project. You will have one dependent variable (Y) and two explanatory variables (X1 and X2) in your regression model: Y = β0 + β1X1 + β2X2 + ε. You will then estimate the model using Excel’s regression tool and present the results in your paper.

    Use publicly available data on the internet (at least 25 observations per variable). Use Excel’s regression tool only. Do not use any other software program.
    Page Format: 1.5 spacing, 12 point font size, and one-inch margins.
    Page Limit: 4 to 8 pages long, excluding the title page, abstract, tables, and references.

    II. ORGANIZATION OF THE PROJECT PAPER

    The paper should have a title page with an abstract. Following that, the content of your paper should be presented and organized as follows:

    1) Introduction (5 points)

    · Identify the purpose of your paper and what research question to investigate.

    · Provide some background information related to the topic of your investigation.

    · Highlight why the investigation topic is relevant and interesting.

    2) Data Description (5 points)

    · Describe the sample data set and the type of data you have.

    · Explain the data series (Y, X1, and X2) you use and define what they represent and

    measure.

    · Identify the data source or sources with a Web address for all the data series used in the

    study.

    3) Statistical Analysis and Results (10 points)

    · Explain your data analysis, including the statistical approach (regression method) and the estimated model.

    · Tabulate and report the results from your regression analysis, including any additional statistical tests you have conducted.

    · Discuss and interpret all your statistical results and findings.

    4) Conclusion (5 points)

    · Restate the purpose of your study.

    · Summarize the key results of your investigation.

    · Describe the significance of your findings.

    · Outline any limitations of your study


    NOTES
    :

    1. It’s crucial to cite all sources you use to quote, paraphrase, and summarize to avoid plagiarism. For example, the APA citation style is widely used by students, researchers, and professionals in the social and behavioral sciences, natural sciences, business, engineering, and many other fields.

    2. No graphs, diagrams, or pictures are needed.

    3. You may include a third explanatory variable (X3) in your study if you can provide a reasonable justification for its inclusion.

    Economics homework help

    Macroeconomic Theory

    Week 6

    1 Chapter 5: Dynamic Consumption-Labor Framework

    We build upon the dynamic consumption-savings framework by adding a labor/leisure decision

    for each period. In other words, we are making the labor income endogenous in our dynamic

    framework, allowing us to study consumption/savings decisions and labor/leisure decisions si-

    multaneously.

    1.1 Preferences

    Preferences will be represented by the utility function:

    V (c1, l1,c2, l2) = u(c1, l1) + βu(c2, l2) (1)

    where V (·) is associated with well-behaved indi�erence curves, u(·) is a `sub-utility’ function,
    and ct and lt are consumption and leisure for t = 1,2.

    → We typically assume that u(·) takes the same function form each period.
    → Note that since V (·) is de�ned over 4 dimensions, we cannot graph it. Nonetheless, you can
    think of the associated indi�erence curves as simultaneously de�ned over the (c, l) dimensions

    for t = 1,2, the (c1,c2) dimensions we considered in the previous chapter, and an additional

    (l1, l2) that we have not yet considered. The indi�erence curves in each of those 4 dimensions

    give us 4 MRS’s that are relevant for optimal choice.

    1.2 Budget Constraints

    Recall the budget constraint for the dynamic consumption-savings model in nominal terms:

    Ptct + At = Yt + At−1(1 + i) (2)

    for t = 1,2. The budget constraint here makes the additional speci�cation income Yt depends

    on endogenous labor supply so that:

    Yt = (1− τt)Wt(1− lt) (3)

    where as in the static consumption-labor model, τt is a tax on wage income, Wt is the nominal

    wage rate, and labor supply is given by time not spent on leisure so that nt = 1− lt.
    → Using equation (3) into equation (2) we have our period 1 and 2 budget constraints:

    1

    Period 1: P1c1 + A1 = (1− τ1)W1(1− l1) + (1 + i)A0

    Period 2: P2c2 + A2 = (1− τ2)W2(1− l2) + (1 + i)A1

    From the above period budget constraints, we can derive the lifetime budget constraint by

    isolating A1 in the period-1 budget constraint, and using that into the period-2 budget constraint.

    Assuming the initial and terminal conditions A0 = A2 = 0:

    P2c2 = (1− τ2)W2(1− l2) + (1 + i) ((1− τ1)W1(1− l1)−P1c1)

    P2c2
    1 + i

    =
    (1− τ2)W2(1− l2)

    1 + i
    + (1− τ1)W1(1− l1)−P1c1

    ⇒ P1c1 +
    P2c2
    1 + i

    = (1− τ1)W1(1− l1) +
    (1− τ2)W2(1− l2)

    1 + i
    (4)

    → This lifetime budget constraint has the same interpretation as all of the others we have
    seen thus far. It equates the present discounted value of lifetime expenditures to the present

    discounted value of lifetime resources.

    → While this lifetime budget constraint is in nominal terms, we can transform it into real
    terms either by applying the Fisher equation directly to equation (4) or applying the Fisher

    equation to each of the period-t budget constraints.

    → There the relative slopes (and intercepts) of the lifetime budget constraint in the (c, l)
    dimensions for t = 1,2, the (c1,c2) dimension, and an additional (l1, l2) dimension. Each of

    these slopes give the e�ective price ratio that is relevant for optimal choice.

    1.3 Optimal Choice

    The household chooses the optimal (c1∗,c2∗, l1∗, l2∗) bundle which maximizes their utility sub-
    ject to the lifetime budget constraint.

    → c1, c2, l1, and l2 are the endogenous variables
    → P1, P2, W1, W2, τ1, τ2 and i are the exogenous variables

    As with the previous models, the optimal choice will be such that the Marginal Rate of Substitu-

    tion between each choice variable is equal to the relative prices of those choice variables.

    ⇒There will be two Intratemporal Optimality Conditions that characterize the consumption-
    leisure choice for each period t = 1,2 and one Intertemporal Optimality condition that

    characterizes the consumption-savings choice across periods.

    ⇒ The three optimality conditions together with the LBC fully characterize the solution to
    the model, (c1∗,c2∗, l1∗, l2∗).

    2

    1.3.1 Lifetime Lagrangian Formulation

    max
    c1,c2,l1,l2

    u(c1, l1) + βu(c2, l2)

    subject to: P1c1 +
    P2c2
    1 + i

    − (1− τ1)W1(1− l1)−
    (1− τ2)W2(1− l2)

    1 + i
    = 0

    ⇒L = u(c1, l1) + βu(c2, l2) + λ
    (
    P1c1 +

    P2c2
    1 + i

    − (1− τ1)W1(1− l1)−
    (1− τ2)W2(1− l2)

    1 + i

    )
    Taking FOCs:

    ∂L
    ∂c1

    = 0 −→
    ∂u

    ∂c1
    + λP1 = 0 −→

    ∂u

    ∂c1

    1

    P1
    = −λ (5)

    ∂L
    ∂c2

    = 0 −→
    ∂u

    ∂c2
    β + λ

    (
    P2
    1 + i

    )
    = 0 −→

    ∂u

    ∂c2

    β(1 + i)

    P2
    = −λ (6)

    ∂L
    ∂l1

    = 0 −→
    ∂u

    ∂l1
    + λ(1− τ1)W1 = 0 −→

    ∂u

    ∂l1

    1

    (1− τ1)W1
    = −λ (7)

    ∂L
    ∂l2

    = 0 −→
    ∂u

    ∂c2
    β + λ

    (
    (1− τ2)W2

    1 + i

    )
    = 0 −→

    ∂u

    ∂l2

    β(1 + i)

    (1− τ2)W2
    = −λ (8)

    The next step is to combine the FOCs to derive the optimality conditions, but given that there

    are now four FOCs, you might be wondering how to combine them. The key is to keep in mind

    what dimensions of optimization are relevant for each optimality condition.

    → We want (i) one intertemporal optimality condition for consumption-savings across peri-
    ods, and (ii) two intratemporal optimality conditions for consumption-leisure in each period.

    → Starting with (i), we want to use Equations (5) and (6):

    ∂u

    ∂c1

    1

    P1
    =

    ∂u

    ∂c2

    β(1 + i)

    P2

    ∂u

    ∂c1
    /
    ∂u

    ∂c2
    =
    β(1 + i)P1

    P2
    (9)

    ⇒ Equation (9) is the intertemporal optimality condition in nominal terms. Note that if you
    apply the Fisher Equation to this, you would obtain it in real terms.

    3

    → Next for (ii), we want to use equation (5) and (7) for t = 1, and equations (6) and (8) for
    t = 2. Starting with t = 1:

    ∂u

    ∂c1

    1

    P1
    =
    ∂u

    ∂l1

    1

    (1− τ1)W1

    ∂u

    ∂l1
    /
    ∂u

    ∂c1
    =

    (1− τ1)W1
    P1

    (10)

    ⇒ Equation (10) is the intratemporal optimality condition for consumption-leisure in nomi-
    nal terms for period one.

    → And for (ii) in t = 2:

    ∂u

    ∂c2

    1

    P2
    =
    ∂u

    ∂l2

    1

    (1− τ2)W2

    ∂u

    ∂l2
    /
    ∂u

    ∂c2
    =

    (1− τ2)W2
    P2

    (11)

    ⇒ Equation (11) is the intratemporal optimality condition for consumption-leisure in nomi-
    nal terms for period two.

    → Note that we have not talked about an intertemporal optimality condition for leisure across
    periods. You should convince yourself that if the two intratemporal optimality conditions for

    consumption leisure hold, there is implicitly a condition that holds relating the MRS for leisure

    across periods to the relative price of leisure across periods.

    4

    • Chapter 5: Dynamic Consumption-Labor Framework
      • Preferences
      • Budget Constraints
      • Optimal Choice

    Economics homework help

    Suggested Answers if not directly in lecture notes

    1. Why are linear probability models not homoscedastic?

    Because the error term is equal to y – yhat, or p-phat. P-hat depends on x, var phat also depends on x. Therefore, in a linear probability model, this will always have a higher variance for probabilities near 0.5 and lower at higher or lower probabilities.

    2. Suppose the CDC is worried that the rate of growth of flu this season is very different from the usual rate of 1 percent a week and is considering making flu vaccines free and mandatory for the remainder of the season to curb the growth rate for the next months. We collect data on the number of flu cases Y, per week, during 20 weeks, t=1,2, …19, and obtain the following estimates:

    week R2 = .62

    (5.11) (.007) n = 20

    week R2 = .96

    (31) (.0003) n = 20

    Based on the estimates obtain a 95% confidence interval for the growth rate . What do you recommend to the CDC?

    I would use the second estimated equation given that the coefficient gives you the growth rate. The 95% confidence interval for estimated growth rate is [0.012- 1.96* 0.0003, 0.012+ 1.96* 0.0003]. Does the interval contain 0.01? If yes then we cannot reject the usual 1% a week growth. If not then we can reject equality, and the growth rate is different from 1 percent/week.

    3. From a random sample of agricultural yields Y (1000 dollars per acre), over years and region in the US, we have estimated the following equation for Y:

    lnYhat= 0.49 + .01 GE R2 = .32

    (.11) (.01) n = 1526 (these estimates are totally made up)

    a. Interpret the results on the Genetically engineered (GE) technology on yields. (follow SSS= Sign Size Significance)

    b. Suppose GE is more used in the West Coast where the crops are also with higher yields. How would the estimated effect of GE be affected by including a West Coast region dummy the equation? Justify your answer.

    We have OVB. Corr(west GE)>0 and corr(yield,WEST)>0 so when including west the coefficient on GE would drop given that before it had a positive OVB

    c. If we include region fixed effects would be control for the factors in b? Justify your answer.

    Yes. A region FE captures anything that is region specific affecting yields, so west coast is constant and region specific and would be controlled by a region FE

    d. If yields have been generally improving over time and GE adoption also was more recently introduced in the USA, what would happen to the coefficient of GE if we include year fixed effects?

    If we had a panel data set and did not include time dummies or a trend, given the above, the GE coefficient would have a positive OVB. Adding year FE would bring the coefficient on GE down. You can think about this trend as being an omitted variable that affects all observations the same in every time period,. Therefore, adding time fixed controls for this omitted variable and will change our estimates.

    4. A recent paper investigates whether advertisement for Viagra causes increases in birth rates in the USA. Apparently, advertising for products, including Viagra, happens on TV and reaches households that have a TV within a Marketing region and does not happen in areas outside a designated marketing region. What the authors do is look at hospital birth rates in regions inside and near the advertising region border and collect data on dollars per 100 people (Ads) for a certain time, and compare those to the birth rates in hospitals located outside and near the advertising region designated border. They conduct a panel data analysis. The Table below has the main result in column 1 and then robustness check in column 2 adding weather controls.

    a. Interpret SSS of all the estimates in column 1, where Ads variable is measured in $ dollars per 100 people.

    What is the Marginal effect of Advertising on Birth rates (evaluate that at the mean of Ads=5.58 $/100 people).

    ME add=0.0872 +2 (-0036)*ads. Plug in 5.58 to get answer

    b. Why do they include Zip Code Fixed Effects, in particular what would be a variable that they are controlling for when adding Zip Code fixed effects that could cause a problem (and what problem) when interpreting the Ads Marginal Effects causal estimate in a?

    They control for zip code FE because there could be differences by zip-code that could explain birthrates and also could be correlated with Viagra ads, and if not controlled for would result in OVB. For example, suppose a zip code has mostly seniors, therefore has low birth rates and also Viagra ads are more common.

    c. Why do they control month FE?

    Once again they are concerned with OVB common to all zipcodes, time changing factors that affect birth rates and also could be correlated with ads that if not controlled for will be included in the estimate of Ads and Ads squared and result in OVB

    d. What is the conclusion from this Table in terms of Viagra Ads causing birth rates in the USA

    One more

    Viagra ad is predicted to, holding all else constant, using specif (3), increase birthrates significantly by 0.0954-2 * 00042*averageAds=0.0954-2 * 00042*5.58 children births per 1000 population. Viagra ads cause more babies.

    5. Do more right hand side variables always improve the fit of an OLS regression in a SLR model?

    No, R2 cannot go down when we add more variables, but it does not have to increase.

    6. If x1i= 5 x2i+ei, where ei is a random term, can you estimate a regression of y on x1 and x2? What would be the problem? And how could you detect it?

    There would be near perfect multi-colinearity. We could detect this by examining the size of the standard errors on X1 and X2 and observing that they are very large relative to when we only include one or the other.

    7. Please use the Stata output below to answer the following.

    reg lwage educ exper female

    Source | SS df MS Number of obs = 526

    ———-+———————————- F(3, 522) = 94.75

    Model | 52.2939096 3 17.4313032 Prob > F = 0.0000

    Residual | 96.0358418 522 .183976708 R-squared = ____

    ———-+———————————- Adj R-squared = 0.3488

    Total | 148.329751 525 .28253286 Root MSE = .42893

    —————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    educ | .0912897 .0071232 _______ 0.000 .0772962 .1052833

    exper | .0094139 .0014493 6.50 0.000 .0065667 .012261

    female | -.3435967 .0376668 -9.12 0.000 -.4175939 -.2695996

    _cons | .4808357 .1050163 4.58 0.000 .2745292 .6871421

    a) What is the t for educ missing in the output above and also the R squared ?

    b) Interpret the coefficient on educ. Make sure to comment on the size and significance of the coefficient.

    b) Test the null that female salaries are 50% lower than male salaries at 5 % significance. Show your work using the five steps in hypothesis testing.

    Step 1:

    H0 : βfemale = −0.5

    H1 : βfemale ̸= −0.5

    Step 2:

    t = −0.3435967 − (−0.5) / 0.0376 = 4.15

    Step 3:

    The critical value for a t-stat at 5% significance and 522 degrees of freedom is 1.96

    Step 4:

    |4.15| > 1.96

    Step 5:

    We reject the null that female salaries are 50% lower than male salaries at the 5% significance level

    c) Given the two outputs below, would you conclude that the wages are influenced by respondents being female and in the west coast, considered together. Show your work using the five steps in hypothesis testing.

    reg lwage educ exper female west

    Source | SS df MS Number of obs = 526

    ————-+———————————- F(4, 521) = 73.27

    Model | 53.4024249 4 13.3506062 Prob > F = 0.0000

    Residual | 94.9273265 521 .182202162 R-squared = 0.3600

    ————-+———————————- Adj R-squared = 0.3551

    Total | 148.329751 525 .28253286 Root MSE = .42685

    ——————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    educ | .0909875 .0070898 12.83 0.000 .0770594 .1049156

    exper | .0094465 .0014423 6.55 0.000 .006613 .01228

    female | -.3487115 .037542 -9.29 0.000 -.4224638 -.2749591

    west | .1226554 .0497271 2.47 0.014 .0249653 .2203456

    _cons | .465773 .1046868 4.45 0.000 .2601128 .6714332

    . reg lwage educ exper

    Source | SS df MS Number of obs = 526

    ————-+———————————- F(2, 523) = 86.86

    Model | 36.9850396 2 18.4925198 Prob > F = 0.0000

    Residual | 111.344712 523 .212896199 R-squared = 0.2493

    ————-+———————————- Adj R-squared = 0.2465

    Total | 148.329751 525 .28253286 Root MSE = .46141

    ——————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    ————-+—————————————————————-

    educ | .0979356 .0076224 12.85 0.000 .0829613 .1129099

    exper | .0103469 .0015551 6.65 0.000 .0072919 .013402

    _cons | .2168544 .108595 2.00 0.046 .0035183 .4301904

    ——————————————————————————

    Run an F-test (for process see notes)

    Question. 8

    During a plastic bag ban implemented in Berkeley but not in Richmond, a co-author and I collected data on number of paper bag used per transaction before (in 2012) and after the election (2013) in Berkeley and also in a neighboring city that did not pass the plastic bag ban. Please specify a linear regression model to estimate the CAUSAL impact of the plastic ban policy on the number of paper bags used per transaction. Clearly label all the variables, the Y, and all the variables on the right hand side and explain what each coefficient means in this regression you specify.

    Bags_used = beta_0 + beta_1 Berkeley + beta_2 Year_2013

    + beta_3 Berkeley X Year_2013

    beta_0 = Bags used in Richmond in 2012

    beta_1 = Difference in Berkeley compared Richmond in 2012

    beta_2 = Difference in from 2012 to 2013 in Richmond

    beta_3 = Diff-in-diff estimated treatment effect

    What data would you need to check for the main assumption behind the estimation strategy you use above?

    PRE PERIOD TRENDS – we would want data from 2011 (at least) to check to see that pre-trends in the number of bags used was similar in Berkeley and Richmond.

    9. Consider the model below that relates income to years of experience and years of education:

    a) How would you modify this equation to check whether the effect of experience depends on the level of education? What test would you perform?

    Add the interaction term of experience and education to the model. Then test to see if beta3 is equal to zero.

    b) Suppose now that the effect of experience does not depend on education, but education is specified as a category variable, “no diploma”, “high-school diploma”, “college diploma and above”. How would you re-specify the model? How would you test that education has no influence on income?

    Test using an F-test that beta2 and beta3 are equal to zero.

    c) Suppose you found data from an IQ test for everyone in your sample. You see that the new IQ variable is positively correlated with the probability of someone graduating from high-school and college. It is also positively correlated with income. If you include IQ in the your model from part b.), describe what you expect to happen to the coefficient(s) on your education variable(s).

    Both beta2 and beta3 should fall. This is because the omitted variable IQ was positively correlated with high-school and college and is positively correlated with income. This caused upward bias in our coefficients when IQ was omitted.

    11. You have a data set that contains information about individuals’ gender, the number of children they have, their family income, and whether they are in the labor force

    You estimate the following linear probability model:


    P(laborforce=1) = β0 + β1 children + β2 female + β3 (children × female) + u

    a.) In terms of the model’s parameters, what is the marginal effect of having an additional child on a woman’s probability of being in the labor force? What is the marginal effect of having an additional child on a man’s probability of being in the labor force?

    Marginal effect of a child = β1 + β3 female . This means the return is β1 for a man and β1 +β3 for a woman

    b.) Based on the graph below, what signs do you expect for the parameters β0, β1, β2 and β3? Be specific about your reasoning for each parameter.

    · β0 is the intercept for the male line, therefore β0 0

    · 
β0β2 is the intercept for the female line, which is less than that for the male, therefore β20

    · β1 is the slope for the male line which is positive, therefore β1 0

    · 
β1β3 is the slope for the female line, which is negative, therefore β3 0

    c.) Suppose that the government implements a program that provides free childcare to families with income below $20,000 a year (and no assistance to families with higher income).

    i. Propose an estimation technique to estimate the effect of this program on labor participation. Write down the regression equation you would use for the technique (ignore gender and the number of children for this part).

    ii. State the assumption you need to make in order for this technique to successfully recover the causal effect of the program on labor participation.

    iii. Finally, give an example of a test you might perform to test this assumption?

    i. We can conduct an RD around the $20,000 threshold to recover the effect of the program.

    P(laborforce=1) = β0 + β1 program + β2 (income – 20,000) + β3 (program × income – 20,000)

    ii. We need to assume that the relationship between income and labor force participation would have been continuous at the $20,000 threshold were it not for the program. In other words, individuals just above and just below the threshold are identical expect for the program.

    iii. We would want to check the smoothness across the threshold of other variables that should not be impacted by the program. For example, we can check levels of education or job experience. We could also check the histogram of income around the threshold to make sure that there is no bunching in the running variable.

    12. Below is the estimation of a standard model of household energy consumption:

    (0.57) (0.61) (0.25)

    where energy is the annual consumption of energy of the household (in 1000 kilowatt-hours), income its annual income (in $1,000), and price the average price of energy over the year (in cents/kilowatt-hours), and standard errors are in parentheses.

    a. What is the economic interpretation of the model coefficient?

    It is the own price elasticity of energy consumption.

    b. Interpret the estimated coefficient .

    Sign: As expected, price is negatively correlated with consumption of energy

    Size: a 10% increase in price, leads to a predicted decrease of 7.9% in energy consumption

    Significance: t= .79/.25 = 3.16 The coefficient is statistically significant from zero, so we reject the null that price has no effect on energy consumption

    c. What is the predicted effect of a 15% increase in the price of energy on household average energy consumption?

    .15*-.79 = .1185 -> 11.85% decrease in predicted energy consumption

    13.  From a sample of 200 households, we estimated the following two models of gasoline consumption (t-statistics in parentheses):

    a. Using the estimated coefficients in the first question, how does gasoline vary with income?

    Both od the income variables are significant at the 10% level, although not at the 5% level. From the point estimates, gasoline consumption increase with income, up until annual incomes of 5 million USD (0.25/0.00005 = 5000 thousands USD), and then begins to decrease. Since annual incomes of million USD are extremely rare, gasoline consumption essentially always increases with income.

    b. Are the two income variables jointly significant?

    1. H0: , H1:

    2.

    3. At the 5% level, with 2 numerator d.f. and 196 denominator d.f., c = 3

    4. |5.02| > |3|, so we reject H0

    5. At the 5% significance level, we reject the null hypothesis that does not affect gasoline consumption.

    c. Comparing the suv coefficient in the second equation to the first, what do you conclude about the correlation between income and SUV ownership?

    Because the coefficient on suv is larger in the second equation than in the first, we have upward bias. We also noted that gasoline consumption is generally increasing with income in our sample. Thus, by the omitted variable bias formula, the correlation between suv ownership and income must be positive too.

    Final 2018- suggested answers

    Introductory Applied Econometrics Final Exam

    EEP/IAS 118

    YOUR Section Day and Time

    Question 1. Suppose you have a random sample of people in the U.S. with data on the average number of hours they sleep each week, and their age in years. You obtain the following regression results with this data:

    Instead, a colleague of yours tries a quadratic functional form and obtains the following results:

    our colleague argues that the information above is enough to conclude that her regression, model (2), is a better fit. Is this correct? Explain briefly why or why not.

    No, the above information is NOT enough. To compare non-nested models, it is necessary to use adjusted R2 instead of R2.

    Question 2. Arizona State University is experimenting with combining in-classroom and online learning. When students enroll in a class, they get randomly assigned to the traditional version or to a new version in which the professor posts videos of lecture online for students to watch at home and uses class time exclusively for activities.

    After the first semester of this new teaching style, ASU hires you to evaluate the impact of these innovations in teaching on student learning. Since ASU is so big, each semester several different professors teach Econ 101. ASU gives you a data set where each row is a professor ID, average final grade given, and a dummy equal to 1 if the professor taught the new version of Econ 101.

    What kind of data set are you working with? (ie, time series, cross-section, pooled cross-section, or panel) What is the unit of observation?

    This is cross-sectional data (the data include many units in one time period). The unit of observation is a class (you could also say that the unit of observation is a professor — in the cross section, they are the same).

    Write down a simple, univariate regression model that would tell you the difference in student outcomes between the hybrid and traditional versions of Econ 101. Explain how to interpret each coefficient.

    where hybrid_i == 1 if professor i taught the hybrid version, and 0 if she taught the traditional version. The intercept b0 is the average final grade for traditional classes; b1 is the marginal effect of taking the hybrid version. The average final grade for hybrid

    classes is b0 + b1.

    Explain why the random assignment of students means we do not need to worry about omitted variable bias from student characteristics.

    Under randomization, the treatment and control groups are both representative samples of the population with no statistically significant differences in observables before the treatment. Importantly, no characteristics that predict the outcome also predict treatment status. This ensures that the control group is a good counterfactual for the treatment group — if the students in the hybrid class had instead taken the traditional class, they would have gotten the same grades as the students who did take the traditional class.

    Even though we don’t need to worry about bias from student characteristics, there could be other omitted variables. Give an example of an omitted variable that could be causing bias. Explain why, using the two conditions for OVB.

    Professor characteristics like experience, clarity, or quality of instructional materials will

    be correlated with final grades, and may also be correlated with hybrid since we only have one time period in our cross-sectional data.

    You explain these concerns to ASU and convince them to allow you to collect data for another 3 semesters. By now, every professor has taught both the hybrid and traditional course twice. Your new data set includes a professor ID, average final grade given, dummy for being the new Econ 101, and the semester in which it was taught (1, 2, 3, or 4).

    Now what kind of data are you working with? What is the unit of observation?

    Now we have panel data, on each professor in each semester. The unit of observation is a professor-semester, i.e., Villas-Boas in Spring 2018, Villas-Boas in Fall 2017,…, etc.

    Explain what kind of fixed effects you plan to include in your regression. Give an example of an omitted variable that each fixed effect controls for.

    Now I can include both professor fixed effects and time fixed effects. Professor fixed effects control for all aspects of a professor that do not change over time. One example might be the number of office hours that each professor offers each week. Time fixed effects control for anything that might affect the grades in every class within the same time period (in this case, a semester). For example, maybe there was a staff strike in Spring 2018 which affected students’ access to library study space.

    Do you expect the coefficient from the simple, univariate regression to change? Why or why not?

    Yes — now that we’ve controlled for professor characteristics like quality, I think the coefficient on hybrid will change. I think that it is likely that hybrid was correlated with professor quality in the simple univariate model, and since it is also correlated with grades, this caused OVB. Now that we have included professor fixed effects, we have removed this OVB, so b1 should change.

    Question 3. We are really concerned about the flu outbreak in the college campuses in the US. We collect data for a random sample of college students in 4 campuses for three years. An observation is whether a student in campus j in year t has the flu (HASFLU). We also have data on whether the student got the flu shot (SHOT) and whether the student lives in the dorm (DORM). In addition, we collect data on two characteristics of the 4 campuses, namely, on whether they are a private university or not (PRIVATE), and on the number of students in each campus per year (N).

    Please test whether the two observed characteristics of the campuses significantly affect the probability of getting the flu, using the estimates from logit models in Stata below


    Model 1

    logit HASFLU SHOT DORM N PRIVATE

    Logistic regression Number of obs = 230800

    LR chi2(6) = 121.39

    Prob > chi2 = 0.0000

    Log likelihood = -372.90 Pseudo R2 = 0.1179

    ——————————————————————————

    inlf | Coef. Std. Err. z P>|z| [95% Conf. Interval]

    ————-+—————————————————————-

    SHOT | -.0350754 .0080669 -4.35 0.000 -.0508862 -.0192646

    DORM | .2575602 .0409102 6.30 0.000 .1773777 .3377427

    PRIVATE | -.0576886 .0128004 -4.51 0.000 -.0827769 -.0326003

    N | .484777 .1980748 7.50 0.000 1.872996 1.096558


    Model 2

    logit HASFLU SHOT DORM

    Logistic regression Number of obs = 230800

    LR chi2(6) = 101.39

    Prob > chi2 = 0.0000

    Log likelihood = -392.90 Pseudo R2 = 0.0779

    ——————————————————————————

    inlf | Coef. Std. Err. z P>|z| [95% Conf. Interval]

    ————-+—————————————————————-

    SHOT | -.0450754 .0080669 -4.75 0.000 -.0518862 -.0182646

    DORM | .2575602 .0409102 6.30 0.000 .1773777 .3377427

    Perform the 5 steps in hypothesis testing.

    1. H0: βprivate= βN=0

    HA: either βprivate or βN or both are not equal to 0

    2. test statistic= 2(LLUR-LLR) = 2(-372.90+392.90)=40

    3. The critical value comes from a chi square distribution with q=2 degrees of freedom. At a 95% confidence level, c=5.99

    4. 40>5.99 so we reject the null hypothesis

    5. At a 95% confidence level, there is statistical evidence to support that whether a school is private or public and the number of students at that school jointly affect whether a student has the flu.

    Now, for b) and c), below are the estimated marginal effects from model 1.

    Marginal effects after logit

    y = Pr(HASFLU) (predict)

    = .57425363

    ——————————————————————————

    variable | dy/dx Std. Err. z P>|z| [ 95% C.I. ] X

    ———+——————————————————————–

    Shot | -.0085755 .00197 -4.34 0.000 0.3429

    DORM | .06297 .00999 0.1269

    PRIVATE | -.0141041 .00313 -4.51 0.000 -.020229 -.007979 0.5378

    N | .3630078 .04862 7.47 0.000 -.458302 -.267713 100005

    ——————————————————————————

    (*) dy/dx is for discrete change of dummy variable from 0 to 1

    Construct the 95 % confidence interval for the marginal effect of the flu shot on having the flu. (show your work and use the space provided)

    CI= [-0.0085755±1.96*0.00197]=[-0.0124,-0.0047]

    Please test whether being in a dorm affects the probability of having the flu. (5 steps)

    1. H0: βdorm=0

    HA: βdorm≠0

    2. test statistic= 0.06297/0.00999=6.303303

    3. At the 95% confidence level, with n-k-1=230,800 – 5 degrees of freedom, the critical value is 1.96.

    4. 6.303>1.96 so we reject the null hypothesis

    5. At a 95% confidence level, there is statistical evidence to support that whether a student lives in a dorm affects whether he or she gets the flu, holding constant whether the student has the flu shot, goes to a private university, and the size of the university.

    Question 4. On January 25, 2018, the EPA loosened air pollution regulations. Previously, facilities that were above some air pollution threshold, such as 10 tons per year, were forced to forever reduce their emissions significantly, such as to below half of the threshold. Since the change in January, facilities that have polluted above the threshold of 10 tons per year now only need to get their emissions below the threshold.

    You want to use this policy change to study how air pollution affects asthma rates in children. You have data on facility location, facility emissions, whether the facility is in violation of emissions standards, and zip-code level child asthma rates.

    You decide to run a differences-in-differences analysis. What is your treatment group? What is your control group?

    This study could be run at the zip code level, or at the facility level if you aggregate the asthma rate data in some way to estimate asthma rates around a facility.

    A zip code or facility is treated if it is affected by the policy. Therefore, it is treated if it was previously forced to reduce emissions by a large amount. So the treatment group is facilities (or zip codes with facilities) that had ever violated the emissions threshold BEFORE January 25, 2018. The control group is facilities that had never violated the emissions threshold before January 25, 2018.

    Write down the differences-in-differences regression equation you would use to conduct this analysis. Which coefficient gives the treatment effect? Do you expect this variable to be positive or negative?

    Assuming we have

    Economics homework help

    Spring 2022 Econ 102 – Practice Mid-term Exam – Homework 3

    Prof. Saki Bigio

    May, 2022

    READ THESE INSTRUCTIONS before you start writing: The exam has 4 questions. Your maximal score is 100
    points. You MUST answer the Mandatory Multiple Choice Question (as the name implies, it is mandatory).
    Among the three other questions, you can CHOOSE two of the three non-mandatory to be answered. You can get
    partial credit on all questions. As such, you have a total of 20 mandatory points the mandatory question, plus 80
    points from questions of your choice. Use your time wisely

    1. Mandatory Multiple Choice Question (20 Points – 5 points each).

    1.A Consider the Ricardian Equivalence Proposition learned in class. Suppose that a government increases its
    de�cit B. In doing so, it can either lower taxes τ1 while keeping government expenditures {G1, G2} �xed over
    time, or it can �x τ1 while increasing G1. According to the Ricardian Equivalence Proposition, which of the
    following answers are FALSE (mark all of them):

    a) The increase in the government de�cit by more spending will lead the government to raise more taxes in
    the future.

    b) The increase in the government de�cit by lowering taxes will lead to an increase in private consumption
    today because it stimulates the economy.

    c) The increase in the government de�cit by lowering taxes will lead to an identical increase in private savings
    that exactly o�sets the reduction in taxes, thereby having no e�ect on private consumption.

    d) The increase in the de�cit by spending more will lead to a reduction in private expenditures.

    e) The increase in the de�cit will have an e�ect on output, regardless of the format.

    1.B Recently, �Pop Economist� Noah Smith recently criticized the New York Times saying: �Jesus Christ, New
    York Times. What kind of economic journalism is this? IMPORTS DO NOT SUBTRACT FROM GDP!
    Imports subtract from exports but they add to consumption!! They’re simply neutral for GDP!�

    See the tweet here…

    The tweet provoked a lot of discussion. Mark the following correct statements:

    a) Indeed, if an import is consumed at cost: GDP does not increase.

    b) Indeed, we cannot claim that GDP has fallen because M increased.

    c) If imports are stored at cost as inventory: GDP does not increase and I increases.

    d) If imports are combined with local labor to produce more output: imports will increase GDP increasing
    labor.

    1

    1.C Fatih lives and works in the US, and is planning to go on a trip to Australia for 1 month. Fatih believes that
    the GDP per capita in Australia is US$ 45,000, the exact same amount as in the US. Fatih had planned to take
    US$ 5000 dollars for his trip, but he reads an article in The Economist magazine and realizes (to his surprise)
    that GDP per capita in Australia is only US$ 20,000 once you translate nominal GDP into purchasing power
    parity (PPP) � a number that is much lower than what Fatih initially thought. Fatih also learned that capital
    per worker in Australia is the same as in the US. Which of the following reactions ARE CONSISTENT with
    what Fatih learned in class:

    a) �Australia is much more expensive than I thought. I should try to take a bit more of money or stay a
    shorter period because my money will be worth much less over there. I will only be able to buy half the stu�
    I was planning to.�

    b) �I earn much more than I thought in the US, relative to what Australians earn. I should go and spend
    more because Australia is cheaper.�

    c) �The amount of physical goods produced in Australia is probably much lower than what is produced in the
    US.�

    d) �Wow, productivity in Australia must be much higher than in the US. I should expect to �nd a much better
    educated population.�

    e) �GDP per capita in PPP terms provides no additional information. The fact that both economies have the
    same capital per worker and GDP per capita in nominal terms implies that, for the purpose of my trip, both
    economies are identical.�

    1.D The capital share in Peru is α = 2/3. Relative to last year, capital increased by 30%, labor hours increased by
    10%, and total output increased by 10%. Which is the closest approximate number for the growth in Total
    Factor Productivity, A? For this question, use the growth accounting formula given in class to deduce the
    change in A.

    a) 12% b) 6% c) 0% d) -6% e) -12%

    2

    2. Numerical Question on the Solow Model (40 Points, easy). Let’s consider the Solow model with
    population and technology growth. The steady state for capital per e�ective labor k̃ss is given by

    k̃ss =

    (
    s

    δ + n + x̃ + nx̃

    ) 1
    1−α

    ,

    Answer the following questions.
    a. How will the steady state value k̃ss change in response to a 50% decrease in the saving rate? To answer this
    question, let the old and new steady state values be denoted by k̃oss and k̃

    n
    ss, respectively. Then, express k̃

    n
    ss in

    terms of k̃oss and you should be able to obtain a concrete expression for their ratio. (10 points)
    b. Let’s assume α = 0.5, s = 0.05, δ = 0.15, n = 0.05 and x̃ = 0.01 . Find an exact value for capital in steady
    state. (10 points)
    c. If the savings rate is increased to s = 0.1, what is capital in the new steady state? Is it higher or lower than
    in the original steady state? Provide the economic intuition behind your result. (20 points)

    3

    3. Analytic Question on Durable Consumption (40 Points).
    It is known that durable consumption is more sensitive to interest rates and expected income. In this question,

    we investigate if this is the case in the context of the model we have been studying. We investigate the following
    decision:

    U (c1, c2) = max
    {c1,c2}

    1

    2


    c1 + x0 +

    β

    2


    c2

    subject to the following budget constraints:
    The time 1 budget constraint:

    a = y1 − c1
    and the time 2 budget constraint:

    c2 = y2 + (1 + r) a.

    The novelty is that x0 is now a variable to represents past purchases of goods 1. You can think of this as a car.
    In turn, we have that x1 = c1 so x1 is consumption derived utility in period 2 derived from past purchases. For this
    question assume that β (1 + r) = 1.

    Answer the following questions. (40 points)
    a. (5 points, easy) Substitute out a from both budget constraints, the one at time 1 and time 2, to write a single
    intertemporal budget constraint.
    b. (5 points, easy) Show that the Euler equation (the equation that relates the marginal utility of consumption
    to the interest rate and the discount factor β), implies:

    c1 + x0 = (β (1 + r))
    −2c2.

    Hint: form the Lagrangean of this problem, using your answer in (a). Then, obtain the �rst-order conditions and
    combine them.

    c. (5 points, easy) Suppose that x0 = 0. Then, argue that:

    c2 = (β (1 + r))
    2
    c1

    and substitute the condition into the intertemporal budget constraint to obtain the consumption shares:

    c1 =
    1

    1 + β2 (1 + r)

    (
    y1 +

    y2
    1 + r

    )
    c2

    1 + r
    =

    β2 (1 + r)

    1 + β2 (1 + r)

    (
    y1 +

    y2
    1 + r

    )
    .

    c. (10 points, moderate) Follow the same steps, to obtain an expression for the case where x0 > 0.
    d. (15 points, harder) Consider now the case where y1 = y2 = ȳ. We now study an increase in ȳ by the amount
    ∆. Compute the rate of change of expenditures with respect to ∆ for the case where x0 = 0 and x0 > 0. For
    this question, we assume that x0 < ȳ.

    4

    4. Analytic Question on Good and Bad Governments. (40 points)
    For the purpose of this question you can assume NO population growth NOR technology growth (namely, you
    should solve the question with n = 0 and x = 0). Consider a version of the Solow model with energy. The law of
    motion for aggregate capital in the Solow model is given by

    Kt+1 = It + (1 − δ)Kt,

    where It is total investment in this economy. Private investment is:

    It = sY
    D
    t

    where Y Dt is disposable income, given by:
    Y Dt = Yt − Et.

    Assume that Et = εYt, with ε ∈ (0, 1) is a parameter that captures how much the economy uses of energy. The
    goal of this question is to study the uses of energy.

    a. (5 points, easy) Provide an expression for Investment It only as a function of total income Yt (as opposed to
    Y Dt ). Hint: replace Et and Y

    D
    t out from the previous equations given to you.

    b. (5 points, easy) Now suppose we have a good government and that uses the energy resources Et for production.
    In particular, assume that the production of goods now requires energy. Assume that the production function
    is now:

    Yt = AssE
    1−γ
    t K

    γα
    t L

    γ(1−α)
    ss

    The idea is that 1 − γ is the parameter that governs the decreasing returns to energy. Substitute Et = εYt into
    the equation above. Show that GDP can be re-written as:

    Yt = A
    1
    γ
    ssε

    1−γ
    γ Kαt L

    (1−α)
    ss .

    c. (10 points, harder) Using the steps you’ve learned in class to obtain the steady-state in the standard Solow
    model, �nd steady state output in this version. Explain how you would obtain the optimal expenditure of ε
    that maximized GDP per capita in the long-run. Hint: this relates to the golden rule.
    d. (10 points, harder) Instead, now assume that a fraction of the government’s investment in energy is diverted
    to corrupt activities. In particular, assume that

    Y Dt = Yt − Et

    but now, only a fraction λ < 1 of the energy investments are actually spent in energy:

    Et = λεYt.

    For any given level of ε, what is the e�ect of λ on steady-state output?
    e.(10 points, harder) Assume now that we learn that energy causes pollution and environmental damage. Namely,
    assume that the production function changes to

    Yt = AssE
    1−γ
    t K

    γα
    t L

    γ(1−α)
    ss X

    −β
    t

    where Xt is pollution given by:
    Xt = Et.

    Find steady-state output and argue that β > 0 will reduce steady-state output. If pollution is unobservable,
    would it appear as less TFP?

    5

    Economics homework help

    Sales management

    Design and deliver a compelling sales pitch for a product or service of Princess Yakht company.

    You must justify its effectiveness according to key indicators of the market

    The Presentation is in Power Point

    What does the company sell?

    What do they say they sell in terms of their communication (e.g. USP, Mission, Ethics etc)?

    Using the Value Chain Model, what is the company value assertion? »

    What influences your customers’ purchase decision (think of the types of needs they have)? »

    It assesses the following learning outcomes:

    • Outcome 1: Link corporate, marketing and sales strategies in complex environments

    • Outcome 2: Critically evaluate and formulate the criteria by which to determine a market and articulate sales strategies.

    • Outcome 3: Design and communicate a compelling sales pitch for a product or service and justify its effectiveness according to key indicators of the market.

    • Outcome 4: Performance of sales and revenue in order to review and assess its process and how it can be optimized

    Economics homework help

    I. PROJECT PAPER REQUIREMENTS

    A project paper: you will come up with a research question to investigate. You will apply regression analysis, a popular statistical method, to study the potential relationship between three variables. For example, how much does the increase in major greenhouse gases such as carbon dioxide and methane in the atmosphere affect Earth’s temperature? How important are the inflation and unemployment rates in driving interest rate changes? How significant are the gender and age factors in determining the ratings of a TV show? How much do the state of the economy and advertising expenses affect retail sales?

    In general, you should select a topic that is neither too technical nor too broad. It would be best to narrow your investigation to a specific (testable) relationship between a few variables. You will need to locate and document your data sources yourself. Data availability should be considered in selecting which research question to pursue. You can use any three data variables you want for your estimated relationship so long as you can justify their relevance for inclusion. There is no restriction on your choice of variables.

    After all, all you need is to identify three possibly related variables and gather their data for
    your project. You will have one dependent variable (Y) and two explanatory variables (X1 and X2) in your regression model: Y = β0 + β1X1 + β2X2 + ε. You will then estimate the model using Excel’s regression tool and present the results in your paper.

    Use publicly available data on the internet (at least 25 observations per variable). Use Excel’s regression tool only. Do not use any other software program.
    Page Format: 1.5 spacing, 12 point font size, and one-inch margins.
    Page Limit: 4 to 8 pages long, excluding the title page, abstract, tables, and references.

    II. ORGANIZATION OF THE PROJECT PAPER

    The paper should have a title page with an abstract. Following that, the content of your paper should be presented and organized as follows:

    1) Introduction (5 points)

    · Identify the purpose of your paper and what research question to investigate.

    · Provide some background information related to the topic of your investigation.

    · Highlight why the investigation topic is relevant and interesting.

    2) Data Description (5 points)

    · Describe the sample data set and the type of data you have.

    · Explain the data series (Y, X1, and X2) you use and define what they represent and

    measure.

    · Identify the data source or sources with a Web address for all the data series used in the

    study.

    3) Statistical Analysis and Results (10 points)

    · Explain your data analysis, including the statistical approach (regression method) and the estimated model.

    · Tabulate and report the results from your regression analysis, including any additional statistical tests you have conducted.

    · Discuss and interpret all your statistical results and findings.

    4) Conclusion (5 points)

    · Restate the purpose of your study.

    · Summarize the key results of your investigation.

    · Describe the significance of your findings.

    · Outline any limitations of your study


    NOTES
    :

    1. It’s crucial to cite all sources you use to quote, paraphrase, and summarize to avoid plagiarism. For example, the APA citation style is widely used by students, researchers, and professionals in the social and behavioral sciences, natural sciences, business, engineering, and many other fields.

    2. No graphs, diagrams, or pictures are needed.

    3. You may include a third explanatory variable (X3) in your study if you can provide a reasonable justification for its inclusion.

    Economics homework help

    Macroeconomic Theory

    Week 6

    1 Chapter 5: Dynamic Consumption-Labor Framework

    We build upon the dynamic consumption-savings framework by adding a labor/leisure decision

    for each period. In other words, we are making the labor income endogenous in our dynamic

    framework, allowing us to study consumption/savings decisions and labor/leisure decisions si-

    multaneously.

    1.1 Preferences

    Preferences will be represented by the utility function:

    V (c1, l1,c2, l2) = u(c1, l1) + βu(c2, l2) (1)

    where V (·) is associated with well-behaved indi�erence curves, u(·) is a `sub-utility’ function,
    and ct and lt are consumption and leisure for t = 1,2.

    → We typically assume that u(·) takes the same function form each period.
    → Note that since V (·) is de�ned over 4 dimensions, we cannot graph it. Nonetheless, you can
    think of the associated indi�erence curves as simultaneously de�ned over the (c, l) dimensions

    for t = 1,2, the (c1,c2) dimensions we considered in the previous chapter, and an additional

    (l1, l2) that we have not yet considered. The indi�erence curves in each of those 4 dimensions

    give us 4 MRS’s that are relevant for optimal choice.

    1.2 Budget Constraints

    Recall the budget constraint for the dynamic consumption-savings model in nominal terms:

    Ptct + At = Yt + At−1(1 + i) (2)

    for t = 1,2. The budget constraint here makes the additional speci�cation income Yt depends

    on endogenous labor supply so that:

    Yt = (1− τt)Wt(1− lt) (3)

    where as in the static consumption-labor model, τt is a tax on wage income, Wt is the nominal

    wage rate, and labor supply is given by time not spent on leisure so that nt = 1− lt.
    → Using equation (3) into equation (2) we have our period 1 and 2 budget constraints:

    1

    Period 1: P1c1 + A1 = (1− τ1)W1(1− l1) + (1 + i)A0

    Period 2: P2c2 + A2 = (1− τ2)W2(1− l2) + (1 + i)A1

    From the above period budget constraints, we can derive the lifetime budget constraint by

    isolating A1 in the period-1 budget constraint, and using that into the period-2 budget constraint.

    Assuming the initial and terminal conditions A0 = A2 = 0:

    P2c2 = (1− τ2)W2(1− l2) + (1 + i) ((1− τ1)W1(1− l1)−P1c1)

    P2c2
    1 + i

    =
    (1− τ2)W2(1− l2)

    1 + i
    + (1− τ1)W1(1− l1)−P1c1

    ⇒ P1c1 +
    P2c2
    1 + i

    = (1− τ1)W1(1− l1) +
    (1− τ2)W2(1− l2)

    1 + i
    (4)

    → This lifetime budget constraint has the same interpretation as all of the others we have
    seen thus far. It equates the present discounted value of lifetime expenditures to the present

    discounted value of lifetime resources.

    → While this lifetime budget constraint is in nominal terms, we can transform it into real
    terms either by applying the Fisher equation directly to equation (4) or applying the Fisher

    equation to each of the period-t budget constraints.

    → There the relative slopes (and intercepts) of the lifetime budget constraint in the (c, l)
    dimensions for t = 1,2, the (c1,c2) dimension, and an additional (l1, l2) dimension. Each of

    these slopes give the e�ective price ratio that is relevant for optimal choice.

    1.3 Optimal Choice

    The household chooses the optimal (c1∗,c2∗, l1∗, l2∗) bundle which maximizes their utility sub-
    ject to the lifetime budget constraint.

    → c1, c2, l1, and l2 are the endogenous variables
    → P1, P2, W1, W2, τ1, τ2 and i are the exogenous variables

    As with the previous models, the optimal choice will be such that the Marginal Rate of Substitu-

    tion between each choice variable is equal to the relative prices of those choice variables.

    ⇒There will be two Intratemporal Optimality Conditions that characterize the consumption-
    leisure choice for each period t = 1,2 and one Intertemporal Optimality condition that

    characterizes the consumption-savings choice across periods.

    ⇒ The three optimality conditions together with the LBC fully characterize the solution to
    the model, (c1∗,c2∗, l1∗, l2∗).

    2

    1.3.1 Lifetime Lagrangian Formulation

    max
    c1,c2,l1,l2

    u(c1, l1) + βu(c2, l2)

    subject to: P1c1 +
    P2c2
    1 + i

    − (1− τ1)W1(1− l1)−
    (1− τ2)W2(1− l2)

    1 + i
    = 0

    ⇒L = u(c1, l1) + βu(c2, l2) + λ
    (
    P1c1 +

    P2c2
    1 + i

    − (1− τ1)W1(1− l1)−
    (1− τ2)W2(1− l2)

    1 + i

    )
    Taking FOCs:

    ∂L
    ∂c1

    = 0 −→
    ∂u

    ∂c1
    + λP1 = 0 −→

    ∂u

    ∂c1

    1

    P1
    = −λ (5)

    ∂L
    ∂c2

    = 0 −→
    ∂u

    ∂c2
    β + λ

    (
    P2
    1 + i

    )
    = 0 −→

    ∂u

    ∂c2

    β(1 + i)

    P2
    = −λ (6)

    ∂L
    ∂l1

    = 0 −→
    ∂u

    ∂l1
    + λ(1− τ1)W1 = 0 −→

    ∂u

    ∂l1

    1

    (1− τ1)W1
    = −λ (7)

    ∂L
    ∂l2

    = 0 −→
    ∂u

    ∂c2
    β + λ

    (
    (1− τ2)W2

    1 + i

    )
    = 0 −→

    ∂u

    ∂l2

    β(1 + i)

    (1− τ2)W2
    = −λ (8)

    The next step is to combine the FOCs to derive the optimality conditions, but given that there

    are now four FOCs, you might be wondering how to combine them. The key is to keep in mind

    what dimensions of optimization are relevant for each optimality condition.

    → We want (i) one intertemporal optimality condition for consumption-savings across peri-
    ods, and (ii) two intratemporal optimality conditions for consumption-leisure in each period.

    → Starting with (i), we want to use Equations (5) and (6):

    ∂u

    ∂c1

    1

    P1
    =

    ∂u

    ∂c2

    β(1 + i)

    P2

    ∂u

    ∂c1
    /
    ∂u

    ∂c2
    =
    β(1 + i)P1

    P2
    (9)

    ⇒ Equation (9) is the intertemporal optimality condition in nominal terms. Note that if you
    apply the Fisher Equation to this, you would obtain it in real terms.

    3

    → Next for (ii), we want to use equation (5) and (7) for t = 1, and equations (6) and (8) for
    t = 2. Starting with t = 1:

    ∂u

    ∂c1

    1

    P1
    =
    ∂u

    ∂l1

    1

    (1− τ1)W1

    ∂u

    ∂l1
    /
    ∂u

    ∂c1
    =

    (1− τ1)W1
    P1

    (10)

    ⇒ Equation (10) is the intratemporal optimality condition for consumption-leisure in nomi-
    nal terms for period one.

    → And for (ii) in t = 2:

    ∂u

    ∂c2

    1

    P2
    =
    ∂u

    ∂l2

    1

    (1− τ2)W2

    ∂u

    ∂l2
    /
    ∂u

    ∂c2
    =

    (1− τ2)W2
    P2

    (11)

    ⇒ Equation (11) is the intratemporal optimality condition for consumption-leisure in nomi-
    nal terms for period two.

    → Note that we have not talked about an intertemporal optimality condition for leisure across
    periods. You should convince yourself that if the two intratemporal optimality conditions for

    consumption leisure hold, there is implicitly a condition that holds relating the MRS for leisure

    across periods to the relative price of leisure across periods.

    4

    • Chapter 5: Dynamic Consumption-Labor Framework
      • Preferences
      • Budget Constraints
      • Optimal Choice

    Economics homework help


    Discussion 175 words more each question

    1.(Article 1. 1) The authors point to in the various key ideas that promi- nent economists (like Gregory Mankiw) consider to be important in economic theorizing. Of the assumptions they list, which ones seem most reasonable and unreasonable to you? Which objections do you think succeed and which do not?

    2.(Article 1. 5) According to neoclassical theory, how do markets deliver efficient results if all ” barriers to exchange are removed? In what sense are these results efficient ?

    (Article 1. 5) How is the word ” freedom defined by neoclassical economists? What freedoms do they argue workers lose under regulated labor markets? How does this compare to your view of what kinds of freedoms are valuable?

    (Article 1. 5) Does the unfettered operation of the market mechanism deliver equity to society? In your view, what would fair labor-market processes or out- comes look like?

    3. (5. 2) In what ways do these articles show that corporations controlthe marketplace of ideas What are the possible consequences? What, anything, should be done about it?

    4.Article 5. 3) What are some examples of industries with enough market concen- tration to count as” monopolized What are the causes of market concentration in different industries? What are some of the negative consequences of market concentration?

    Economics homework help

    This task is worth 40% of your overall grade for this subject and substitutes the final exam.

    Due date: Sunday the 11th of May

    Formalities

    · Minimum length of the assignment 1500 words – Maximum 2000 words.

    · Essay form

    · Relate your answers to the concepts delivered in class.

    · Font: Arial 12,5pts. Line-spacing: default. Text-align: Justified.

    · Bibliography/References in Harvard style.

    · You may use Appendixes. These and the References do not count for the total wordcount.

    Look at the following discussion topic and answer the related questions:

    Topic

    Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They have a presence in many markets / Europe, North America, Brazil, Russia, China and they have recently established a regional office for the Gulf Area in Dubai in the UAE. Their biggest market, though, in this area is Saudi Arabia and the company is coming under pressure from the Saudi Ministry of Trade to relocate its Gulf office to Riyadh.

    Question 1

    Identify the economic indicators you consider would be of most relevance to the company in making a decision like this and use them to compare the two economies. (Related to the first evaluation criteria – see table below)

    Question 2

    Consider the political stability of both countries – what factors contribute to its stability/volatility? (Related to the second evaluation criteria – see table below)

    Question 3

    Analyse the market for beauty treatments in the two countries and compare the needs of the women for dibimilano products and services. (Related to the third evaluation criteria – see table below)

    Question 4

    On the basis of your analysis, recommend whether dibimilano should maintain their headquarters in Dubai, move them to Riyadh or look for another alternative. Remember to support your conclusions with your previous analysis.

    It assesses the following learning outcomes:

    · Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of exchange rates.

    · Evaluate, analyze and contrast economic decisions and their impact of the global business context.

    Economics homework help

    Suggested Answers if not directly in lecture notes

    1. Why are linear probability models not homoscedastic?

    Because the error term is equal to y – yhat, or p-phat. P-hat depends on x, var phat also depends on x. Therefore, in a linear probability model, this will always have a higher variance for probabilities near 0.5 and lower at higher or lower probabilities.

    2. Suppose the CDC is worried that the rate of growth of flu this season is very different from the usual rate of 1 percent a week and is considering making flu vaccines free and mandatory for the remainder of the season to curb the growth rate for the next months. We collect data on the number of flu cases Y, per week, during 20 weeks, t=1,2, …19, and obtain the following estimates:

    week R2 = .62

    (5.11) (.007) n = 20

    week R2 = .96

    (31) (.0003) n = 20

    Based on the estimates obtain a 95% confidence interval for the growth rate . What do you recommend to the CDC?

    I would use the second estimated equation given that the coefficient gives you the growth rate. The 95% confidence interval for estimated growth rate is [0.012- 1.96* 0.0003, 0.012+ 1.96* 0.0003]. Does the interval contain 0.01? If yes then we cannot reject the usual 1% a week growth. If not then we can reject equality, and the growth rate is different from 1 percent/week.

    3. From a random sample of agricultural yields Y (1000 dollars per acre), over years and region in the US, we have estimated the following equation for Y:

    lnYhat= 0.49 + .01 GE R2 = .32

    (.11) (.01) n = 1526 (these estimates are totally made up)

    a. Interpret the results on the Genetically engineered (GE) technology on yields. (follow SSS= Sign Size Significance)

    b. Suppose GE is more used in the West Coast where the crops are also with higher yields. How would the estimated effect of GE be affected by including a West Coast region dummy the equation? Justify your answer.

    We have OVB. Corr(west GE)>0 and corr(yield,WEST)>0 so when including west the coefficient on GE would drop given that before it had a positive OVB

    c. If we include region fixed effects would be control for the factors in b? Justify your answer.

    Yes. A region FE captures anything that is region specific affecting yields, so west coast is constant and region specific and would be controlled by a region FE

    d. If yields have been generally improving over time and GE adoption also was more recently introduced in the USA, what would happen to the coefficient of GE if we include year fixed effects?

    If we had a panel data set and did not include time dummies or a trend, given the above, the GE coefficient would have a positive OVB. Adding year FE would bring the coefficient on GE down. You can think about this trend as being an omitted variable that affects all observations the same in every time period,. Therefore, adding time fixed controls for this omitted variable and will change our estimates.

    4. A recent paper investigates whether advertisement for Viagra causes increases in birth rates in the USA. Apparently, advertising for products, including Viagra, happens on TV and reaches households that have a TV within a Marketing region and does not happen in areas outside a designated marketing region. What the authors do is look at hospital birth rates in regions inside and near the advertising region border and collect data on dollars per 100 people (Ads) for a certain time, and compare those to the birth rates in hospitals located outside and near the advertising region designated border. They conduct a panel data analysis. The Table below has the main result in column 1 and then robustness check in column 2 adding weather controls.

    a. Interpret SSS of all the estimates in column 1, where Ads variable is measured in $ dollars per 100 people.

    What is the Marginal effect of Advertising on Birth rates (evaluate that at the mean of Ads=5.58 $/100 people).

    ME add=0.0872 +2 (-0036)*ads. Plug in 5.58 to get answer

    b. Why do they include Zip Code Fixed Effects, in particular what would be a variable that they are controlling for when adding Zip Code fixed effects that could cause a problem (and what problem) when interpreting the Ads Marginal Effects causal estimate in a?

    They control for zip code FE because there could be differences by zip-code that could explain birthrates and also could be correlated with Viagra ads, and if not controlled for would result in OVB. For example, suppose a zip code has mostly seniors, therefore has low birth rates and also Viagra ads are more common.

    c. Why do they control month FE?

    Once again they are concerned with OVB common to all zipcodes, time changing factors that affect birth rates and also could be correlated with ads that if not controlled for will be included in the estimate of Ads and Ads squared and result in OVB

    d. What is the conclusion from this Table in terms of Viagra Ads causing birth rates in the USA

    One more

    Viagra ad is predicted to, holding all else constant, using specif (3), increase birthrates significantly by 0.0954-2 * 00042*averageAds=0.0954-2 * 00042*5.58 children births per 1000 population. Viagra ads cause more babies.

    5. Do more right hand side variables always improve the fit of an OLS regression in a SLR model?

    No, R2 cannot go down when we add more variables, but it does not have to increase.

    6. If x1i= 5 x2i+ei, where ei is a random term, can you estimate a regression of y on x1 and x2? What would be the problem? And how could you detect it?

    There would be near perfect multi-colinearity. We could detect this by examining the size of the standard errors on X1 and X2 and observing that they are very large relative to when we only include one or the other.

    7. Please use the Stata output below to answer the following.

    reg lwage educ exper female

    Source | SS df MS Number of obs = 526

    ———-+———————————- F(3, 522) = 94.75

    Model | 52.2939096 3 17.4313032 Prob > F = 0.0000

    Residual | 96.0358418 522 .183976708 R-squared = ____

    ———-+———————————- Adj R-squared = 0.3488

    Total | 148.329751 525 .28253286 Root MSE = .42893

    —————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    educ | .0912897 .0071232 _______ 0.000 .0772962 .1052833

    exper | .0094139 .0014493 6.50 0.000 .0065667 .012261

    female | -.3435967 .0376668 -9.12 0.000 -.4175939 -.2695996

    _cons | .4808357 .1050163 4.58 0.000 .2745292 .6871421

    a) What is the t for educ missing in the output above and also the R squared ?

    b) Interpret the coefficient on educ. Make sure to comment on the size and significance of the coefficient.

    b) Test the null that female salaries are 50% lower than male salaries at 5 % significance. Show your work using the five steps in hypothesis testing.

    Step 1:

    H0 : βfemale = −0.5

    H1 : βfemale ̸= −0.5

    Step 2:

    t = −0.3435967 − (−0.5) / 0.0376 = 4.15

    Step 3:

    The critical value for a t-stat at 5% significance and 522 degrees of freedom is 1.96

    Step 4:

    |4.15| > 1.96

    Step 5:

    We reject the null that female salaries are 50% lower than male salaries at the 5% significance level

    c) Given the two outputs below, would you conclude that the wages are influenced by respondents being female and in the west coast, considered together. Show your work using the five steps in hypothesis testing.

    reg lwage educ exper female west

    Source | SS df MS Number of obs = 526

    ————-+———————————- F(4, 521) = 73.27

    Model | 53.4024249 4 13.3506062 Prob > F = 0.0000

    Residual | 94.9273265 521 .182202162 R-squared = 0.3600

    ————-+———————————- Adj R-squared = 0.3551

    Total | 148.329751 525 .28253286 Root MSE = .42685

    ——————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    educ | .0909875 .0070898 12.83 0.000 .0770594 .1049156

    exper | .0094465 .0014423 6.55 0.000 .006613 .01228

    female | -.3487115 .037542 -9.29 0.000 -.4224638 -.2749591

    west | .1226554 .0497271 2.47 0.014 .0249653 .2203456

    _cons | .465773 .1046868 4.45 0.000 .2601128 .6714332

    . reg lwage educ exper

    Source | SS df MS Number of obs = 526

    ————-+———————————- F(2, 523) = 86.86

    Model | 36.9850396 2 18.4925198 Prob > F = 0.0000

    Residual | 111.344712 523 .212896199 R-squared = 0.2493

    ————-+———————————- Adj R-squared = 0.2465

    Total | 148.329751 525 .28253286 Root MSE = .46141

    ——————————————————————————

    lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

    ————-+—————————————————————-

    educ | .0979356 .0076224 12.85 0.000 .0829613 .1129099

    exper | .0103469 .0015551 6.65 0.000 .0072919 .013402

    _cons | .2168544 .108595 2.00 0.046 .0035183 .4301904

    ——————————————————————————

    Run an F-test (for process see notes)

    Question. 8

    During a plastic bag ban implemented in Berkeley but not in Richmond, a co-author and I collected data on number of paper bag used per transaction before (in 2012) and after the election (2013) in Berkeley and also in a neighboring city that did not pass the plastic bag ban. Please specify a linear regression model to estimate the CAUSAL impact of the plastic ban policy on the number of paper bags used per transaction. Clearly label all the variables, the Y, and all the variables on the right hand side and explain what each coefficient means in this regression you specify.

    Bags_used = beta_0 + beta_1 Berkeley + beta_2 Year_2013

    + beta_3 Berkeley X Year_2013

    beta_0 = Bags used in Richmond in 2012

    beta_1 = Difference in Berkeley compared Richmond in 2012

    beta_2 = Difference in from 2012 to 2013 in Richmond

    beta_3 = Diff-in-diff estimated treatment effect

    What data would you need to check for the main assumption behind the estimation strategy you use above?

    PRE PERIOD TRENDS – we would want data from 2011 (at least) to check to see that pre-trends in the number of bags used was similar in Berkeley and Richmond.

    9. Consider the model below that relates income to years of experience and years of education:

    a) How would you modify this equation to check whether the effect of experience depends on the level of education? What test would you perform?

    Add the interaction term of experience and education to the model. Then test to see if beta3 is equal to zero.

    b) Suppose now that the effect of experience does not depend on education, but education is specified as a category variable, “no diploma”, “high-school diploma”, “college diploma and above”. How would you re-specify the model? How would you test that education has no influence on income?

    Test using an F-test that beta2 and beta3 are equal to zero.

    c) Suppose you found data from an IQ test for everyone in your sample. You see that the new IQ variable is positively correlated with the probability of someone graduating from high-school and college. It is also positively correlated with income. If you include IQ in the your model from part b.), describe what you expect to happen to the coefficient(s) on your education variable(s).

    Both beta2 and beta3 should fall. This is because the omitted variable IQ was positively correlated with high-school and college and is positively correlated with income. This caused upward bias in our coefficients when IQ was omitted.

    11. You have a data set that contains information about individuals’ gender, the number of children they have, their family income, and whether they are in the labor force

    You estimate the following linear probability model:


    P(laborforce=1) = β0 + β1 children + β2 female + β3 (children × female) + u

    a.) In terms of the model’s parameters, what is the marginal effect of having an additional child on a woman’s probability of being in the labor force? What is the marginal effect of having an additional child on a man’s probability of being in the labor force?

    Marginal effect of a child = β1 + β3 female . This means the return is β1 for a man and β1 +β3 for a woman

    b.) Based on the graph below, what signs do you expect for the parameters β0, β1, β2 and β3? Be specific about your reasoning for each parameter.

    · β0 is the intercept for the male line, therefore β0 0

    · 
β0β2 is the intercept for the female line, which is less than that for the male, therefore β20

    · β1 is the slope for the male line which is positive, therefore β1 0

    · 
β1β3 is the slope for the female line, which is negative, therefore β3 0

    c.) Suppose that the government implements a program that provides free childcare to families with income below $20,000 a year (and no assistance to families with higher income).

    i. Propose an estimation technique to estimate the effect of this program on labor participation. Write down the regression equation you would use for the technique (ignore gender and the number of children for this part).

    ii. State the assumption you need to make in order for this technique to successfully recover the causal effect of the program on labor participation.

    iii. Finally, give an example of a test you might perform to test this assumption?

    i. We can conduct an RD around the $20,000 threshold to recover the effect of the program.

    P(laborforce=1) = β0 + β1 program + β2 (income – 20,000) + β3 (program × income – 20,000)

    ii. We need to assume that the relationship between income and labor force participation would have been continuous at the $20,000 threshold were it not for the program. In other words, individuals just above and just below the threshold are identical expect for the program.

    iii. We would want to check the smoothness across the threshold of other variables that should not be impacted by the program. For example, we can check levels of education or job experience. We could also check the histogram of income around the threshold to make sure that there is no bunching in the running variable.

    12. Below is the estimation of a standard model of household energy consumption:

    (0.57) (0.61) (0.25)

    where energy is the annual consumption of energy of the household (in 1000 kilowatt-hours), income its annual income (in $1,000), and price the average price of energy over the year (in cents/kilowatt-hours), and standard errors are in parentheses.

    a. What is the economic interpretation of the model coefficient?

    It is the own price elasticity of energy consumption.

    b. Interpret the estimated coefficient .

    Sign: As expected, price is negatively correlated with consumption of energy

    Size: a 10% increase in price, leads to a predicted decrease of 7.9% in energy consumption

    Significance: t= .79/.25 = 3.16 The coefficient is statistically significant from zero, so we reject the null that price has no effect on energy consumption

    c. What is the predicted effect of a 15% increase in the price of energy on household average energy consumption?

    .15*-.79 = .1185 -> 11.85% decrease in predicted energy consumption

    13.  From a sample of 200 households, we estimated the following two models of gasoline consumption (t-statistics in parentheses):

    a. Using the estimated coefficients in the first question, how does gasoline vary with income?

    Both od the income variables are significant at the 10% level, although not at the 5% level. From the point estimates, gasoline consumption increase with income, up until annual incomes of 5 million USD (0.25/0.00005 = 5000 thousands USD), and then begins to decrease. Since annual incomes of million USD are extremely rare, gasoline consumption essentially always increases with income.

    b. Are the two income variables jointly significant?

    1. H0: , H1:

    2.

    3. At the 5% level, with 2 numerator d.f. and 196 denominator d.f., c = 3

    4. |5.02| > |3|, so we reject H0

    5. At the 5% significance level, we reject the null hypothesis that does not affect gasoline consumption.

    c. Comparing the suv coefficient in the second equation to the first, what do you conclude about the correlation between income and SUV ownership?

    Because the coefficient on suv is larger in the second equation than in the first, we have upward bias. We also noted that gasoline consumption is generally increasing with income in our sample. Thus, by the omitted variable bias formula, the correlation between suv ownership and income must be positive too.

    Final 2018- suggested answers

    Introductory Applied Econometrics Final Exam

    EEP/IAS 118

    YOUR Section Day and Time

    Question 1. Suppose you have a random sample of people in the U.S. with data on the average number of hours they sleep each week, and their age in years. You obtain the following regression results with this data:

    Instead, a colleague of yours tries a quadratic functional form and obtains the following results:

    our colleague argues that the information above is enough to conclude that her regression, model (2), is a better fit. Is this correct? Explain briefly why or why not.

    No, the above information is NOT enough. To compare non-nested models, it is necessary to use adjusted R2 instead of R2.

    Question 2. Arizona State University is experimenting with combining in-classroom and online learning. When students enroll in a class, they get randomly assigned to the traditional version or to a new version in which the professor posts videos of lecture online for students to watch at home and uses class time exclusively for activities.

    After the first semester of this new teaching style, ASU hires you to evaluate the impact of these innovations in teaching on student learning. Since ASU is so big, each semester several different professors teach Econ 101. ASU gives you a data set where each row is a professor ID, average final grade given, and a dummy equal to 1 if the professor taught the new version of Econ 101.

    What kind of data set are you working with? (ie, time series, cross-section, pooled cross-section, or panel) What is the unit of observation?

    This is cross-sectional data (the data include many units in one time period). The unit of observation is a class (you could also say that the unit of observation is a professor — in the cross section, they are the same).

    Write down a simple, univariate regression model that would tell you the difference in student outcomes between the hybrid and traditional versions of Econ 101. Explain how to interpret each coefficient.

    where hybrid_i == 1 if professor i taught the hybrid version, and 0 if she taught the traditional version. The intercept b0 is the average final grade for traditional classes; b1 is the marginal effect of taking the hybrid version. The average final grade for hybrid

    classes is b0 + b1.

    Explain why the random assignment of students means we do not need to worry about omitted variable bias from student characteristics.

    Under randomization, the treatment and control groups are both representative samples of the population with no statistically significant differences in observables before the treatment. Importantly, no characteristics that predict the outcome also predict treatment status. This ensures that the control group is a good counterfactual for the treatment group — if the students in the hybrid class had instead taken the traditional class, they would have gotten the same grades as the students who did take the traditional class.

    Even though we don’t need to worry about bias from student characteristics, there could be other omitted variables. Give an example of an omitted variable that could be causing bias. Explain why, using the two conditions for OVB.

    Professor characteristics like experience, clarity, or quality of instructional materials will

    be correlated with final grades, and may also be correlated with hybrid since we only have one time period in our cross-sectional data.

    You explain these concerns to ASU and convince them to allow you to collect data for another 3 semesters. By now, every professor has taught both the hybrid and traditional course twice. Your new data set includes a professor ID, average final grade given, dummy for being the new Econ 101, and the semester in which it was taught (1, 2, 3, or 4).

    Now what kind of data are you working with? What is the unit of observation?

    Now we have panel data, on each professor in each semester. The unit of observation is a professor-semester, i.e., Villas-Boas in Spring 2018, Villas-Boas in Fall 2017,…, etc.

    Explain what kind of fixed effects you plan to include in your regression. Give an example of an omitted variable that each fixed effect controls for.

    Now I can include both professor fixed effects and time fixed effects. Professor fixed effects control for all aspects of a professor that do not change over time. One example might be the number of office hours that each professor offers each week. Time fixed effects control for anything that might affect the grades in every class within the same time period (in this case, a semester). For example, maybe there was a staff strike in Spring 2018 which affected students’ access to library study space.

    Do you expect the coefficient from the simple, univariate regression to change? Why or why not?

    Yes — now that we’ve controlled for professor characteristics like quality, I think the coefficient on hybrid will change. I think that it is likely that hybrid was correlated with professor quality in the simple univariate model, and since it is also correlated with grades, this caused OVB. Now that we have included professor fixed effects, we have removed this OVB, so b1 should change.

    Question 3. We are really concerned about the flu outbreak in the college campuses in the US. We collect data for a random sample of college students in 4 campuses for three years. An observation is whether a student in campus j in year t has the flu (HASFLU). We also have data on whether the student got the flu shot (SHOT) and whether the student lives in the dorm (DORM). In addition, we collect data on two characteristics of the 4 campuses, namely, on whether they are a private university or not (PRIVATE), and on the number of students in each campus per year (N).

    Please test whether the two observed characteristics of the campuses significantly affect the probability of getting the flu, using the estimates from logit models in Stata below


    Model 1

    logit HASFLU SHOT DORM N PRIVATE

    Logistic regression Number of obs = 230800

    LR chi2(6) = 121.39

    Prob > chi2 = 0.0000

    Log likelihood = -372.90 Pseudo R2 = 0.1179

    ——————————————————————————

    inlf | Coef. Std. Err. z P>|z| [95% Conf. Interval]

    ————-+—————————————————————-

    SHOT | -.0350754 .0080669 -4.35 0.000 -.0508862 -.0192646

    DORM | .2575602 .0409102 6.30 0.000 .1773777 .3377427

    PRIVATE | -.0576886 .0128004 -4.51 0.000 -.0827769 -.0326003

    N | .484777 .1980748 7.50 0.000 1.872996 1.096558


    Model 2

    logit HASFLU SHOT DORM

    Logistic regression Number of obs = 230800

    LR chi2(6) = 101.39

    Prob > chi2 = 0.0000

    Log likelihood = -392.90 Pseudo R2 = 0.0779

    ——————————————————————————

    inlf | Coef. Std. Err. z P>|z| [95% Conf. Interval]

    ————-+—————————————————————-

    SHOT | -.0450754 .0080669 -4.75 0.000 -.0518862 -.0182646

    DORM | .2575602 .0409102 6.30 0.000 .1773777 .3377427

    Perform the 5 steps in hypothesis testing.

    1. H0: βprivate= βN=0

    HA: either βprivate or βN or both are not equal to 0

    2. test statistic= 2(LLUR-LLR) = 2(-372.90+392.90)=40

    3. The critical value comes from a chi square distribution with q=2 degrees of freedom. At a 95% confidence level, c=5.99

    4. 40>5.99 so we reject the null hypothesis

    5. At a 95% confidence level, there is statistical evidence to support that whether a school is private or public and the number of students at that school jointly affect whether a student has the flu.

    Now, for b) and c), below are the estimated marginal effects from model 1.

    Marginal effects after logit

    y = Pr(HASFLU) (predict)

    = .57425363

    ——————————————————————————

    variable | dy/dx Std. Err. z P>|z| [ 95% C.I. ] X

    ———+——————————————————————–

    Shot | -.0085755 .00197 -4.34 0.000 0.3429

    DORM | .06297 .00999 0.1269

    PRIVATE | -.0141041 .00313 -4.51 0.000 -.020229 -.007979 0.5378

    N | .3630078 .04862 7.47 0.000 -.458302 -.267713 100005

    ——————————————————————————

    (*) dy/dx is for discrete change of dummy variable from 0 to 1

    Construct the 95 % confidence interval for the marginal effect of the flu shot on having the flu. (show your work and use the space provided)

    CI= [-0.0085755±1.96*0.00197]=[-0.0124,-0.0047]

    Please test whether being in a dorm affects the probability of having the flu. (5 steps)

    1. H0: βdorm=0

    HA: βdorm≠0

    2. test statistic= 0.06297/0.00999=6.303303

    3. At the 95% confidence level, with n-k-1=230,800 – 5 degrees of freedom, the critical value is 1.96.

    4. 6.303>1.96 so we reject the null hypothesis

    5. At a 95% confidence level, there is statistical evidence to support that whether a student lives in a dorm affects whether he or she gets the flu, holding constant whether the student has the flu shot, goes to a private university, and the size of the university.

    Question 4. On January 25, 2018, the EPA loosened air pollution regulations. Previously, facilities that were above some air pollution threshold, such as 10 tons per year, were forced to forever reduce their emissions significantly, such as to below half of the threshold. Since the change in January, facilities that have polluted above the threshold of 10 tons per year now only need to get their emissions below the threshold.

    You want to use this policy change to study how air pollution affects asthma rates in children. You have data on facility location, facility emissions, whether the facility is in violation of emissions standards, and zip-code level child asthma rates.

    You decide to run a differences-in-differences analysis. What is your treatment group? What is your control group?

    This study could be run at the zip code level, or at the facility level if you aggregate the asthma rate data in some way to estimate asthma rates around a facility.

    A zip code or facility is treated if it is affected by the policy. Therefore, it is treated if it was previously forced to reduce emissions by a large amount. So the treatment group is facilities (or zip codes with facilities) that had ever violated the emissions threshold BEFORE January 25, 2018. The control group is facilities that had never violated the emissions threshold before January 25, 2018.

    Write down the differences-in-differences regression equation you would use to conduct this analysis. Which coefficient gives the treatment effect? Do you expect this variable to be positive or negative?

    Assuming we have

    Economics homework help

    Spring 2022 Econ 102 – Practice Mid-term Exam – Homework 3

    Prof. Saki Bigio

    May, 2022

    READ THESE INSTRUCTIONS before you start writing: The exam has 4 questions. Your maximal score is 100
    points. You MUST answer the Mandatory Multiple Choice Question (as the name implies, it is mandatory).
    Among the three other questions, you can CHOOSE two of the three non-mandatory to be answered. You can get
    partial credit on all questions. As such, you have a total of 20 mandatory points the mandatory question, plus 80
    points from questions of your choice. Use your time wisely

    1. Mandatory Multiple Choice Question (20 Points – 5 points each).

    1.A Consider the Ricardian Equivalence Proposition learned in class. Suppose that a government increases its
    de�cit B. In doing so, it can either lower taxes τ1 while keeping government expenditures {G1, G2} �xed over
    time, or it can �x τ1 while increasing G1. According to the Ricardian Equivalence Proposition, which of the
    following answers are FALSE (mark all of them):

    a) The increase in the government de�cit by more spending will lead the government to raise more taxes in
    the future.

    b) The increase in the government de�cit by lowering taxes will lead to an increase in private consumption
    today because it stimulates the economy.

    c) The increase in the government de�cit by lowering taxes will lead to an identical increase in private savings
    that exactly o�sets the reduction in taxes, thereby having no e�ect on private consumption.

    d) The increase in the de�cit by spending more will lead to a reduction in private expenditures.

    e) The increase in the de�cit will have an e�ect on output, regardless of the format.

    1.B Recently, �Pop Economist� Noah Smith recently criticized the New York Times saying: �Jesus Christ, New
    York Times. What kind of economic journalism is this? IMPORTS DO NOT SUBTRACT FROM GDP!
    Imports subtract from exports but they add to consumption!! They’re simply neutral for GDP!�

    See the tweet here…

    The tweet provoked a lot of discussion. Mark the following correct statements:

    a) Indeed, if an import is consumed at cost: GDP does not increase.

    b) Indeed, we cannot claim that GDP has fallen because M increased.

    c) If imports are stored at cost as inventory: GDP does not increase and I increases.

    d) If imports are combined with local labor to produce more output: imports will increase GDP increasing
    labor.

    1

    1.C Fatih lives and works in the US, and is planning to go on a trip to Australia for 1 month. Fatih believes that
    the GDP per capita in Australia is US$ 45,000, the exact same amount as in the US. Fatih had planned to take
    US$ 5000 dollars for his trip, but he reads an article in The Economist magazine and realizes (to his surprise)
    that GDP per capita in Australia is only US$ 20,000 once you translate nominal GDP into purchasing power
    parity (PPP) � a number that is much lower than what Fatih initially thought. Fatih also learned that capital
    per worker in Australia is the same as in the US. Which of the following reactions ARE CONSISTENT with
    what Fatih learned in class:

    a) �Australia is much more expensive than I thought. I should try to take a bit more of money or stay a
    shorter period because my money will be worth much less over there. I will only be able to buy half the stu�
    I was planning to.�

    b) �I earn much more than I thought in the US, relative to what Australians earn. I should go and spend
    more because Australia is cheaper.�

    c) �The amount of physical goods produced in Australia is probably much lower than what is produced in the
    US.�

    d) �Wow, productivity in Australia must be much higher than in the US. I should expect to �nd a much better
    educated population.�

    e) �GDP per capita in PPP terms provides no additional information. The fact that both economies have the
    same capital per worker and GDP per capita in nominal terms implies that, for the purpose of my trip, both
    economies are identical.�

    1.D The capital share in Peru is α = 2/3. Relative to last year, capital increased by 30%, labor hours increased by
    10%, and total output increased by 10%. Which is the closest approximate number for the growth in Total
    Factor Productivity, A? For this question, use the growth accounting formula given in class to deduce the
    change in A.

    a) 12% b) 6% c) 0% d) -6% e) -12%

    2

    2. Numerical Question on the Solow Model (40 Points, easy). Let’s consider the Solow model with
    population and technology growth. The steady state for capital per e�ective labor k̃ss is given by

    k̃ss =

    (
    s

    δ + n + x̃ + nx̃

    ) 1
    1−α

    ,

    Answer the following questions.
    a. How will the steady state value k̃ss change in response to a 50% decrease in the saving rate? To answer this
    question, let the old and new steady state values be denoted by k̃oss and k̃

    n
    ss, respectively. Then, express k̃

    n
    ss in

    terms of k̃oss and you should be able to obtain a concrete expression for their ratio. (10 points)
    b. Let’s assume α = 0.5, s = 0.05, δ = 0.15, n = 0.05 and x̃ = 0.01 . Find an exact value for capital in steady
    state. (10 points)
    c. If the savings rate is increased to s = 0.1, what is capital in the new steady state? Is it higher or lower than
    in the original steady state? Provide the economic intuition behind your result. (20 points)

    3

    3. Analytic Question on Durable Consumption (40 Points).
    It is known that durable consumption is more sensitive to interest rates and expected income. In this question,

    we investigate if this is the case in the context of the model we have been studying. We investigate the following
    decision:

    U (c1, c2) = max
    {c1,c2}

    1

    2


    c1 + x0 +

    β

    2


    c2

    subject to the following budget constraints:
    The time 1 budget constraint:

    a = y1 − c1
    and the time 2 budget constraint:

    c2 = y2 + (1 + r) a.

    The novelty is that x0 is now a variable to represents past purchases of goods 1. You can think of this as a car.
    In turn, we have that x1 = c1 so x1 is consumption derived utility in period 2 derived from past purchases. For this
    question assume that β (1 + r) = 1.

    Answer the following questions. (40 points)
    a. (5 points, easy) Substitute out a from both budget constraints, the one at time 1 and time 2, to write a single
    intertemporal budget constraint.
    b. (5 points, easy) Show that the Euler equation (the equation that relates the marginal utility of consumption
    to the interest rate and the discount factor β), implies:

    c1 + x0 = (β (1 + r))
    −2c2.

    Hint: form the Lagrangean of this problem, using your answer in (a). Then, obtain the �rst-order conditions and
    combine them.

    c. (5 points, easy) Suppose that x0 = 0. Then, argue that:

    c2 = (β (1 + r))
    2
    c1

    and substitute the condition into the intertemporal budget constraint to obtain the consumption shares:

    c1 =
    1

    1 + β2 (1 + r)

    (
    y1 +

    y2
    1 + r

    )
    c2

    1 + r
    =

    β2 (1 + r)

    1 + β2 (1 + r)

    (
    y1 +

    y2
    1 + r

    )
    .

    c. (10 points, moderate) Follow the same steps, to obtain an expression for the case where x0 > 0.
    d. (15 points, harder) Consider now the case where y1 = y2 = ȳ. We now study an increase in ȳ by the amount
    ∆. Compute the rate of change of expenditures with respect to ∆ for the case where x0 = 0 and x0 > 0. For
    this question, we assume that x0 < ȳ.

    4

    4. Analytic Question on Good and Bad Governments. (40 points)
    For the purpose of this question you can assume NO population growth NOR technology growth (namely, you
    should solve the question with n = 0 and x = 0). Consider a version of the Solow model with energy. The law of
    motion for aggregate capital in the Solow model is given by

    Kt+1 = It + (1 − δ)Kt,

    where It is total investment in this economy. Private investment is:

    It = sY
    D
    t

    where Y Dt is disposable income, given by:
    Y Dt = Yt − Et.

    Assume that Et = εYt, with ε ∈ (0, 1) is a parameter that captures how much the economy uses of energy. The
    goal of this question is to study the uses of energy.

    a. (5 points, easy) Provide an expression for Investment It only as a function of total income Yt (as opposed to
    Y Dt ). Hint: replace Et and Y

    D
    t out from the previous equations given to you.

    b. (5 points, easy) Now suppose we have a good government and that uses the energy resources Et for production.
    In particular, assume that the production of goods now requires energy. Assume that the production function
    is now:

    Yt = AssE
    1−γ
    t K

    γα
    t L

    γ(1−α)
    ss

    The idea is that 1 − γ is the parameter that governs the decreasing returns to energy. Substitute Et = εYt into
    the equation above. Show that GDP can be re-written as:

    Yt = A
    1
    γ
    ssε

    1−γ
    γ Kαt L

    (1−α)
    ss .

    c. (10 points, harder) Using the steps you’ve learned in class to obtain the steady-state in the standard Solow
    model, �nd steady state output in this version. Explain how you would obtain the optimal expenditure of ε
    that maximized GDP per capita in the long-run. Hint: this relates to the golden rule.
    d. (10 points, harder) Instead, now assume that a fraction of the government’s investment in energy is diverted
    to corrupt activities. In particular, assume that

    Y Dt = Yt − Et

    but now, only a fraction λ < 1 of the energy investments are actually spent in energy:

    Et = λεYt.

    For any given level of ε, what is the e�ect of λ on steady-state output?
    e.(10 points, harder) Assume now that we learn that energy causes pollution and environmental damage. Namely,
    assume that the production function changes to

    Yt = AssE
    1−γ
    t K

    γα
    t L

    γ(1−α)
    ss X

    −β
    t

    where Xt is pollution given by:
    Xt = Et.

    Find steady-state output and argue that β > 0 will reduce steady-state output. If pollution is unobservable,
    would it appear as less TFP?

    5

    Economics homework help


    Discussion 175 words more each question

    1.(Article 1. 1) The authors point to in the various key ideas that promi- nent economists (like Gregory Mankiw) consider to be important in economic theorizing. Of the assumptions they list, which ones seem most reasonable and unreasonable to you? Which objections do you think succeed and which do not?

    2.(Article 1. 5) According to neoclassical theory, how do markets deliver efficient results if all ” barriers to exchange are removed? In what sense are these results efficient ?

    (Article 1. 5) How is the word ” freedom defined by neoclassical economists? What freedoms do they argue workers lose under regulated labor markets? How does this compare to your view of what kinds of freedoms are valuable?

    (Article 1. 5) Does the unfettered operation of the market mechanism deliver equity to society? In your view, what would fair labor-market processes or out- comes look like?

    3. (5. 2) In what ways do these articles show that corporations controlthe marketplace of ideas What are the possible consequences? What, anything, should be done about it?

    4.Article 5. 3) What are some examples of industries with enough market concen- tration to count as” monopolized What are the causes of market concentration in different industries? What are some of the negative consequences of market concentration?

    Economics homework help

    This task is worth 40% of your overall grade for this subject and substitutes the final exam.

    Due date: Sunday the 11th of May

    Formalities

    · Minimum length of the assignment 1500 words – Maximum 2000 words.

    · Essay form

    · Relate your answers to the concepts delivered in class.

    · Font: Arial 12,5pts. Line-spacing: default. Text-align: Justified.

    · Bibliography/References in Harvard style.

    · You may use Appendixes. These and the References do not count for the total wordcount.

    Look at the following discussion topic and answer the related questions:

    Topic

    Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They have a presence in many markets / Europe, North America, Brazil, Russia, China and they have recently established a regional office for the Gulf Area in Dubai in the UAE. Their biggest market, though, in this area is Saudi Arabia and the company is coming under pressure from the Saudi Ministry of Trade to relocate its Gulf office to Riyadh.

    Question 1

    Identify the economic indicators you consider would be of most relevance to the company in making a decision like this and use them to compare the two economies. (Related to the first evaluation criteria – see table below)

    Question 2

    Consider the political stability of both countries – what factors contribute to its stability/volatility? (Related to the second evaluation criteria – see table below)

    Question 3

    Analyse the market for beauty treatments in the two countries and compare the needs of the women for dibimilano products and services. (Related to the third evaluation criteria – see table below)

    Question 4

    On the basis of your analysis, recommend whether dibimilano should maintain their headquarters in Dubai, move them to Riyadh or look for another alternative. Remember to support your conclusions with your previous analysis.

    It assesses the following learning outcomes:

    · Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of exchange rates.

    · Evaluate, analyze and contrast economic decisions and their impact of the global business context.

    Economics homework help

    Macroeconomic Theory

    Week 6

    1 Chapter 6: Firms

    Households represented the demand side of the goods market and the supply side labor and �-

    nancial markets. This behavior is represented by the consumption demand function, the labor

    supply function and the private savings function respectively. Firms represent the opposite side

    of the market than households: the supply side of the goods market, and the demand side of the

    labor and �nancial market. Here we look at the �rms’ decision-making process that determines

    they optimal behavior.

    1.1 Some Preliminaries on Firm Technology

    ⇒ Firms utilize labor hired from households, nt, along with their current stock of capital goods,
    kt, to produce output, qt, via a production function, f(kt,nt).

    → Unless otherwise speci�ed, f(kt,nt) will have the following properties:

    1. f(·) is twice continuously di�erentiable in each argument

    2.
    ∂f

    ∂kt
    ,
    ∂f

    ∂nt
    > 0→ more inputs generate more output ⇒ positive marginal product (MP)

    3.
    ∂2f

    ∂k2t
    ,
    ∂2f

    ∂n2t
    < 0 → MP increases a decreasing rate ⇒ diminishing MP

    Graphically, a production function that satis�es the properties of continuous, positive, and

    diminishing marginal production looks like the following in two dimensions, in (q,{k,n}) space:

    ⇒ Capital is accumulated across time through a �ow of real net investment1:

    invnett = kt+1 − (1−δ)kt (1)

    where δ is the rate of economic depreciation on physical capital.

    → Capital has a `time-to-build’ property, where resources spend on investment today do not
    become productive until the future period.

    1The textbook incorrectly calls net investment in equation (1) ‘gross investment’.

    1

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    1.2 Two-Period Firm Model

    Figure 1: Timeline of Events for Model

    © Sanjay K. Chugh 77 Spring 2008

    Period 2Period 1

    Begins with
    initial capital k1

    Chooses quantity of labor to
    hire n1 and level of capital for

    next period k2, and then
    produces output f(n1, k1)

    Chooses quantity of labor to
    hire n2 and level of capital for

    next period k3, and then
    produces output f(n2, k2)

    End of the
    economy

    Figure 25. Timing of events for the firm in the two-period model.

    Before we study the firm’s investment decision, let’s briefly consider its decision about
    how many workers to hire. In fact, this is something with which you are already familiar
    from basic microeconomics. The firm’s demand for labor is a derived demand. To
    briefly review: in period 1, the capital 1k is fixed, so that hiring additional workers
    increases total output at an ever-decreasing rate according to the law of diminishing
    marginal product. The price 1P is determined by the market (think perfect competition
    here), so that marginal revenue product (defined as price of the output good times
    marginal product) declines the more labor the firm hires. The derived demand curve for
    labor is simply the marginal revenue product curve, as shown in Figure 26.

    N
    om

    in
    al

    af
    te

    r-
    ta

    x
    w

    ag
    e

    hours of labor

    Labor demand

    1.2.1 Objective and Constraints

    ⇒ The Firm’s objective is to choose inputs, kt and nt, to product output, f(kt,nt), at pro�t
    maximizing levels.

    → They take as given the nominal wage rate, Wt, the nominal interest rate, it, and the goods
    price Pt.

    • Lifetime (or Intertemporal) Pro�t Function: expresses the present discounted value
    of pro�ts. In nominal terms:

    Profit = P1f(k1,n1)−P1invnet1 −W1n1 +
    P2f(k2,n2)

    1 + i

    P2inv

    net
    2

    1 + i

    W2n2
    1 + i

    (2)

    → Unlike the household’s optimization problem, we are setting up the �rm’s problem such that the
    objective function and budget constraint are in one equation. One way to think about this is that

    the �rm wants to produce the pro�t maximizing amount of output over their two-period planning

    horizon subject to a constraint that relates present discounted value of output (available resources)

    to present discounted value of expenses on investment and labor (possible expenditures), where

    investment is de�ned in Equation 1.

    → The pro�t function can be expressed in real terms by application of the Fisher Equation.

    1.2.2 Optimal Choice

    The �rm chooses the optimal (k2∗,n1∗,n2∗) bundle that maximizes their lifetime pro�t function.
    → k2,n1, and n2 are the endogenous variables
    → P1, P2, W1, W2, and i are the exogenous variables

    → Initial and Terminal conditions: In order to get the full solution to the model, we have to
    make assumptions about k1 and k3 since Profit

    ∗ and inv∗t will depend on their values. However,

    we can still gain economic intuition by characterizing the solution with optimality conditions and

    assuming k1 and k3 are exogenous.

    2

    → For the �rm’s problem, we will not be using the method of Lagrange multiplier (although one
    could). Instead we will be using the substitution method whereby we substitute the investment

    �ow constraint from Equation (1) into the pro�t function in Equation (2).

    max
    n1,n2,k2

    P1f(k1,n1)−P1invnet1 −W1n1 +
    P2f(k2,n2)

    1 + i

    P2inv

    net
    2

    1 + i

    W2n2
    1 + i

    subject to: invnett = kt+1 − (1−δ)kt for t = 1,2

    or alternatively:

    max
    n1,n2,k2

    P1f(k1,n1)−P1 (k2 − (1−δ)k1)−W1n1+
    P2f(k2,n2)

    1 + i

    P2 (k3 − (1−δ)k2)

    1 + i

    W2n2
    1 + i

    (3)

    Taking FOCs for n1 and n2:

    n1 : P1
    ∂f

    ∂n1
    −W1 = 0 ⇒

    ∂f

    ∂n1
    =
    W1
    P1

    (4)

    n2 : P2
    ∂f

    ∂n2
    −W2 = 0 ⇒

    ∂f

    ∂n2
    =
    W2
    P2

    (5)

    ⇒ Equations (4) and (5) are the Firm’s Labor Optimality Condition.
    → This optimality condition has an important economic interpretation: The �rm hires labor

    up until the point where the marginal product of labor is equal to the real wage (i.e. the marginal

    cost of the last unit of labor hired). Notice that there is no intertemporal aspect of this condition,

    and that it holds for each period t.

    Taking the FOC for k2:

    k2 : −P1 +
    P2
    1 + i

    ∂f

    ∂k2
    +
    P2(1−δ)
    1 + i

    = 0

    ∂f

    ∂k2
    + (1−δ) =

    P1
    P2

    (1 + i)

    ∂f

    ∂k2
    + (1−δ) =

    1 + i

    1 + π2

    ∂f

    ∂k2
    + (1−δ) = 1 + r2


    ∂f

    ∂k2
    = r2 + δ (6)

    ⇒ Equations (7) is the Firm’s Capital Optimality Condition.
    → This optimality condition has an important economic interpretation: The �rm invests into

    future capital up until the point where the marginal product of capital is equal to the real interest

    rate plus the depreciation rate (i.e. the opportunity cost of the last unit of capital purchased).

    Notice that since the �rm is choosing future capital, it is dated t + 1.

    3

    1.2.3 Labor and Capital Demand

    ⇒ The Labor Demand Function gives the optimal quantity of labor, nt∗ chosen by the �rm
    at every possible real wage rate, wt.

    → It is characterized by the �rm’s labor optimality condition for any period t:

    wt =
    ∂f

    ∂nt

    → Since we’re looking for the qualitative relationship between wt and nt at the �rm’s optimal
    choice, we could di�erentiate the optimality condition:

    ∂wt
    ∂nt

    =
    ∂2f

    ∂n2t
    < 0

    which says that the �rm’s demand curve is downward sloping in (nt,wt) space:

    ⇒ The Capital Demand Function gives the optimal quantity of future capital, kt+1∗ chosen
    by the �rm at every possible real interest rate, rt+1

    → It is characterized by the �rm’s capital optimality condition for any period t + 1:

    rt+1 =
    ∂f

    ∂kt+1
    + δ

    → Since we’re looking for the qualitative relationship between rt+1 and kt+1 at the �rm’s
    optimal choice, we could di�erentiate the optimality condition:

    ∂rt+1
    ∂kt+1

    =
    ∂2f

    ∂k2t+1
    < 0

    which says that the �rm’s demand curve is downward sloping in (kt+1,rt+1) space:

    4

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    ⇒ The �rm’s demand functions for capital and labor are considered derived demand func-
    tions, since the �rm’s demand for these inputs arises from the demand for their output.

    → Given a functional form for the production function q = f(kt,nt), one could derive the
    derived demand functions for n∗t and k


    t in terms of q and other exogenous parameters. This is

    done by substituting the speci�c functional form for the production function into each respective

    optimality condition, and re-arranging for the relevant endogenous variable.

    5

    • Chapter 6: Firms
      • Some Preliminaries on Firm Technology
      • Two-Period Firm Model

    Economics homework help

    · 1200 words MINIMUM (not including cover/reference pages)

    · Requirement is at least three scholarly articles

    · ONE the course textbook– Arnold, R.A. (2019). Economics (13th ed.). Cengage Learning.

    · TWO or more of the choices using References below.

    Kalimeris, P. (2018). Ecce Homo-Economicus? The Dr. Jekyll & Mr. Hide syndrome of the economic man in the context of natural resources scarcity and environmental externalities. Journal of Philosophical Economics12(1), 89–111.

    Artner, A. (2019). Accumulation of Advantage and Elimination of Scarcity—A Critique of the Neoclassical Approach. International Critical Thought9(4), 524–544. https://doi.org/10.1080/21598282.2019.1695532

    Albrecht, B. C. (2017). Positive public economics: reinterpreting ‘optimal’ policies. Journal of Economic Methodology24(1), 90–103. https://doi.org/10.1080/1350178X.2017.1279741

    Malek, N. P., Hall, J. C., & Hodges, C. D. (2016). The relationship between economics and ethics and the effectiveness of normative economics on student attitudes and learning. Journal of Economics and Economic Education Research1, 16.

    Mert, M. (2018). Measuring economic growth using production possibility frontier under Harrod neutrality. International Journal of Engineering Business Managementhttps://doi.org/10.1177/1847979018768416 

    For the Unit 1 Complete assignment, write (minimum of 1200 words) which addresses the questions and statements below. When finished, it should demonstrate a thorough understanding of the READ and ATTEND sections. A minimum requirement is at least three scholarly articles,

    1. Define the term “scarcity”. Explain how scarcity applies even in a “rich” country like the United States.

    2. Contrast positive economics and normative economics? Give an example of each.

    3. The person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits because it has been proven that cigarette smoking increases one’s chances of getting lung cancer. Evaluate the part of the statement that reads “the person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits”?

    4. Describe how each of the following would affect the U.S. PPF:

    (a) a war takes place on U.S. soil,

    (b) the discovery of a new oil field,

    (c) a decrease in the unemployment rate, and

    (d) a law that requires individuals to enter lines of work for which they are not suited.

    5. Explain the condition that gives a PPF a bowed outward (concave downward) shape. Identify an example of this law.

    Economics homework help

    Grader – Instructions Excel 2019 Project

    Exp19_Excel_AppCapstone_IntroAssessment_Travel

    Project Description:

    You are considering several cities for a vacation. In particular, you are interested in Washington DC, Philadelphia, and Boston. You will format a list of memorials in DC, add Sparklines to compare the number of visitors over a 15-year period, and create a bar chart to illustrate annual visitors at each memorial. In addition, you will create a table of sightseeing locations, sort and filter the data, apply conditional formatting, and add a total row to display average time needed to spend at each memorial. Finally, you will complete a worksheet by adding formulas to compare estimated major expenses for each city.


    Steps to Perform:

    Step

    Instructions

    Points Possible

    1

    Start Excel. Download and open the file named Exp19_Excel_AppCapstone_IntroAssessment_ Travel.xlsx. Grader has automatically added your last name to the beginning of the filename.

    0

    2

    On the DC sheet, check the spelling and correct all misspelled words.

    2

    3

    On the DC worksheet, select the range A4:G4, wrap the text, apply Center alignment, and apply Blue, Accent 5, Lighter 60% fill color.

    6

    4

    On the DC worksheet, merge and center the title in the range A1:G1. Apply Blue, Accent5 cell style and bold to the title.

    4

    5

    On the DC worksheet, change the width of column A to 34.

    3

    6

    On the DC worksheet, select the range C5:F10 and insert Line Sparklines in the range G5:G10.

    4

    7

    On the DC worksheet, select the range G5:G10, display the high point sparkline marker, and change the color of the high point markers to Dark Red.

    4

    8

    On the DC worksheet, select the range G5:G10, apply Same for All Sparklines for both the vertical axis minimum and maximum values.

    2

    9

    On the DC worksheet, select the ranges A4:A10 and C4:F10 and create a clustered bar chart. Apply the Monochromatic Palette 12 chart color. Apply the gradient fill to the chart area. Do not change the default gradient options.

    5

    10

    Cut the chart and paste it in cell A13. Change the chart height to 6″ and the chart width to 7″. Add Alt Text The bar chart shows the number of visitors to each memorial for the years 2002, 2007, 2012, and 2017.

    6

    11

    Change the chart title to Annual Visitors. Apply Blue, Accent 5, Darker 25% font color to the chart title and category axis labels. Change the value axis display units to Millions. Add Primary Minor Vertical gridlines to the chart.

    5

    12

    Apply data labels to the outside end of the 2017 data series. Apply Number format with 1 decimal place to the data labels.

    4

    13

    On the Places sheet, find all occurrences of BOS and replace them with Boston.

    2

    14

    On the Places sheet tab, convert the data to a table, assign the table name Tourist_Attractions, and apply Blue, Table Style Medium 2.

    4

    15

    On the Places sheet, freeze the top row.

    2

    16

    On the Places worksheet, sort the data by City in alphabetical order and then within City, sort by Sightseeing Locations in alphabetical order.

    3

    17

    On the Places worksheet, add a total row to display the average of the Time Needed column. Apply Number format with zero decimal places to the total.

    3

    18

    On the Places worksheet, select the values in the Time Needed column and apply conditional formatting to highlight cells containing values greater than 60 with Light Red Fill.

    3

    19

    On the Places worksheet, apply a filter to display only fees that are less than or equal to $10.

    3

    20

    On the Cities worksheet, click cell F4 and enter a formula that will subtract the Departure Date (B1) from the Return Date (B2) and then multiply the result by the Rental Car per Day value (F3).

    5

    21

    On the Cities worksheet, click cell E13. Depending on the city, you will either take a shuttle to/from the airport or rent a car. Insert an IF function that compares to see if Yes or No is located in the Rental Car? Column for a city. If the city contains No, display the value in cell F2. If the city contains Yes, display the value in the Rental Car Total (F4). Copy the function from cell E13 and use the Paste Formulas option to copy the function to the range E14:E18 without removing the border in cell E18.

    6

    22

    On the Cities worksheet, click cell F13. The lodging is based on a multiplier by City Type. Some cities are more expensive than others. Insert a VLOOKUP function that looks up the City Type (B13), compares it to the City/COL range (A7:B10), and returns the COL percentage. Then multiply the result of the lookup function by the Total Base Lodging (B5) to get the estimated lodging for the first city. Copy the function from cell F13 and use the Paste Formulas option to copy the function to the range F14:F18 without removing the border in cell F18.

    6

    23

    On the Cities worksheet, click cell H13 and enter the function that calculates the total costs for the first city, including airfare, shuttle or rental, lodging, and meals. Copy the function in cell H13 and use the Paste Formulas option to copy the function to the range H14:H18 without removing the border in cell H18.

    3

    24

    On the Cities worksheet, select the range E14:H18 and apply Comma Style with zero decimal places. Select the range E13:H13 and apply Accounting Number format with zero decimal places.

    3

    25

    On the Cities worksheet, in cell I2, enter a function that will calculate the average total cost per city. In cell I3, enter a function that will identify the lowest total cost. In cell I4 enter a function that will return the highest total cost.

    6

    26

    Group the three worksheets and create a footer with Exploring Series on the left side, the sheet tab code in the center, and the file name code on the right side.

    3

    27

    On the Cities worksheet, select Landscape orientation, set a 1″ top margin, and center the worksheet data horizontally on the page.

    3

    28

    Save and close Exp19_Excel_AppCapstone_IntroAssessment_Travel.xlsx. Exit Excel. Submit the file as directed.

    0

    Total Points

    100

    Created On: 06/28/2021 1 Exp19_Excel_AppCapstone_IntroAssessment – Travel 1.4

    Economics homework help

    The case of IBM integrated
    supply chain division

    Introduction;
    Many organizations are recognizing that increased volatility and turbulence are becoming
    standard characteristics of their underlying markets. Developing an agile supply chain that
    allows such organizations to meet the variations in demand at an acceptable level of cost is
    now a major focus of many leading organizations Four components of supply chain agility
    can be named: customer sensitivity, virtual integration, process integration and network
    integration, all of which rely on the ability to easily and quickly be able to form deeply
    integrated information systems linkages with trading partners.

    IBM supply chain chain division.
    IBM is a global leader in the development and manufacture of information technologies,
    which include computer systems, software, networking systems, storage devices and
    microelectronics. IBM had annual revenues in 2003 of $89bn, of which $43bn was from IT
    services, $28bn from hardware, $14.3bn from software and $3bn rental and financing. It has
    319,000 employees in 170 countries and its head offices are located in New York State.

    In their Annual Report for 2003, IBM set out their intention of increasing the agility of their
    entire organisation. They described how they wished to be able to respond to the volatility
    and turbulence in their markets by becoming what they described as an ‘on-demand’
    business. Such a business they believed had processes that are: responsive to any client
    demand, market opportunity or external threat; integrated end-to-end across the company
    and integrated across their partners, suppliers and clients.
    IBM operates within a complex supply network that handles over 78,000 products, with over
    3 million configurations. A key part of meeting their vision of becoming a highly responsive
    organisation was to improve the agility of this supply network. In January 2002 an Integrated
    SupplyChain Division (ISCD) was established to build ‘‘the most advanced and cost-effective
    on demand supply chain in the industry’’. The division works across multiple business units
    within IBM as shown in Fig. 1. The ultimate aim is for a customer to be able to place a single
    order for all of their goods from IBM, and suppliers to have a single point of reference within
    the organisation.

    Whilst the ISCD employs a number of means of communicating with suppliers and
    customers, including phone, fax, extranet and EDI, a major initiative for them is the use of
    the electronic hub E2Open, as depicted in Fig. 2. E2Open was established in 2000 by a
    consortium of leading organizations in the electronics industry. Originally established as an
    electronic trading marketplace, like many such organizations, E2Open found that
    establishing a viable trading community proved challenging and like other marketplaces they
    sought to evolve their offerings. E2Open has since positioned itself as a third party hub
    between organizations in the electronics industry that wish to achieve integration between
    their information systems.

    E2Open is based upon a ‘software-as-a-service’ model. It operates a platform and set of
    supply chain applications, which organizations in the electronics industry can use, as they
    need them, to connect with their customers and suppliers who are also using E2Open. The

    CASE STUDY 1

    services can be accessed by a browser or can be integrated into an organization’s existing
    back-end systems. E2Open offers systems that support inventory and order management,
    including request for quotations (RfQs) and materials content information, and the tracking of
    orders, shipments and deliveries.

    Fig 1. Integrated supply chain division.

    The services and applications offered byE2Open, and consequently those used by IBM are
    based upon web services. Use of web services allows IBM to publish to its trading partners
    via the UDDI directory hosted byE2Open, details of and access to its on-line processes,
    such as purchase orders and RfQs. This directory forms the intelligence behind the any-to
    any integration enabled byE2Open and is described as the ‘‘switch board for the network’’.
    IBM’s suppliers and customers also making use of E2Open can easily make use of these
    services to exchange information and trade with IBM.

    Fig 2. IBM’s use of E20pen.

    IBM are using E2Open’s services to improve communications with both their customers and
    suppliers, that is for both the management of supply and demand. An important attraction of
    the many-to-many model of E2Open is the ability for multiple organizations in the supply
    chain to connect to each other, allowing improved performance of the entire chain since
    ‘‘information from any tier in the supply chain is available to any other organization in the
    chain’’.

    In order to support many-to-many trading, E2Open provides various support or enabling
    services. These include security, registration and authorization procedures, legal

    CASE STUDY 2

    documentation and high-level business process information such as standard business
    process maps, for example, RosettaNet Partner Interface Process (PIPs) maps. They also
    provide translation services between existing standards.

    The use of E2Open byIBM and its web service-based applications enables a number of the
    vital components of the agility paradigm. An important aspect is that rather than encourage
    the development of disparate systems within different organizations within a supply network;
    E2Open’s shared services encourage standardization across the industry. This in turn allows
    IBM, or other industry participants, to easily form electronic linkages with their trading
    partners and to reconfigure these when market conditions require.

    “-Because this is a shared product, which is being driven by the industry, rather than just
    IBM, we will be moving to a more industry standard environment. We are looking at the
    ability of the software to manage the supply chain, as opposed to our internal key
    performance indicators. With an ERP system we buy it and implement it internally—it is
    within your four walls in terms of processes and functions-”

    The shared services model also provides the flexibility to match changing demand, another
    component of agility.

    “If we built the infrastructure in IBM, we cannot have the flexibility we need. We need to build
    the infrastructure size so it can meet peak capacity(for example quarter end order volumes)
    and if we do not have demand that utilizes this capacity continually, we are not exploiting our
    infrastructure, but are still paying for it.”

    Utilizing an organization whose core competence is in connecting up supply networks, rather
    than doing it themselves, enables IBM to significantly reduce the costs of connecting its
    systems to those of its customers and suppliers, and the time taken, once again contributing
    to increased agility.

    “The cost per connection is 50% lower for connecting and managing a new business partner
    via E2Open when compared to doing these activities ourselves”

    As a result of adopting E2Open’s services, IBM has reduced the time taken to respond to a
    customer order from over one hundred hours, to less than ten. The main reasons for this
    were the removal of people from the process and the elimination of batch processes, which
    previously ran only once a day. From an internal perspective, the elimination of manual
    ‘touches’ in the order-to pay process is one of the main benefits that IBM attributes to
    adopting E2Open’s services. For example, email orders that previously had to be manually
    entered into an ERP system are now passed directly from the systems of suppliers. This
    addresses a collective interest, ‘‘driving down the cost of these low value transactions,
    increases the profits for all of us and make us more competitive’’.

    Source: “The Role of Emergent Information Technologies and Systems in
    Enabling Supply Chain Agility” E.Daniel and M. Mohdzain. International Journal of
    Information Management October 2015.

    CASE STUDY 3

    Economics homework help

    Macroeconomic Theory

    Week 6

    1 Chapter 6: Firms

    Households represented the demand side of the goods market and the supply side labor and �-

    nancial markets. This behavior is represented by the consumption demand function, the labor

    supply function and the private savings function respectively. Firms represent the opposite side

    of the market than households: the supply side of the goods market, and the demand side of the

    labor and �nancial market. Here we look at the �rms’ decision-making process that determines

    they optimal behavior.

    1.1 Some Preliminaries on Firm Technology

    ⇒ Firms utilize labor hired from households, nt, along with their current stock of capital goods,
    kt, to produce output, qt, via a production function, f(kt,nt).

    → Unless otherwise speci�ed, f(kt,nt) will have the following properties:

    1. f(·) is twice continuously di�erentiable in each argument

    2.
    ∂f

    ∂kt
    ,
    ∂f

    ∂nt
    > 0→ more inputs generate more output ⇒ positive marginal product (MP)

    3.
    ∂2f

    ∂k2t
    ,
    ∂2f

    ∂n2t
    < 0 → MP increases a decreasing rate ⇒ diminishing MP

    Graphically, a production function that satis�es the properties of continuous, positive, and

    diminishing marginal production looks like the following in two dimensions, in (q,{k,n}) space:

    ⇒ Capital is accumulated across time through a �ow of real net investment1:

    invnett = kt+1 − (1−δ)kt (1)

    where δ is the rate of economic depreciation on physical capital.

    → Capital has a `time-to-build’ property, where resources spend on investment today do not
    become productive until the future period.

    1The textbook incorrectly calls net investment in equation (1) ‘gross investment’.

    1

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    1.2 Two-Period Firm Model

    Figure 1: Timeline of Events for Model

    © Sanjay K. Chugh 77 Spring 2008

    Period 2Period 1

    Begins with
    initial capital k1

    Chooses quantity of labor to
    hire n1 and level of capital for

    next period k2, and then
    produces output f(n1, k1)

    Chooses quantity of labor to
    hire n2 and level of capital for

    next period k3, and then
    produces output f(n2, k2)

    End of the
    economy

    Figure 25. Timing of events for the firm in the two-period model.

    Before we study the firm’s investment decision, let’s briefly consider its decision about
    how many workers to hire. In fact, this is something with which you are already familiar
    from basic microeconomics. The firm’s demand for labor is a derived demand. To
    briefly review: in period 1, the capital 1k is fixed, so that hiring additional workers
    increases total output at an ever-decreasing rate according to the law of diminishing
    marginal product. The price 1P is determined by the market (think perfect competition
    here), so that marginal revenue product (defined as price of the output good times
    marginal product) declines the more labor the firm hires. The derived demand curve for
    labor is simply the marginal revenue product curve, as shown in Figure 26.

    N
    om

    in
    al

    af
    te

    r-
    ta

    x
    w

    ag
    e

    hours of labor

    Labor demand

    1.2.1 Objective and Constraints

    ⇒ The Firm’s objective is to choose inputs, kt and nt, to product output, f(kt,nt), at pro�t
    maximizing levels.

    → They take as given the nominal wage rate, Wt, the nominal interest rate, it, and the goods
    price Pt.

    • Lifetime (or Intertemporal) Pro�t Function: expresses the present discounted value
    of pro�ts. In nominal terms:

    Profit = P1f(k1,n1)−P1invnet1 −W1n1 +
    P2f(k2,n2)

    1 + i

    P2inv

    net
    2

    1 + i

    W2n2
    1 + i

    (2)

    → Unlike the household’s optimization problem, we are setting up the �rm’s problem such that the
    objective function and budget constraint are in one equation. One way to think about this is that

    the �rm wants to produce the pro�t maximizing amount of output over their two-period planning

    horizon subject to a constraint that relates present discounted value of output (available resources)

    to present discounted value of expenses on investment and labor (possible expenditures), where

    investment is de�ned in Equation 1.

    → The pro�t function can be expressed in real terms by application of the Fisher Equation.

    1.2.2 Optimal Choice

    The �rm chooses the optimal (k2∗,n1∗,n2∗) bundle that maximizes their lifetime pro�t function.
    → k2,n1, and n2 are the endogenous variables
    → P1, P2, W1, W2, and i are the exogenous variables

    → Initial and Terminal conditions: In order to get the full solution to the model, we have to
    make assumptions about k1 and k3 since Profit

    ∗ and inv∗t will depend on their values. However,

    we can still gain economic intuition by characterizing the solution with optimality conditions and

    assuming k1 and k3 are exogenous.

    2

    → For the �rm’s problem, we will not be using the method of Lagrange multiplier (although one
    could). Instead we will be using the substitution method whereby we substitute the investment

    �ow constraint from Equation (1) into the pro�t function in Equation (2).

    max
    n1,n2,k2

    P1f(k1,n1)−P1invnet1 −W1n1 +
    P2f(k2,n2)

    1 + i

    P2inv

    net
    2

    1 + i

    W2n2
    1 + i

    subject to: invnett = kt+1 − (1−δ)kt for t = 1,2

    or alternatively:

    max
    n1,n2,k2

    P1f(k1,n1)−P1 (k2 − (1−δ)k1)−W1n1+
    P2f(k2,n2)

    1 + i

    P2 (k3 − (1−δ)k2)

    1 + i

    W2n2
    1 + i

    (3)

    Taking FOCs for n1 and n2:

    n1 : P1
    ∂f

    ∂n1
    −W1 = 0 ⇒

    ∂f

    ∂n1
    =
    W1
    P1

    (4)

    n2 : P2
    ∂f

    ∂n2
    −W2 = 0 ⇒

    ∂f

    ∂n2
    =
    W2
    P2

    (5)

    ⇒ Equations (4) and (5) are the Firm’s Labor Optimality Condition.
    → This optimality condition has an important economic interpretation: The �rm hires labor

    up until the point where the marginal product of labor is equal to the real wage (i.e. the marginal

    cost of the last unit of labor hired). Notice that there is no intertemporal aspect of this condition,

    and that it holds for each period t.

    Taking the FOC for k2:

    k2 : −P1 +
    P2
    1 + i

    ∂f

    ∂k2
    +
    P2(1−δ)
    1 + i

    = 0

    ∂f

    ∂k2
    + (1−δ) =

    P1
    P2

    (1 + i)

    ∂f

    ∂k2
    + (1−δ) =

    1 + i

    1 + π2

    ∂f

    ∂k2
    + (1−δ) = 1 + r2


    ∂f

    ∂k2
    = r2 + δ (6)

    ⇒ Equations (7) is the Firm’s Capital Optimality Condition.
    → This optimality condition has an important economic interpretation: The �rm invests into

    future capital up until the point where the marginal product of capital is equal to the real interest

    rate plus the depreciation rate (i.e. the opportunity cost of the last unit of capital purchased).

    Notice that since the �rm is choosing future capital, it is dated t + 1.

    3

    1.2.3 Labor and Capital Demand

    ⇒ The Labor Demand Function gives the optimal quantity of labor, nt∗ chosen by the �rm
    at every possible real wage rate, wt.

    → It is characterized by the �rm’s labor optimality condition for any period t:

    wt =
    ∂f

    ∂nt

    → Since we’re looking for the qualitative relationship between wt and nt at the �rm’s optimal
    choice, we could di�erentiate the optimality condition:

    ∂wt
    ∂nt

    =
    ∂2f

    ∂n2t
    < 0

    which says that the �rm’s demand curve is downward sloping in (nt,wt) space:

    ⇒ The Capital Demand Function gives the optimal quantity of future capital, kt+1∗ chosen
    by the �rm at every possible real interest rate, rt+1

    → It is characterized by the �rm’s capital optimality condition for any period t + 1:

    rt+1 =
    ∂f

    ∂kt+1
    + δ

    → Since we’re looking for the qualitative relationship between rt+1 and kt+1 at the �rm’s
    optimal choice, we could di�erentiate the optimality condition:

    ∂rt+1
    ∂kt+1

    =
    ∂2f

    ∂k2t+1
    < 0

    which says that the �rm’s demand curve is downward sloping in (kt+1,rt+1) space:

    4

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    ⇒ The �rm’s demand functions for capital and labor are considered derived demand func-
    tions, since the �rm’s demand for these inputs arises from the demand for their output.

    → Given a functional form for the production function q = f(kt,nt), one could derive the
    derived demand functions for n∗t and k


    t in terms of q and other exogenous parameters. This is

    done by substituting the speci�c functional form for the production function into each respective

    optimality condition, and re-arranging for the relevant endogenous variable.

    5

    • Chapter 6: Firms
      • Some Preliminaries on Firm Technology
      • Two-Period Firm Model

    Economics homework help


    Discussion 175words more each question

    1.(Article 2. 6) Baker argues that trade agreements have protected U.S. doctors and pharmaceutical companies from international competition. Why do you think this has been the case, when other kinds of workers and industries have borne the full brunt of global competition: Would policies to reduce the prices charged by. the medical sector be desirable? What policies?

    (Article 2. 6) Baker argues that trade policy will often reflect domestic political and economic power and thus sees very little chance that the U.S. government would enact trade policy to allow for greater domestic competition in pharma- ceuticals and medical services. Since world suppliers are prohibited from coming to the United States to provide drugs and medical services, can Amdrican consumers” vote with their feet” and follow the logic of the market to other countries? Explain the phenomenon of” medical tourism and the relationship of U.S. trade partners Canada and Mexico to this market phenomenon

    2. (Article 4. 6) App-based gig employers like Uber and DoorDash say their apps let you work when you can and to be your own boss. What are some of the down- sides associated with these jobs? How do jobs like this help companies shift the costs of production?

    3. (Article 9. 1) What is the basis of supply-siders claim that lowering the highest mar ginal tax rate will generate more tax revenue? What are the main arguments against this view?

    4. (Article 9. 2) In what way have tax policies contributed to growing inequality in the United States How does U.S. tax policy compare to other developed countries, and how has that related to productivity growth?

    5. (Article 9. 3) Why does John Miller think that state-level taxes on millionaires will not lead to tax-fight?

    Economics homework help

    Discussion: Does money really make the world go ’round?

    Discuss the following statements: Without money, everything would become more expensive. In countries such as Zimbabwe, which had problems with high inflation, the increased use of another country’s currency (such as the U.S. dollar or South African rand) became common. Why do you suppose this occurred?

    Make sure you use the readings to support your discussion and don’t forget to cite and list your sources.

    In each discussion forum, students are expected to respond to the prompt by providing an informed, rigorous, and professional post. The initial post should be at least 150 words. In addition, students are required to respond at least 2 times to their classmates’ posts in a similarly informed, rigorous, and professional manner. Peer replies should be at least 100 words in order to qualify as substantive. Refer to the discussion rubric for more details.

    Discussion: Current Event

    Discussion 2

    For this assignment, you will mainly use IBISWorld to complete a Market Structure Analysis. This assignment was adapted from Core Microeconomics, Chiang, 3rd edition.

    Accessing IBISWorld:
    A. In the Online Library box, click “Additional Library Resources” on the Portal Home Page which takes you to the “Additional Library resources” screen.
    B. Scroll down and click on “IBISWorld” which will take you to the IBISWorld Home Page.
    C. Your journey into a selected industry begins by clicking on the first listing in the gray-shaded box, US Industry Reports (NAICS).

    1. Choose TWO specific products. These products MUST be sold in different industries. For example, you could choose domestic airline travel and dish detergent.

    Product #1:
    Product #2:

    2. Consider the Market Factors for each product. Please conduct some research on IBISWorld [and outside research] to address TWO to FOUR market factors listed in the Market Factors section below:

    a. Market Factor 1 – Number of firms:
    • Is the industry composed of many firms, each with limited or no ability to set the market price, such as local pizza places, or is it dominated by a large firm such as Wal-Mart that can influence price regardless of the number of other firms?

    b. Market Factor 2 – Nature of the product:
    • Are we talking about a homogeneous product such as salt, for which no consumer will pay a premium or are we considering leather handbags, which consumers may think vary greatly, in that some firms (Coach, Gucci) produce better goods than others?

    c. Market Factor 3 – Barriers to entry:
    • Does the industry require low start-up and maintenance costs such as found at a roadside fruit and vegetable stand, or is it a computer-chip business that may require $1 billion to build a new chip plant?

    d. Market Factor 4 – Price control (market power):
    • For example, pharmaceutical companies can set prices for new medicines, at least for a period of time, because of patent protection. Farmers and copper producers have virtually no control and get their prices from world markets. Possible market structures range from perfect competition, characterized by many firms, to monopoly, where an industry is made up of only one firm.

    Factor #1 explanation:
    Factor #2 explanation:

    3. Conduct some additional research and reflect upon the information that you have learned in this course, then make a determination regarding the type of market in which the product is sold. In other words, indicate whether it operates in a perfectly competitive, monopoly, oligopoly, or monopolistically competitive market. Justify your response.

    Type of Market:

    Justification:

    Once finished with the discussion, please complete an anonymous Course Evaluation Survey. Instructors are not able to view course evaluation reports until after the grade submission period is over. Thank you for your feedback.

    Economics homework help

    Grader – Instructions Excel 2019 Project

    Exp19_Excel_AppCapstone_IntroAssessment_Travel

    Project Description:

    You are considering several cities for a vacation. In particular, you are interested in Washington DC, Philadelphia, and Boston. You will format a list of memorials in DC, add Sparklines to compare the number of visitors over a 15-year period, and create a bar chart to illustrate annual visitors at each memorial. In addition, you will create a table of sightseeing locations, sort and filter the data, apply conditional formatting, and add a total row to display average time needed to spend at each memorial. Finally, you will complete a worksheet by adding formulas to compare estimated major expenses for each city.


    Steps to Perform:

    Step

    Instructions

    Points Possible

    1

    Start Excel. Download and open the file named Exp19_Excel_AppCapstone_IntroAssessment_ Travel.xlsx. Grader has automatically added your last name to the beginning of the filename.

    0

    2

    On the DC sheet, check the spelling and correct all misspelled words.

    2

    3

    On the DC worksheet, select the range A4:G4, wrap the text, apply Center alignment, and apply Blue, Accent 5, Lighter 60% fill color.

    6

    4

    On the DC worksheet, merge and center the title in the range A1:G1. Apply Blue, Accent5 cell style and bold to the title.

    4

    5

    On the DC worksheet, change the width of column A to 34.

    3

    6

    On the DC worksheet, select the range C5:F10 and insert Line Sparklines in the range G5:G10.

    4

    7

    On the DC worksheet, select the range G5:G10, display the high point sparkline marker, and change the color of the high point markers to Dark Red.

    4

    8

    On the DC worksheet, select the range G5:G10, apply Same for All Sparklines for both the vertical axis minimum and maximum values.

    2

    9

    On the DC worksheet, select the ranges A4:A10 and C4:F10 and create a clustered bar chart. Apply the Monochromatic Palette 12 chart color. Apply the gradient fill to the chart area. Do not change the default gradient options.

    5

    10

    Cut the chart and paste it in cell A13. Change the chart height to 6″ and the chart width to 7″. Add Alt Text The bar chart shows the number of visitors to each memorial for the years 2002, 2007, 2012, and 2017.

    6

    11

    Change the chart title to Annual Visitors. Apply Blue, Accent 5, Darker 25% font color to the chart title and category axis labels. Change the value axis display units to Millions. Add Primary Minor Vertical gridlines to the chart.

    5

    12

    Apply data labels to the outside end of the 2017 data series. Apply Number format with 1 decimal place to the data labels.

    4

    13

    On the Places sheet, find all occurrences of BOS and replace them with Boston.

    2

    14

    On the Places sheet tab, convert the data to a table, assign the table name Tourist_Attractions, and apply Blue, Table Style Medium 2.

    4

    15

    On the Places sheet, freeze the top row.

    2

    16

    On the Places worksheet, sort the data by City in alphabetical order and then within City, sort by Sightseeing Locations in alphabetical order.

    3

    17

    On the Places worksheet, add a total row to display the average of the Time Needed column. Apply Number format with zero decimal places to the total.

    3

    18

    On the Places worksheet, select the values in the Time Needed column and apply conditional formatting to highlight cells containing values greater than 60 with Light Red Fill.

    3

    19

    On the Places worksheet, apply a filter to display only fees that are less than or equal to $10.

    3

    20

    On the Cities worksheet, click cell F4 and enter a formula that will subtract the Departure Date (B1) from the Return Date (B2) and then multiply the result by the Rental Car per Day value (F3).

    5

    21

    On the Cities worksheet, click cell E13. Depending on the city, you will either take a shuttle to/from the airport or rent a car. Insert an IF function that compares to see if Yes or No is located in the Rental Car? Column for a city. If the city contains No, display the value in cell F2. If the city contains Yes, display the value in the Rental Car Total (F4). Copy the function from cell E13 and use the Paste Formulas option to copy the function to the range E14:E18 without removing the border in cell E18.

    6

    22

    On the Cities worksheet, click cell F13. The lodging is based on a multiplier by City Type. Some cities are more expensive than others. Insert a VLOOKUP function that looks up the City Type (B13), compares it to the City/COL range (A7:B10), and returns the COL percentage. Then multiply the result of the lookup function by the Total Base Lodging (B5) to get the estimated lodging for the first city. Copy the function from cell F13 and use the Paste Formulas option to copy the function to the range F14:F18 without removing the border in cell F18.

    6

    23

    On the Cities worksheet, click cell H13 and enter the function that calculates the total costs for the first city, including airfare, shuttle or rental, lodging, and meals. Copy the function in cell H13 and use the Paste Formulas option to copy the function to the range H14:H18 without removing the border in cell H18.

    3

    24

    On the Cities worksheet, select the range E14:H18 and apply Comma Style with zero decimal places. Select the range E13:H13 and apply Accounting Number format with zero decimal places.

    3

    25

    On the Cities worksheet, in cell I2, enter a function that will calculate the average total cost per city. In cell I3, enter a function that will identify the lowest total cost. In cell I4 enter a function that will return the highest total cost.

    6

    26

    Group the three worksheets and create a footer with Exploring Series on the left side, the sheet tab code in the center, and the file name code on the right side.

    3

    27

    On the Cities worksheet, select Landscape orientation, set a 1″ top margin, and center the worksheet data horizontally on the page.

    3

    28

    Save and close Exp19_Excel_AppCapstone_IntroAssessment_Travel.xlsx. Exit Excel. Submit the file as directed.

    0

    Total Points

    100

    Created On: 06/28/2021 1 Exp19_Excel_AppCapstone_IntroAssessment – Travel 1.4

    Economics homework help

    Question 1

    A characteristic of a perfectly competitive market is that the product offerings of various producers are perfect substitutes. Provide an example of an industry where you see little difference between the offerings of the various firms in that industry.

    Classmate 1

    When thinking about a perfectly competitive market the first thing that comes to mind is water bottles. All water is relatively the same thing so companies really need to get creative to influence customers to purchase their water besides other companies water.

    Classmate 2

    A competitive marker that I first think of is clothing stores and boutiques. It is a competitive business these days and a lot of time their products are very similar. In addition, sometimes you can find the same product on multiple sites. If one online boutique is out of a particular dress, you might find it on another site. I find these sites fairly similar in their products, and this allows for perfect substitutes. 

    Question 2

    The logic of sequential games involves the first mover anticipating how the second mover will react to various actions. Provide an example where you’ve accounted for the subsequent reaction of another person or entity when you were making a choice. Did your anticipation of the reaction affect the choice you ultimately made?

    Classmate 1

    In life you sometimes have to deal with some negative energy, and it can be an example of making a choice to put your energy into them. I have been in situations where I accounted for the subsequent reaction of the person to react in a way I did not deserve, where I simply was kind and walked away. I think this is a more relationship side of an example of this but it is something I experienced where I anticipated their reaction and made a choice for myself.

    Classmate 2

    A good example of this in my life would be when I play Texas hold ’em with my friends. When I am deciding whether to bet or not, depending on my hand and what I think other people may have, I am trying to bet in a way that gets people to do what I want. If I have a really good hand, I might bait people into betting and slowly raise what I bet as the hand plays out to try to keep people betting and the pot growing. If I have a really bad hand but I know I have a money advantage, I might bet exactly how much someone has on the table to try to scare them off. So in poker, every decision I make is based off of what I anticipate my friends reactions will be.

    Question 3

    A monopoly finds itself in a position where (unlike in perfect competition), it can raise its price and not lose all its customers (though it might lose some of its customers). Provide an example of a firm with which you interact where you would continue buying from them even if they raised their price. Why would you tolerate this price increase?

    Classmate 1

    A good example of this would be the hair products I use. Because I get my hair done, I have to use more expensive products to preserve my hair and keep it healthy after it undergoes different processes. After COVID, the prices did increase, but I enjoy getting my hair done and how it looks, so I still buy the neccessary products for my hair. If I were to stop getting my hair done, I would still buy the same brand because it is what I am use to getting. 

    Classmate 2

    I think a good example of a monopoly is online TV services like Netflix. Netflix started out at a much lower price, but as they gained more customers the prices have begun to increase. Netflix is, in my opinion, more convenient than live television so I would be willing to pay a good amount more than I am now to keep using it. They have also come out with several Netflix original series that can only be watched on Netflix, so I would definitely be willing to pay more if necessary. 

    Economics homework help

    The case of IBM integrated
    supply chain division

    Introduction;
    Many organizations are recognizing that increased volatility and turbulence are becoming
    standard characteristics of their underlying markets. Developing an agile supply chain that
    allows such organizations to meet the variations in demand at an acceptable level of cost is
    now a major focus of many leading organizations Four components of supply chain agility
    can be named: customer sensitivity, virtual integration, process integration and network
    integration, all of which rely on the ability to easily and quickly be able to form deeply
    integrated information systems linkages with trading partners.

    IBM supply chain chain division.
    IBM is a global leader in the development and manufacture of information technologies,
    which include computer systems, software, networking systems, storage devices and
    microelectronics. IBM had annual revenues in 2003 of $89bn, of which $43bn was from IT
    services, $28bn from hardware, $14.3bn from software and $3bn rental and financing. It has
    319,000 employees in 170 countries and its head offices are located in New York State.

    In their Annual Report for 2003, IBM set out their intention of increasing the agility of their
    entire organisation. They described how they wished to be able to respond to the volatility
    and turbulence in their markets by becoming what they described as an ‘on-demand’
    business. Such a business they believed had processes that are: responsive to any client
    demand, market opportunity or external threat; integrated end-to-end across the company
    and integrated across their partners, suppliers and clients.
    IBM operates within a complex supply network that handles over 78,000 products, with over
    3 million configurations. A key part of meeting their vision of becoming a highly responsive
    organisation was to improve the agility of this supply network. In January 2002 an Integrated
    SupplyChain Division (ISCD) was established to build ‘‘the most advanced and cost-effective
    on demand supply chain in the industry’’. The division works across multiple business units
    within IBM as shown in Fig. 1. The ultimate aim is for a customer to be able to place a single
    order for all of their goods from IBM, and suppliers to have a single point of reference within
    the organisation.

    Whilst the ISCD employs a number of means of communicating with suppliers and
    customers, including phone, fax, extranet and EDI, a major initiative for them is the use of
    the electronic hub E2Open, as depicted in Fig. 2. E2Open was established in 2000 by a
    consortium of leading organizations in the electronics industry. Originally established as an
    electronic trading marketplace, like many such organizations, E2Open found that
    establishing a viable trading community proved challenging and like other marketplaces they
    sought to evolve their offerings. E2Open has since positioned itself as a third party hub
    between organizations in the electronics industry that wish to achieve integration between
    their information systems.

    E2Open is based upon a ‘software-as-a-service’ model. It operates a platform and set of
    supply chain applications, which organizations in the electronics industry can use, as they
    need them, to connect with their customers and suppliers who are also using E2Open. The

    CASE STUDY 1

    services can be accessed by a browser or can be integrated into an organization’s existing
    back-end systems. E2Open offers systems that support inventory and order management,
    including request for quotations (RfQs) and materials content information, and the tracking of
    orders, shipments and deliveries.

    Fig 1. Integrated supply chain division.

    The services and applications offered byE2Open, and consequently those used by IBM are
    based upon web services. Use of web services allows IBM to publish to its trading partners
    via the UDDI directory hosted byE2Open, details of and access to its on-line processes,
    such as purchase orders and RfQs. This directory forms the intelligence behind the any-to
    any integration enabled byE2Open and is described as the ‘‘switch board for the network’’.
    IBM’s suppliers and customers also making use of E2Open can easily make use of these
    services to exchange information and trade with IBM.

    Fig 2. IBM’s use of E20pen.

    IBM are using E2Open’s services to improve communications with both their customers and
    suppliers, that is for both the management of supply and demand. An important attraction of
    the many-to-many model of E2Open is the ability for multiple organizations in the supply
    chain to connect to each other, allowing improved performance of the entire chain since
    ‘‘information from any tier in the supply chain is available to any other organization in the
    chain’’.

    In order to support many-to-many trading, E2Open provides various support or enabling
    services. These include security, registration and authorization procedures, legal

    CASE STUDY 2

    documentation and high-level business process information such as standard business
    process maps, for example, RosettaNet Partner Interface Process (PIPs) maps. They also
    provide translation services between existing standards.

    The use of E2Open byIBM and its web service-based applications enables a number of the
    vital components of the agility paradigm. An important aspect is that rather than encourage
    the development of disparate systems within different organizations within a supply network;
    E2Open’s shared services encourage standardization across the industry. This in turn allows
    IBM, or other industry participants, to easily form electronic linkages with their trading
    partners and to reconfigure these when market conditions require.

    “-Because this is a shared product, which is being driven by the industry, rather than just
    IBM, we will be moving to a more industry standard environment. We are looking at the
    ability of the software to manage the supply chain, as opposed to our internal key
    performance indicators. With an ERP system we buy it and implement it internally—it is
    within your four walls in terms of processes and functions-”

    The shared services model also provides the flexibility to match changing demand, another
    component of agility.

    “If we built the infrastructure in IBM, we cannot have the flexibility we need. We need to build
    the infrastructure size so it can meet peak capacity(for example quarter end order volumes)
    and if we do not have demand that utilizes this capacity continually, we are not exploiting our
    infrastructure, but are still paying for it.”

    Utilizing an organization whose core competence is in connecting up supply networks, rather
    than doing it themselves, enables IBM to significantly reduce the costs of connecting its
    systems to those of its customers and suppliers, and the time taken, once again contributing
    to increased agility.

    “The cost per connection is 50% lower for connecting and managing a new business partner
    via E2Open when compared to doing these activities ourselves”

    As a result of adopting E2Open’s services, IBM has reduced the time taken to respond to a
    customer order from over one hundred hours, to less than ten. The main reasons for this
    were the removal of people from the process and the elimination of batch processes, which
    previously ran only once a day. From an internal perspective, the elimination of manual
    ‘touches’ in the order-to pay process is one of the main benefits that IBM attributes to
    adopting E2Open’s services. For example, email orders that previously had to be manually
    entered into an ERP system are now passed directly from the systems of suppliers. This
    addresses a collective interest, ‘‘driving down the cost of these low value transactions,
    increases the profits for all of us and make us more competitive’’.

    Source: “The Role of Emergent Information Technologies and Systems in
    Enabling Supply Chain Agility” E.Daniel and M. Mohdzain. International Journal of
    Information Management October 2015.

    CASE STUDY 3

    Economics homework help


    Discussion 175words more each question

    1.(Article 2. 6) Baker argues that trade agreements have protected U.S. doctors and pharmaceutical companies from international competition. Why do you think this has been the case, when other kinds of workers and industries have borne the full brunt of global competition: Would policies to reduce the prices charged by. the medical sector be desirable? What policies?

    (Article 2. 6) Baker argues that trade policy will often reflect domestic political and economic power and thus sees very little chance that the U.S. government would enact trade policy to allow for greater domestic competition in pharma- ceuticals and medical services. Since world suppliers are prohibited from coming to the United States to provide drugs and medical services, can Amdrican consumers” vote with their feet” and follow the logic of the market to other countries? Explain the phenomenon of” medical tourism and the relationship of U.S. trade partners Canada and Mexico to this market phenomenon

    2. (Article 4. 6) App-based gig employers like Uber and DoorDash say their apps let you work when you can and to be your own boss. What are some of the down- sides associated with these jobs? How do jobs like this help companies shift the costs of production?

    3. (Article 9. 1) What is the basis of supply-siders claim that lowering the highest mar ginal tax rate will generate more tax revenue? What are the main arguments against this view?

    4. (Article 9. 2) In what way have tax policies contributed to growing inequality in the United States How does U.S. tax policy compare to other developed countries, and how has that related to productivity growth?

    5. (Article 9. 3) Why does John Miller think that state-level taxes on millionaires will not lead to tax-fight?

    Economics homework help

    Discussion: Does money really make the world go ’round?

    Discuss the following statements: Without money, everything would become more expensive. In countries such as Zimbabwe, which had problems with high inflation, the increased use of another country’s currency (such as the U.S. dollar or South African rand) became common. Why do you suppose this occurred?

    Make sure you use the readings to support your discussion and don’t forget to cite and list your sources.

    In each discussion forum, students are expected to respond to the prompt by providing an informed, rigorous, and professional post. The initial post should be at least 150 words. In addition, students are required to respond at least 2 times to their classmates’ posts in a similarly informed, rigorous, and professional manner. Peer replies should be at least 100 words in order to qualify as substantive. Refer to the discussion rubric for more details.

    Discussion: Current Event

    Discussion 2

    For this assignment, you will mainly use IBISWorld to complete a Market Structure Analysis. This assignment was adapted from Core Microeconomics, Chiang, 3rd edition.

    Accessing IBISWorld:
    A. In the Online Library box, click “Additional Library Resources” on the Portal Home Page which takes you to the “Additional Library resources” screen.
    B. Scroll down and click on “IBISWorld” which will take you to the IBISWorld Home Page.
    C. Your journey into a selected industry begins by clicking on the first listing in the gray-shaded box, US Industry Reports (NAICS).

    1. Choose TWO specific products. These products MUST be sold in different industries. For example, you could choose domestic airline travel and dish detergent.

    Product #1:
    Product #2:

    2. Consider the Market Factors for each product. Please conduct some research on IBISWorld [and outside research] to address TWO to FOUR market factors listed in the Market Factors section below:

    a. Market Factor 1 – Number of firms:
    • Is the industry composed of many firms, each with limited or no ability to set the market price, such as local pizza places, or is it dominated by a large firm such as Wal-Mart that can influence price regardless of the number of other firms?

    b. Market Factor 2 – Nature of the product:
    • Are we talking about a homogeneous product such as salt, for which no consumer will pay a premium or are we considering leather handbags, which consumers may think vary greatly, in that some firms (Coach, Gucci) produce better goods than others?

    c. Market Factor 3 – Barriers to entry:
    • Does the industry require low start-up and maintenance costs such as found at a roadside fruit and vegetable stand, or is it a computer-chip business that may require $1 billion to build a new chip plant?

    d. Market Factor 4 – Price control (market power):
    • For example, pharmaceutical companies can set prices for new medicines, at least for a period of time, because of patent protection. Farmers and copper producers have virtually no control and get their prices from world markets. Possible market structures range from perfect competition, characterized by many firms, to monopoly, where an industry is made up of only one firm.

    Factor #1 explanation:
    Factor #2 explanation:

    3. Conduct some additional research and reflect upon the information that you have learned in this course, then make a determination regarding the type of market in which the product is sold. In other words, indicate whether it operates in a perfectly competitive, monopoly, oligopoly, or monopolistically competitive market. Justify your response.

    Type of Market:

    Justification:

    Once finished with the discussion, please complete an anonymous Course Evaluation Survey. Instructors are not able to view course evaluation reports until after the grade submission period is over. Thank you for your feedback.

    Economics homework help

    Macroeconomic Theory
    Exam 2

    Instructions: Write your answers to each question on separate paper. You must show your
    work for all derivations and computations for full credit. The point value of each question is
    indicated below. Partial credit is assigned based upon the completeness of the entire question
    answered not on the proportion of sub-parts answered.

    1. (36 points) General Equilibrium: Consider the representative household, who chooses
    a path of consumption and leisure over an infinite horizon, {ct+s, lt+s}∞s=0, to maximize
    the following objective function:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s)

    where u(ct, lt) is a well-behaved utility function, and β is a discount factor. The household
    faces the following real budget constraint each period:

    at = (1 + rt)at−1 + wtnt − ct − Tt

    where at is real wealth, rt is the real interest rate, wt is the real wage rate, nt is labor
    supply, and Tt is a lump-sum tax. The household also faces a unitary time endowment
    which holds each period:

    1 = lt + nt

    Also consider the representative firm, who chooses a path of capital and labor input over
    an infinite horizon, {kt+1+s, nt+s}∞s=0 to maximize the following real profit function:

    Prof =
    ∞∑
    s=0

    (
    1

    1 + rt+s

    )s (
    f(kt+s, nt+s) − invt+s − wt+snt+s

    )
    where f(kt, nt) is a well-behaved production function, rt is the real interest rate, wt is the
    real wage rate, and k0 is given. For any period t, net investment is defined as:

    invt = kt+1 − (1 − δ)kt

    where δ is the rate of capital depreciation.

    Finally, each period the government purchases an amount of real goods and services equal
    to real wage income tax revenue:

    gt = Tt

    so that government savings is always zero.

    (a) Derive the household’s intertemporal and intratemporal optimality conditions in
    terms of the general utility function u(ct, lt).

    (b) Derive the firm’s intertemporal and intratemporal optimality conditions in terms of
    the general production function f(kt, nt).

    (c) Using the optimality conditions obtained from parts (a) and (b), derive the equilib-
    rium conditions for the financial market, labor market, and goods market.

    1

    (d) Set up the Social Planner’s optimization problem, and use the sequential Lagrangian
    to derive the economy’s intertemporal and intratemporal optimality conditions.

    (e) Explain whether or not the First Welfare Theorem holds in this scenario, and what
    the result implies for the efficiency of the decentralized scenario.

    2. (20 points) Neoclassical Growth Model: Consider the two main equations for the
    Neoclassical Growth Model with exogenous labor:

    ∂u/∂ct
    β∂u/∂ct+1

    =
    ∂f

    ∂kt+1
    + (1 − δ)

    f(kt, Ztn̄) = ct + (kt+1 − (1 − δ)kt)

    where Zt is exogenous labor-augmenting technological progress. In the steady state, Z̄
    and n̄ grow at rates of γz and γn such that

    (
    dZ̄/dt

    )
    /Z̄ = γz and (dn̄/dt)/n̄ = γn.

    Assume that both the production and utility functions take the CES form:

    f(kt, Ztn̄) =

    (
    θkt

    γ + (1 − θ)(Ztn̄)γ
    )1/γ

    u(ct, l̄) =

    (
    αct

    ρ + (1 − α)l̄ρ
    )1/ρ

    where 0 < θ < 0 is capital’s share of output and γ > 0 determines the elasticity of
    substitution between capital and labor, and where 0 < α < 0 is consumption’s share
    of utility and ρ > 0 determines the elasticity of substitution between consumption and
    leisure. Finally, households are assumed to have a unitary time endowment.

    (a) Derive the steady state expressions for capital and output in terms of only exoge-
    nous variables.

    For parts (b)-(d): If you are unable to obtain an answer to part (a), you may
    assume that the steady state expressions for capital and output take the form of
    k̄ = ϕkZ̄n̄ and f(k̄, Z̄n̄) = ϕfZ̄n̄, where ϕk and ϕf are exogenous parameters.

    (b) Use your solutions from part (a) to mathematically show that this model economy
    exhibits the following long-run properties:

    i. The output-labor ratio grows at a rate equal to growth in technical progress.

    ii. The capital-output ratio is constant.

    (c) Compute the steady state expression for consumption.

    (d) Suppose that α = 1 so leisure is not valued by households. Compute the long-run
    rate of growth in utility from consumption.

    2

    3. (22 points) Fiscal Policy: Consider the infinite-period general equilibrium framework
    with a government. The representative household chooses a path of consumption and
    leisure over an infinite horizon, {ct+s, lt+s}∞s=0, to maximize the objective function:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to the following real period-t budget constraint:

    ct + at = (1 + rt)at−1 + wtnt(1 − τwt ) − tt

    where at is real wealth, rt is the real interest rate, wt is the real wage rate, nt = 1 − lt is
    labor supply, τwt is a proportional tax rate on wage income, and tt is a lump-sum tax.

    The representative firm chooses capital and labor input to maximize profits. (You may
    assume that the firm here is identical to the firm in question 1.)

    The government faces the following real period-t budget constraint:

    gt + bt = bt−1(1 + rt) + Tt

    where Tt = tt + τ
    w
    t wtnt is the government’s total tax revenue from households.

    (a) Write down expressions for real private savings, government savings, and national
    savings.

    For parts (b)-(d): Suppose that the government makes two tax temporary changes
    in period t: (i) the tax rate on wage income is decreased (τwt ↓); and (ii) the lump-sum
    tax is increased (tt ↑) as needed so that total tax revenue remains constant in period t.

    Furthermore, assume that the substitution effect dominates the income effect for
    household labor supply decisions.

    (b) Explain how this policy change will affect each of the three definitions of savings
    from part (a) (if at all), holding constant wt and rt. Make reference to both household
    optimality conditions in your answer.

    (c) Explain whether or not Ricardian Equivalence holds for this policy change.

    (d) Use supply-and-demand diagram of the Labor Market and the Financial Market to
    show how the policy would affect equilibrium prices and quantities in each market.

    (e) Use a supply-and-demand diagram for the Goods Market to show a possible equilib-
    rium outcome on GDPt and Pt as a result of this policy change.

    3

    4. (22 points) MIU Model: Consider the representative household in the Money-in-the-
    Utility model, who chooses a path of consumption, leisure, and nominal money balances
    over an infinite horizon, {ct+s, lt+s, Mdt+s}∞s=0, to maximize the following objective func-
    tion:

    V =
    ∞∑
    s=0

    βs


    cαt+s

    (
    Mdt+s
    Pt+s

    )1−α
    + ϕ ln(lt+s)


    where 1 > α > 0 and ϕ > 0 are exogenous preference parameters, and β is a discount
    factor. The household faces the following nominal budget constraint each period:

    Ptct + At + M
    D
    t = (1 + it)At−1 + M

    D
    t−1 + Wtnt

    where Pt is the aggregate price level, At is nominal wealth, it is the nominal interest rate,
    Wt is the nominal wage rate, and nt is labor supply. The household also faces a unitary
    time endowment which holds each period so that 1 = lt + nt.

    The representative firm chooses labor and capital to produce output. In nominal terms:

    max
    {nt+s,kt+s+1}∞s=0

    Profit =
    ∞∑
    s=0

    (1 + it+s)
    −s{Pt+s

    (
    kθt+sn

    1−θ
    t+s

    )
    − Pt+sinvt+s − Wt+snt+s}

    where 0 < θ < 1 is capital’s share of output and invt = kt+1 − (1 − δ)kt.

    The central bank conducts monetary policy by (exogenously) targeting a desired nominal
    interest rate through changes to the money supply, MSt .

    (a) Derive the household’s nominal intertemporal, intratemporal, and consumption-
    money optimality conditions in terms of the specific utility function given above.

    (b) Derive the firms’ nominal intratemporal and intertemporal optimality conditions in
    terms of the specific production function given above.

    (c) Use your answers from part (a) and (b) to derive the equilibrium conditions for the
    labor market, the financial market, the money market, and the goods market.

    (d) Assume that the aggregate supply is function upward sloping because some goods
    prices quickly adjust in response to changing economic conditions. (To avoid compli-
    cating the firm’s optimization problem beyond what we discussed in class, maintain
    the assumption that the firm does not choose Pt.)

    i. The United States is currently experiencing high levels of inflation. Explain how
    the central bank can use monetary policy to reduce inflation. Make reference to
    the nominal interest rate and consumption in your answer.

    ii. Use a Money Market diagram and a Goods Market diagram to illustrate your
    answer above.

    4

    Economics homework help

    Question 1

    A characteristic of a perfectly competitive market is that the product offerings of various producers are perfect substitutes. Provide an example of an industry where you see little difference between the offerings of the various firms in that industry.

    Classmate 1

    When thinking about a perfectly competitive market the first thing that comes to mind is water bottles. All water is relatively the same thing so companies really need to get creative to influence customers to purchase their water besides other companies water.

    Classmate 2

    A competitive marker that I first think of is clothing stores and boutiques. It is a competitive business these days and a lot of time their products are very similar. In addition, sometimes you can find the same product on multiple sites. If one online boutique is out of a particular dress, you might find it on another site. I find these sites fairly similar in their products, and this allows for perfect substitutes. 

    Question 2

    The logic of sequential games involves the first mover anticipating how the second mover will react to various actions. Provide an example where you’ve accounted for the subsequent reaction of another person or entity when you were making a choice. Did your anticipation of the reaction affect the choice you ultimately made?

    Classmate 1

    In life you sometimes have to deal with some negative energy, and it can be an example of making a choice to put your energy into them. I have been in situations where I accounted for the subsequent reaction of the person to react in a way I did not deserve, where I simply was kind and walked away. I think this is a more relationship side of an example of this but it is something I experienced where I anticipated their reaction and made a choice for myself.

    Classmate 2

    A good example of this in my life would be when I play Texas hold ’em with my friends. When I am deciding whether to bet or not, depending on my hand and what I think other people may have, I am trying to bet in a way that gets people to do what I want. If I have a really good hand, I might bait people into betting and slowly raise what I bet as the hand plays out to try to keep people betting and the pot growing. If I have a really bad hand but I know I have a money advantage, I might bet exactly how much someone has on the table to try to scare them off. So in poker, every decision I make is based off of what I anticipate my friends reactions will be.

    Question 3

    A monopoly finds itself in a position where (unlike in perfect competition), it can raise its price and not lose all its customers (though it might lose some of its customers). Provide an example of a firm with which you interact where you would continue buying from them even if they raised their price. Why would you tolerate this price increase?

    Classmate 1

    A good example of this would be the hair products I use. Because I get my hair done, I have to use more expensive products to preserve my hair and keep it healthy after it undergoes different processes. After COVID, the prices did increase, but I enjoy getting my hair done and how it looks, so I still buy the neccessary products for my hair. If I were to stop getting my hair done, I would still buy the same brand because it is what I am use to getting. 

    Classmate 2

    I think a good example of a monopoly is online TV services like Netflix. Netflix started out at a much lower price, but as they gained more customers the prices have begun to increase. Netflix is, in my opinion, more convenient than live television so I would be willing to pay a good amount more than I am now to keep using it. They have also come out with several Netflix original series that can only be watched on Netflix, so I would definitely be willing to pay more if necessary. 

    Economics homework help

    Macroeconomic Theory
    Exam 2

    Instructions: Write your answers to each question on separate paper. You must show your
    work for all derivations and computations for full credit. The point value of each question is
    indicated below. Partial credit is assigned based upon the completeness of the entire question
    answered not on the proportion of sub-parts answered.

    1. (36 points) General Equilibrium: Consider the representative household, who chooses
    a path of consumption and leisure over an infinite horizon, {ct+s, lt+s}∞s=0, to maximize
    the following objective function:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s)

    where u(ct, lt) is a well-behaved utility function, and β is a discount factor. The household
    faces the following real budget constraint each period:

    at = (1 + rt)at−1 + wtnt − ct − Tt

    where at is real wealth, rt is the real interest rate, wt is the real wage rate, nt is labor
    supply, and Tt is a lump-sum tax. The household also faces a unitary time endowment
    which holds each period:

    1 = lt + nt

    Also consider the representative firm, who chooses a path of capital and labor input over
    an infinite horizon, {kt+1+s, nt+s}∞s=0 to maximize the following real profit function:

    Prof =
    ∞∑
    s=0

    (
    1

    1 + rt+s

    )s (
    f(kt+s, nt+s) − invt+s − wt+snt+s

    )
    where f(kt, nt) is a well-behaved production function, rt is the real interest rate, wt is the
    real wage rate, and k0 is given. For any period t, net investment is defined as:

    invt = kt+1 − (1 − δ)kt

    where δ is the rate of capital depreciation.

    Finally, each period the government purchases an amount of real goods and services equal
    to real wage income tax revenue:

    gt = Tt

    so that government savings is always zero.

    (a) Derive the household’s intertemporal and intratemporal optimality conditions in
    terms of the general utility function u(ct, lt).

    (b) Derive the firm’s intertemporal and intratemporal optimality conditions in terms of
    the general production function f(kt, nt).

    (c) Using the optimality conditions obtained from parts (a) and (b), derive the equilib-
    rium conditions for the financial market, labor market, and goods market.

    1

    (d) Set up the Social Planner’s optimization problem, and use the sequential Lagrangian
    to derive the economy’s intertemporal and intratemporal optimality conditions.

    (e) Explain whether or not the First Welfare Theorem holds in this scenario, and what
    the result implies for the efficiency of the decentralized scenario.

    2. (20 points) Neoclassical Growth Model: Consider the two main equations for the
    Neoclassical Growth Model with exogenous labor:

    ∂u/∂ct
    β∂u/∂ct+1

    =
    ∂f

    ∂kt+1
    + (1 − δ)

    f(kt, Ztn̄) = ct + (kt+1 − (1 − δ)kt)

    where Zt is exogenous labor-augmenting technological progress. In the steady state, Z̄
    and n̄ grow at rates of γz and γn such that

    (
    dZ̄/dt

    )
    /Z̄ = γz and (dn̄/dt)/n̄ = γn.

    Assume that both the production and utility functions take the CES form:

    f(kt, Ztn̄) =

    (
    θkt

    γ + (1 − θ)(Ztn̄)γ
    )1/γ

    u(ct, l̄) =

    (
    αct

    ρ + (1 − α)l̄ρ
    )1/ρ

    where 0 < θ < 0 is capital’s share of output and γ > 0 determines the elasticity of
    substitution between capital and labor, and where 0 < α < 0 is consumption’s share
    of utility and ρ > 0 determines the elasticity of substitution between consumption and
    leisure. Finally, households are assumed to have a unitary time endowment.

    (a) Derive the steady state expressions for capital and output in terms of only exoge-
    nous variables.

    For parts (b)-(d): If you are unable to obtain an answer to part (a), you may
    assume that the steady state expressions for capital and output take the form of
    k̄ = ϕkZ̄n̄ and f(k̄, Z̄n̄) = ϕfZ̄n̄, where ϕk and ϕf are exogenous parameters.

    (b) Use your solutions from part (a) to mathematically show that this model economy
    exhibits the following long-run properties:

    i. The output-labor ratio grows at a rate equal to growth in technical progress.

    ii. The capital-output ratio is constant.

    (c) Compute the steady state expression for consumption.

    (d) Suppose that α = 1 so leisure is not valued by households. Compute the long-run
    rate of growth in utility from consumption.

    2

    3. (22 points) Fiscal Policy: Consider the infinite-period general equilibrium framework
    with a government. The representative household chooses a path of consumption and
    leisure over an infinite horizon, {ct+s, lt+s}∞s=0, to maximize the objective function:

    V =
    ∞∑
    s=0

    βsu(ct+s, lt+s)

    subject to the following real period-t budget constraint:

    ct + at = (1 + rt)at−1 + wtnt(1 − τwt ) − tt

    where at is real wealth, rt is the real interest rate, wt is the real wage rate, nt = 1 − lt is
    labor supply, τwt is a proportional tax rate on wage income, and tt is a lump-sum tax.

    The representative firm chooses capital and labor input to maximize profits. (You may
    assume that the firm here is identical to the firm in question 1.)

    The government faces the following real period-t budget constraint:

    gt + bt = bt−1(1 + rt) + Tt

    where Tt = tt + τ
    w
    t wtnt is the government’s total tax revenue from households.

    (a) Write down expressions for real private savings, government savings, and national
    savings.

    For parts (b)-(d): Suppose that the government makes two tax temporary changes
    in period t: (i) the tax rate on wage income is decreased (τwt ↓); and (ii) the lump-sum
    tax is increased (tt ↑) as needed so that total tax revenue remains constant in period t.

    Furthermore, assume that the substitution effect dominates the income effect for
    household labor supply decisions.

    (b) Explain how this policy change will affect each of the three definitions of savings
    from part (a) (if at all), holding constant wt and rt. Make reference to both household
    optimality conditions in your answer.

    (c) Explain whether or not Ricardian Equivalence holds for this policy change.

    (d) Use supply-and-demand diagram of the Labor Market and the Financial Market to
    show how the policy would affect equilibrium prices and quantities in each market.

    (e) Use a supply-and-demand diagram for the Goods Market to show a possible equilib-
    rium outcome on GDPt and Pt as a result of this policy change.

    3

    4. (22 points) MIU Model: Consider the representative household in the Money-in-the-
    Utility model, who chooses a path of consumption, leisure, and nominal money balances
    over an infinite horizon, {ct+s, lt+s, Mdt+s}∞s=0, to maximize the following objective func-
    tion:

    V =
    ∞∑
    s=0

    βs


    cαt+s

    (
    Mdt+s
    Pt+s

    )1−α
    + ϕ ln(lt+s)


    where 1 > α > 0 and ϕ > 0 are exogenous preference parameters, and β is a discount
    factor. The household faces the following nominal budget constraint each period:

    Ptct + At + M
    D
    t = (1 + it)At−1 + M

    D
    t−1 + Wtnt

    where Pt is the aggregate price level, At is nominal wealth, it is the nominal interest rate,
    Wt is the nominal wage rate, and nt is labor supply. The household also faces a unitary
    time endowment which holds each period so that 1 = lt + nt.

    The representative firm chooses labor and capital to produce output. In nominal terms:

    max
    {nt+s,kt+s+1}∞s=0

    Profit =
    ∞∑
    s=0

    (1 + it+s)
    −s{Pt+s

    (
    kθt+sn

    1−θ
    t+s

    )
    − Pt+sinvt+s − Wt+snt+s}

    where 0 < θ < 1 is capital’s share of output and invt = kt+1 − (1 − δ)kt.

    The central bank conducts monetary policy by (exogenously) targeting a desired nominal
    interest rate through changes to the money supply, MSt .

    (a) Derive the household’s nominal intertemporal, intratemporal, and consumption-
    money optimality conditions in terms of the specific utility function given above.

    (b) Derive the firms’ nominal intratemporal and intertemporal optimality conditions in
    terms of the specific production function given above.

    (c) Use your answers from part (a) and (b) to derive the equilibrium conditions for the
    labor market, the financial market, the money market, and the goods market.

    (d) Assume that the aggregate supply is function upward sloping because some goods
    prices quickly adjust in response to changing economic conditions. (To avoid compli-
    cating the firm’s optimization problem beyond what we discussed in class, maintain
    the assumption that the firm does not choose Pt.)

    i. The United States is currently experiencing high levels of inflation. Explain how
    the central bank can use monetary policy to reduce inflation. Make reference to
    the nominal interest rate and consumption in your answer.

    ii. Use a Money Market diagram and a Goods Market diagram to illustrate your
    answer above.

    4

    Economics homework help

    6 Key Takeaways Every Student Should Receive from Econ 101

    A more widespread understanding of Econ 101 would reduce the likelihood of destructive government policies winning public support.

    Wednesday, February 13, 2019

    In a 2015 podcast conversation with American Enterprise Institute President Arthur Brooks, Vox’s Ezra Klein declared that “there’s nothing more dangerous than somebody who’s just taken their first economics class.” Often expressing a similar contempt for Econ 101 is University of Connecticut law professor 
    James Kwak
    .

    This expressed skepticism of Econ 101 comes across as wise and sophisticated—even hip—to many people who don’t grasp Econ 101. And it gives the mistaken impression that those who warn of the alleged folly of taking Econ 101 too seriously are experts not only in elementary economics but also in advanced economics.

    Yet this contemptuous dismissal of the relevance of Econ 101 is foolish. Those who express it either really don’t know any economics whatsoever or mistakenly presume that the theoretical curiosities explored in Econ 999 are more relevant than is the reality revealed by Econ 101. But the truth is that Econ 101 taught well supplies ample, important, and timeless insights into the way the world works.

    These insights, sadly, are far too rare among those who are unexposed to elementary economics.

    Kernel of Truth

    No one denies that a deeper understanding of economic reality is supplied by training in sound, advanced economics. If, for example, we’re interested in understanding and predicting many of the details of how people react to changes in particular government policies—and in tracing out some specific consequences of these likely reactions—knowledge of economics beyond that which is conveyed in an intro-econ course is useful.

    Similarly, if we want to better understand many observed commercial practices—practices such as corporate stock buybacks or automobile dealerships’ penchant for clustering near each other—then knowledge beyond principles of economics is often necessary.  No one can doubt the usefulness of more advanced economic training.

    But it doesn’t follow from these observations that knowledge merely of economic principles is “dangerous.” The young person who absorbs Econ 101 but who takes no further courses in economics will nevertheless, and for the rest of his or her life, possess a genuine understanding of reality that is distressingly rare among politicians, pundits, preachers, and the general public. Far from being a danger to society, this person—inoculated against the worst and most virulent strands of economic ignorance—will serve as a beneficial check on the spread of ideas that are dodgy and sometimes perilous.

    The true danger is not knowledge of “only” Econ 101. The true danger is ignorance even of Econ 101.

    The typical protectionist opposes free trade not because he aced an advanced econ course and learned that, under just the right circumstances, optimally imposed tariffs can be justified on economic grounds. No. The typical protectionist opposes free trade because he doesn’t understand the first thing about economics. He doesn’t understand that the purpose of trade is to enrich people as consumers and not to guarantee the incomes of existing producers. The typical protectionist doesn’t understand that exports are costs and that imports are benefits. (He thinks it’s the other way ’round.) Failing to understand that the act of importing not only destroys but also creates particular jobs in the domestic economy, the protectionist mistakenly concludes that the more we import the fewer are the number of jobs in our economy.

    The typical protectionist, in short, doesn’t understand the first thing about economics. Yet had he taken a well-taught Econ 101 course, he’d not swallow and repeat these and other myths about trade.

    Likewise, the typical politician doesn’t support minimum wages because she has concluded after careful study that employers of low-skilled workers possess a sufficient quantum of monopsony power in the labor market, in addition to monopoly power in the output market, to nullify the prediction of basic supply-and-demand analysis that minimum wages shrink low-skilled workers’ employment options. No.

    She supports minimum wages because she naively supposes that wages are set arbitrarily by employers and that higher wages come out of either employers’ profits or consumers’ wallets without prompting any changes in employers’ or consumers’ behavior.

    And most of this politician’s constituents share her economic ignorance. They miss the reality revealed by Econ 101—namely, that wages are not set arbitrarily by employers and, therefore, that when the cost of employing workers is raised by minimum wages, employers respond in part by employing fewer workers.

    In both of the above examples (and these are only two examples of many), more widespread understanding of Econ 101 would reduce the likelihood of these destructive policies winning public support.


    Principles Are Foundational

    They’re called economic principles for a good reason: What is taught in a solid economic-principles course are the principles of the operation of a competitive economy guided by market prices. They describe the logic of markets and, accordingly, in most cases offer a trustworthy guide for understanding the economy—and an understanding of the consequences of government interventions into the economy.

    It’s true that reality sometimes serves up circumstances that render knowledge only of economic principles inadequate. But if economic principles did not on most occasions give reliable and useful insights into how real-world economies actually operate, they would be anti-principles. They ought not be taught, and students should demand tuition refunds along with compensation for being defrauded by their colleges.

    But in fact, again, enormously important insights are conveyed in a good Econ 101 course. Here’s just a partial list of what an attentive Econ 101 student learns:

    1. Our world is one of unavoidable scarcity, and so to use more resources to produce guns is to have fewer resources available to produce butter. There’s no such thing as a free lunch, a free gun, or a free anything else.

    2. Wealth is goods and services; wealth is not money. And so to create more money without creating more goods and services is to create not more wealth but only more inflation—along with the distortions and uncertainties that inflation unleashes.

    3. When the cost that a person incurs to take some action rises, the attractiveness to that person of taking that action falls. This fact is why higher taxes on carbon emissions reduce carbon emissions and why higher taxes on income-earning activities reduce income-earning activities.

    4. Profits are entrepreneurs’ reward for successfully satisfying consumers’ wants; profits are neither stolen from consumers nor extracted from workers. Therefore, the greater the good performed in the market by entrepreneurs, the higher the entrepreneurs’ profits.

    5. Prices and wages aren’t arbitrary. They’re set in markets by consumers competing against each other to purchase goods and services and by sellers competing against each other to sell goods and services. Sellers in competitive markets no more control prices than do buyers.

    6. Because of the principle of comparative advantage, it’s literally impossible for one country to monopolize the production of all goods and services.

    I submit that these and other lessons taught in Econ 101 are vitally significant and need not await being polished and conditioned by the lessons of higher-level economics courses before becoming immensely useful. Far from being dangerous, these and other Econ 101 lessons are beautiful and essential.


    This article was reprinted from the American Institute for Economic Research.


    Donald J. Boudreaux

    Donald J. Boudreaux is a senior fellow with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center at George Mason University, a Mercatus Center Board Member, and a professor of economics and former economics-department chair at George Mason University.

    Economics homework help

    Lone Star College – University Park

    GEOL1403 – Physical Geology Name:_______________________

    Earthquake Project – Spring 2021

    lobal tectonics, South American Plate - Stock Image - C016/3712 - Scien
    LEARNING OBJECTIVES: This project works you through the scientific method. You will:

    · make initial observations,

    · develop a hypothesis,

    · collect data,

    · plot the data in meaningful ways,

    · describe the data,

    · analyze the data, and

    · make interpretations about the processes that are occurring at a specific plate boundary.

    PROCEDURE:

    Focusing on the western boundary of the South America plate (see image at right), you are going to collect data on earthquakes that have occurred that this specific plate boundary during the past semester (January 24 – Today), and then ultimately make an interpretation of the processes occurring along this plate boundary along with a recommendation for future work.

    Read through the entire assignment prior to starting. The project is divided up into six parts, each part is weighted differently. See grading rubric at the end.

    There are various paths or avenues you can work through this assignment. There is no one “correct way” to do this, but we need to make sure to operate within the guidelines of quality science. With that in mind:

    1. Be true to your data. What this means is that your interpretations must be based on the data you have collected, and not the data you think you should have.

    2. When you make choices in how you collect the data, you need to explain/justify the reasons that your process makes scientific sense.

    MATERIALS NEEDED

    ·

    Copyright © Lone Star College-University Park 2021

    · Pencil

    · Colored pencils or markers

    · Books and notes

    · Internet access

    · Calculator (optional)

    · Ruler (optional)

    NOTE: You will use the Internet only during Part 2, the Data Collection stage of this assignment. Using the Internet for any other part of this assignment will result in a zero.


    PART 1: INITIAL OBSERVATIONS AND HYPOTHESIS (10 pts)

    Start by making some initial observations about the western boundary of the South America plate, and from those, develop a hypothesis regarding what is happening along this plate boundary.

    Look at the image of South America on the first page, and make observations features you see in regard to the topography for the western boundary of South America. In your observations, explain the topography in relation to the red plate boundary. Write those below.

    Observations (6 pts):

    Mapping Earthquakes

    Movement of the Earth’s tectonic plates creates faults and causes earthquakes as the lithosphere pushes together, pulls apart, or slides past one another. All plate boundaries have earthquakes associated with their movement. As the movement occurs, the rocks will often break and grind together, releasing vibrations of energy into the ground. The earthquakes on plate boundaries can occur near the ground surface or deep below the ground. The technology we use to detect earthquakes can tell us exactly where the plate boundary occurs below the surface. The image on the right shows two blocks of earth that are sliding against each other. The location at which the rocks actually break during a single event is called the focus of the earthquake. The point on the earth’s surface that is directly above the focus is called the epicenter.

    Based on your initial topography observations and the information above. Write a hypothesis for what type of plate boundary you expect for the western boundary of the South America plate. In your hypothesis, state the pattern you expect to see of the earthquakes for this type of plate boundary. Remember, a hypothesis must be something that can be tested to determine if it is true or not.


    Essay Help

    Hypothesis (4 pts):



    PART 2: DATA COLLECTION (20 pts)

    Now you are ready to collect data about earthquakes in South America. Before you start, familiarize yourself with the data table on the next page. Look at the headers at the top of each column. You will need to collect information on the location (latitude, longitude), depth, and magnitude for each earthquake that has occurred. You will also record the dates of these events. You will only be examining a portion of the plate boundary; the extent of your research area will have these bounds: western boundary: 88° W, eastern boundary: 55° W, northern boundary: 19°S, and southern boundary: 39° S.

    IMPORTANT: It is up to you how much data you want to collect. You do not have to fill in the entire table, but you want to make sure that you have a true representation of the data. What does that mean? Imagine if someone was trying to figure out what percent of University Park students wear skirts once a week. Would it be accurate to just ask a portion of the female population? No, because the question is what percent of students, not just female students wear skirts. Should the person ask an even amount of female and male students? Actually, no, because University Park is 61% female, so the survey should be made up of 61% female and 39% male. Does the student have to ask every single student at University Park? No, at some point, you should start to see a consistent result. You will decide how many earthquakes to record (HINT: at least 20).

    Instructions on how to collect the data on earthquakes:

    1. Start by going to: https://earthquake.usgs.gov/earthquakes/search/

    2. In the Basic Options section:

    a. For magnitude, choose “Custom” and set your minimum magnitude to 4.

    (NOTE: You may decide to change this later, but this is a good starting point).

    b. For date and time, choose “custom” and set the start date as the first day of this semester.

    3. Now, you will filter the data to just include the region you are interested in. In the Advanced Options section, you will set your geographic region based on the information at the start of this section. NOTE: When longitude is west of the prime meridian, you need to write it as a negative number, and the more negative number is more west. For example, you will type -88 for the west value and -55 for the east value. Similarly, when southern latitudes are also written as negative numbers.

    4. Click “Search”.

    Question: How many earthquakes does your search bring up? (Look in the upper left under “Search Results”) (1 pt)

    Now you need to come up with a data sampling strategy because you do not want to have to record and map all of these data. A pattern will emerge before you get to that point. Looking at the earthquake, decide if you want to sample the data based on an even distribution spatially (like trying to pick earthquakes that are equally spaced from one another) or if you want to sample based on frequency (like selecting more earthquakes in an area that has a lot of earthquakes relative to an area that may just have one).
    Justify your decision
    below. Remember, to keep your hypothesis in mind (6 pts):

    Record at least 20 events data in this table. It is up to you how many you collect (13 pts).

    Event #

    Date

    Latitude (S)

    Longitude (W)

    Depth (km)

    Magnitude (M)

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    29

    30

    31

    32

    33

    34

    35


    PART 3: Presenting the data on a map (15 pts)

    With the various components of each earthquake collected, plot these data on the map of South America on the next page. CAUTION: You first need to decide, what would be more meaningful to plot based on testing your hypothesis: the earthquake magnitude or the earthquake depth? Explain your decision (and you cannot choose both) (6 pts):

    Now, based on your decision, choose three colors.

    If you are plotting the earthquakes based on magnitude, then divide your earthquake magnitudes into three categories and choose a color for each category.

    These categories should be:

    1) Earthquakes with a magnitude of 4-5,

    2) Earthquakes with a magnitude greater than 5 and up to 6, and

    3) greater than magnitude 6.

    If you have decided to plot your earthquakes based on depth, then choose a color for each of these three categories:

    1) Earthquakes with a depth < 100 km,

    2) Earthquakes with depths between 100 km and 250 km, and

    3) Earthquakes with depths > 250 km.

    On the map provided, plot the epicenter of each earthquake (from the table) as a dot using your chosen color. Include the magnitude or depth next to each point. (9 pts)



    PART 4: ANALYSIS (20 pts)

    You are now ready to analyze your data. Your objective is to determine what type of pattern (if any) exists in the region. If a pattern is not emerging for you or you notice gaps in your data collection, considering collecting additional earthquake data. Add those additional earthquakes below. Mark them on your map with a different star symbol, but the same color-scheme. At this point, you may want to consider contouring your data (like how a topographic map is drawn). This is totally optional, if you decide to do this and need guidance you access the Internet at this point to view this video: https://youtu.be/qtwgHYPtPmI


    Additional Data:

    Event #

    Date

    Latitude (S)

    Longitude (W)

    Depth (km)

    Magnitude (M)

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    Look at your collected data. Sometimes, when doing science, you collect more data than is actually useful. What data did you collect that ended up being not that helpful for your hypothesis? Explain. (4 pts)

    You have started by plotting either magnitude or depth on a map of latitude and longitude, but that is just one way to represent the data. On the next page is blank graph paper. What else would be helpful to graph to test your hypothesis?

    · Choose from the following for the X-axis: latitude, longitude, or distance from plate boundary, and history essay help

    · For the Y-axis: choose magnitude or depth.

    · I recommend using the long edge of the graph paper as your X-axis.

    Be sure to label your axes with titles and values, and include a title to your graph. (6 pts)

    Explain below what you have decided to graph and why you think this could be helpful to your hypothesis. (4 pts)

    1 Free Graph Paper Templates Word PDFs – Word Exc

    Making observations on your data:

    Now that you have data plotted in two ways (one on a map and one on a graph), provide observations about these data and any patterns that you see from both plots. (6 pts)

    Remember, you are not yet interpreting the data. Just describe what you see based on the variables you selected.


    PART 5: INTERPRETATION (20 pts)

    Now, interpret your observations about the data in regard to the western margin of the South America plate. These should be complete sentences about a process or series of processes that are occurring at this plate boundary. Create a model/drawing to show what is occurring and how your data (the earthquakes and topography) drew you to draw that model for this plate boundary. Remember, your interpretations must be consistent with the data that YOU have collected. Revisit your hypothesis and explain the validity of your hypothesis.


    PART 6: FUTURE WORK (15 pts)

    Describe possible future work for this study. Be sure to use complete sentences and explain why. Here are some writing prompts:

    · How could your study be improved?

    · What assumptions did you make in your study?

    · What additional data would you like to add to your study?

    · What new questions do you have about this plate boundary?

    Excellent (full credit)

    Needs work (partial credit)

    Not Present (no credit)

    Total Possible Pts (of 100)

    Hypothesis

    Observations and hypothesis are present and are tied to one another

    Missing observations or hypothesis or not clear how they are related

    No hypothesis stated

    10

    Data Collection

    Data is sufficiently collected and for proper location and time frame. Justification provided.

    Data is either insufficient, wrong location, or wrong time frame AND/OR justification not given.

    Data was not collected and justification was not provided.

    20

    Presenting the data

    Data are plotted accurately and according to the three categories. Explain for decision was given.

    Not all data are plotted accurately or data plotted are not appropriate AND/OR explanation for decision was not given

    Data was not plotted nor was explanation for decision given.

    15

    Analysis

    Demonstrates where essential information needs to be included

    Has tried to evaluate the data, but has not added anything meaningful

    No analysis performed

    20

    Interpretation

    Interpretations are consistent with the data. Model sketch was drawn and clearly described.

    Interpretations occur but are not consistent with data AND/OR model sketch was not drawn and/or not described.

    No interpretation present

    20

    Future Work

    Has identified where gaps in research or avenues for future work exists

    Future work suggestions do not align with presented findings

    No future work submitted

    15

    Economics homework help

    Module 4 – Case

    Money, Money, Money

    Assignment Overview

    In this final Case Assignment, we will be answering questions about types of money, how the Fed uses money, and what happens when there is money but it is not being spent. This is a multi-part assignment, so make sure that you have addressed each question or topic. The best way to approach this assignment is to prepare your responses in outline form following the order of each question/topic. This will help you keep track of your responses.

    Review this brief introductory video which provides a high level overview of the Fed and how it influences the money market.

    Case Assignment

    Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers.

    Are credit cards or debit cards money? Explain your answer.

    “When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change in the monetary base.” Is the previous statement correct or incorrect? Explain your answer.

    Monetary policy is action taken by the Fed to influence the level of real GDP. Suppose the Fed wants to increase the money supply. What three tools could the Fed use to achieve this goal? Be specific in your answer and discuss the implications of this policy.

    Assignment Expectations

    Use concepts from the modular background readings as well as any good quality resources you can find. Cite all sources within the text and provide a reference list at the end of the paper.

    Length: 4–5 pages double-spaced and typed in 12-point Times New Roman font.

    The following items will be assessed in particular:

    Your ability to understand an application of monetary policy.

    Some in-text references to the modular background material. APA formatting is recommended. Use this site from the Purdue Owl if you need help with APA:
    https://tinyurl.com/3rnc5vt.

    The essay should address each element of the assignment. Remember to support your answers with solid references, including the Case readings.

    Economics homework help

    Business 300 GW Final Project 1

    For your final project, you are charged with writing a research and recommendation (problem solving) report

    for a real-world audience.

    Components:

    The Report [80 Points]: This is a real-world problem-solving exercise based on research and analysis that

    offers a recommendation to a specific audience in response to a specific problem. It is research and synthesis

    (like other academic research papers), but it is more than that – you must also include feasible (capable of being

    done) recommendations. Research and analyze a problem/opportunity and feasible solutions in order to make

    recommendations the audience can use to address the problem/opportunity.

    Reports usually average seven pages. But the question is never “have I achieved x pages?”; it’s always “have I

    sufficiently answered the question?” And, “will my reader be able to achieve their greater goal with this

    information?”

    Revision Process: Report must go through multiple drafts. There are check-ins with me, a draft

    deadline, a final deadline, and then a final revision with applied feedback. Failure to participate in the

    revision process results in automatic 40/80 grade.

    Report Deck (Slide Deck & Presentation) [50 Points]: Following your written report, you will translate your

    report into a deck (report deck). Report decks are informational slides that are meant to serve the function of the

    report itself, and, as in our case, serve as the slides for an informational presentation.

    Logistics: use Flipgrid to record the verbal component; 4-5 minutes where you review essential information in

    your report deck. Focus on facts and solid information.

    The Memo [20 Points]: In memo format, please report on and discuss how you applied feedback and made

    changes to your final report – what did you do to revise your report? Your job is to make it easy for me to see

    the work you did on the final revised report.

    Grading Criteria: Each component will be graded separately based on the following:

    1. Audience and Purpose Awareness
    2. Clarity and Concision
    3. Tone & Formatting

    Business 300 GW Final Project 2

    TIPS TO COMPLETING THE REPORT:

    Step 1/SELECT A TOPIC: all topics need a real-world context, a concrete and local problem or opportunity

    that the report will analyze and offer appropriate (again concrete) responses to. You need a specific audience in

    mind that needs persuading or information on the topic (the audience is the person that will say yes or no to

    your plan, or the person that needs this information to conduct business.

    Come up with ideas about actual problems or opportunities in businesses you’re familiar with (stick to publicly

    traded companies so you can access information).

    Cautionary Note: Topics that are too general or abstract won’t work because you can’t get specific enough.

    Topics need to be concrete, local, and specific. For example, a topic like “autism” would be too general and

    abstract. However, a situating the topic in a specific context can solve that problem – “many students with

    autism are not having their educational needs met at SFSU”, the report would then study the problem and

    propose how to address the needs of the students.

    Sample Report Outline:

    I. Executive summary
    II. Purpose/problem

    III. Background
    IV. Research methods: design/activities/ costs, etc.
    V. Research findings/results

    VI. Implications of these results
    VII. Conclusions/recommendations

    VIII. Implementation/Next Steps

    IX. Appendices (data, graphs, tables, charts, etc.)
    X. References/Works Cited (Chicago Style)

    Note: this is a sample, not specific sections or criteria for your report, whose contents should vary based on

    topic and audience needs. Also, see report samples and template on ilearn.

    Economics homework help

    7Congressional Digest ■■■■■ www.CongressionalDigest.com ■■■■■ March 2016

    From the U.S. Department of Health and Human Services,
    Office of the Assistant Secretary for Planning and Evaluation
    Data Point report Health Insurance Coverage and the Af-
    fordable Care Act, September 22, 2015.

    Impact of Obamacare on Coverage
    Reduction in the Number of Uninsured

    In March 2015, the U.S. Department of Health andHuman Services Office of the Assistant Secretary for Plan-
    ning and Evaluation (ASPE) estimated that 16.5 million
    uninsured people had gained health insurance coverage as
    several of the Affordable Care Act’s (ACA) coverage provi-
    sions took effect. Using updated data, ASPE now estimates
    that 17.6 million uninsured people have gained health in-
    surance coverage.

    Coverage gains refer to different sources of coverage,
    including Medicaid, the Health Insurance Marketplace, and
    individual market coverage; therefore, gains are not limited
    to Marketplace-eligible individuals.

    ● 15.3 million adults gained health insurance coverage
    since the beginning of open enrollment in October
    2013 through September 12, 2015. Over that period,
    the uninsured rate declined from 20.3 percent to 12.6
    percent — a 38 percent (or 7.7 percentage point) re-
    duction in the uninsured rate.

    ● 2.3 million additional young adults (aged 19 to 25)
    gained health insurance coverage between the enact-
    ment of the Affordable Care Act in 2010 and the start
    of open enrollment in October 2013 due to the ACA
    provision allowing young adults to remain on a parent’s
    plan until age 26.

    ■ Uninsured Rates by Race and Ethnicity

    The uninsured rate declined across all race/ethnicity
    categories since the baseline period. There were greater
    declines in the uninsured rate among African Americans and
    Hispanics than among whites.

    ● Among whites, the uninsured rate declined by 6.0 per-
    centage points, from a baseline uninsured rate of 14.3

    percent to 8.3 percent, resulting in 7.4 million adults
    gaining coverage.

    ● Among African Americans, the uninsured rate declined
    by 10.3 percentage points, from a baseline uninsured
    rate of 22.4 percent to 12.1 percent, resulting in 2.6
    million adults gaining coverage.

    ● Among Hispanics, the uninsured rate declined by 11.5
    percentage points, from a baseline uninsured rate of
    41.8 percent to 30.3 percent, resulting in about 4.0
    percent of adults gaining coverage.

    ■ Uninsured Rates by State
    Medicaid Expansion Status

    Health insurance coverage gains continued to be especially
    strong in Medicaid expansion States.

    ● Expansion States experienced a decline in their unin-
    sured rate of 8.1 percentage points, from an average
    baseline of 18.2 percent to 10.1 percent.

    ● Non-expansion States experienced a decline in their un-
    insured rate of 7.3 percentage points, from an average
    baseline rate of 23.4 percent to 16.1 percent.

    ■ Uninsured Rates for Young Adults

    Coverage gains for young adults aged 19 to 25 started in
    2010 with the ACA’s provision enabling them to stay on
    their parents’ plans until age 26. From the baseline period
    through the start of open enrollment in October 2013, the
    uninsured rate for young adults declined from 34.1 percent
    to 26.7 percent, which translates to 2.3 million young adults
    gaining coverage.

    ● Since October 2013, an additional 3.2 million young
    adults aged 19 to 25 gained coverage.

    Continued on page 32

    32 Congressional Digest ■■■■■ www.CongressionalDigest.com ■■■■■ March 2016

    Impact of Obamacare on Coverage
    Continued from page 7

    s● In total, an estimated 5.5 million young adults gained
    coverage from 2010 through September 12, 2015,
    which is statistically unchanged from March 4, 2015.

    ■ Uninsured Rates by Gender

    The uninsured rate declined for both males and females
    since the baseline period. There was a greater decline in the
    uninsured rate among females than among males.

    ● Males experienced a decline in their uninsured rate of
    7.3 percentage points, from an average baseline rate of
    21.8 percent to 14.5 percent, resulting in 7.3 million
    adult males gaining coverage.

    ● Females experienced a decline in their uninsured rate
    of 8.1 percentage points, from an average baseline rate
    of 18.9 percent to 10.8 percent, resulting in nearly 8.2
    million adult women gaining coverage.

    of fairer rules and stronger consumer protections
    that have made health care coverage more afford-
    able, more attainable, and more patient centered.
    And it is working. About 17.6 million Americans
    have gained health care coverage as the law’s cover-
    age provisions have taken effect. The Nation’s un-
    insured rate now stands at its lowest level ever, and
    demand for Marketplace coverage during Decem-
    ber 2015 was at an all-time high. Health care costs
    are lower than expected when the law was passed,
    and health care quality is higher — with improve-
    ments in patient safety saving an estimated 87,000
    lives. Health care has changed for the better, setting
    this country on a smarter, stronger course.

    The Reconciliation Act would reverse that
    course. The Congressional Budget Office estimates
    that the legislation would increase the number of
    uninsured Americans by 22 million after 2017. The
    Council of Economic Advisers estimates that this
    reduction in health care coverage could mean, each
    year, more than 900,000 fewer people getting all
    their needed care, more than 1.2 million additional

    people having trouble paying other bills due to
    higher medical costs, and potentially more than
    10,000 additional deaths. This legislation would
    cost millions of hard-working middle-class families
    the security of affordable health coverage they de-
    serve. Reliable health care coverage would no longer
    be a right for everyone: it would return to being a
    privilege for a few.

    The legislation’s implications extend far beyond
    those who would become uninsured. For example,
    about 150 million Americans with employer-based
    insurance would be at risk of higher premiums and
    lower wages. And it would cause the cost of health
    coverage for people buying it on their own to sky-
    rocket.

    The Reconciliation Act would also effectively
    defund Planned Parenthood. Planned Parenthood
    uses both Federal and non-Federal funds to provide
    a range of important preventive care and health ser-
    vices, including health screenings, vaccinations, and
    check-ups to millions of men and women who visit
    their health centers annually. Longstanding Federal
    policy already prohibits the use of Federal funds for
    abortions, except in cases of rape or incest or when
    the life of the woman would be endangered. By
    eliminating Federal Medicaid funding for a major
    provider of health care, H.R. 3762 would limit ac-
    cess to health care for men, women, and families
    across the Nation, and would disproportionately
    impact low-income individuals.

    Republicans in the Congress have attempted to
    repeal or undermine the Affordable Care Act over
    50 times. Rather than refighting old political battles
    by once again voting to repeal basic protections that
    provide security for the middle class, Members of
    Congress should be working together to grow the
    economy, strengthen middle-class families, and cre-
    ate new jobs. Because of the harm this bill would
    cause to the health and financial security of millions
    of Americans, it has earned my veto.

    Outlook. The House failed, by a vote of 241 to 186, to
    sustain the President’s veto. Opponents of the law have
    vowed to continue to work for repeal. “The idea that
    Obamacare is the law of the land for good is a myth,” stated
    Speaker of the House Paul Ryan. “This law will collapse
    under its own weight, or it will be repealed.”

    Legislative Background
    Continued from page 9

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