Collection of Practice Problems
... a. Suppose α=1/3, s=0.2, n=1%, g=1%, δ=4%. What are the steady state value of the capital-labor ratio, output per efficiency unit, and consumption per efficiency unit? For parts b-e, assume the economy starts in the steady state derived in (a). b. Suppose an earthquake destroys 10% of the capital st ...
... a. Suppose α=1/3, s=0.2, n=1%, g=1%, δ=4%. What are the steady state value of the capital-labor ratio, output per efficiency unit, and consumption per efficiency unit? For parts b-e, assume the economy starts in the steady state derived in (a). b. Suppose an earthquake destroys 10% of the capital st ...
13.2 aggregate demand
... Change in Money Prices of Other Resources A change in the money prices of other resources changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each pri ...
... Change in Money Prices of Other Resources A change in the money prices of other resources changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each pri ...
A Simple Way to Overcome the Zero Lower Bound of Interest Rates
... the Fed balance sheet. In our opinion it is advisable to rely on the longest possible sample period in order to not bias the results by taking a shorter period which does not cover the overall trend. However, the Fed balance sheet length evolved smoothly before the financial crisis started, so the r ...
... the Fed balance sheet. In our opinion it is advisable to rely on the longest possible sample period in order to not bias the results by taking a shorter period which does not cover the overall trend. However, the Fed balance sheet length evolved smoothly before the financial crisis started, so the r ...
Macroeconomic Effects from Government Purchases and Taxes
... Robert J. Barro and Charles J. Redlick, Harvard University November 2009 ...
... Robert J. Barro and Charles J. Redlick, Harvard University November 2009 ...
Series 18 early page.cdr - Central Bank of Nigeria
... A Sovereign Wealth Fund (SWF) is a state-owned investment fund which comprises financial assets such as stocks, bonds, property, precious metals, or other financial instruments. Sovereign wealth funds invest globally. It is a pool of money derived from a country's reserves, which are set aside for i ...
... A Sovereign Wealth Fund (SWF) is a state-owned investment fund which comprises financial assets such as stocks, bonds, property, precious metals, or other financial instruments. Sovereign wealth funds invest globally. It is a pool of money derived from a country's reserves, which are set aside for i ...
chapter 10: arbitrage pricing theory and multifactor models of risk
... unrelated and that they will now be operated independently. We might therefore expect that the performance of the merged firm would be the same as the performance of a portfolio of the originally independent firms, but the FF model predicts that the increased firm size will result in lower average r ...
... unrelated and that they will now be operated independently. We might therefore expect that the performance of the merged firm would be the same as the performance of a portfolio of the originally independent firms, but the FF model predicts that the increased firm size will result in lower average r ...
securities
... - Customers who successfully open a new margin account during the Promotional Period will be eligible to enjoy a refund of 20% the brokerage fee or 50% of the margin interest paid during the Privileged Period, whichever is higher, up to a maximum of HK$3,800. - The brokerage fee and margin interest ...
... - Customers who successfully open a new margin account during the Promotional Period will be eligible to enjoy a refund of 20% the brokerage fee or 50% of the margin interest paid during the Privileged Period, whichever is higher, up to a maximum of HK$3,800. - The brokerage fee and margin interest ...
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... longer term rates of interest while not significantly affecting shorter term rates of interest. Since capital formation is presumably much more affected by long term than by short term rates, the inference has occasionally been made that budget deficits may lead to partial ‘crowding out’ (Carlson an ...
... longer term rates of interest while not significantly affecting shorter term rates of interest. Since capital formation is presumably much more affected by long term than by short term rates, the inference has occasionally been made that budget deficits may lead to partial ‘crowding out’ (Carlson an ...
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
... Timken has entered into individually negotiated contracts with some of its customers. These contracts may extend for one or more years and, if a price is fixed for any period extending beyond current shipments, customarily include a commitment by the customer to purchase a designated percentage of i ...
... Timken has entered into individually negotiated contracts with some of its customers. These contracts may extend for one or more years and, if a price is fixed for any period extending beyond current shipments, customarily include a commitment by the customer to purchase a designated percentage of i ...
NBER WORKING PAPER SERIES ARE COUNTERCYCLICAL FISCAL POLICIES COUNTERPRODUCTIVE? David B. Gordon
... countercyclical policies dampen the cycle, the intratemporal effects must be substantially more powerful than earlier studies have claimed. We derive these findings from simple dynamic reasoning that leads to the counterproductivity of countercyclical fiscal policies and then tie that logic to U.S. d ...
... countercyclical policies dampen the cycle, the intratemporal effects must be substantially more powerful than earlier studies have claimed. We derive these findings from simple dynamic reasoning that leads to the counterproductivity of countercyclical fiscal policies and then tie that logic to U.S. d ...
Incorporating Demographic Change in Multi
... be larger, the more pervasive are life-cycle elements in the behavior determining saving. A household manifesting the traditional life-cycle behavior will have a hump-shaped lifetime profile for its saving rate: low saving in its early years (when, for example, children are very young), high saving ...
... be larger, the more pervasive are life-cycle elements in the behavior determining saving. A household manifesting the traditional life-cycle behavior will have a hump-shaped lifetime profile for its saving rate: low saving in its early years (when, for example, children are very young), high saving ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... mated recent gaps of around –5 percent (e.g. Ahearne et al. 2002; Leigh 2004). In my simulations, I assume an initial output gap of –7.5 percent). Figure 7.1 also shows inflation, as measured by the GDP deflator and by core Consumer Price Index (CPI). The slump of the 90s dragged inflation down, as ...
... mated recent gaps of around –5 percent (e.g. Ahearne et al. 2002; Leigh 2004). In my simulations, I assume an initial output gap of –7.5 percent). Figure 7.1 also shows inflation, as measured by the GDP deflator and by core Consumer Price Index (CPI). The slump of the 90s dragged inflation down, as ...
The Effects of Credit Subsidies on Development
... This capital market failure provides a rationale for policies to reduce allocative inefficiency. Policy-makers also sometimes motivate intervention as an attempt to redress the perceived “unfairness” of problems linked to the distribution of initial wealth, since one’s assignment in this distributio ...
... This capital market failure provides a rationale for policies to reduce allocative inefficiency. Policy-makers also sometimes motivate intervention as an attempt to redress the perceived “unfairness” of problems linked to the distribution of initial wealth, since one’s assignment in this distributio ...
Fiscal Policy, Incentives, and Secondary Effects
... Supply-side Effects of Fiscal Policy • So, changes in marginal tax rates, particularly high marginal rates, may exert an impact on aggregate supply because they influence the relative attractiveness of productive activity compared to leisure and tax avoidance. • Supply-side policies are designed to ...
... Supply-side Effects of Fiscal Policy • So, changes in marginal tax rates, particularly high marginal rates, may exert an impact on aggregate supply because they influence the relative attractiveness of productive activity compared to leisure and tax avoidance. • Supply-side policies are designed to ...
Policy Rate, Mortgage Rate and Housing Prices
... most liberal economies in the world, and because it is considering macro-prudential policy instruments to restrain growth in house prices. Important parts of the New Zealand economy include tourism and international trade, which are much affected by global factors. As in other countries, the ability ...
... most liberal economies in the world, and because it is considering macro-prudential policy instruments to restrain growth in house prices. Important parts of the New Zealand economy include tourism and international trade, which are much affected by global factors. As in other countries, the ability ...
Determinants of FPI over FDI
... A key difference between FDI and FPI: FDI investors have the management of the firms under their control; but FPI investors delegate decisions to managers. Hence, direct investors are more informed than portfolio investors regarding projects, which enables them to manage projects more efficientl ...
... A key difference between FDI and FPI: FDI investors have the management of the firms under their control; but FPI investors delegate decisions to managers. Hence, direct investors are more informed than portfolio investors regarding projects, which enables them to manage projects more efficientl ...
Modelling the Macroeconomic Impact of Lowering
... balance back to its initial level. The increase in the PIT rate amounts to a 0.5 percentage-point increase in the average PIT rate. Figure 1 shows that the increase in the PIT rate in 2022/23 drives a wedge between the real pre- and post-tax wage rate. The fall in the real post-tax wage rate decreas ...
... balance back to its initial level. The increase in the PIT rate amounts to a 0.5 percentage-point increase in the average PIT rate. Figure 1 shows that the increase in the PIT rate in 2022/23 drives a wedge between the real pre- and post-tax wage rate. The fall in the real post-tax wage rate decreas ...
Using The DuPont Decomposing Process To
... There are two major steps in the process of decomposing a single ratio into multiple ratios. The first step is to reformulate the conversion process in the business model to include the variables currently ignored in the model’s description. The inclusion of one or more additional variables in the c ...
... There are two major steps in the process of decomposing a single ratio into multiple ratios. The first step is to reformulate the conversion process in the business model to include the variables currently ignored in the model’s description. The inclusion of one or more additional variables in the c ...
RTF 39.0 KB - Productivity Commission
... rates as the “base level” of funding for local government with fees and charges levied to provide additional services. If so, then ALGA has some difficulties with such an assumption. The trend has been towards cost recovery where appropriate and it is reasonable to expect that there would have been ...
... rates as the “base level” of funding for local government with fees and charges levied to provide additional services. If so, then ALGA has some difficulties with such an assumption. The trend has been towards cost recovery where appropriate and it is reasonable to expect that there would have been ...
Chapter 16: Monetary Policy
... Because the Fed can control the supply of reserves in the banking system and thus the Federal funds rate, it currently focuses monetary policy on altering the this interest rate as a need to stabilize the economy. The Federal funds rate is the interest rate banks and thrifts charge one another on ov ...
... Because the Fed can control the supply of reserves in the banking system and thus the Federal funds rate, it currently focuses monetary policy on altering the this interest rate as a need to stabilize the economy. The Federal funds rate is the interest rate banks and thrifts charge one another on ov ...
Paper - Department of Economics | Washington University in St. Louis
... rate can be. But for this to be an equilibrium, private savings must end up somewhere else: this is the role of government liabilities. In this heterogeneous credit-constrained agents model, debt policy does have an effect on equilibrium interest rates, even if taxes are lump sum. Thus, the issuance ...
... rate can be. But for this to be an equilibrium, private savings must end up somewhere else: this is the role of government liabilities. In this heterogeneous credit-constrained agents model, debt policy does have an effect on equilibrium interest rates, even if taxes are lump sum. Thus, the issuance ...
The P/E Ratio and Stock Market Performance
... stock price movements may affect consumption and investment spending—and thereby influence the overall performance of the economy. Concern has arisen recently that the stock market may be headed for a downturn because firms’ share prices have become very high relative to their earnings. Analysts who ...
... stock price movements may affect consumption and investment spending—and thereby influence the overall performance of the economy. Concern has arisen recently that the stock market may be headed for a downturn because firms’ share prices have become very high relative to their earnings. Analysts who ...
The role of regional factors in determining mortgage interest
... for five regions of the US that are defined in the Appendix 1. For each region, two fixed mortgage rates (fifteen and thirty-year terms) and two adjustable mortgage rates (one and 5/1 rate) have been reported. The difference between these is that the interest rate on the fixed rate mortgage is prede ...
... for five regions of the US that are defined in the Appendix 1. For each region, two fixed mortgage rates (fifteen and thirty-year terms) and two adjustable mortgage rates (one and 5/1 rate) have been reported. The difference between these is that the interest rate on the fixed rate mortgage is prede ...
Domestic and International Macroeconomic Effects of
... path of inflation towards its medium-term target. Consistent with the current EA monetary policy stance, in all scenarios the EA (short-term) monetary policy rate is kept constant at the baseline level for 8 quarters. All simulations are run under perfect foresight. So there is no uncertainty, polic ...
... path of inflation towards its medium-term target. Consistent with the current EA monetary policy stance, in all scenarios the EA (short-term) monetary policy rate is kept constant at the baseline level for 8 quarters. All simulations are run under perfect foresight. So there is no uncertainty, polic ...
Optimal Mane~ary Palicy and Sacrifice Ra~ia Jeffrey C. Fuhrer*
... While the link from slower disinflation to less real disruption seems plausible, others have argued the reverse (see, for example, Ball 1994). If more rapid disinflations are also more credible disinflations, and if enhanced credibility decreases the stickiness of prices and inflation, then a more v ...
... While the link from slower disinflation to less real disruption seems plausible, others have argued the reverse (see, for example, Ball 1994). If more rapid disinflations are also more credible disinflations, and if enhanced credibility decreases the stickiness of prices and inflation, then a more v ...