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2. DYNAMIC EQUILIBRIUM MODELS I: TWO
2. DYNAMIC EQUILIBRIUM MODELS I: TWO

... Thus, the allocation {c1 = y1 , c2 = y2 } and prices {p1 = 1, p2 = β(y1 /y2 )} constitute a competitive equilibrium for this economy. Now one of the things we know about competitive equilibria in such economies (in fact, for a large class of economies) is the fundamental theorems of welfare economi ...
Mid-Caps_An_Overlooked_Asset_Class - Updated through 12-31-13
Mid-Caps_An_Overlooked_Asset_Class - Updated through 12-31-13

... Chase Mid-Cap Growth Fund (CHAMX) As investors, we are all looking for that magic combination of return and risk. Intuitively with today’s ultra efficient markets, we know you can’t have one, high return, without having the other, high risk. However, we believe mid-cap stocks are an anomaly. Over a ...
Comparing the Incidence of Taxes and Social Spending in Brazil
Comparing the Incidence of Taxes and Social Spending in Brazil

... and personal income, payroll, corporate income, property, and expenditure taxes. In both countries, primary spending is close to 40 percent of GDP. The US achieves higher redistribution through direct taxes and transfers, primarily due to underutilization of the personal income tax in Brazil and the ...
Interest Rate Policy and the Inflation Scare Problem
Interest Rate Policy and the Inflation Scare Problem

... 1989:1. The ex ante post-tax real rate ranged from 1.5 percent to 3.2 percent per annum with a mean of 2.6 percent. Assuming investors keep after-tax ex ante rates on long-term government bonds in the United States and United Kingdom roughly equal, we can set r = 2.6 in the above expression to infer ...
developing expected return and risk assumptions
developing expected return and risk assumptions

... long-term trends exhibit stability. From a long-term strategic perspective, outlying single-year returns and market events may prove to have only modest influence on long-term trends. Once such trends are confirmed, PCA extrapolates the trend to arrive at an initial estimate of an investment class’s ...
Entrepreneurship Incentives for Resource
Entrepreneurship Incentives for Resource

... beginning of Year 1, and that the investment will have a payoff of $100,000 at the end of Year 5. The net present value17 is about $48,000. If the 5% discount rate represents not only the rate of return an investor could earn on a similar-risk project, but also the rate at which the firm can borrow ...
NBER WORKING PAPER SERIES CAN SEVERE FISCAL CONTRACTIONS BE EXPANSIONARY?
NBER WORKING PAPER SERIES CAN SEVERE FISCAL CONTRACTIONS BE EXPANSIONARY?

... variable is real private consumption C as a share of potential output Y' (obtained by fitting an exponential trend on 1973-89 real GOP). T are cyclically—corrected taxes net of transfers and subsidies, C is public consumption. In regressions (2) and (3) the regressors include also real money (M2) as ...
M.Sc. ACTUARIAL SCIENCE
M.Sc. ACTUARIAL SCIENCE

MMEIM 201 – Financial Management
MMEIM 201 – Financial Management

... c. Explain conventional and operating cycle method of estimation of working capital. (7 marks) d. Current sales of a single product company ABC Ltd is 20,000 units. Selling price is Rs. 6 per unit. Prime costs (total of all direct costs) are Rs. 3 per unit. Variable overheads are Rs.1 per unit. Tot ...
FISCAL TRENDS AND POLICY ISSUES AND IMPLICATIONS FOR THE CARIBBEAN GENERAL LC/CAR/G.771
FISCAL TRENDS AND POLICY ISSUES AND IMPLICATIONS FOR THE CARIBBEAN GENERAL LC/CAR/G.771

... financial services, real estate, transportation, medical and dental services. (IMF, 2001; Williams, ...
Macroeconomics, 6e (Abel et al.) Chapter 12 Unemployment and
Macroeconomics, 6e (Abel et al.) Chapter 12 Unemployment and

... Question Status: Previous Edition  ...
DownloadPDF - 1.5 MB - European Commission
DownloadPDF - 1.5 MB - European Commission

... and private debt is an additional risk factor.  The expenditure-based consolidation strategy has relied mainly on declining interest rates and cuts in public investment. The already very high revenue-to-GDP ratio leaves little margin for further tax hikes, suggesting that further consolidation need ...
2. How Can Sub-Saharan Africa Harness the Demographic
2. How Can Sub-Saharan Africa Harness the Demographic

... Failure to create sufficient jobs could result in severe economic and social problems. • The overall magnitude of the dividend will depend on the speed of the transition, that is, how fast infant mortality and fertility rates decline. For some sub-Saharan African countries where fertility rates rem ...
Document
Document

... interest rates and cuts in public investment. The already very high revenue-to-GDP ratio leaves little margin for further tax hikes, suggesting that further consolidation needs to be expenditure-based. However, it is unlikely that the low interest rate environment will prevail in the medium term and ...
4: Inflation effect on capital budgeting decisions
4: Inflation effect on capital budgeting decisions

... similar fashion. Hence, net revenues after adjustment for inflation would be equal to net revenues in current terms”3. This line of argument although seems to be convincing, cause distortion for two reasons i.e., (i) Discount rate and (ii) Selling prices and costs. Hence this study is an attempt to ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... unlikely. Section 3.8 of Feldstein (1997) discusses some of the difficulties of shifting to an indexed tax system in which capital income and expenses are measured in real terms. Although such a shift has been advocated for at least two decades, there has been no legislation along those lines.5 It i ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Inflation: Causes and Effects
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Inflation: Causes and Effects

... of these contracts should be expected to have occurred in the seventies in light of the increasing uncertainty about the price level over long periods described in section 8.1. The level payment long-term mortgage that became standard for the United States economy after the Great Depression has majo ...
the paper - Brookings Institution
the paper - Brookings Institution

... defense spending relative to the CBO's baseline.1 Lastly, the CBO baseline holds discretionary spending at the levels created by the recent discretionary spending caps and sequestration procedures as imposed in the Budget Control Act of 2011 and modified by the Bipartisan Budget Act of 2013. We allo ...
Privatisation - Institute of Public Policy
Privatisation - Institute of Public Policy

... – “we found no clear and explicit justification and evaluation for the use of PFI in terms of its value for money…The Department for Communities and Local Government has undertaken a limited analysis of capital costs on new build schemes but this did not take account of all project costs such as fin ...
AP Macro Practice Quiz Questions 28, 29, 30
AP Macro Practice Quiz Questions 28, 29, 30

... d. All of the above are correct. Which list contains only actions that decrease the money supply? a. raise the discount rate, make open market purchases b. raise the discount rate, make open market sales c. lower the discount rate, make open market purchases d. lower the discount rate, make open mar ...
Download817 KB - Long
Download817 KB - Long

... Finally, it is worth mentioning a sovereignty issue: the substantial level of ownership of the capital of so-called “French champions” by non-residents (40% to 45%). This figure does not leave much room for manoeuvre to prevent reaching the tipping point where these companies will decouple from thei ...
Measuring Retiree Group Benefit Obligations
Measuring Retiree Group Benefit Obligations

... also supersedes ACG No. 3. In addition, this revised standard represents the following changes from the original ASOP No. 6: ...
FSB, Summary of Findings from the TLAC Impact Assessment Studies
FSB, Summary of Findings from the TLAC Impact Assessment Studies

... requirements and other liabilities that meet the eligibility criteria set out in the Term Sheet would be eligible to satisfy the minimum TLAC requirement. To inform the final calibration of the minimum TLAC requirement within the 16-20% RWA range, the FSB conducted a comprehensive impact assessment ...
A guide to your with-profits investment and how we manage
A guide to your with-profits investment and how we manage

... Gilts can include bonds issued by the UK government as a way for them to borrow money, usually for a fixed term. The government pays interest on the loan. Gilts issued by the UK government are generally seen as lower risk investments than bonds issued by companies (corporate bonds). Corporate bonds ...
Our currency, your problem? The global effects of the euro debt crisis
Our currency, your problem? The global effects of the euro debt crisis

... papers however do not address the central question of this paper, namely the transmission of the euro debt crisis to the rest of the world. The main result of this paper is the euro debt crisis events have important e¤ects on global …nancial markets, signi…cantly more so for advanced than for emergi ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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