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An increase in government spending will increase the domestic interest rate. A lot depends on how analysts perceive future price levels and inflation. If the government spending is not expected to cause future inflation, an increase in interest...
My best guess is that you are interested in the effects of investors withdrawing from the financial market (as opposed to the labor market or some other market).
If 25% of the US population suddenly changed their investment behavior as you...
My question is:
What does this comprise? Does it include large infrastructure projects/oil refineries/nuclear plats etc or not?
As you probably have seen already, you can find the measure of value added to GDP per sector of the US economy at the Bureau of Economic Analysis website, specifically at this web address: https...
It means that once the dust has settled, insurance companies have paid out, homes have been rebuilt, infrastructure redone, people have moved out, businesses rebuilt, and so on, the total cost of all that would reach billions. These "billions"...
In my research I was surprised not to discover that not a single economic impact study had been done. Sure the state Office of Financial Management did theirs, and the restaurant/lodging lobbies did theirs. But there is no INDEPENDENT THIRD PARTY study out there ... that I could find.
The question is: Is that a kind of breach of sound fiscal management? Meaning, Washington citizens are sitting back and saying, "Well, let's just vote for it and see what happens?"
Alas, your concern about lack of sound fiscal management is not only justified in this case but is justified far more broadly. Many policy changes are initiated without third party studies to back them up. One assumes the government agencies do a...
Although China has had a spectacular economic growth in the last three decades, income/wealth inequality has been rising over time. It would not be a big problem as long as the high growth of economy can be sustained. This is because most people...
I am not sure I agree with the premise that the government buys a lot of goods and services which are otherwise not traded in a competitive market. (I suppose military expenses come under that description, to some extent.). If we assume that...
If prices are not rising at all over time or even falling, it would act as an disincentive for firms to produce goods for the market. For durables, if people expect prices to fall, they will wait. Since most financial contracts are denominated in...
Without questioning the specific numbers cited in the study, I would argue that much of the total does not represent a bailout of banks in a conventional sense. For example, $10T in central bank liquidity swaps refers to agreements between the...
If the central bank printed some money and "gave to someone secretly" and that person did not spend it, nothing would happen. If they did spend it, it would add to the money already in circulation, which may or may not (if output went up) cause...
This is a very intriguing proposal that deserves to be researched. It can have a stimulative effect for sure, at least in the short run. Once the government has paid off the bad debt, presumably banks will start lending again and that help...
Taken literally, fringe benefits are extra, non-monetary compensation, such as health insurance, etc. provided you by your employer. I suspect, however, that the person who submitted this question is not interested in the package of...
A fundamental principle of accounting is that the liabilities of one party are the assets of another. National debt is simply the amount owed by the federal government – that is, its liabilities. Some other party must hold these as assets, but it...
Information on changes in deposits at commercial banks can be useful in gaining a better understanding of a local economy. However, determining whether an increase in deposits is positive, negative, or neutral can be difficult if the reason for...
There are many things to consider in making the choice between purchasing a new or used car, including a comparison of sticker prices. As you suggest, new car values depreciate significantly in the first few months of ownership, often...
A 2012 United States Department of Agriculture Economic Research Service study used a simulation analysis to estimate the impact a 5.8-million-person reduction in the number of unauthorized workers—agricultural and nonagricultural. This was...
There is a large literature that attempts to adjust the various conventional measures of economic growth for the effects of environmental degradation. There is a useful Wikipedia page on the topic (...
So my question is: if the US dollar loses 10 % of its value to inflation, how much will the bonds return? In dollar amounts- a $5000 investment in Treasury inflation-protected securities should yield how much?
Suppose that $5000 is the face value or redemption value (not the market price at which an investor may have bought it) of a 5-year TIPs. Suppose that it promises to pay an annual coupon payment of 1% or the amount of $50 at the time of purchase...
In principle, if most companies offering retirement plans switched to 401(k)'s simultaneously and no new stocks were issued (i.e., no change on the supply side of the stock market), I would expect a substantial increase in the stock prices, as...
In a recent study of U.S. Census data on individual earnings for those with a wide range of degrees for 2010-2011, liberal arts majors who have completed a baccalaureate degree (only) have the lowest median salaries early after graduation ($22,...
My question is, are there opportunities to purchase, process and export Iowa agricultural products? Pigs ears, gluten, chicken feet, ginseng, farm equipment etc., I'd be amenable to any opportunities.. I'll be in Iowa next week visiting friends and family. I'd appreciate any feedback be it positive or negative from any members of your staff.
Yes, there are definitely opportunities to export Iowa agricultural products. The U.S. Census Bureau currently calculates that Iowa companies exported $13.2 billion in products in 2015. A sizable portion of these exports are...
Initially, a suggestion was made that we just hunted for a house with a rental cost 5 times the person with the lowest budget and then allocate the rooms by lottery.
However, this seems a sub optimal approach, since some of us would happily pay extra if we could get a slightly larger house and then pay extra for the larger rooms.
Given some of us are prepared to pay more for a larger room in the house, how can we match the rooms with each person's budget and willingness to pay extra for a larger rooms?
Further it would be great if any solution was generic to a range of potential rental houses, each of which has rooms of varying size (as we are looking at a number of houses).
I originally thought that we could have an auction for the rooms, but noted that the aggregate bids must add up to the cost to rent the whole house. I then thought we could do relative bids (how much extra we would be willing to pay for the largest room compared with the second largest and so on), but this approach left the possibility that the solution would produce bids higher than someone's individual budget.
This seems to be an optimisation problem constrained by each individuals personal budget and the rental cost of the house as a whole.
Do you have any ideas how to solve this?
Regards
Justin
Roughly speaking, you need to compute the aggregate valuation of the students for each house. They should then rent the house for which the gap between their aggregate valuation and the house’s rent is the largest. They can then...
- Is it a good time to invest in the Yen?
in part it's a bad idea since contractionary policies are/will be implemented to slow its growth rate, but on the other hand it's great because it's value is constantly growing despite the implemented policies.
- does having negative interest rates means that people need to pay in order to keep their money in the bank? is this a contractionary monetary policy?
first part:
It appears from the news analysis that Yen has appreciated too quickly against dollars and policymakers are concerned. Implicitly, yen appears to be overvalued in the short run. It is never a good idea to invest in a currency...
You can try
David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade," Annual...
I would humbly like to inquire whether this theory explains the drift apart of labor productivity and worker wage as a result of the progress of mechanization. And also I would like to know if it is new and worthy of exhaustive research.
"Increased productivity does not cause nor correspond with an increase in labor compensation. Wages increase in relation to the need for added and specialized skills and the relative scarcity of available labor possessing these. This carries over to skills needed to deploy and operate capital. If capital needs labor with added and specialized skills for it to operate, it will drive the need for higher paid, more specialized workers. The more autonomous the capital is corresponds with an increasingly inverse or stagnant relationship between real labor compensation and increased productivity. Productivity, in itself, is not a driver of added worth to labor." - Michael Nogle July 4, 2016
I am an avid student of history, and social studies, including economics, in my pursuit to gain my secondary teaching credentials. I also have two master degrees, one in liberal studies. I came up with this as a result of these studies. I believe the logic is sound and cannot think of specific areas where my model does not fit. My training in liberal studies has taught me that it is time to ask specialists for further insight.
I hope to hear from you soon.
Mike Nogle
Your proposed theory of wage setting appears to be consistent with the way that most economists would approach this issue. That is, most economists would accept that an individual’s wage is determined by the “human capital” – i.e., skills,...