Explain fiscal and monetary policies from various perspectives; provide arguments from your own perspective, supported by analysis, for a policy change that should be adopted.

Fiscal and monetary policies

Explain fiscal and monetary policies from various perspectives; provide arguments from your own perspective, supported by analysis, for a policy change that should be adopted.

Write an essay on how corruption is not necessarily more in non democratic economies than compared to democratic economies.

Corruption

Write an essay on how corruption is not necessarily more in non democratic economies than compared to democratic economies.

Suppose the taxpayer is an expected utility maximizer with strictly increasing Bernoulli utility function u(W), where W is final wealth. Write down the corre-sponding maximization problem.

Probability

Suppose the taxpayer is an expected utility maximizer with strictly increasing Bernoulli utility function u(W), where W is final wealth. Write down the corre-sponding maximization problem.

Characterize the optimal solution, x*, to the maximization problem in b. Be careful with both bounds, 0 and y.

Provide a condition under which x = 0 is a solution. What can you say about the role played by the probability 7r in this condition?

Provide a condition under which x = y is a solution. What can you say about the role played by the probability it in this condition?

 

How do the authors, Gerguri and Ramadani describe the impact of innovation on economic growth? Are there limits to growth by innovation? What have been the practical lessons from the German Mittlestand?

Innovation on economic growth

Respond to the following questions, in an essay that addresses the topics covered in the readings.
Remember, from the syllabus, you must use at least one source in addition to the readings; bibliographies are not required; cite readings in footnotes or in the text.
Prepare a 2-page double-spaced response with a short introductory paragraph outlining the topics and purpose of your brief, the body of which responds to the questions (address all of them), and a
conclusion which states your own thoughts on the topic and its relevance, in the context of the economy.

CHALLENGES:
How do the authors, Gerguri and Ramadani describe the impact of innovation on economic growth?
Are there limits to growth by innovation? What have been the practical lessons from the German Mittlestand?

Discuss why credit risk management within the financial sector is so essential. Why do you think so many banks failed to properly manage risk prior to the financial collapse? What are the consequences of failing to manage credit risk and whom do they affect?

Assignment Content

Competency

Differentiate the dimensions of credit risk and their impact on the aggregate economy.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Instructions

Risk management practices within the financial sector are of particular interest to regulators. This is because the failures within this sector disrupt the functionality of the financial system and derail economic growth and efficiency. A historical reference point is the subprime meltdown of 2007 because it is the most prominent example of a massive risk management failure. In this assignment, you will evaluate the consequences of such a failure.

You have been hired by the board of Financial Leaders to facilitate a presentation on this topic. You must submit the items you intend to cover to the event planner by next week. Your presentation should be in PowerPoint and should address the bullet points below. You must also submit your presentation notes that you intend to use during the presentation using the Notes feature at the bottom of the PowerPoint slides.

  • Discuss why credit risk management within the financial sector is so essential.
  • Why do you think so many banks failed to properly manage risk prior to the financial collapse?
  • What are the consequences of failing to manage credit risk and whom do they affect?
  • What measures can banks employ to mitigate credit risks?

 

 

How does the present value change when interest rates rise? What happens to the present value when the payments are stretched out over thirty years instead of ten? Under what circumstances, should you choose the lump-sum payout instead of the installment plan?

Money, Economic anthropology and  Forensic economics

This question is about money, “economic anthropology” and “forensic economics.” In other words, CSI meets Indiana Jones meets Jerome Powell (the current Federal Reserve Chairman).

  • (a) If you were to travel to a newly discovered civilization deep in the heart of the Amazon. How could you tell whether or not this civilization had an economy based on money?
  • (b) Suppose you discovered that this civilization was engaged in barter, how would you convince them that using ducks as a form of money would improve their lives?
  • (c) Suppose you discovered another Amazonian civilization that actually did use ducks as money. Should they switch to something else (like M&Ms or gambling chips)? Why or why not?

 

“Present  achieve” is considered to be one of the most important concepts ever articulated in financial economics. We use it to calculate our current wealth or the value of all our assets.

  • As a practical matter, how do you calculate the present value of (0 a single future payment? (ii) two future payments received on separate dates? (iii) future payments received forever but only in even-numbered years? Write down the formula you would use to calculate the present values and explain all parts of the formulas.

Do lotteries mislead a gullible public? When lotteries talk about winning a million dollars, they usually do not mention the fine print that most of the prize money is in the future. A winning lottery ticket is equivalent to a security that pays out the million dollar prize in equal installments over a ten (or thirty) year period, or else you can choose a much much smaller one time lump-sum payout.

  • What (roughly) is the present value of holding a winning lottery ticket that pays out over ten years? Specifically, explain what formula would you use to compute the value.
  • How does the present value change when interest rates rise?
  • What happens to the present value when the payments are stretched out over thirty years instead of ten?
  • Under what circumstances, should you choose the lump-sum payout instead of the installment plan?

 

Select an Eastern European country that belongs to the European Union. Provide the most recent economic data for that country, then discuss how membership in the European Union affected the economic conditions in the past 10 years in the country you selected.

Trade Policies for the Developing Nations

International trade provides benefits to a country’s producers and consumers. However, some economists warn that developing countries are disadvantaged by the current international trading system.

  • Select an Eastern European country that belongs to the European Union (Bulgaria, Czechia, Hungary, Poland, Romania, Slovakia, Slovenia).
  • Provide the most recent economic data for that country, then discuss how membership in the European Union affected the economic conditions in the past 10 years in the country you selected.
  • Discuss the economic trade policies would you implement to continue the economic rise of the country you analyzed?Directions:
  • Embed course material concepts, principles, and theories, which require supporting citations along with at least one scholarly, peer-reviewed reference in supporting your answer unless the discussion calls for more. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
  • Use Saudi Electronic University academic writing standards and APA style guidelines.

 

Find the average salary and the average tenure in the sample. Identify how many CEOs are in their first year as CEO. Estimate the values of the parameters β0^ and β1^ for the following simple regression model: salaryi=β0^+β1^ceoteni+ei^

Assignment 2

Instructions

For questions 1-2, you can submit a PDF or scanned copy of your work. Please consult with me if you don’t know how to accomplish this.

For questions 3-4, you must use STATA, and must turn in a copy of your Do-file. The Do-file must perform every task below neatly and correctly.

The work you hand in must be your own. You must NOT copy any answers from anyone or anywhere else. Review FIU’s policy on academic misconduct for more information.

Questions

  1. Derive the critical values of β0^ and β1^ that minimize the residual sum of squares for the following sample regression model Yi=β0^+β1^Xi+ei^
  2. Derive the critical values of α0^ and α1^ that minimize the residual sum of squares for the following sample regression model Yi=α0^+α1^(Xi−X¯)+ei^
  3. Download this dataset and load it into STATA for this question. Alternatively you can load the dataset directly from http://estebanch.com/ECO4421/HW02/question4.dta
  4. a) Use the answers from question 1 to get the values for β0^ and β1^.
  5. b) Generate the predicted values of Y
  6. c) Calculate the mean of the true value of Y , and compare it to the mean of the predicted value of Y. Are they the equal?
  7. d) Generate the sample error term
  8. e) Derive the value of R2
  9. f) How much of the variation in Y is explained by X?

Hint: Use preserve, collapse, and restore to make everything a bit easier

  1. Download this dataset and load it into STATA for this question. Alternatively, you can load the dataset directly from http://estebanch.com/ECO4421/HW02/question5.dta

The dataset has information on CEOs of US Corporations. There are 177 observations, and two variables: ceoten has the years the individual has been a CEO of that company, and salary is the compensation in thousands of dollars.

  1. a) Find the average salary and the average tenure in the sample.
  2. b) Identify how many CEOs are in their first year as CEO.
  3. c) Estimate the values of the parameters β0^ and β1^ for the following simple regression model: salaryi=β0^+β1^ceoteni+ei^
  1. d) On average, what is the predicted increase in salary given one additional year as CEO?
  2. e) How much of the variation in salary is explained by years as CEO?
  3. f) Is years as CEO a good predictor of the variation in CEO salary? Explain.

 

What role does the Federal Trade Commission play in the regulation of commercial speech? What kinds of actions can the FTC take to enforce its rules?

Federal Trade Commission

What role does the Federal Trade Commission play in the regulation of commercial speech? What kinds of actions can the FTC take to enforce its rules?

Identify and describe any patterns that can be seen. What are the possible explanations for these patterns? What exchange rates do you predict for 1 year from now?

Exchange rates

In a three to five page paper (excluding title and reference pages), plot the exchange rates from the past year in each of the three countries.

Identify and describe any patterns that can be seen. What are the possible explanations for these patterns? What exchange rates do you predict for 1 year from now?