Economics Honors Exam 2008 Solutions Question 5

Save this PDF as:

Size: px
Start display at page:

Transcription

1 Economics Honors Exam 2008 Soluions Quesion 5 (a) (2 poins) Oupu can be decomposed as Y = C + I + G. And we can solve for i by subsiuing in equaions given in he quesion, Y = C + I + G = c 0 + c Y D + I + G = c 0 + c (Y T ) + I + G = c 0 + c (Y 0 Y ) + I + G ( c + c )Y = c 0 c 0 + I + G. Therefore he equilibrium oupu is, Y = c 0 c 0 + I + G c + c. 3 poins: for realizing Y = C + I + G 2 poins: for subsiuing in C = c 0 + c Y D 2 poins: for subsiuing in T = 0 + Y 2 poins: for subsiuing in Y D = Y T 3 poins: for geing he final answer correc (b) (2 poins) The muliplier is <. C + c c The economy responds less o changes in auonomous spending when is posiive. Afer a posiive change in auonomous spending, he increase in oal axes (because of he increase in income) reduces consumpion and ends o lessen he increase in oupu. poins: for geing he muliplier correc poins: for realizing ha he economy responds less when is posiive 0- poins: depending on he qualiy of he explanaion (c) (6 poins) Because of he auomaic effec of axes on he economy, he economy responds less o changes in auonomous spending han in he case

2 where axes are independen of income. So oupu ends o vary less and fiscal policy is called an auomaic sabilizer. 0-6 poins: depending on he qualiy of he explanaion 2

3 Economics Honors Exam 2008 Soluions Quesion 6 (a) (0 poins) Since he rae of growh of E is 0, E is consan. Leing A E α, we can rewrie he aggregae producion funcion as Y = E α K α L α = A K α L α. Thus income per worker, y, can be wrien as. In seady sae, we have y = Y L ( K = A L = A k α. ) α k = sy (δ + n)k. Subsiuing in he expression for k, we can ge s Ak α (δ + n)k = 0 k α = sa ( k = Subsiuing ino he expression for y, we ge δ+n sa δ+n ) α. ( y = A A α α s ( = A α s δ + n δ + n ) α α ) α α. poin: for realizing ha E is consan 2 poins: for geing he expression y = A k α correc poin: for realizing ha in seady sae, k = 0 2 poins: for geing he expression sy (δ + n)k = 0 correc 2 poins: for geing he seady-sae k correc 2 poins: for geing he seady-sae y correc 3

4 (b) (3 poins) Consumpion per worker is c = ( s) y = ( s) A α ( ) α s α. δ + n 2 poins: for geing c = ( s) y correc poin: for geing final answer correc (c) (3 poins) We know ha y = Ak α, while A E α. Therefore if E increases, oupu per worker would increase as well. poin: for realizing ha y increase on he day of he change 0-2 poins: depending on he qualiy of he reasoning (d) (7 poins) An increase in E is equivalen o improved efficiency in he producion funcion: As could be seen from he graph, in he new seady sae, boh capial per worker (k) and oupu/income per worker (y) are higher, herefore he ransiion pah is illusraed overleaf: 2 poins: for realizing ha income per worker keeps on increasing over he ransiion pah

5 0-2 poins: depending on he qualiy of he reasoning (does no necessarily have o draw he firs graph) poin: for drawing a discree jump a 0 in he second graph poin: for showing ha y increases over ime afer 0 in he second graph poin: for showing ha y converges o he new seady sae value in he second graph (e) (7 poins) Immediaely afer he shock, here are wo compeing effecs: E increases bu capial sock is desroyed, hence he efficiency gain is offse by he capial loss. The ne effec on iniial oupu per worker is ambiguous. If he drop in capial sock dominaes he increase in E, oupu per worker would acually drop on he day of he change. Oherwise, oupu per worker would sill jump up on he day of he change, hough o a lesser exen han in par (c). Over ime, oupu per worker is going o be higher since k is higher in he new seady sae. The new graphs are shown below: poin: for realizing ha he immediae effec of desrucion of capial sock is o reduce y 2 poins: for realizing ha he ne effec on income per worker a 0 is ambiguous poin: for realizing ha y is going o be higher in he new seady sae (does no necessarily have o draw he firs graph) poin: for drawing a leas wo curves in he second graph, wih a discree jump up or down respecively a 0 poin: for showing ha y increases over ime afer 0 in he second graph poin: for showing ha y converges o he new seady sae value in he second graph 5

6 6

7 Economics Honors Exam 2008 Soluions Quesion 7 (a) (6 poins) Consumpion is: C = Y G K + = G 2 K G K + Differeniaing his wih respec o G gives: Seing his equal o zero gives: dc dg = 2 G 2 K G = K 2 2 poins: for geing he expression for consumpion C correc poin: for differeniaing C wih respec o G and seing his o zero 2 poins: for solving he differeniaion problem correcly poin: for geing he final answer G = K 2 correc (b) (2 poins) The household s budge consrain is: C = G 2 K G K + Subsiuing his ino he uiliy funcion of he represenaive agen gives: U = =0 β u(g 2 K G K + ) The consumer does no ake governmen spending as given, herefore G mus be subsiued ou of his expression, i.e.: U = = =0 =0 β u( 2 K K K + K 2 ) β u( K 2 K + ) Taking firs order condiions wih respec o K gives: 0 = u ( K 2 K ) + β 8 K 2 u ( K 2 K + )

8 Therefore he firs order condiion gives: = β 8 K 2 K = ( 8 β ) 2 2 poins: for subsiuing he expression for C ino he lifeime uiliy funcion 2 poins: for subsiuing G = K 2 in 2 poins: for geing U = =0 β u( K 2 K + ) correc 2 poins: for aking firs order condiion wih respec o K 2 poins: for solving he differeniaion problem correcly 2 poins: for geing he final answer K = ( 8 β ) 2 correc (c) (9 poins) The household s budge consrain is: C = G 2 K G + K + Subsiuing his ino he uiliy funcion of he represenaive agen gives: U = =0 β u(g 2 K G + K + ) Taking firs order condiions wih respec o G gives: 0 = u (G 2 K G K ) + β 2 G 2 K u (G 2 K G + K + ) In seady sae he argumens are he same, herefore: G 2 = β 2 K G = β2 K 2 2 poins: for geing he new expression for C correc (noe he subscrips of G) poin: for subsiuing C ino he lifeime uiliy funcion 2 poins: for aking firs order condiion wih respec o G 2 poins: for solving he differeniaion problem correcly poin: for realizing ha in seady sae, G is consan poin: for geing he final answer G = β2 K 2 correc 2

9 (d) (3 poins) This is less han he answer from par (a). I is because here is an exra cos o governmen spending now, in ha i mus be from savings. Because agens are impaien, his means ha i is less desirable. poin: for realizing ha he new governmen spending level is lower 0-2 poins: depending on he qualiy of he reasoning 3

10 Economics Honors Exam 2008 Soluions Quesion 8 (a) (6 poins) K = I δk = sy δk = sa()(k()) α (L()) α δk() k k = K K L L = sa()(k()) α δ n poin: for realizing ha K = I δk 2 poins: for geing he expression K = sa()(k()) α (L()) α δk() correc poin: for realizing ha k k = K K L L 2 poins: for geing he final answer correc (b) (6 poins) y = A()k() α In seady sae, i mus be ha y and k grow a he same rae, call i g. Therefore i mus be ha: A ( α)g = A i.e. he growh of A mus be consan. The growh of A is given by: A() A() = y() A() = k()α This mus be consan, i.e. k() mus be consan. However, i is no because if i were hen k k would be growing consanly over ime, which can be seen from par (a). poin: for acknowledging ha his model does have such a seady sae poin: for geing y = A()k() α correc poin: for realizing ha y and k mus grow a he same rae in seady sae

11 poin: for geing ( α)g = Ȧ A correc A() poin: for geing A() = k()α correc poin: for realizing ha he growh rae of A is consan (c) (9 poins) A() ( α)g = A() = k()β A() Therefore if he las par is consan hen k() grows a a rae β A() rae of A, which is consisen wih A() = ( α)g if ( α) = β. A() A() = k()β A() 2 poins: for geing correc 2 poins: for equaing his o ( α)g he growh A() A() is consan if k() grows a a rae β he 3 poins: for realizing ha growh rae of A 2 poins: for realizing ha his is saisfied if ( α) = β (d) (6 poins) Here, savings affec growh. I does no in he oher case. The more paien people are, he higher he opimal s will be. The usual Golden Rule does no depend on he ime preference. 2 poins: for realizing ha savings affec growh here, while i does no in he oher case 2 poins: for realizing ha he more paien people are, he higher he opimal s will be 2 poins: for realizing ha he usual Golden Rule does no depend on he ime preference (e) (3 poins) Learning by doing. 5

Graduate Macro Theory II: Notes on Neoclassical Growth Model

Graduae Macro Theory II: Noes on Neoclassical Growh Model Eric Sims Universiy of Nore Dame Spring 2011 1 Basic Neoclassical Growh Model The economy is populaed by a large number of infiniely lived agens.

Chapter 7. Response of First-Order RL and RC Circuits

Chaper 7. esponse of Firs-Order L and C Circuis 7.1. The Naural esponse of an L Circui 7.2. The Naural esponse of an C Circui 7.3. The ep esponse of L and C Circuis 7.4. A General oluion for ep and Naural

Inductance and Transient Circuits

Chaper H Inducance and Transien Circuis Blinn College - Physics 2426 - Terry Honan As a consequence of Faraday's law a changing curren hrough one coil induces an EMF in anoher coil; his is known as muual

PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE

Profi Tes Modelling in Life Assurance Using Spreadshees PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE Erik Alm Peer Millingon 2004 Profi Tes Modelling in Life Assurance Using Spreadshees

Optimal Investment and Consumption Decision of Family with Life Insurance

Opimal Invesmen and Consumpion Decision of Family wih Life Insurance Minsuk Kwak 1 2 Yong Hyun Shin 3 U Jin Choi 4 6h World Congress of he Bachelier Finance Sociey Torono, Canada June 25, 2010 1 Speaker

RC (Resistor-Capacitor) Circuits. AP Physics C

(Resisor-Capacior Circuis AP Physics C Circui Iniial Condiions An circui is one where you have a capacior and resisor in he same circui. Suppose we have he following circui: Iniially, he capacior is UNCHARGED

17 Laplace transform. Solving linear ODE with piecewise continuous right hand sides

7 Laplace ransform. Solving linear ODE wih piecewise coninuous righ hand sides In his lecure I will show how o apply he Laplace ransform o he ODE Ly = f wih piecewise coninuous f. Definiion. A funcion

11/6/2013. Chapter 14: Dynamic AD-AS. Introduction. Introduction. Keeping track of time. The model s elements

Inroducion Chaper 14: Dynamic D-S dynamic model of aggregae and aggregae supply gives us more insigh ino how he economy works in he shor run. I is a simplified version of a DSGE model, used in cuing-edge

Circuit Types. () i( t) ( )

Circui Types DC Circuis Idenifying feaures: o Consan inpus: he volages of independen volage sources and currens of independen curren sources are all consan. o The circui does no conain any swiches. All

Answer, Key Homework 2 David McIntyre 45123 Mar 25, 2004 1

Answer, Key Homework 2 Daid McInyre 4123 Mar 2, 2004 1 This prin-ou should hae 1 quesions. Muliple-choice quesions may coninue on he ne column or page find all choices before making your selecion. The

Two Compartment Body Model and V d Terms by Jeff Stark

Two Comparmen Body Model and V d Terms by Jeff Sark In a one-comparmen model, we make wo imporan assumpions: (1) Linear pharmacokineics - By his, we mean ha eliminaion is firs order and ha pharmacokineic

Network Effects, Pricing Strategies, and Optimal Upgrade Time in Software Provision.

Nework Effecs, Pricing Sraegies, and Opimal Upgrade Time in Sofware Provision. Yi-Nung Yang* Deparmen of Economics Uah Sae Universiy Logan, UT 84322-353 April 3, 995 (curren version Feb, 996) JEL codes:

Density Dependence. births are a decreasing function of density b(n) and deaths are an increasing function of density d(n).

FW 662 Densiy-dependen populaion models In he previous lecure we considered densiy independen populaion models ha assumed ha birh and deah raes were consan and no a funcion of populaion size. Long-erm

Working Paper No. 482. Net Intergenerational Transfers from an Increase in Social Security Benefits

Working Paper No. 482 Ne Inergeneraional Transfers from an Increase in Social Securiy Benefis By Li Gan Texas A&M and NBER Guan Gong Shanghai Universiy of Finance and Economics Michael Hurd RAND Corporaion

Stochastic Optimal Control Problem for Life Insurance

Sochasic Opimal Conrol Problem for Life Insurance s. Basukh 1, D. Nyamsuren 2 1 Deparmen of Economics and Economerics, Insiue of Finance and Economics, Ulaanbaaar, Mongolia 2 School of Mahemaics, Mongolian

Chapter 10 Social Security 1

Chaper 0 Social Securiy 0. Inroducion A ypical social securiy sysem provides income during periods of unemploymen, ill-healh or disabiliy, and financial suppor, in he form of pensions, o he reired. Alhough

1. y 5y + 6y = 2e t Solution: Characteristic equation is r 2 5r +6 = 0, therefore r 1 = 2, r 2 = 3, and y 1 (t) = e 2t,

Homework6 Soluions.7 In Problem hrough 4 use he mehod of variaion of parameers o find a paricular soluion of he given differenial equaion. Then check your answer by using he mehod of undeermined coeffiens..

Morningstar Investor Return

Morningsar Invesor Reurn Morningsar Mehodology Paper Augus 31, 2010 2010 Morningsar, Inc. All righs reserved. The informaion in his documen is he propery of Morningsar, Inc. Reproducion or ranscripion

Chapter 5. Aggregate Planning

Chaper 5 Aggregae Planning Supply Chain Planning Marix procuremen producion disribuion sales longerm Sraegic Nework Planning miderm shorerm Maerial Requiremens Planning Maser Planning Producion Planning

Optimal Monetary Policy When Lump-Sum Taxes Are Unavailable: A Reconsideration of the Outcomes Under Commitment and Discretion*

Opimal Moneary Policy When Lump-Sum Taxes Are Unavailable: A Reconsideraion of he Oucomes Under Commimen and Discreion* Marin Ellison Dep of Economics Universiy of Warwick Covenry CV4 7AL UK m.ellison@warwick.ac.uk

Duration and Convexity ( ) 20 = Bond B has a maturity of 5 years and also has a required rate of return of 10%. Its price is \$613.

Graduae School of Business Adminisraion Universiy of Virginia UVA-F-38 Duraion and Convexiy he price of a bond is a funcion of he promised paymens and he marke required rae of reurn. Since he promised

AP Calculus AB 2013 Scoring Guidelines

AP Calculus AB 1 Scoring Guidelines The College Board The College Board is a mission-driven no-for-profi organizaion ha connecs sudens o college success and opporuniy. Founded in 19, he College Board was

Random Walk in 1-D. 3 possible paths x vs n. -5 For our random walk, we assume the probabilities p,q do not depend on time (n) - stationary

Random Walk in -D Random walks appear in many cones: diffusion is a random walk process undersanding buffering, waiing imes, queuing more generally he heory of sochasic processes gambling choosing he bes

The Real Business Cycle paradigm. The RBC model emphasizes supply (technology) disturbances as the main source of

Prof. Harris Dellas Advanced Macroeconomics Winer 2001/01 The Real Business Cycle paradigm The RBC model emphasizes supply (echnology) disurbances as he main source of macroeconomic flucuaions in a world

Name: Algebra II Review for Quiz #13 Exponential and Logarithmic Functions including Modeling

Name: Algebra II Review for Quiz #13 Exponenial and Logarihmic Funcions including Modeling TOPICS: -Solving Exponenial Equaions (The Mehod of Common Bases) -Solving Exponenial Equaions (Using Logarihms)

A One-Sector Neoclassical Growth Model with Endogenous Retirement. By Kiminori Matsuyama. Final Manuscript. Abstract

A One-Secor Neoclassical Growh Model wih Endogenous Reiremen By Kiminori Masuyama Final Manuscrip Absrac This paper exends Diamond s OG model by allowing he agens o make he reiremen decision. Earning a

cooking trajectory boiling water B (t) microwave 0 2 4 6 8 101214161820 time t (mins)

Alligaor egg wih calculus We have a large alligaor egg jus ou of he fridge (1 ) which we need o hea o 9. Now here are wo accepable mehods for heaing alligaor eggs, one is o immerse hem in boiling waer

Appendix A: Area. 1 Find the radius of a circle that has circumference 12 inches.

Appendi A: Area worked-ou s o Odd-Numbered Eercises Do no read hese worked-ou s before aemping o do he eercises ourself. Oherwise ou ma mimic he echniques shown here wihou undersanding he ideas. Bes wa

II.1. Debt reduction and fiscal multipliers. dbt da dpbal da dg. bal

Quarerly Repor on he Euro Area 3/202 II.. Deb reducion and fiscal mulipliers The deerioraion of public finances in he firs years of he crisis has led mos Member Saes o adop sizeable consolidaion packages.

The Transport Equation

The Transpor Equaion Consider a fluid, flowing wih velociy, V, in a hin sraigh ube whose cross secion will be denoed by A. Suppose he fluid conains a conaminan whose concenraion a posiion a ime will be

Analysis of tax effects on consolidated household/government debts of a nation in a monetary union under classical dichotomy

MPRA Munich Personal RePEc Archive Analysis of ax effecs on consolidaed household/governmen debs of a naion in a moneary union under classical dichoomy Minseong Kim 8 April 016 Online a hps://mpra.ub.uni-muenchen.de/71016/

Module 4. Single-phase AC circuits. Version 2 EE IIT, Kharagpur

Module 4 Single-phase A circuis ersion EE T, Kharagpur esson 5 Soluion of urren in A Series and Parallel ircuis ersion EE T, Kharagpur n he las lesson, wo poins were described:. How o solve for he impedance,

AP Calculus AB 2010 Scoring Guidelines

AP Calculus AB 1 Scoring Guidelines The College Board The College Board is a no-for-profi membership associaion whose mission is o connec sudens o college success and opporuniy. Founded in 1, he College

INSTRUMENTS OF MONETARY POLICY*

Aricles INSTRUMENTS OF MONETARY POLICY* Bernardino Adão** Isabel Correia** Pedro Teles**. INTRODUCTION A classic quesion in moneary economics is wheher he ineres rae or he money supply is he beer insrumen

Chapter 2: Principles of steady-state converter analysis

Chaper 2 Principles of Seady-Sae Converer Analysis 2.1. Inroducion 2.2. Inducor vol-second balance, capacior charge balance, and he small ripple approximaion 2.3. Boos converer example 2.4. Cuk converer

4.2 Trigonometric Functions; The Unit Circle

4. Trigonomeric Funcions; The Uni Circle Secion 4. Noes Page A uni circle is a circle cenered a he origin wih a radius of. Is equaion is as shown in he drawing below. Here he leer represens an angle measure.

The Greek financial crisis: growing imbalances and sovereign spreads. Heather D. Gibson, Stephan G. Hall and George S. Tavlas

The Greek financial crisis: growing imbalances and sovereign spreads Heaher D. Gibson, Sephan G. Hall and George S. Tavlas The enry The enry of Greece ino he Eurozone in 2001 produced a dividend in he

CHARGE AND DISCHARGE OF A CAPACITOR

REFERENCES RC Circuis: Elecrical Insrumens: Mos Inroducory Physics exs (e.g. A. Halliday and Resnick, Physics ; M. Sernheim and J. Kane, General Physics.) This Laboraory Manual: Commonly Used Insrumens:

COMPLEMENTARY RELATIONSHIPS BETWEEN EDUCATION AND INNOVATION

Discussion Paper No. 731 COMPLEMENTARY RELATIONSHIPS BETWEEN EDUCATION AND INNOVATION Kasuhiko Hori and Kasunori Yamada February 2009 The Insiue of Social and Economic Research Osaka Universiy 6-1 Mihogaoka,

AP Calculus BC 2010 Scoring Guidelines

AP Calculus BC Scoring Guidelines The College Board The College Board is a no-for-profi membership associaion whose mission is o connec sudens o college success and opporuniy. Founded in, he College Board

Steps for D.C Analysis of MOSFET Circuits

10/22/2004 Seps for DC Analysis of MOSFET Circuis.doc 1/7 Seps for D.C Analysis of MOSFET Circuis To analyze MOSFET circui wih D.C. sources, we mus follow hese five seps: 1. ASSUME an operaing mode 2.

WHAT ARE OPTION CONTRACTS?

WHAT ARE OTION CONTRACTS? By rof. Ashok anekar An oion conrac is a derivaive which gives he righ o he holder of he conrac o do 'Somehing' bu wihou he obligaion o do ha 'Somehing'. The 'Somehing' can be

Monetary and Fiscal Policy Interactions with Debt Dynamics

Moneary and Fiscal Policy Ineracions wih Deb Dynamics Sefano Gnocchi and Luisa Lamberini Preliminary and Incomplee November, 22 Absrac We analyze he ineracion beween commied moneary and discreionary fiscal

I. Basic Concepts (Ch. 1-4)

(Ch. 1-4) A. Real vs. Financial Asses (Ch 1.2) Real asses (buildings, machinery, ec.) appear on he asse side of he balance shee. Financial asses (bonds, socks) appear on boh sides of he balance shee. Creaing

Efficient Subsidization of Human Capital Accumulation with Overlapping Generations and Endogenous Growth. Wolfram F. Richter and Christoph Braun

Efficien Subsidizaion of uman Capial Accumulaion wih Overlapping eneraions and Endogenous rowh by Wolfram F. Richer and Chrisoph Braun T Dormund niversiy April 29 Firs Draf o be presened a he Conference

Signal Processing and Linear Systems I

Sanford Universiy Summer 214-215 Signal Processing and Linear Sysems I Lecure 5: Time Domain Analysis of Coninuous Time Sysems June 3, 215 EE12A:Signal Processing and Linear Sysems I; Summer 14-15, Gibbons

Why Did the Demand for Cash Decrease Recently in Korea?

Why Did he Demand for Cash Decrease Recenly in Korea? Byoung Hark Yoo Bank of Korea 26. 5 Absrac We explores why cash demand have decreased recenly in Korea. The raio of cash o consumpion fell o 4.7% in

THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS

VII. THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS The mos imporan decisions for a firm's managemen are is invesmen decisions. While i is surely

Debt Relief and Fiscal Sustainability for HIPCs *

Deb Relief and Fiscal Susainabiliy for HIPCs * Craig Burnside and Domenico Fanizza December 24 Absrac The enhanced HIPC iniiaive is disinguished from previous deb relief programs by is condiionaliy ha

Table of contents Chapter 1 Interest rates and factors Chapter 2 Level annuities Chapter 3 Varying annuities

Table of conens Chaper 1 Ineres raes and facors 1 1.1 Ineres 2 1.2 Simple ineres 4 1.3 Compound ineres 6 1.4 Accumulaed value 10 1.5 Presen value 11 1.6 Rae of discoun 13 1.7 Consan force of ineres 17

COPYRIGHT NOTICE: David A. Kendrick, P. Ruben Mercado, and Hans M. Amman: Compuaional Economics is published by Princeon Universiy Press and copyrighed, 2006, by Princeon Universiy Press. All righs reserved.

Time Consistency in Portfolio Management

1 Time Consisency in Porfolio Managemen Traian A Pirvu Deparmen of Mahemaics and Saisics McMaser Universiy Torono, June 2010 The alk is based on join work wih Ivar Ekeland Time Consisency in Porfolio Managemen

9. Capacitor and Resistor Circuits

ElecronicsLab9.nb 1 9. Capacior and Resisor Circuis Inroducion hus far we have consider resisors in various combinaions wih a power supply or baery which provide a consan volage source or direc curren

A Note on Using the Svensson procedure to estimate the risk free rate in corporate valuation

A Noe on Using he Svensson procedure o esimae he risk free rae in corporae valuaion By Sven Arnold, Alexander Lahmann and Bernhard Schwezler Ocober 2011 1. The risk free ineres rae in corporae valuaion

Mathematics in Pharmacokinetics What and Why (A second attempt to make it clearer)

Mahemaics in Pharmacokineics Wha and Why (A second aemp o make i clearer) We have used equaions for concenraion () as a funcion of ime (). We will coninue o use hese equaions since he plasma concenraions

Chapter 2 Problems. s = d t up. = 40km / hr d t down. 60km / hr. d t total. + t down. = t up. = 40km / hr + d. 60km / hr + 40km / hr

Chaper 2 Problems 2.2 A car ravels up a hill a a consan speed of 40km/h and reurns down he hill a a consan speed of 60 km/h. Calculae he average speed for he rip. This problem is a bi more suble han i

Markit Excess Return Credit Indices Guide for price based indices

Marki Excess Reurn Credi Indices Guide for price based indices Sepember 2011 Marki Excess Reurn Credi Indices Guide for price based indices Conens Inroducion...3 Index Calculaion Mehodology...4 Semi-annual

Term Structure of Prices of Asian Options

Term Srucure of Prices of Asian Opions Jirô Akahori, Tsuomu Mikami, Kenji Yasuomi and Teruo Yokoa Dep. of Mahemaical Sciences, Risumeikan Universiy 1-1-1 Nojihigashi, Kusasu, Shiga 525-8577, Japan E-mail:

CRISES AND THE FLEXIBLE PRICE MONETARY MODEL. Sarantis Kalyvitis

CRISES AND THE FLEXIBLE PRICE MONETARY MODEL Saranis Kalyviis Currency Crises In fixed exchange rae regimes, counries rarely abandon he regime volunarily. In mos cases, raders (or speculaors) exchange

Return Calculation of U.S. Treasury Constant Maturity Indices

Reurn Calculaion of US Treasur Consan Mauri Indices Morningsar Mehodolog Paper Sepeber 30 008 008 Morningsar Inc All righs reserved The inforaion in his docuen is he proper of Morningsar Inc Reproducion

Using RCtime to Measure Resistance

Basic Express Applicaion Noe Using RCime o Measure Resisance Inroducion One common use for I/O pins is o measure he analog value of a variable resisance. Alhough a buil-in ADC (Analog o Digial Converer)

Working Paper Monetary aggregates, financial intermediate and the business cycle

econsor www.econsor.eu Der Open-Access-Publikaionsserver der ZBW Leibniz-Informaionszenrum Wirschaf The Open Access Publicaion Server of he ZBW Leibniz Informaion Cenre for Economics Hong, Hao Working

THE PRESSURE DERIVATIVE

Tom Aage Jelmer NTNU Dearmen of Peroleum Engineering and Alied Geohysics THE PRESSURE DERIVATIVE The ressure derivaive has imoran diagnosic roeries. I is also imoran for making ye curve analysis more reliable.

DISCUSSION PAPER. Emissions Targets and the Real Business Cycle. Intensity Targets versus Caps or Taxes. Carolyn Fischer and Michael R.

DISCUSSION PAPER November 2009 RFF DP 09-47 Emissions Targes and he Real Business Cycle Inensiy Targes versus Caps or Taxes Carolyn Fischer and Michael R. Springborn 66 P S. NW Washingon, DC 20036 202-328-5000

Chapter 4: Exponential and Logarithmic Functions

Chaper 4: Eponenial and Logarihmic Funcions Secion 4.1 Eponenial Funcions... 15 Secion 4. Graphs of Eponenial Funcions... 3 Secion 4.3 Logarihmic Funcions... 4 Secion 4.4 Logarihmic Properies... 53 Secion

EDEXCEL NATIONAL CERTIFICATE/DIPLOMA UNIT 67 - FURTHER ELECTRICAL PRINCIPLES NQF LEVEL 3 OUTCOME 2 TUTORIAL 1 - TRANSIENTS

EDEXEL NAIONAL ERIFIAE/DIPLOMA UNI 67 - FURHER ELERIAL PRINIPLE NQF LEEL 3 OUOME 2 UORIAL 1 - RANIEN Uni conen 2 Undersand he ransien behaviour of resisor-capacior (R) and resisor-inducor (RL) D circuis

Small Menu Costs and Large Business Cycles: An Extension of Mankiw Model *

Small enu Coss an Large Business Ccles: An Exension of ankiw oel * Hirana K Nah Deparmen of Economics an Inl. Business Sam Houson Sae Universi an ober Srecher Deparmen of General Business an Finance Sam

Full-wave rectification, bulk capacitor calculations Chris Basso January 2009

ull-wave recificaion, bulk capacior calculaions Chris Basso January 9 This shor paper shows how o calculae he bulk capacior value based on ripple specificaions and evaluae he rms curren ha crosses i. oal

DYNAMIC MODELS FOR VALUATION OF WRONGFUL DEATH PAYMENTS

DYNAMIC MODELS FOR VALUATION OF WRONGFUL DEATH PAYMENTS Hong Mao, Shanghai Second Polyechnic Universiy Krzyszof M. Osaszewski, Illinois Sae Universiy Youyu Zhang, Fudan Universiy ABSTRACT Liigaion, exper

Differential Equations and Linear Superposition

Differenial Equaions and Linear Superposiion Basic Idea: Provide soluion in closed form Like Inegraion, no general soluions in closed form Order of equaion: highes derivaive in equaion e.g. dy d dy 2 y

Real Business Cycles Theory Research on economic flucuaions has progressed rapidly since Rober Lucas revived he profession s ineres in business cycle heory. Business cycle heory is he heory of he naure

International Risk Sharing: Through Equity Diversification or Exchange Rate Hedging?

WP/09/38 Inernaional Risk Sharing: Through Equiy Diversificaion or Exchange Rae Hedging? Charles Engel and Akio Masumoo 2009 Inernaional Moneary Fund WP/09/38 IMF Working Paper Research Deparmen Inernaional

One dictionary: Native language - English/English - native language or English - English

Faculy of Social Sciences School of Business Corporae Finance Examinaion December 03 English Dae: Monday 09 December, 03 Time: 4 hours/ 9:00-3:00 Toal number of pages including he cover page: 5 Toal number

Dopamine, dobutamine, digitalis, and diuretics during intraaortic balloon support

Dopamine, dobuamine, digialis, and diureics during inraaoric balloon suppor Sephen Slogoff, M.D. n his presenaion, should like o discuss some conceps of drug herapy for inraaoric balloon paiens. Figure

The P/B-ROE Model Revisited. Jarrod Wilcox Wilcox Investment Inc & Thomas Philips Paradigm Asset Management

The /B-ROE Model Revisied Jarrod Wilcox Wilcox Invesmen Inc & Thomas hilips aradigm Asse Managemen Agenda Characerizing a good equiy model: Is virues and uses Saic vs. dynamic models The /B-ROE model:

Chapter 2 Problems. 3600s = 25m / s d = s t = 25m / s 0.5s = 12.5m. Δx = x(4) x(0) =12m 0m =12m

Chaper 2 Problems 2.1 During a hard sneeze, your eyes migh shu for 0.5s. If you are driving a car a 90km/h during such a sneeze, how far does he car move during ha ime s = 90km 1000m h 1km 1h 3600s = 25m

Estimating Time-Varying Equity Risk Premium The Japanese Stock Market 1980-2012

Norhfield Asia Research Seminar Hong Kong, November 19, 2013 Esimaing Time-Varying Equiy Risk Premium The Japanese Sock Marke 1980-2012 Ibboson Associaes Japan Presiden Kasunari Yamaguchi, PhD/CFA/CMA

Present Value Methodology

Presen Value Mehodology Econ 422 Invesmen, Capial & Finance Universiy of Washingon Eric Zivo Las updaed: April 11, 2010 Presen Value Concep Wealh in Fisher Model: W = Y 0 + Y 1 /(1+r) The consumer/producer

Debt management and optimal fiscal policy with long bonds 1

Deb managemen and opimal fiscal policy wih long bonds Elisa Faraglia 2 Alber Marce 3 and Andrew Sco 4 Absrac We sudy Ramsey opimal fiscal policy under incomplee markes in he case where he governmen issues

Price elasticity of demand for crude oil: estimates for 23 countries

Price elasiciy of demand for crude oil: esimaes for 23 counries John C.B. Cooper Absrac This paper uses a muliple regression model derived from an adapaion of Nerlove s parial adjusmen model o esimae boh

ABSTRACT KEYWORDS. Term structure, duration, uncertain cash flow, variable rates of return JEL codes: C33, E43 1. INTRODUCTION

THE VALUATION AND HEDGING OF VARIABLE RATE SAVINGS ACCOUNTS BY FRANK DE JONG 1 AND JACCO WIELHOUWER ABSTRACT Variable rae savings accouns have wo main feaures. The ineres rae paid on he accoun is variable

Verification Theorems for Models of Optimal Consumption and Investment with Retirement and Constrained Borrowing

MATHEMATICS OF OPERATIONS RESEARCH Vol. 36, No. 4, November 2, pp. 62 635 issn 364-765X eissn 526-547 364 62 hp://dx.doi.org/.287/moor..57 2 INFORMS Verificaion Theorems for Models of Opimal Consumpion

Individual Health Insurance April 30, 2008 Pages 167-170

Individual Healh Insurance April 30, 2008 Pages 167-170 We have received feedback ha his secion of he e is confusing because some of he defined noaion is inconsisen wih comparable life insurance reserve

Lectures # 5 and 6: The Prime Number Theorem.

Lecures # 5 and 6: The Prime Number Theorem Noah Snyder July 8, 22 Riemann s Argumen Riemann used his analyically coninued ζ-funcion o skech an argumen which would give an acual formula for π( and sugges

Chapter 9 Bond Prices and Yield

Chaper 9 Bond Prices and Yield Deb Classes: Paymen ype A securiy obligaing issuer o pay ineress and principal o he holder on specified daes, Coupon rae or ineres rae, e.g. 4%, 5 3/4%, ec. Face, par value

Real exchange rate variability in a two-country business cycle model

Real exchange rae variabiliy in a wo-counry business cycle model Håkon Trevoll, November 15, 211 Absrac Real exchange rae flucuaions have imporan implicaions for our undersanding of he sources and ransmission

ANALYSIS AND COMPARISONS OF SOME SOLUTION CONCEPTS FOR STOCHASTIC PROGRAMMING PROBLEMS

ANALYSIS AND COMPARISONS OF SOME SOLUTION CONCEPTS FOR STOCHASTIC PROGRAMMING PROBLEMS R. Caballero, E. Cerdá, M. M. Muñoz and L. Rey () Deparmen of Applied Economics (Mahemaics), Universiy of Málaga,

International Journal of Supply and Operations Management

Inernaional Journal of Supply and Operaions Managemen IJSOM May 05, Volume, Issue, pp 5-547 ISSN-Prin: 8-59 ISSN-Online: 8-55 wwwijsomcom An EPQ Model wih Increasing Demand and Demand Dependen Producion

TRADE, DEVELOPMENT AND CONVERGING GROWTH RATES Dynamic Gains From Trade Reconsidered *

TRAD, DVLOPMNT AND CONVRGING GROWTH RATS Dynamic Gains From Trade Reconsidered * Theo S. icher Deparmen of conomics Universiy of Washingon Seale, WA 98195 (206) 685 8082 e@u.washingon.edu ABSTRACT: Wihin

Lecture Note on the Real Exchange Rate

Lecure Noe on he Real Exchange Rae Barry W. Ickes Fall 2004 0.1 Inroducion The real exchange rae is he criical variable (along wih he rae of ineres) in deermining he capial accoun. As we shall see, his

Education & Human Resource Development

Educaion & Human Resource Developmen New Research Adminisraion Srucure Rerea June 23 & 24, 2006 Where is he Caribbean in Relaion o Oher Counries? Office of he Vice Presiden for Research and Compliance

Differential Equations. Solving for Impulse Response. Linear systems are often described using differential equations.

Differenial Equaions Linear sysems are ofen described using differenial equaions. For example: d 2 y d 2 + 5dy + 6y f() d where f() is he inpu o he sysem and y() is he oupu. We know how o solve for y given

Newton s Laws of Motion

Newon s Laws of Moion MS4414 Theoreical Mechanics Firs Law velociy. In he absence of exernal forces, a body moves in a sraigh line wih consan F = 0 = v = cons. Khan Academy Newon I. Second Law body. The

Chapter 2 Kinematics in One Dimension

Chaper Kinemaics in One Dimension Chaper DESCRIBING MOTION:KINEMATICS IN ONE DIMENSION PREVIEW Kinemaics is he sudy of how hings moe how far (disance and displacemen), how fas (speed and elociy), and how

Interest Rates and the Market For New Light Vehicles

Federal Reserve Bank of New York Saff Repors Ineres Raes and he Marke For New Ligh Vehicles Adam Copeland George Hall Louis Maccini Saff Repor No. 741 Sepember 2015 This paper presens preliminary findings

Premium Income of Indian Life Insurance Industry

Premium Income of Indian Life Insurance Indusry A Toal Facor Produciviy Approach Ram Praap Sinha* Subsequen o he passage of he Insurance Regulaory and Developmen Auhoriy (IRDA) Ac, 1999, he life insurance

BALANCE OF PAYMENTS. First quarter 2008. Balance of payments

BALANCE OF PAYMENTS DATE: 2008-05-30 PUBLISHER: Balance of Paymens and Financial Markes (BFM) Lena Finn + 46 8 506 944 09, lena.finn@scb.se Camilla Bergeling +46 8 506 942 06, camilla.bergeling@scb.se

Planning Demand and Supply in a Supply Chain. Forecasting and Aggregate Planning

Planning Demand and Supply in a Supply Chain Forecasing and Aggregae Planning 1 Learning Objecives Overview of forecasing Forecas errors Aggregae planning in he supply chain Managing demand Managing capaciy