The Value of the World s Ecosystem Services and Natural Capital. Robert Costanza et al.
|
|
- Branden Shields
- 8 years ago
- Views:
Transcription
1 The Value of the World s Ecosystem Services and Natural Capital Robert Costanza et al.
2 Main message of article Services from the world s ecosystems are worth a lot Minimum of $16-54 trillion/yr (point estimate of $33 trillion/yr) 1.8 times global GDP
3 and reaction by economists Toman (1998): there is little that can usefully be done with a serious underestimate of infinity Smith (1997): While the authors provide a litany of caveats, their results should not be used in any form whether as measures of the importance of changes in natural resources to human welfare; as yardsticks for future project appraisals; or as sources of a road map for future research McConnell & Bockstael (2005): an extreme example [of inappropriate valuation] so extreme that one questions whether there could be a logically meaningfully way to answer the question they pose
4 Why the harsh reaction? Not because economists doubt that ecosystem services are important Toman: An economic assessment of ecosystem benefits and opportunity costs is one important element of the information set that must go into social decision making McConnell & Bockstael: it is especially important to document the value of ecosystem services to human well-being as these contributions are critical but often unappreciated because they are indirect and often obscure
5 Rather: 1. Criticisms of study s scientific validity and policy value 2. Decision by Nature not to print follow-up correspondence (despite stated desire by Costanza et al. to stimulate additional research and debate )
6 What s your reaction?
7 Arguments against valuation
8 Arguments against valuation 1. impossible or unwise cannot place a value on such intangibles as human life, environmental aesthetics, or long-term ecological benefits
9 Arguments against valuation 1. impossible or unwise cannot place a value on such intangibles as human life, environmental aesthetics, or long-term ecological benefits Costanza et al.: we do so every day (construction standards); we can choose to make these valuations explicit or not
10 Arguments against valuation 1. impossible or unwise cannot place a value on such intangibles as human life, environmental aesthetics, or long-term ecological benefits Costanza et al.: we do so every day (construction standards); we can choose to make these valuations explicit or not 2. we should [protect ecosystems] for purely moral or aesthetic reasons
11 Arguments against valuation 1. impossible or unwise cannot place a value on such intangibles as human life, environmental aesthetics, or long-term ecological benefits Costanza et al.: we do so every day (construction standards); we can choose to make these valuations explicit or not 2. we should [protect ecosystems] for purely moral or aesthetic reasons Costanza et al.: there are equally compelling moral arguments that may be in direct conflict with the moral argument to protect ecosystems (no one should go hungry); moral arguments make choice more difficult and less explicit but should go on in parallel with economic arguments
12 What are the steps in their study?
13 What are the steps in their study? 1. Classify ecosystem services into 17 categories (Table 1)
14
15 What are the steps in their study? 1. Classify ecosystem services into 17 categories (Table 1) 2. Classify earth s surface (marine and terrestrial) into 16 primary ecosystems 3. Obtain valuation estimates from literature (> 100 studies) 4. Construct unit values by dividing each estimate by the area of the ecosystem valued 5. Multiply the area of the ecosystems by the corresponding unit values, and add up (Table 2)
16
17 Costanza et al. claim that resulting estimate is an underestimate: why?
18 Costanza et al. claim that resulting estimate is an underestimate: why? Various reasons, including: Omit some services (atmosphere) Omit some ecosystems (desert, tundra, ice/rock, cropland)
19 What valuation measures do they use?
20 What valuation measures do they use? Where possible, total social surplus (consumer plus producer surplus) If not, producer surplus ( net rent ) If not that, revenue (price times quantity)
21 Can global WTP > global GDP?
22 Can global WTP > global GDP? According to Costanza et al., yes: because of consumer surplus
23 Do they think marginal analysis valuing changes is important?
24 Do they think marginal analysis valuing changes is important? p. 255: it is not very meaningful to ask the total value of natural capital to human welfare. Their value is infinite in total. Instead of valuing natural capital, they value flows of services from this capital 3 rd sentence: The economies of the Earth would grind to a halt without the services of ecological life-support systems, so in one sense their total value to the economy is infinite. However, it can be instructive to estimate the incremental or marginal value of ecosystem services (the estimated rate of change of value compared with changes in ecosystem services from their current levels).
25 Why is their analysis not a marginal analysis?
26 Why is their analysis not a marginal analysis? 1. Fail to specify the change they are analyzing: what is their thought experiment (treatment vs. control)? Cf. theory: E 0 E 1 Cf. applied studies: Hodgson & Dixon, Suthawan & Barbier
27 2. Improper aggregation If experiment is total elimination of world s ecosystems, then by author s own admission no need to do valuation study
28 2. Improper aggregation If experiment is total elimination of world s ecosystems, then by author s own admission no need to do valuation study Underlying studies did not all consider total elimination of ecosystems studied
29 2. Improper aggregation If experiment is total elimination of world s ecosystems, then by author s own admission no need to do valuation study Underlying studies did not all consider total elimination of ecosystems studied Even if they did, sum of WTP across individual environmental changes WTP for a package of changes Former involves ceteris paribus assumption: income, prices, all other ecosystem services remain constant WTP can exceed revenue for an individual good, but not for all goods collectively upward bias in Costanza et al. s global estimate Eliminating the world s ecosystems is not a marginal change!
30 3. Average values Marginal values Costanza et al.: Divide shaded area by q Yields average value (large) Upward bias Marginal analysis Measure shaded area created by unit shift in supply curve Yields marginal value (smaller)
31 Toman: Is the value of everything valuable?
32 Toman: Is the value of everything valuable? No, because it ignores tradeoffs One particular danger of this simple calculation is that it could suggest to some decision makers that all aspects of nature in all places warrant the same level of safeguarding. So long as priorities must be set among competing claims for ecosystem protection and/or amelioration, it is necessary to understand how specific changes in different ecosystem states are affecting social interests and value. One needs a specified baseline, a specified measure of changes, and a set of criteria for evaluating and comparing these changes. Heal s critique of valuation
The value of the world s ecosystem services and natural capital
The value of the world s ecosystem services and natural capital Robert Costanza*, Ralph d Arge, Rudolf de Groot, Stephen Farberk, Monica Grasso, Bruce Hannon, Karin Limburg#, Shahid Naeem**, Robert V.
More informationCHAPTER 4: FINANCIAL ANALYSIS OVERVIEW
In the financial analysis examples in this book, you are generally given the all of the data you need to analyze the problem. In a real-life situation, you would need to frame the question, determine the
More informationUsing an appropriately labeled money market graph, show the effects of an open market purchase of government securities by the FED on :
Using an appropriately labeled money market graph, show the effects of an open market purchase of government securities by the FED on : The money supply Interest rates Nominal Interest rates i1 i2 Sm1
More informationEconomics and Economic Evaluation
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License. Your use of this material constitutes acceptance of that license and the conditions of use of materials on this
More informationProject Evaluation Guidelines
Project Evaluation Guidelines Queensland Treasury February 1997 For further information, please contact: Budget Division Queensland Treasury Executive Building 100 George Street Brisbane Qld 4000 or telephone
More informationVALUING THE GOODS AND SERVICES OF THE BIOSPHERE How much would you be willing to pay to save the snow leopard from extinction?
Universität Potsdam Institut für Geoökologie Seminar Dynamiek der Biosphäre Dozent: Prof. Dr. Wolfgang Cramer & Dipl. Umweltwiss. Tim Ebrecht By: Chantal Goetheer 01.07.2005 VALUING THE GOODS AND SERVICES
More informationThe Economics of Ecosystem Based Management: The Fishery Case
The Economics of Ecosystem Based Management: The Fishery Case Fisheries impact on marine ecosystem and policy implications Peder Andersen Co-authors: Lars Ravensbeck Hans S. Frost Department of Food and
More informationHAS FINANCE BECOME TOO EXPENSIVE? AN ESTIMATION OF THE UNIT COST OF FINANCIAL INTERMEDIATION IN EUROPE 1951-2007
HAS FINANCE BECOME TOO EXPENSIVE? AN ESTIMATION OF THE UNIT COST OF FINANCIAL INTERMEDIATION IN EUROPE 1951-2007 IPP Policy Briefs n 10 June 2014 Guillaume Bazot www.ipp.eu Summary Finance played an increasing
More informationQuestions with Answers and Explanations
QUESTION 1 Select the best of the answer choices given. The interview is an essential part of a successful hiring program because, with it job applicants who have personalities that are unsuited to the
More informationWhat does willingness to pay measure?
What does willingness to pay measure? Mark Sagoff Ins:tute for Philosophy and Public Policy School of Public Policy University of Maryland, College Park WTP measures preference not welfare or well being
More informationDRAFT May 2012. Objective and key requirements of this Prudential Standard
Prudential Standard LPS 340 Valuation of Policy Liabilities Objective and key requirements of this Prudential Standard The ultimate responsibility for the value of a life company s policy liabilities rests
More informationMeasurement of Economic Costs in School Programs for Children and Youth Introduction Opportunity Cost and Resource Use
Measurement of Economic Costs in School Programs for Children and Youth Eric Slade, Ph.D. Center for School Mental Health Analysis and Action Division of Child and Adolescent Psychiatry University of Maryland
More informationHealth Economics. University of Linz & Demand and supply of health insurance. Gerald J. Pruckner. Lecture Notes, Summer Term 2010
Health Economics Demand and supply of health insurance University of Linz & Gerald J. Pruckner Lecture Notes, Summer Term 2010 Gerald J. Pruckner Health insurance 1 / 25 Introduction Insurance plays a
More informationSelecting an Industry-Standard Metric for Data Center Efficiency
Selecting an Industry-Standard Metric for Data Center Efficiency By Neil Rasmussen White Paper #157 Executive Summary The development of standards for the measurement and specification of data center efficiency
More information= C + I + G + NX ECON 302. Lecture 4: Aggregate Expenditures/Keynesian Model: Equilibrium in the Goods Market/Loanable Funds Market
Intermediate Macroeconomics Lecture 4: Introduction to the Goods Market Review of the Aggregate Expenditures model and the Keynesian Cross ECON 302 Professor Yamin Ahmad Components of Aggregate Demand
More information4. The accountant s product costing art
4. The accountant s product costing art How to move from cost pools to product costs Define an appropriate number of cost pools Each cost pool aggregates costs associated with some set of activities Estimate
More informationShort Report. Research and development project Communicating the concept of ecosystem services on the basis of the TEEB study
Short Report Research and development project Communicating the concept of ecosystem services on the basis of the TEEB study Researcher: Project time: Helmholtz Centre for Environmental Research UFZ August
More informationPractice Problems on the Capital Market
Practice Problems on the Capital Market 1- Define marginal product of capital (i.e., MPK). How can the MPK be shown graphically? The marginal product of capital (MPK) is the output produced per unit of
More informationGRF_115_0A_G: Outstanding Claims Liabilities - Insurance Risk Charge - Australia by Class of Business (G)
GRF_115_0A_G: Outstanding Claims Liabilities - Insurance Risk Charge - Australia by Class of Business (G) These instructions must be read in conjunction with the general instruction guide. Explanatory
More informationEnvironmental, Economic and Social Trade-offs
International Conference and Workshop Salzau Castle and Kiel University June 7-11, 2010 Environmental, Economic and Social Trade-offs Bettina Matzdorf & Klaus Müller Institute of Socio-Economic Leibniz-Centre
More informationAn overview of valuation techniques for ecosystem accounting
An overview of valuation techniques for ecosystem accounting Prof Brett Day University of East Anglia Introduction The purpose of this paper is to provide an overview of the key challenges that will arise
More informationA Shortcut to Calculating Return on Required Equity and It s Link to Cost of Capital
A Shortcut to Calculating Return on Required Equity and It s Link to Cost of Capital Nicholas Jacobi An insurance product s return on required equity demonstrates how successfully its results are covering
More informationMEASURING GDP AND ECONOMIC GROWTH CHAPTER
MEASURING GDP AND ECONOMIC GROWTH CHAPTER Objectives After studying this chapter, you will able to Define GDP and use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationAgenda. Productivity, Output, and Employment, Part 1. The Production Function. The Production Function. The Production Function. The Demand for Labor
Agenda Productivity, Output, and Employment, Part 1 3-1 3-2 A production function shows how businesses transform factors of production into output of goods and services through the applications of technology.
More informationMASTER IN ENGINEERING AND TECHNOLOGY MANAGEMENT
MASTER IN ENGINEERING AND TECHNOLOGY MANAGEMENT ECONOMICS OF GROWTH AND INNOVATION Lecture 1, January 23, 2004 Theories of Economic Growth 1. Introduction 2. Exogenous Growth The Solow Model Mandatory
More informationInvestment Decision Analysis
Lecture: IV 1 Investment Decision Analysis The investment decision process: Generate cash flow forecasts for the projects, Determine the appropriate opportunity cost of capital, Use the cash flows and
More informationThese are some practice questions for CHAPTER 23. Each question should have a single answer. But be careful. There may be errors in the answer key!
These are some practice questions for CHAPTER 23. Each question should have a single answer. But be careful. There may be errors in the answer key! 67. Public saving is equal to a. net tax revenues minus
More informationIncluding natural resource management and environmental impacts within impact assessment studies: methodological issues
Including natural resource management and environmental impacts within impact assessment studies: methodological issues ACIAR IMPACT ASSESSMENT SERIES 81 Including natural resource management and environmental
More informationECONOMIC GROWTH* Chapter. Key Concepts
Chapter 5 MEASURING GDP AND ECONOMIC GROWTH* Key Concepts Gross Domestic Product Gross domestic product, GDP, is the market value of all the final goods and services produced within in a country in a given
More informationGovernment Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the federal
More informationEnergy and Economics
Energy and Economics Willem van Groenendaal Tilburg University Tilburg School of Economics and Management (TiSEM) w.j.h.vgroenendaal@tilburguniversity.nl 1 Can energy use be limited by change in economic
More informationAssessing public preferences for managing cultural heritage: tools and methodologies
Assessing public preferences for managing cultural heritage: tools and methodologies Patrizia RIGANTI Summary It is crucial to increase citizens and stakeholders participation in all decision-makings,
More informationThe consumer purchase journey and the marketing mix model
Dynamic marketing mix modelling and digital attribution 1 Introduction P.M Cain Digital media attribution aims to identify the combination of online marketing activities and touchpoints contributing to
More informationPRICE DISCRIMINATION Industrial Organization B
PRICE DISCRIMINATION Industrial Organization B THIBAUD VERGÉ Autorité de la Concurrence and CREST-LEI Master of Science in Economics - HEC Lausanne (2009-2010) THIBAUD VERGÉ (AdlC, CREST-LEI) Price Discrimination
More informationCHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH
CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH Learning Goals for this Chapter: To know what we mean by GDP and to use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationEfficiency and Equity
Efficiency and Equity Lectures 1 and 2 Tresch (2008): Chapters 1, 4 Stiglitz (2000): Chapter 5 Connolly and Munro (1999): Chapter 3 Outline Equity, efficiency and their trade-off Social welfare function
More informationThe CPA Way 4 - Analyze Major Issues
The CPA Way 4 - Analyze Major Issues This document focuses on Analyze Major Issue(s), the third part of The CPA Way, as shown in the following diagram. Analysis is usually the most time-consuming part
More informationTheoretical Tools of Public Economics. Part-2
Theoretical Tools of Public Economics Part-2 Previous Lecture Definitions and Properties Utility functions Marginal utility: positive (negative) if x is a good ( bad ) Diminishing marginal utility Indifferences
More informationFINAL DRAFT: July 1999. Appendix E METHODOLOGY FOR EMPLOYMENT IMPACTS ANALYSIS
Appendix E METHODOLOGY FOR EMPLOYMENT IMPACTS ANALYSIS Appendix E METHODOLOGY FOR EMPLOYMENT IMPACTS ANALYSIS INTRODUCTION The HWC MACT standards are likely to cause sectoral shifts in employment. As specific
More informationIN some countries retail price indexes are used in the adjustment
5 SOME REFLECTIONS ON PRICE INDEXES, WELFARE INDEXES, AND WAGE ADJUSTMENTS By Kjeld Bjerke IN some countries retail price indexes are used in the adjustment of wages. Generally, as in Denmark, they provide
More informationPreparation course Msc Business & Econonomics
Preparation course Msc Business & Econonomics The simple Keynesian model Tom-Reiel Heggedal BI August 2014 TRH (BI) Keynes model August 2014 1 / 19 Assumptions Keynes model Outline for this lecture: Go
More informationAreas of protection and the impact chain
Areas of protection and the impact chain Bo P. Weidema 2001.01.10 1. Introduction A modified scheme of areas of protection (also known as safeguard subjects) by Udo de Haes & Lindeijer (2000) has opened
More information1. The value today of a payment you will receive ten years from now is the of the payment.
CHAPTER 14 MARKETS FOR OTHER RESOURCES Microeconomics in Context (Goodwin, et al.), 2 nd Edition Chapter Summary Having learned about the market for labor, in this chapter you will look at the markets
More information0 100 200 300 Real income (Y)
Lecture 11-1 6.1 The open economy, the multiplier, and the IS curve Assume that the economy is either closed (no foreign trade) or open. Assume that the exchange rates are either fixed or flexible. Assume
More informationBUSINESS ECONOMICS CEC2 532-751 & 761
BUSINESS ECONOMICS CEC2 532-751 & 761 PRACTICE MACROECONOMICS MULTIPLE CHOICE QUESTIONS Warning: These questions have been posted to give you an opportunity to practice with the multiple choice format
More informationHow To Manage Project Cost Management
Chapter 7 Project Cost Management (1) Dr. Feng-Jen Yang Objectives Understand the importance of project cost management Explain basic project cost management principles, concepts, and terms Discuss different
More informationValuing life and health: the cost of air pollution. by Dr. Rana Roy
Presentation to Conference on: The Costs of Air Pollution: A Forgotten Problem Università Bocconi, Milano 25 November 2014 Valuing life and health: the cost of air pollution by Dr. Rana Roy Introduction
More informationPrinciples of Economics
A Lecture Presentation in PowerPoint to Accompany Principles of Economics Second Edition by N. Gregory Mankiw Prepared by Mark P. Karscig, Department of Economics & Finance, Central Missouri State University.
More informationThe Elasticity of Taxable Income: A Non-Technical Summary
The Elasticity of Taxable Income: A Non-Technical Summary John Creedy The University of Melbourne Abstract This paper provides a non-technical summary of the concept of the elasticity of taxable income,
More informationSection B. Some Basic Economic Concepts
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License. Your use of this material constitutes acceptance of that license and the conditions of use of materials on this
More informationIncentives for Improving Cybersecurity in the Private Sector: A Cost-Benefit Perspective
Incentives for Improving Cybersecurity in the Private Sector: A Cost-Benefit Perspective Testimony for the House Committee on Homeland Security s Subcommittee on Emerging Threats, Cybersecurity, and Science
More informationECONOMIC QUESTIONS FOR THE MASTER'S EXAM
ECONOMIC QUESTIONS FOR THE MASTER'S EXAM Introduction 1. What is economics? Discuss the purpose and method of work of economists. Consider observation, induction, deduction and scientific criticism. 2.
More informationAnswers to Text Questions and Problems in Chapter 8
Answers to Text Questions and Problems in Chapter 8 Answers to Review Questions 1. The key assumption is that, in the short run, firms meet demand at pre-set prices. The fact that firms produce to meet
More information18 Month Summary of Progress
18 Month Summary of Progress July 2014 1 Context Ecosystems provide humankind with a wide range of resources, goods and services. Yet the rate at which we consume and exploit these is increasing so rapidly
More informationSmith on Natural Wages and Profits (Chapters VIII and IX of The Wealth of Nations 1 ) Allin Cottrell
1 The background Smith on Natural Wages and Profits (Chapters VIII and IX of The Wealth of Nations 1 ) Allin Cottrell When Smith begins work on the specifics of natural wages and profits, he has already
More informationAP Microeconomics Chapter 12 Outline
I. Learning Objectives In this chapter students will learn: A. The significance of resource pricing. B. How the marginal revenue productivity of a resource relates to a firm s demand for that resource.
More informationCourse Outline SS212 Economy of Micronesia
Course Outline SS212 Economy of Micronesia Course Description This course is an in-depth exploration of the FSM economy with an emphasis placed on the development of a broad knowledge base as well as the
More informationIR Window Transmittance Temperature Dependence
IR Window Transmittance Temperature Dependence Robert P. Madding, Infrared Training Center, FLIR Systems, Inc. ABSTRACT While fluoride-type IR windows are inexpensive and have good transmittance in the
More informationChapter 13 Money and Banking
Chapter 13 Money and Banking Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. The most important function of money is (a) as a store of
More informationPension Buyout Reality Check How Actuarial Assumptions Cloud Perceptions of Annuity Buyout Pricing
How Actuarial Assumptions Cloud Perceptions of Annuity Buyout Pricing Recent annuity purchases highlight the need to examine what drives their pricing. Plan sponsor announcements that allude to par settlements
More informationThe National Accounts and the Public Sector by Casey B. Mulligan Fall 2010
The National Accounts and the Public Sector by Casey B. Mulligan Fall 2010 Factors of production help interpret the national accounts. The factors are broadly classified as labor or (real) capital. The
More informationCosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected
Name: Solutions Cosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected Fall 2015 Prof. Dowell Instructions: This problem set will not be collected. You should still work
More informationGlobal Ecology and Wildlife Conservation
Vaughan Centre for Lifelong Learning Part-Time Certificate of Higher Education in Global Ecology and Wildlife Conservation Delivered via Distance Learning FAQs What are the aims of the course? This course
More informationValuation for merger and acquisition. March 2015
Valuation for merger and acquisition March 2015 Flow of presentation Valuation methodologies Valuation in the context of Merger and Acquisition Indian Regulatory Environment and Minority Interest Safeguard
More informationAnswers to Text Questions and Problems. Chapter 22. Answers to Review Questions
Answers to Text Questions and Problems Chapter 22 Answers to Review Questions 3. In general, producers of durable goods are affected most by recessions while producers of nondurables (like food) and services
More informationGoals AND Objectives should be student-centered rather than course-centered Goals AND Objectives should reflect successful student performance
Tips for Writing Goals AND Objectives Goals AND Objectives should be student-centered rather than course-centered Goals AND Objectives should reflect successful student performance Tips for Writing Course
More informationKnowledge Enrichment Seminar for Senior Secondary Economics Curriculum. Macroeconomics Series (3): Extension of trade theory
Knowledge Enrichment Seminar for Senior Secondary Economics Curriculum Macroeconomics Series (3): Extension of trade theory by Dr. Charles Kwong School of Arts and Social Sciences The Open University of
More informationVALUING BANKING STOCKS
June 2003 VALUING BANKING STOCKS A Synopsis on the Basic Models The Pros & Cons Utilizing Evidence from European Equity Research Practices Nicholas I. Georgiadis Director of Research - VRS ( Valuation
More informationDiscussion of Which Approach to Accounting for Employee Stock Options Best Reflects Market Pricing?
Discussion of Which Approach to Accounting for Employee Stock Options Best Reflects Market Pricing? David Aboody daboody@anderson.ucla.edu UCLA Anderson School of Management, 110 Westwood Plaza, Los Angeles,
More informationCorralling the evidence about the value of Green Infrastructure. Martin Moss. Senior Advisor Green Infrastructure Operations England.
Corralling the evidence about the value of Green Infrastructure Martin Moss. Senior Advisor Green Infrastructure Operations England. Flow of discussion. Part 1 - What do we mean by GI? Part 2 - What are
More informationElectrical Efficiency Modeling for Data Centers
Electrical Efficiency Modeling for Data Centers By Neil Rasmussen White Paper #113 Revision 1 Executive Summary Conventional models for estimating electrical efficiency of data centers are grossly inaccurate
More informationLiquidity premiums and contingent liabilities
Insights Liquidity premiums and contingent liabilities Craig Turnbull Craig.Turbull@barrhibb.com The liquidity premium the concept that illiquid assets have lower prices than equivalent liquid ones has
More informationTHE ECONOMY AT FULL EMPLOYMENT. Objectives. Production and Jobs. Objectives. Real GDP and Employment. Real GDP and Employment CHAPTER
THE ECONOMY AT 29 FULL EMPLOYMENT CHAPTER Objectives After studying this chapter, you will able to Describe the relationship between the quantity of labour employed and real GDP Explain what determines
More informationInstitutionalizing the Catholic Identity a German Thought. by Bernd H. Mühlbauer*
Institutionalizing the Catholic Identity a German Thought by Bernd H. Mühlbauer* The Catholic Identity of Catholic Healthcare Institutions: Challenges and Opportunities within Germany and the United States
More informationSOLUTION: AUDIT AND INTERNAL REVIEW, MAY 2014
SOLUTION 1(a) (a) The Auditing guideline points out that the amount or quantity of audit evidence required for the auditor to achieve the level of assurance is a matter of professional judgment. The factors
More informationHow To Learn Economics In India
B.A. PROGRAMME DISCIPLINE COURSE ECONOMICS COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards) DEPARTMENT OF ECONOMICS UNIVERSITY OF DELHI DELHI 1 Syllabus for B.A. Programme - Economics
More informationSUN PRAIRIE AREA SCHOOL DISTRICT COURSE POWER STANDARDS. Curriculum Area: Science Course Length: Semester
SUN PRAIRIE AREA SCHOOL DISTRICT COURSE POWER STANDARDS Course Title: Environmental Science Curriculum Area: Science Course Length: Semester Credit Status: Required Date Submitted: 10/05 Expected Student
More information03104 Management and Business Economics. Certificate in Accounting and Business I Examination March 2014
SUGGESTED SOLUTIONS 03104 Management and Business Economics Certificate in Accounting and Business I Examination March 2014 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA All Rights Reserved PAPER
More informationCEVAPLAR. Solution: a. Given the competitive nature of the industry, Conigan should equate P to MC.
1 I S L 8 0 5 U Y G U L A M A L I İ K T İ S A T _ U Y G U L A M A ( 4 ) _ 9 K a s ı m 2 0 1 2 CEVAPLAR 1. Conigan Box Company produces cardboard boxes that are sold in bundles of 1000 boxes. The market
More informationGRF_115_1: Premiums Liabilities - Insurance Risk Charge
GRF_115_1: Premiums Liabilities - Insurance Risk Charge These instructions must be read in conjunction with the general instruction guide. Explanatory notes Direct business Sections 1A, 1B and 1C are to
More information. In this case the leakage effect of tax increases is mitigated because some of the reduction in disposable income would have otherwise been saved.
Chapter 4 Review Questions. Explain how an increase in government spending and an equal increase in lump sum taxes can generate an increase in equilibrium output. Under what conditions will a balanced
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationThe term marginal cost refers to the additional costs incurred in providing a unit of
Chapter 4 Solutions Question 4.1 A) Explain the following The term marginal cost refers to the additional costs incurred in providing a unit of product or service. The term contribution refers to the amount
More information1. What is the difference between nominal returns and real returns?
End of Chapter 11 Questions and Answers 1. What is the difference between nominal returns and real returns? Answer: Nominal returns include inflation while real returns have inflation netted out. For example,
More informationShould New Merger Guidelines Give UPP Market Definition?
December 2009 (Release 1) Should New Merger Guidelines Give UPP Market Definition? Richard Schmalensee Massachusetts Institute of Technology & LECG www.competitionpolicyinternational.com Competition Policy
More informationTABLE OF CONTENTS. Executive Summary 3. Introduction 5. Purposes of the Joint Research Project 6
TABLE OF CONTENTS Executive Summary 3 Introduction 5 Purposes of the Joint Research Project 6 Background 7 1. Contract and timeframe illustrated 7 2. Liability measurement bases 9 3. Earnings 10 Consideration
More informationChapter 1. Integrating the ecological and economic dimensions in biodiversity and ecosystem service valuation
Chapter 1 Integrating the ecological and economic dimensions in biodiversity and ecosystem service valuation Coordinating Lead Author: Rudolf de Groot Lead Authors: Brendan Fisher, Mike Christie Contributing
More informationFiscal Stimulus Improves Solvency in a Depressed Economy
Fiscal Stimulus Improves Solvency in a Depressed Economy Dennis Leech Economics Department and Centre for Competitive Advantage in the Global Economy University of Warwick d.leech@warwick.ac.uk Published
More informationRevealing the costs of air pollution from industrial facilities in Europe a summary for policymakers
Revealing the costs of air pollution from industrial facilities in Europe a summary for policymakers A new European Environment Agency (EEA report, Revealing the costs of air pollution from industrial
More informationChapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.)
Chapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to standard macro labor topics such the definition of the unemployment rate,
More informationSolving Quadratic & Higher Degree Inequalities
Ch. 8 Solving Quadratic & Higher Degree Inequalities We solve quadratic and higher degree inequalities very much like we solve quadratic and higher degree equations. One method we often use to solve quadratic
More informationPolicy Brief June 2010
Policy Brief June 2010 Pension Tension: Understanding Arizona s Public Employee Retirement Plans The Arizona Chamber Foundation (501(c)3) is a non-partisan, objective educational and research foundation.
More informationPaper P1 Performance Operations Post Exam Guide September 2011 Exam. General Comments
General Comments Performance on this paper was better than in previous sittings mainly as a result of improved performance in Sections A and B. Candidates scored better on average in the multiple choice
More informationUniversity of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi
University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi CH 27 Expenditure Multipliers 1) Disposable income is A) aggregate income minus transfer
More information1 Part 1 of the seminar: Sustainable development indicators and objectives
Aaaaa&& Federal Planning Bureau Task Force on Sustainable Development Seminar March 3, 2010 Sustainable Development Indicators, Objectives and Scenarios Summary of the discussions This document presents
More informationHW 2 Macroeconomics 102 Due on 06/12
HW 2 Macroeconomics 102 Due on 06/12 1.What are the three important macroeconomic goals about which most economists, and society at large, agree? a. economic growth, full employment, and low interest rates
More informationNatural capital: from metaphor to measurement. Environmental Economics and Sustainability Policy, PO Box 875502, Tempe, AZ 85287
Natural capital: from metaphor to measurement Eli P. Fenichel a and Joshua K. Abbott b a Yale School of Forestry and Environmental Studies, 195 Prospect St. New Haven, CT 06511 b Arizona State University,
More informationLeague Table Brand valuation methodology. How we measure brand value (short explanation)
League Table Brand valuation methodology How we measure brand value (short explanation) Valuation approach ISO 10668 is the global standard for brand valuations In December 2010, Brand Finance became one
More informationDeterminants of Social Discount Rate, general case
Determinants of Social Discount Rate, general case The resulting equation r = ρ + θ g is known as the Ramsey equation after Frank Ramsey (928) The equation states tt that t in an optimal intertemporal
More information