...Chapter 16 Models with Binary Dependent Variables An interesting group of applications uses a dependent variable (y) that takes the values of either 0 or 1 (a binary variable – commonly known as a dummy variable or indicator variable). Example A problem in transportation economics is to explain the choice between driving a car and taking the bus when commuting to work. For a random sample of N = 21 workers who commute to work the mode of transport is coded as the dummy variable: 1 yi = 0 individual i drives a car to work individual i takes the bus to work The choice of transportation may be influenced by a variety of factors. A key variable is: xi the extra time in minutes needed for a bus journey compared to travel by car (this may be negative to indicate that a bus journey is faster than using a car), for i = 1, . . . , N. 1 Econ 326 - Chapter 16 The linear probability model explains the choice variable by the linear regression equation: y i = β1 + β 2 x i + e i for i = 1, 2, . . . , N Estimation by the least squares principle (OLS) gives parameter estimates of β1 and β 2 as b1 and b2 . For some value of interest x 0 a prediction is calculated as: y 0 = b1 + b 2 x 0 ˆ ˆ The predicted value y 0 has the interpretation as the probability that the event will occur ( y = 1 ) given the value x 0 . For the transportation to work example, y 0 is the probability that an ˆ individual will drive a car to work given a difference in travel time for a bus journey compared...
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...11 Issues Chapter of Reporting, Disclosure and Financial Analysis Questions for Review and Discussion 1. The two main adjustment are likely to be the addition of capital assets and longterm obligations. 2. The main adjustments are likely to be: the addition of depreciation expense and gains or losses from the sale of capital assets and the deletion of amounts spent to acquire capital assets and the proceeds from the sale of capital assets the deletion of long-term debt proceeds and amounts spent to repay long-term debts and the addition of any gain or loss on the retirement of debt and the amortization of any debt premium or discount. 3. The key criterion is financial accountability the primary government either appoints a voting majority of the units governing body or a majority of the units governing body is composed of primary government officials and the primary government is able to impose its will upon the potential component unit or there is the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. 4. Discrete presentation is when one or more component units are reported in separate columns, in addition to those pertaining to the primary government. Blending is when the component units transactions and balances are reported as if they were part of the primary government that is, the component units funds are accounted for just as they were funds of the primary government. Blending is...
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...York University Faculty of Liberal Arts & Professional Studies Department of Economics Fall 2014 Course Outline Course # and Title: AP/ECON 4140 3.0A Financial Econometrics Course Webpage: http://www.yorku.ca/rsufana/teaching.htm Course Instructor/Contact: Name: Prof. Razvan Sufana Office: VH 1030 Phone: 416-736-2100 Ext. 66065 Office Hours: Tuesday 2 – 3 PM, Thursday 2:45 – 3:45 PM Email: rsufana@yorku.ca (Please include course number in subject line) LectureTime and Location: Thursday 11:30 – 2:30 PM, ACE 002 Prerequisite: AP/ECON 3210 3.00 or AP/ECON 3500 3.00 or equivalent. Course Credit Exclusions: None. PRIOR TO FALL 2009: Course credit exclusion: AK/ECON 4130 3.00. Course Description: This course is an introduction to financial econometrics. Background knowledge of finance is not required. The objective of the course is to explain, in simple terms, the use of selected statistical methods and econometric models in finance. The content of the course includes simple static and dynamic models of financial returns, elements of portfolio theory, the CAPM regression model, elements of option pricing, the Value-at-Risk (VaR), and the ARCH model. Weighting of Course: Assignment 1 (12.5% of final grade): available October 2, due at beginning of class on October 9 Midterm Exam (30% of final grade): October 16 Assignment 2 (12.5% of final grade): available November 20, ...
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...University of Guelph Department of Economics College of Management and Economics ECON*1050 (01, 03) Introductory Microeconomics E. Adomait (Section 1 MWF 10:30 to 11:20 RozH 104) (Section 3 TTh 1 :00 to 2 :20 RozH 101) Email: eadomait@uoguelph.ca Fall 2010 MacKinnon 728 Ext. 56343 It is your responsibility as a student to be aware of and to abide by the University’s policies regarding academic misconduct, e-mail communication, maintaining copies of out-of class assignments, what to do when you cannot meet a course requirement and the drop date for this semester. To better understand these policies, visit: http://www.economics.uoguelph.ca/courses.asp COURSE OUTLINE Synopsis Market economies primarily rely upon the price system as a means of allocating resources. The objective of Introductory Microeconomics is to develop in students an understanding and appreciation of this price system. The course will survey the strengths and weaknesses of the market economy, as well as the successes and failures of government intervention in the market. Much of the course content is theoretical in nature. Once students have acquired facility in handling these analytical tools, attention will turn towards issues of public policy such as marketing boards, competition policy, environmental policy, and trade policy. Required Textbook: Michael Parkin and Robin Bade, Microeconomics, Canada in the Global Environment, 7th Ed. Purchased new, the textbook is bundled with an access...
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...ECONOMICS 201: PRINCIPLES OF MACROECONOMICS Fall Term 2015 2:00-3:15 PM Mondays and Wednesdays Room 1090 CASL CRN # 11014 Section 004 Carol Hogan Office Hours: 10:00-10:45 AM 2190 Social Sciences Building Mondays and Wednesdays, 1:00- 313-436-9181 1:45 PM Mondays and Wednesdays, clhogan@umich.edu 5:00-5:45 PM Mondays, and by appointment |ECON 201 - Prin: Macroeconomics | |Together with ECON 202, this course serves to introduce the student to the basic ideas and concepts of modern economic analysis, and applies| |them to current economic problems, policies and issues. The focus of this course is on macroeconomics: income and wealth, employment, and | |prices at the national level in the United States economy. It is recommended that students take ECON 201 before ECON 202. MATH 105 is highly| |recommended but not required. (F,W,S). | |ECON 201 - Prin: Macroeconomics | |Together with ECON 202, this course serves to introduce the student to the basic ideas and concepts of modern economic analysis, and applies| |them to current economic problems, policies and issues. The focus of this course is on macroeconomics: income...
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...Econ 251 7:30 a.m. in EE 129 1:30 and 3 p.m. in CL50 224 Spring 2012 Instructor: Dr. Kelly Blanchard Office: KRAN 477 Office Phone: 494-7956 Office Hours: Tuesdays and Wednesdays 9-11 a.m. and by appointment Email: khb@purdue.edu Teaching Assistants: Curtis Ball (ball10@purdue.edu) KRAN B024E T/Th 11:30-1:30 p.m. 496-1664 Ross Winegar (rwinegar@purdue.edu) KRAN 487 W/Th 3-5 p.m. Weekly Review Session: Thursdays 6-7 p.m. in KRAN G9 Exam Review Sessions: Friday, February 10 from 6-7 p.m. in WTHR 200 and Monday, March 26 from 6-7 p.m. in WTHR 200 Administrative Assistant: Bree Miller KRAN 443 496-7964 (9 a.m. – 1 p.m. M-Th) bree2@purdue.edu Course Web Site(s): blackboard.purdue.edu (for accessing grades and course information or postings) www.pearsonmylabandmastering.com (for e-text, online homework, study guide) Course Overview: Econ 251 is intended to introduce you to microeconomic theory and its application in everyday life. The course will explain how individual consumers and producers together determine the prices and quantities of goods available in the marketplace. We will investigate the underlying incentives of consumers to buy goods and of firms to produce products that satisfy consumer demand. In addition, we'll look at how government can help or hinder market efficiency. The textbook for the course is Microeconomics for Economics 251, published by Pearson Custom Publishing (ISBN: 1256128546). The publisher has created an online resource site...
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...Money and Banking - ECON 3381L MONEY AND BANKING ECON 3381 – 91L Fall 2014 Instructor: E-mail: Web page: Office: Office Phone: Office Hours: Lecture Venue: Course Description This course is designed to provide you with a thorough understanding of the importance of money, banking, and financial markets. Money, financial institutions, and financial markets have emerged as instruments of payments for the services of factors of production. As markets expand and develop on a national and international level, the importance of money, banking, and other financial markets expands to accommodate innumerable exchanges. This course will allow you to understand the origins and nature of money, as well as the institutions and markets that enable the exchange of goods and services. Moreover, it will help you develop an appreciation for important concepts in economics, from interest rates and central banking to stocks, bonds, and foreign exchange. Prerequisites ECON 2301 and ECON 2302. Textbook The Economics of Money, Banking & Financial Markets, Frederic S. Mishkin, 10th Edition. Pearson. ISBN-13: 978-0-13-277024-8 (The 9th Edition also works: AddisonWesley. ISBN-13: 978-0-321-59979-7). Material and Rules All the class material is available through Blackboard Learn. Please make sure you thoroughly read the class rules section. Diego Escobari escobarida@utpa.edu http://faculty.utpa.edu/escobarida/ BUSA 218D 956.665.3366 MW 2:30 p.m. - 4:00 p.m. and by appointment This is an online class...
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...Econ 301B Winter 2012 Problem Set 1 Due date: Monday, January 23 in class 1. Suppose the country of Utopia has a population of 1,000 and produces only three goods: T-shirts, cars and pineapples. Assume that Utopia does not trade with other countries. The production amounts and prices (in US Dollars) for 2009, 2010 and 2011 are given in the table below: Year 2009 2010 2011 Quantity of Tshirts 10,000 9,500 10,500 Price of Tshirts Quantity of cars Price of cars Quantity of pineapples Price of pineapples $10 $10.50 $11 75 85 90 $15,000 $16,000 $15,500 50,000 60,000 45,000 $4 $4.50 $5 a) Using 2009 as base year, calculate nominal and real GDP per capita for 2009, 2010 and 2011. b) Keeping 2009 as base year for prices, compute Utopia’s inflation rates for 2010 and 2011 using both the CPI and the GDP deflator. When calculating the CPI, assume that the representative consumer purchases in any given year 10 T -shirts, 1 car and 100 pineapples. c) Explain why the computed inflation rates are not the same when u sing the two different methods. 2. For this question assume that we are within the short -run goods market framework developed in Chapter 3 in Blanchard. Suppose that the economy is characterized by the following behavioral equations: Note that in this economy investment, I, depends positively on output, Y. This mirrors the fact that firms in the real world will increase their investment expenditure...
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...Dr. Mohammed Alwosabi Econ 140 – Ch.2 Notes on Chapter 2 PRODUCTION POSSIBILITIES FRONTIER This chapter reinforces the central themes of Chapter one by laying out the core economic model, the PPF, and using it to illustrate the concepts of scarcity, tradeoff and opportunity cost. It explains, with a model, the concepts of marginal cost and marginal benefit, introduces efficiency, and explains how we can expand production by accumulating capital and improving technology. The economic problem of allocating resources (making choices) in a situation of scarcity can be illustrated by explaining the concept of the production possibilities frontier (PPF). Production Possibilities Frontier (PPF) refers to the maximum combinations of goods and services an economy can produce efficiently using its available resources and technology within a given period of time. It is the boundary between the goods and services that can be produced from those that cannot. The PPF model is a graphical illustration with the following assumptions 1. The society has a fixed amount of available common resources. i.e., the same limited resources can be used to produce either of the goods. 2. The society has a fixed amount of technology 3. Full employment of resources 4. The choice is between producing two goods: Machines and Food. All other goods and services are assumed being the same (ceteris paribus). This assumption is to allow the use of simple graphical analysis. Note that these assumptions are...
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...Econ 301A Summer 2013 Problem Set 1 Due date: Wednesday, July 10 in class 1. Suppose the country of Utopia has a population of 1,000 and produces only three goods: T-shirts, cars and pineapples. Assume that Utopia does not trade with other countries. The production amounts and prices (in US Dollars) for 2009, 2010 and 2011 are given in the table below: Quantity of Tshirts 10,000 9,500 10,500 Price of Tshirts $10 $10.50 $11 Quantity of cars 75 85 90 Quantity of pineapples 50,000 60,000 45,000 Price of pineapples $4 $4.50 $5 Year 2009 2010 2011 Price of cars $15,000 $16,000 $15,500 a) Using 2009 as base year, calculate nominal and real GDP per capita for 2009, 2010 and 2011. b) Keeping 2009 as base year for prices, compute Utopia’s inflation rates for 2010 and 2011 using both the CPI and the GDP deflator. When calculating the CPI, assume that the representative consumer purchases in any given year 10 T-shirts, 1 car and 100 pineapples. c) Explain why the computed inflation rates are not the same when using the two different methods. 2. Blanchard, Chapter 3, Questions 2 and 4. 3. Blanchard, Chapter 4, Question 8. 4. Consider the following balance sheet of the Central Bank of Utopia: Assets Government bonds Liabilities $2,000 Currency + Reserves $2,000 In answering the following questions, assume that (i) the public wishes to hold 20 percent of its money holdings as currency, (ii) the ratio of reserves to deposits is 0.25, (iii) nominal income in Utopia is $25...
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...Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support. 4 Chapter PLANNING BUSINESS MESSAGES Multiple Choice 1. The three primary steps involved in preparing a business message are a. planning, writing, and completing. b. informing, persuading, and collaborating. c. defining the purpose, the main idea, and the topic. d. satisfying the audience's informational, motivational, and practical needs. ANSWER: a; DIFFICULTY: easy; PAGE: 90; TYPE: concept 2. In developing business messages, the stage during which you step back to see whether you have expressed your ideas clearly is the a. planning stage. b. writing stage. c. completing stage. d. feedback stage. ANSWER: c; DIFFICULTY: moderate; PAGE: 91; TYPE: concept 3. In preparing business messages, you should devote about ______ percent of your time to planning. a. 10 b. 20 c. 50 d. 70 ANSWER: c; DIFFICULTY: moderate; PAGE: 91; TYPE: concept 4. Which of the following is not a general purpose common to business communication? a. To inform b. To persuade c. To negotiate d. To collaborate ANSWER: c; DIFFICULTY: moderate; PAGE: 92; TYPE: concept 5. An example of a specific purpose for a business message would be a. to impart information to the audience. b. to inform employees about the new vacation policy. c. to persuade readers to take an action. d. to obtain audience participation and collaboration...
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...Dr. Mohammed Alwosabi Econ 140 – Ch. 11 Notes on Ch. 11 PERFECT COMPETITION This chapter examines the basic elements of perfect competition and the competitive firm. It examines how businesses with a given market price make production decisions that help maximizing profit. Characteristics of Perfect Competition 1. Many firms, each is selling an identical product. Each firm’s output is a perfect substitute for the output of the other firms, so the demand for each firm’s output is perfectly elastic. 2. Large number of buyers who are indifferent from whom to buy 3. No barriers (restrictions) to entry or exit; it is relatively easy to get into the business 4. Each firm produces a very small share of the total output so that no individual firm has the market power to influence the market price of the good it produces. A perfectly competitive firm is a price taker; it takes the market price as given. 5. Firms already in the industry have no advantage over new entrants 6. Complete information is available to buyers and sellers are about price, demand, and supply in the market 7. Perfectly competitive firms earn zero economic profit in the long run (only normal profit) 1 Dr. Mohammed Alwosabi Econ 140 – Ch. 11 Market demand curve vs. firm demand curve It is important to distinguish between the market demand curve and the demand curve facing a particular firm. The equilibrium market price is determined by the interaction of market demand and...
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...Econ 222 Assignment 3 Click Link Below To Buy: http://hwaid.com/shop/econ-222-assignment-3/ Econ 222 Macroeconomic Theory I Assignment #3 Question 1: The Solow growth model Consider the following production function: Y (t ) = F (K (t ),A(t )N (t )), (1) where Y (t ) denotes output, K (t ) denotes total capital input, A(t ) denotes “knowledge”, and N (t ) denotes total labour input. F (•, •) is the aggregate production function. Note that A(t )N (t ) is commonly referred as effective labour, and technological progress that enters the production function in this fashion is known as labour-augmenting or Harrod-neutral. a) Derive the intense form (per unit of effective labour) of the production function, using the abstract production function above. b) We know the actual production function is Y (t ) = K (t )α [A(t )N (t )]1−α . (2) Denote the population growth rate as n, the depreciation rate as d, the growth rate of knowledge as д, and the saving rate as s. First derive the steady state condition for this economy (involving investment per unit of effective labour), and then solve for the steady state level of capital per unit of effective labour, k ∗ (t ). c) Given the result in b), solve for the steady state level of output per worker y ∗ (t ), and consumption per worker c ∗ (t ). 1 d) Solve for the Golden rule level of capital per worker, kG . If the government can choose a saving rate for the economy, what saving rate should...
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...yorku.ca Room Office hours: Mondays & Wednesdays, 11:30 a.m. to 12:30 p.m., or by appointment. Brief Description: Students learn about investment and financing in this core course. The investment decision allocates scarce resources to projects in the organization, and involves asset valuation, capital budgeting, risk management, working capital management and performance assessment. The financing decision chooses sources of cash to finance the investment decisions and involves capital structure, financial instruments, the risk-return trade-off, financial planning and the cost of capital. Ethical considerations and management in the global context are integrated into these topics. Course Credit Exclusion: AP/ECON 3.00 (AS/ECON 4400 3.00 or AK/ECON 4082 3.00) Prerequisite: none Course objectives: The course objectives are to introduce students to the theory of financial management and its application to the business world. It analyzes how financial managers make decisions within a framework which emphasizes the time value of money (TVM) and the relationship between expected return and risk. In addition, we examine the techniques that financial managers use to evaluate feasibility of undertaking new projects (i.e., capital budgeting). This course is very fast paced, technical in nature, and it requires each student to do considerable out-of-class work. Problem solving throughout the course is required. Organization of the Course: Class format is lecture-style...
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...6503204 Office hours: TR 1-2 p.m. and 4-4:30 p.m. (or by appointment) Additional office hours will be scheduled prior to exams. E-mail address: julie.hansen@wwu.edu Canvas address*: http://canvas.wwu.edu *Please visit the course page on Canvas for access to course documents, additional readings and links to relevant information on the web. COURSE READINGS: Gruber, Public Finance and Public Policy, 4th edition Additional readings as listed on the course outline COURSE PREREQUISITES: Econ 206 and Econ 207 COURSE DESCRIPTION: Public Finance deals with the taxing and spending activities of government. It is alternatively called Public Sector Economics or Public Economics. The focus of the course is on the microeconomic functions of government, and in particular the way that government affects the allocation of resources and the distribution of income. The analysis of the spending activities of government will include a discussion of public goods, externalities, education, welfare programs, Social Security and health care. On the tax side, we will build a framework for tax analysis, and then apply this framework to the personal income tax, the corporation income tax, and other U.S. taxes. COURSE OBJECTIVES: 1. To understand the economic rationale for government involvement in a market economy. 2. To learn about the major sources and uses of revenue in the United States fiscal system. 3. To develop your ability...
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