...estimate of black economy to formulate appropriate policies. The study of unaccounted income thereafter was entrusted to the National Institute Of Public Finance And Policy in July 1982 to: identify sectors generating black money, causes of such, studying the methods employed to generate black money and channels through which concealed income is invested and spent in other ways, methods employed to convert black money into white, broad estimate of money generated and to take regional or sectoral surveys required in connection with the above. The Institute submitted its report in March 1985. The focus of the paper is on methods and measurements of estimating black economy and therefore, other aspects of the report like distinguishing between black income and black wealth, giving an explanation for the causes of black economy and remedial measures etc. are not explicitly dealt with, yet these issues are kept in mind and the methods and measurements are discussed at the level best. This paper has tried to do some justification to the NIPFP REPORT (1985) and the comments by various known scholars. METHODS FOR ESTIMATING BLACK INCOME The first approach is the fiscal approach: Variants of this approach attempt to arrive at independent estimates of incomes subject to tax and compare these with the income actually assessed for taxation and call the difference between the two- a measure of tax evaded income. N.Kaldor first used this method in 1956. This method was also used by Wanchoo Committee...
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...Estimating Total Contribution of Tourism to Malaysian Economy 1.0 Introduction The article is about estimating total contribution of tourism to Malaysian economy. As impact effects of tourism are being realized by nations, it is now believed to stimulate the economic progress of developing economies and its importance in gaining widespread recognition, as such, Malaysia is no exception. With the immense growth of tourism, Malaysia has become one of the leading tourist destinations competing with other popular destinations of the global economy. Similar to many developing nations, tourism industry has become one of the most vital sectors, encourage the growth and development for Malaysian economy because of its competitive advantages. 2.0 Main Issues The ability to generate ripple effects by tourism makes it a performer of vital medium of foreign currency injection which has been drawing a significant attention for the economic development of developing countries. Developing economies are progressively relying on income streams from tourism while the traditional economic sectors have become less potential in contributing to GDP. The economic impacts of tourism are occurring in extensive latitude, within the evolution of the globalization process (Sugiyarto et al., 2003) that is, in turn, helping the acceleration of this industry’s expansion around the globe. In fact, direct, indirect, and induced multiplier effects are the causes that assist in expanding the contribution...
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...CONCEPTS OF NATIONAL INCOME The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation. The important concepts of national income are: 1. Gross Domestic Product (GDP) 2. Gross National Product (GNP) 3. Net National Product (NNP) at Market Prices 4. Net National Product (NNP) at Factor Cost or National Income 5. Personal Income 6. Disposable Income Let us explain these concepts of National Income in detail. 1. Gross Domestic Product (GDP): Gross Domestic Product (GDP) is the total market value of all final goods and services currently produced within the domestic territory of a country in a year. Four things must be noted regarding this definition. First, it measures the market value of annual output of goods and services currently produced. This implies that GDP is a monetary measure. Secondly, for calculating GDP accurately, all goods and services produced in any given year must be counted only once so as to avoid double counting. So, GDP should include the value of only final goods and services and ignores the transactions involving intermediate goods. Thirdly, GDP includes only currently produced goods and services in a year. Market transactions involving goods produced in the previous periods such as old houses, old cars, factories built earlier are not included in GDP of the current year. Lastly, GDP refers...
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...Economic impacts of Tourism Page # 1 Economic Impacts of Tourism Daniel J. Stynes Businesses and public organizations are increasingly interested in the economic impacts of tourism at national, state, and local levels. One regularly hears claims that tourism supports X jobs in an area or that a festival or special event generated Y million dollars in sales or income in a community. “Multiplier effects” are often cited to capture secondary effects of tourism spending and show the wide range of sectors in a community that may benefit from tourism. Tourism’s economic benefits are touted by the industry for a variety of reasons. Claims of tourism’s economic significance give the industry greater respect among the business community, public officials, and the public in general. This often translates into decisions or public policies that are favorable to tourism. Community support is important for tourism, as it is an activity that affects the entire community. Tourism businesses depend extensively on each other as well as on other businesses, government and residents of the local community. Economic benefits and costs of tourism reach virtually everyone in the region in one way or another. Economic impact analyses provide tangible estimates of these economic interdependencies and a better understanding of the role and importance of tourism in a region’s economy. Tourism activity also involves economic costs, including the direct costs incurred by tourism businesses...
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...In this paper, we show the pivotal role business owners play in estimating the importance of the precautionary saving motive. Since business owners hold larger amounts of wealth than other households for non-precautionary reasons and also face highly volatile income, they induce a correlation between wealth and income risk regardless of whether or not a precautionary saving motive exists. Using data from the Panel Study of Income Dynamics in the 1980s and the 1990s, we show that among both business owners and non-business owners, the size of precautionary savings with respect to labor income risk is modest and accounts for less than ten percent of total household wealth. However, pooling together the two groups leads to an artificially high estimate of the importance of precautionary savings. New data from the Survey of Consumer Finances further confirms that precautionary savings account for less than ten percent of total wealth for both business owners and non-business owners. Thus, while a precautionary saving motive exists and affects all households, it does not give rise to high amounts of wealth in the economy, particularly among those households who face the most volatile stream of income. Part of being a fair and effective manager is making good decisions. Knowing what is right is very important to personal and business ethics. However, doing what is right is critical to personal and business ethics. A strong unwavering commitment to your core values and guiding principles...
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...S w W11226 ESTIMATING DEMAND IN EMERGING MARKETS FOR KODAK EXPRESS David M. Currie and Ilan Alon wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-07-08 Anna Johnson gazed at the information she had accumulated on various countries and wondered how she could use it to estimate the demand for Kodak Express (KE) outlets. She had learned from the Kodak market research department that demand for KE outlets depended on household income. To support one Kodak Express outlet, one of the following was needed: one million households with annual incomes equal to or exceeding the equivalent of US$15,000, two million households earning the equivalent of between US$10,000 and US$14...
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...1. Introduction Poverty, which is measured by the household income lower than poverty line has been identified as the dependent variable in this project. It is important to know which elements are associated with poverty. The purpose of this paper is to evaluate the key determinants of American household poverty in 1980. The four possible determinants will be analyzed in this project, the average numbers of every family (FAMSIZE), URB is the percent of people live in urban, UR is the level of people have no job over 16 years and the median family income in US dollars (INCOME). Descriptive statistics, correlation and regression will be used in this project. 2. Descriptive statistics Variable | Mean | Median | Mode | VAR | STDEV | URB | 58.76034483 | 66.15 | 0 | 1012.828049 | 31.82495953 | FAMSIZE | 3.140172414 | 3.135 | 2.93 | 0.033377163 | 0.182694178 | UR | 9.293103448 | 8.95 | 5.8 | 10.92696915 | 3.30559664 | INCOME | 19240.43103 | 18512 | N/A | 10889936.04 | 329.990309 | POV | 9.120689655 | 9.05 | 8.8 | 6.230792498 | 2.496155544 | 3. Correlation Correlation and regression are techniques for investigating the statistical relationship between two, or more, variables (Barrow, 2013, pp. 238). * Correlation defines the degree to which there is a linear relationship between pairs of variables. Firstly, it is useful to graph the variables to see if anything useful is revealed. In this case, XY graphs are the most suitable and they are shown in following...
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...coefficients of variables to be used in the estimation will also be presented in this section. This will be followed by the presentation and discussion of the empirical results. 4.1 Conceptual Framework The relationship between remittances and household welfare can be modeled in several ways, one of which is to estimate how remittances affect household expenditures. One other approach is to investigate how remittances affect the probability of being poor. This is the approach followed by Grootaert (1997), McKenzie (2006), and Brown and Jimenez (2008). It was conceptualized in these studies that households which receive remittances may be better off than those who do not receive remittances. This is because remittances add to the household’s income and this has the probability of alleviating the household’s poverty status. 4.2 Empirical Model In order to discuss the empirical model to be used in this study, we will have to recall the objectives of the study. Generally, this study seeks to analyse the relationship between poverty and remittances. Specifically, the study will try to achieve the following objectives: 1) Discuss the demographic characteristics of households who are poor or non-poor, and the characteristics of households that receive remittances. 2) Test the relationship between poverty status and remittances 3) Analyze...
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...INTRODUCTION * Economics is divided into two branches: Microeconomics and macroeconomics. 1. Microeconomics is the study of how individual Households and firms make decisions and how they interact with one Another in markets. 2. Macroeconomics is the study of the economy as a whole. The Goal of macroeconomics is to explain the economic changes that affect many Households, firms, and markets at once. * Macroeconomists address diverse questions: * Why is average income high in some countries while it is low in others? * Why do prices rise rapidly in some periods of time while they are more stable in other Periods? * Why do production and employment expand in some years and contract In others? * What, if anything, can the government do to promote rapid growth in Incomes, low inflation, and stable employment? * These questions are all macroeconomic in nature because they concern the workings of the entire economy. * Because the condition of the overall economy profoundly affects all of us, changes in economic conditions are widely reported by the media. Indeed, it is hard to pick up a newspaper without seeing some newly reported statistic about the economy. The statistic might measure the total income of everyone in the economy (GDP), the rate at which average prices are rising (inflation), the percentage of the labor force that is out of work (unemployment), total spending at stores (retailsales), or the imbalance of trade between...
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...National Income in India, Concept and Measurement General Economics National Income • National income is the money value of all the final goods and services produced by a country during a period of one year. National income consists of a collection of different types of goods and services of different types. General Economics: National Income in India, Concept & Measurement 2 National Income • Since these goods are measured in different physical units it is not possible to add them together. Thus we cannot state national income is so many millions of meters of cloth. Therefore, there is no way except to reduce them to a common measure. This common measure is money. General Economics: National Income in India, Concept & Measurement 3 Basic Concepts in National income • Gross domestic product • Gross domestic product at constant price and at current price • Gross domestic product at factor cost and Gross domestic product at market price General Economics: National Income in India, Concept & Measurement 4 Basic Concepts in National income • • • • Net domestic product Gross national product Net national Product Net national product at factor cost or national income General Economics: National Income in India, Concept & Measurement 5 Gross Domestic Product • Gross domestic product is the money value of all final goods and services produced in the domestic territory of a country during an accounting...
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...January of 2013 brought a new year and an important new opportunity to the management team of Sterling Household Products Company. Sterling manufactured and marketed a wide line of consumer goods, including laundry products, soaps, cosmetics, toilet preparations, and cleaning, disinfecting and sanitizing products, which were sold domestically and internationally, and were used every day in millions of households around the world. Sterling’s family of quality products included many highly regarded brand names, and the company had consistently delivered impressive sales and profits to the investment community. Sterling’s financial measures for all recent years showed that the company was successful, but a time series analysis of these same financial measures quickly isolated Sterling’s current challenge: growth rates for unit volume, sales, and profits were very low, and company management was looking to expand into businesses and products with more potential for growth. Sterling had identified health care as an industry with more growth potential, and a detailed search for health care products which could fit well into the company’s existing operations led to discussions between Sterling and Montagne Medical Instruments Company. Sterling was interested in acquiring Montagne Medical’s germicidal, sanitation, and antiseptic products unit, and Montagne Medical was willing to sell the unit for the right price. Negotiations had revealed that Montagne Medical believed the right price...
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...For the exclusive use of W. Jingcheng, 2015. 9-913-556 APRIL 30, 2013 WILLIAM E. FRUHAN CRAIG STEPHENSON Sterling Household Products Company January of 2013 brought a new year and an important new opportunity to the management team of Sterling Household Products Company. Sterling manufactured and marketed a wide line of consumer goods, including laundry products, soaps, cosmetics, toilet preparations, and cleaning, disinfecting and sanitizing products, which were sold domestically and internationally, and were used every day in millions of households around the world. Sterling’s family of quality products included many highly regarded brand names, and the company had consistently delivered impressive sales and profits to the investment community. Sterling’s financial measures for all recent years showed that the company was successful, but a time series analysis of these same financial measures quickly isolated Sterling’s current challenge: growth rates for unit volume, sales, and profits were very low, and company management was looking to expand into businesses and products with more potential for growth. Sterling had identified health care as an industry with more growth potential, and a detailed search for health care products which could fit well into the company’s existing operations led to discussions between Sterling and Montagne Medical Instruments Company. Sterling was interested in acquiring Montagne Medical’s germicidal, sanitation, and antiseptic...
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...Income inequality is a topic of great interest. President Barack Obama believes it is the “defining issue of our time”. Long before Thomas Piketty’s “Capital in the Twenty-First Century” sent shockwaves around the world, there was Jane Austen who described the pitfalls of living in an unequal society in the Pride and Prejudice. Reality differs from fiction. Rich kids without a college degree are 2.5 times more likely to end up rich than poor kids who do graduate from college. Even when kids from low-income households do outperform those from high-income households, it is uncertain that they will end up earning more as an adult (Pew Economic Mobility Project, 2012). Higher income inequality would be less of a concern if we had a high degree of income mobility, which is truly the heart of the issue. Income mobility addresses the idea: if you work hard and are skilled; you can make something of yourself i.e. the possibility of an individual moving from one income bracket to another. An important distinction is made between intergenerational income mobility and...
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...Pay Experiments: Estimating demand for piped water connections in Sri Lanka. This paper shows how Willingness to Pay surveys can be used to gauge household demand for improved network water and sanitation services when a private sector transaction is considered. The survey included approximately 1800 households in the year of 2003. Using multivariate regression, it showed that a complex combination of factors drives demand for service improvements. While poverty and costs are found to be key determinants of demand, they also found that location, self-provision, and perceptions matters as well, and that sub-sets of these factors matter differently for sub-samples of the population. The simulations show that in this particular environment in Sri Lanka, demand for piped water services is low, and that it is unlikely that under the present circumstances then, the goal of nearly universal piped water coverage was going to be achieved. Policy instruments, such as subsidization of connection fees, could be used to increase demand for piped water, but it is unclear whether the benefits of the use of such policies would outweigh the costs. Contingent Valuation (CV) has been used increasingly in developing countries for improvements in water and sanitation services in the past decades. However, applying CV in developing countries requires careful adaption of the method to account for local conditions and cultural differences according to Whittington in 1998. Households can be asked to consider...
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...either failed to recognise ali the ways in which consumers can react to gasoline priče changes ог have implemented рге-1973 data which did not provide good estimates of priče elasticities (Dewees et al, 1975; Dahl ,1978; Shalaby and Waghmare, 1980). Some models attempt to estimate the components of gasoline demand using aggre-gated data (Gallini 1983; Dahl 1982). The problem with these models is that they do not identify the relationship between the household decisions on vehicle holdings and on usage. These two decisions are likely to be dependent; the use of a vehicle depends on its type and the type of vehicle chosen depends on its expected use. Since these decisions are made within the household, household data should be used for estimating the various components of gasoline demand. This paper provides an estimate of household gasoline demand in Canada by applying a detailed model to pooled time-series (1969-1988) and cross-sectional provincial data. The model recognises three major behavioural changes that households can make in response to gasoline priče changes: drive fewer miles, purchase fewer cars, and buy more fuel-efficient vehicles. In the model, fuel есопоту is treated in considerable detail. The two components of the fuel есопоту of new cars sold—the technical fuel efficiency of various classes of cars and the distribution of new car sales according to their interior volume rather than their weight — are estimated as functions of economic variables. Car...
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