...Sciences Prague Faculty of Economics and Management Department of Economics Project of Econometric Modelling © 2013 CULS in Prague I. One equation model: The following econometric model would like to analyze the impacts of consumption, interest rate and unemployment rate on Gross Domestic Product of China based on the data extracted from National Bureau of Statistics of China.(1992-2011 National Data in 1992-2011 ). 1. Economic model and econometric model 2.1. Assumption * Gross Domestic Product (GDP) depends on the following variables: * Private Consumption * Government spending * Total wage of employees * General model: GDP = f (Private Consumption, Government spending, Total wage of employees) * Dependency between variables based on economic theory: * Increase of private consumption will cause increase in GDP. * Increase of Government spending will cause increase in GDP. * Increase of Total wage will cause increase in GDP. 2.2. Economic and econometrics model * Declaration of variables Variable | Symbol | Unit | Gross Domestic Product | y1 | 100 million yuan | Unit vector | x1 | | Private Consumption | x2 | 100 million yuan | Government spending | x3 | 100 million yuan | Total wage of employees | x4 | 100 million yuan | Stochastic variable | u1t | | * Economic model: y1 = γ1+ γ2 x2 + γ3 x3 + γ4 x4 . Insert stochastic variable-...
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...and low mortgage and interest rates. It is also necessary to include that the housing boom was only made possible by their allied industries such as plumbing, cement and electricity as without these products being readily available the houses could not have been built. As the housing industry boomed it made other industries more successful in trade as the consumption of electricity doubled in the 1930’s and by 1938 there were 9 million wireless sets in private homes and the demand for luxuries such as radios and cars also grew. This benefited the other industries and the working class as more jobs were readily available for them to earn a living and provide for their families. It is clear to see that the housing boom could be seen as being responsible for Britain’s economic recovery in the 1930’s as it gave jobs to the working class which increased consumerism as more and more people had money to buy consumer goods which helped the cycle of prosperity to continue on and helped the economy recover. Another contributing factor to the economic recovery of Britain was consumer spending. A.J.P Taylor stated that “increased consumption by individuals pulled England out of the slump”, meaning that Britain came out of the Depression by spending money and stimulating their own economy – creating a ‘consumer-led’ recovery. The lowered prices – caused by the Depression itself – allowed those...
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...FOREWORD I am Sarah Afifah binti Abd Hamid was requested by Puan Rohani Abdul Ghani to conduct a study issue that related to finance sector. I choose “Bank Islam offers superbike financing “as for my individual assignment and presentation. Generally, I have to study and find out why Bank Islam choose to offer superbike financing and what is the reasons due to that. This main finding was that the assumption of increasing profit in sales is increased in this market segment by Bank Islam. Image 1: Example picture of superbike financing by Al-Rajhi Bank 1.0 INTRODUCTION Bank Islam, established in 1983, is Malaysia’s maiden Shariah-based institution. Since its inception, it has emerged as the symbol of Islamic banking in Malaysia and its vision to be “A Global Leader in Islamic Banking” illustrates the Bank’s status as the flag bearer of the country’s financial services industry (“the industry”). Bank Islam has been growing from strength to strength as evidenced by its financial performance and paid-up capital, which, in turn, was instrumental in making the growth of its assets. Throughout the year, Bank Islam has been embarking on a number of expansion programmes with its involvement in, among others, notable transaction in Sukuk and Corporate Mandates. Living up to its pioneering spirit, the Bank has continued to provide innovative and enhanced products and services which have resulted in a growing number of customers seeing Islamic banking as a true alternative to conventional...
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...China's consumption-driven development model basically established http://news.hexun.com/2015-04-17/175037256.html The 2015-04-17 00:17:46 source: China business times author: ren-ping li "Consumption rate exceeded 50% for the first time in the past decade, ranking first in the Troika." The 2015 Consumption Market Development Report which is issued by Ministry of Commerce pointed out that the consumption-driven development model will be basically established this year, and the growth rate, structure, hotspots, drive of consumption will change accordingly. Unlike the spokesman of Statistics Bureau Sheng Yun’ opinion that the contribution of consumption to GDP ratio in the first quarter may reach 60%, according to Zhao Ping’s interpretation, who is deputy director of Consumption Economic Research Department of Ministry of Commerce, the full-year contribution ratio of consumption was always used to clarify the status of consumption, which in fact only reflected the proportion of consumption in economic growth, while consumption proportion in the stocking economy has always been low and hovering around 40% for a long time. However, consumption rate, which means the consumption share of GDP, is a more comprehensive measure of the proportion of consumption. Therefore, “consumption rate exceeded 50% for the first time in the past decade with the specific measurement data of 50.5 percent, which means the consumption-driven development model is basically established...
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...American Economic Association Sudden Stops, Financial Crises, and Leverage Author(s): Enrique G. Mendoza Reviewed work(s): Source: The American Economic Review, Vol. 100, No. 5 (DECEMBER 2010), pp. 1941-1966 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/41038751 . Accessed: 04/03/2013 15:09 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to The American Economic Review. http://www.jstor.org This content downloaded on Mon, 4 Mar 2013 15:09:41 PM All use subject to JSTOR Terms and Conditions American Economic Review (December 100 2010): 1941-1966 http://www.aeaweb.org/articles.php?doi=10.1257/aerJ00.5.1941 Sudden Stops, FinancialCrises, and Leverage ByEnrique G. Mendoza* Financial crasheswerefollowedby deep recessions theSudden Stops of in economies. equilibrium An businesscyclemodelwitha collateral emerging constraint this as and of explains phenomenon a result theamplification...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...contributing factor? * people in wealthy industrialized society are on average happier than poor ones * greater wealth comes a greater ability to meet needs and desires * economic development has been shown to generate a steady increase in average happiness levels, but after a certain level of development has been reached the effects disappear completely * the middle class continue to feel squeezed economically * people are working harder, under more stress, less free time * some people question the value of economic growth altogether * serious sacrifices in order to keep a high growth rate * but growth isn’t making us happier * people spend their money on private consumption goods * something pathological about consumption habits * obsessed with acquiring more even though this leads to unreasonable sacrifices * is social criticism really a criticism or rather a piece...
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...| COLLABORATION PROGRAM WITH | PERAK COLLEGE OF TECHNOLOGY DEGREE IN MANAGEMENT (TECHNOLOGY) SUBJECT: ULAB3162 ENGLISH FOR PROFESSIONAL PURPOSES TOPIC: ANALYSIS OF MALAYSIA’S ECONOMIC CRISIS 2015 PREPARED BY: TUN MUHAMMAD FALIQ AIZAT 900711-08-6343 PREPARED FOR: MISS YASOTHA DATELINE: 7/12/2015 ANALYSIS OF MALAYSIA’S ECONOMIC CRISIS 2015 A Tough Year This year has seen changes across the entire spectrum of the Malaysian body politic and economy. Unlike in earlier years of Prime Minister Dato’ Seri Najib Tun Razak’s six-and-a-half year tenure, Malaysia’s economy is now seen to be in trouble, with contracting growth, rising inflation, continued high levels of capital flight, declining consumer and investor confidence, and a depreciating currency. Malaysia faces an unfavourable global environment. The slowdown of the Chinese economy, Malaysia’s largest trade partner, has contributed to a sharp decline in Malaysia’s GDP growth. While the US economy has begun a recovery, it has not filled the vacuum as a driver of growth left by China’s slowdown. Four regional economies are seen to be under strain – Singapore, Indonesia, Thailand and Malaysia. The broad decline of Southeast Asian currencies to the US dollar and drops in exports has cast a pall over the region. Global drops in oil and gas prices (now at levels less than half of those prevailing a year ago) have had a special impact on Malaysia; Government revenues from petroleum had accounted...
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...Consumerisms Effect Consumerisms Effect Consumerism is defined as, “the theory that an increasing consumption to goods is economically desirable; also: a preoccupation with and an inclination toward the buying of consumer goods” (“Consumerism,” n.d.). With this said, is consumerism healthy for anyone who is involved? From American cultures birth after the revolutionary war, this society has relished the flattery of consumerism. The search for wealth, material goods, and happiness has no boundaries in this society. Although some positive influences exist within consumerisms definition, a darker side to this phenomenon cannot be over looked. Consumerism reflects many negative human attributes and its increase is adversely affecting American culture, societal equalities, and the environment. Consumerism, in all its forms, has been around since the earliest times of American culture. From the earliest time of America, directly after the Revolutionary War, this attitude of need and want for material good and what was considered the best was very evident. One would think that during a life altering divide of nations the concept of consumerism would stop between them, but during this time, Americans still sought British goods. A high perceived value and thought pattern that these goods were of superior quality allowed these items to become a status symbol for early Americans. George Washington, weeks after signing a peace treaty with Britain, ordered a large...
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...India's GDP seen rising but skepticism remains Nyshka Chandran | @nyshkac Monday, 30 Nov 2015 Growth in Asia's third-largest economy likely picked up pace during the July-September period but don't cheer just yet, economists warn. India's real gross domestic product (GDP) is expected to expand 7.3 percent on year, up from 7 percent in the April-June quarter, on the back of improved consumption and rising industrial production, according to widespread estimates from private sector economists. Discretionary consumer spending has been holding up better, reflected by a 9.5 percent annual rise in September car sales, Morgan Stanley pointed out in a Monday report. Meanwhile, positive factory production is another bright spot, with annual industrial output expanding 4.2 percent in July, 6.3 percent in August and 3.6 percent in September. The upshot is ultimately buoyed growth, but it's still far from full-throttle, said Vishnu Varathan, senior economist at Mizuho Bank. "Admittedly, with softer inflation boosting consumption, a less dire-than-expected monsoon outcome and nascent industrial uptick, India is still the bright spot in Asia. But growth momentum is not, as yet, on a solid footing." Experts widely agree that India's biggest problem is a negative output gap, i.e. the difference between actual production and what could be produced under full capacity. "We believe that the root cause of the challenging macro environment in India over the past few years has...
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...Problem set 1 Exercise 1 Giving €10 to a friend does not affect GDP because it is just an exchange of paper and there is no new production. Because she loses the money, she cannot go to the movies, so she cannot consume anything. That transaction does not affect France's 2014 GDP. Expenditure: consumption in services increase by €50 (only the service fee and not the loan). Income side: wages and profits should increase by €50. Value added: services value added should increase by €50. Expenditure: consumption in goods increases, but imports also increases. GDP stays the same. Income side: it does not increase in France but in the US. Value added: it increases in the US and not in France Winning the lotery is just a money transfer, it does not involve production, therefore it does not affect GDP. It is legalized so it should count in GDP and increase it, but because it is domestic production, it is not meant to be sold, so it does not affect GDP. Expenditure: consumption in non-durable goods increases by €105. Income side: wages plus profits shoul increase by €105. Value added: Restaurants value added should increase by €105. Exercise 4 (i) NominalGDP2012 = QuantityTV * PriceTV2012 + QuantityComputers * PriceComputers2012 = 100*500+20*1,000 NominalGDP2012= €70,000 NominalGDP2013 = QuantityTV * PriceTV2013 + QuantityComputers * PriceComputers2013 = 80*400+30*1,200 NominalGDP2013= €68,000 NominalGDP2014 = QuantityTV * PriceTV2014...
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...STRATEGY in the SPECIAL ISSUE NEW WORLD The 10 Trends You Have to Watch | by Eric Beinhocker, Ian Davis, and Lenny Mendonca AFTER A FULL YEAR in heads-down crisis mode, to the evolving role of business in society. Here we discuss how the crisis may affect their trajectories, and we address the implications for strategy. Some trends, we argue, remain firmly on track, but uncertainties are cropping up around others. We also see signs of new forces emerging, which we will be exploring in more detail in the months ahead. The overall picture is of an altered business landscape. It does seem there will be no going back to the precrisis world. hbr.org Are these the right trends to watch? Share your thoughts with the authors at landscape.hbr.org. business executives are looking again to the future. As they reengage in strategic thinking, many are struck by a sense that the world has changed: The turmoil was not merely another turn of the business cycle but a restructuring of the economic order. Is that impression accurate? To answer this question, it is necessary to examine the underlying forces that shape the business environment and to look for discontinuities. McKinsey & Company tracks the most important of these forces, from the growth of emerging markets Lorenzo Petrantoni Eric Beinhocker is a senior fellow at the McKinsey Global Institute, McKinsey & Company’s economics research arm, where he leads research on economic, management, and public policy issues;...
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...have profound impacts for the UK economy, a leading City broker has said. The report by the global head of research at Tullett Prebon, Tim Morgan, is part of a series in which the brokerage analyses bigger issues for the UK. It details recommendations to resolve what it sees as a political and economic malaise: new role models, policies to encourage savings, the channelling of private investment into creating rather than inflating assets, and greater public investment. It warns: "We conclude that the rioting reflects a deeply flawed economic and social ethos… recklessly borrowed consumption, the breakdown both of top-end accountability and of trust in institutions, and severe failings by governments over more than two decades." More on this topichttps://www.theguardian.com/info/2015/dec/08/daily-email-uk The note pinpoints the philosophy behind the riots as consumerism. A typical internet user sees a hundred adverts an hour, the report says, and the underlying message many receive is: "Here's the ideal. You can't have it." Accompanying this is an inflation of government and private debt, a key theme of Morgan's other work. "The economy has been subjected to repeated 'boom and bust' cycles, above all in property. The overall pattern has been that an over-consuming west has borrowed and spent the surpluses of the increasingly productive and under-consuming East. "The dominant ethos of 'I buy, therefore I am' needs to be challenged by a shift of emphasis...
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...Smaller Famillies Having a smaller family is a springboard for giving future generations the chance of greater prosperity. A small family gets the advantages of a quieter home, cleaner home and possibly more money to spend on holidays. It's also not a struggle to bring your family of one or 0two children to the shops or a restaurant or even holidays. However a small family gets the disadvantage of a lonely child. Big families are more fun and usually a bit more daring and adventurous. Children from small families are often more spoilt than children from a bigger family, especially if you have one child. They might find it harder to make friends, share and socialize. A bigger family gets the advantage of children that are never lonely and have had to share and make friends easily. Big families often have more fun and an excuse to get out more. Children from a big family appreciate their siblings when they are older more then they would when they are younger. However a big family gets the disadvantage of less attention. This might make them frustrated or upset. Siblings don't always get along as well, It can be a pain trying to bring your family down to the shop, cinema and especially a fancy restaurant. There are some very clear benefits to having a small family; * Each child receives more parental attention and educational advantages, which generally raise her self-esteem. * Children in small families, especially first and only children, tend to have higher school and personal...
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...Valued Possessions vs. Insignificant Desires Anna Quindlen, a novelist, social critic, and journalist wrote an intriguing essay “Stuff is Not Salvation” about the addiction of Americans, who splurge on materialistic items that have no real meaning. The ability to obtain credit is one of the main reasons to blame for society’s consumption epidemic. However, Quindlen feels the economic decline due to credit card debt is insignificant compared to the underlying issues of American’s binging problems. Quindlen’s essay gives excellent points regarding the differences in America’s typical shopping habits. Additionally, she mentions how people acquire all this “stuff” but seem to never realize, “why did I get this?”(501). Quindlen makes her audience visualize a world where we acquire our needs versus our meaningless desires. Yet, she fails to mention people who could live a life of happiness through the possessions they acquire. In summary, Quindlen supports her point of view with examples of American spending habits in the past decades of depression compared to now. She mentions Black Friday and how people become enthralled by cheap bargains (Quindlen 500-501). In Quindlen’s essay, she refers to an accident in which a worker at Walmart was trampled to death by a mob of shoppers and despite the horrific incident people kept shopping (500). With the U.S. depression, Black Friday brings hopes of more money spent, therefore a rise in the markets. The dream of an uplifted economy became...
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