Economics - House Prices.
BY SHERYAR MAJID Contents Item Name Page Introduction What Affects House Prices (Unemployment) 2 What Affects House Prices (Location, Income, Interest Rates) 3 What Affects House Prices (Interest Rates) 4 What Affects House Prices (Supply Factors, Crime Rate) 5 Major Factor Affecting House Prices, Unemployment 6, 7, 8 Statistics And Graphs About The Major Factor Affecting House Prices, Unemployment 9, 10, 11,12, 13, 14, 15, 16 Comparing Two Houses In Two Areas, And Looking At What Affects The Houses Price 7, 18, 19, 20, 21, 22 Conclusion 23 Bibliography 24 Appendix 25 onwards Introduction There are many things that affect house prices. Some things have a short-term affect such as interest rates and unemployment rate, but others have long term affects such as Location of the house and access to basic amenities. I will be exploring all the things that affect house prices as well as comparing two areas in Redbridge and comparing the price of houses in these areas along with the cost of living in these areas. I will also look and compare all the following things which I think affect house prices, these things can affect house prices in may ways and sometimes have knock on effects, for example interest rates go both ways, they can increase and decrease the price of houses as I will explain. Then I am going to concentrate on what affect unemployment
With the aid of diagrams, illustrate the causes if inflation and deflation, and by comparing their economic effects consider how both can effect the corporate sector
With the aid of diagrams, illustrate the causes if inflation and deflation, and by comparing their economic effects consider how both can effect the corporate sector This essay will aim to cover the causes of inflation and deflation and see how their economic effects influence the corporate sector. By first defining any key terms, then looking at the causes of inflation and deflation, looking at their different effects on the economy and in turn analysing how those effects shape the corporate sector. Before this can be done the terms 'inflation', 'deflation' and 'corporate sector' must first be defined. 'Inflation is a rise in the average price of goods over time'. (Begg, D., Fischer, S. and Dorndusch, R., 2000, p462) and 'The most usual measure is that of retail prices' (Sloman, J. and Sutcliffe, M., 2001, P533) (this information being gathered from the retail price index [RPI]) and 'A rise in inflation means a faster increase in prices...fall in inflation means a lower rise in prices' (Sloman, J. and Sutcliffe, M., 2001, p533). To illustrate the importance of inflation 'The COS (Central Statistical Office) says it gets more queries from the public about the RPI than any other statistic, a refection of the influence inflation has on every ones life.' (Vaitilingam, R., 1994, p132). Now deflation must be defined. 'Deflation is the mirror image on inflation' (McAleese, D.,
To what extent does the government budget/statement reflect current government priorities?
To what extent does the government budget/statement reflect current government priorities? In this study I will be investigating the extent to which the governments budget statement reflects their spending on current priorities, such as the NHS, Defence and Education. To do this I will be researching changes in spending using the current budget statement (2007) and also other secondary data resources to find out the total percentage of the governments budget is spent on specific areas, such as housing, defence, public transport etc. I aim to find out how much spending in these areas has increased in recent years, or indeed whether spending has decreased over recent years. Priority One: The Environment. The environment, or more precisely protecting it is a key concern for today's government, and an issue that they appear to be trying to combat. In the 2007 budget the government announced an 800million pound window for the environment transformation fund, this is to finance overseas development programmes that deliver both poverty reduction and environment benefits in developing counties. The government is also increasing the funds available through the Low Carbon Buildings Programme, to a total of over 18million pounds. This is to help meet the demands for households for microgeneration technologies. This extra funding combined with other funding towards housing and the
In light of the criticism's leveled at Benjamin and Kochin's 1979 article in the 1982 Journal of Political Economy, assess how successfully Benjamin and Kochin defended their statistical approach in their 1982 rejoinder.
In light of the criticism's leveled at Benjamin and Kochin's 1979 article in the 1982 Journal of Political Economy, assess how successfully Benjamin and Kochin defended their statistical approach in their 1982 rejoinder. The extent of criticism in the 1982 Journal of Political Economy aimed at Benjamin and Kochin's 1979 article undermines the accuracy of their statistical approach and therefore undermines the theory that unemployment was high in the interwar period because of the operations and existence of the insurance system. Benjamin and Kochin's attempts to defend their statistical approach are successful to a limited extent. Nonetheless, Benjamin and Kochin are extremely confident that they successfully defended their statistical approach against Cross as they state that, 'indeed, we have found nothing in Cross' comment to suggest that our "bold claim" (as he puts it) is anything other than correct.'1 Benjamin and Kochin's 'bold claim' was that high unemployment in interwar Britain 'was due to the operation of an unemployment insurance scheme that paid benefits which were high relative to wages and available subject to few restrictions.'2 Cross however, states that their 'bold claim' is flawed.3 Cross believes Benjamin and Kochin's argument 'is flawed by their almost complete failure to take account of the "genuinely seeking work" and "means test clauses which
Compare and contrast the various methods of dealing with the problem of monopoly.
"Compare and contrast the various methods of dealing with the problem of monopoly." Legally, a working Monopoly is defined as a firm which controls 25% of their market. This immediately raises problems, within the measurement of market share, and the definition of their market. Microsoft is a considerably well known monopoly (as a whole), but is this the case for all areas of business? This would be the initial problem: determining their market. Microsoft spans a vast spectrum of business, however, virtually breaking into distinct main markets - Desktop and Server. It is clear that Microsoft dominate the Desktop market, far outselling any near threats, but is this the case for the server market? I have broken down the server market into two main areas - the Operating System itself, and the web based server. Operating System Percentage Share Linux 31.3% Microsoft Family 24.3% Server Software Percentage Share Apache Foundation 56% IIS (Microsoft) 24% According to the definition, Microsoft is not technically a monopoly in both 'markets'. However, as Microsoft can be accepted to live within a single market (computing), they would have a clear monopoly. Consequentially, problems of dominance begin to occur. It has been discovered that they have been abusing their market power by forcing small firms into signing contracts that require them to purchase their software,
What ended hyperinflation in Germany, Austria and Hungary in the 1920s? Do the facts support the Rational Expectation Hypothesis?
EC313 International Economic Systems Topic: What ended hyperinflation in Germany, Austria and Hungary in the 1920s? Do the facts support the Rational Expectation Hypothesis? After World War I, the pressure of wartime finance forced belligerents such as Germany, Austria and Hungary off the gold standard, which had served in the prewar period to stabilize price movements. These countries resorted to large-scale borrowing and the printing of paper money to finance the war reparation and this caused severe hyperinflations in 1920s, resulted dislocation in both national and international economies. To end the hyperinflation, these countries made some deliberate changes in their monetary and fiscal policies. In this paper, I will analyze policy changes in Germany, Austria and Hungary separately. Furthermore, expectations play a central role in hyperinflations. Under rational expectations, economic agents respond to credible changes in government policy by altering their strategies. So a correctly perceived change in policy regime can end inflation without large real effects on the economy such as output and unemployment. In this paper, I also interpret whether the facts of hyperinflations in these countries consist with the Rational Expectation Hypothesis respectively. I. Germany The most important force for Germany's hyperinflation is the fact that Germany owed staggering
Outline any two main/priority issue that concern the Australian economy & discuss the effectiveness of the governments macro and/or microeconomic policies toward the issue in the Australian economy.
Outline any TWO main/priority issue that concern the Australian economy & discuss the effectiveness of the government's macro and/or microeconomic policies toward the issue in the Australian economy. There are a range of economic issues which every country faces wherein the government tries to combat. In Australia, two ongoing issues include Australia's external stability and inflation. External stability involves monitoring the size of the current account deficit (CAD) and the sustainability if the level of foreign debt and equity. It also involves ensuring that the economy is able to service its foreign liabilities and stabilise any dramatic movements of the exchange rate as a strong dollar value is seen as an indication of a strong economy. If overseas investors decide that the economy's external position is not sustainable, there can be serious repercussions including a depreciation in currency, a withdrawal of investment funds, high interest rates and slower economic growth. Inflation is the sustained increase in the general level of prices in a economy due to a variety of factors, that can have negative impacts in many economic outcomes including economic growth, international competiveness, exports and income inequality. Maintaining low inflation is a major objective of economic policy because of the benefits that lower inflation provides to the economy in the long
What conditions are necessary for a devaluation to improve the BOP? Can a small open economy successfully devalue?
Nicola James Mary Gregory Week 2: Devaluation What conditions are necessary for a devaluation to improve the BOP? Can a small open economy successfully devalue? Devaluation happens when official action is taken to raise the domestic currency price of foreign currency under a fixed exchange rate environment. Under fixed exchange rates, central banks buy and sell foreign currency to peg the exchange rate. They do this by running down or adding to their reserves of foreign currency. This essay will explore the running of a devaluation and conclude that the Marshall-Lerner condition needs to be satisfied in order for a devaluation to improve the BOP. From the end of WW1 until 1973 many of the major countries in the world had fixed exchange rates. For example in the 1960s, the French central bank, the Banque de France was set at 4.90 FF (French Francs) per U.S. dollar and the German central bank, the Bundesbank was set at 4 DM (Deutche Marks) per U.S dollar. These currencies among most other major currencies were made flexible in 1973. However there are still some smaller countries with fixed exchange rates. The Balance of Payments (BOP) is the record of the transactions of the residents of a country with the rest of the world. The BOP is split into two accounts. The current account describes the transactions in goods, services and transfers. The capital
Various Macro-Economic Questions and answers
27th Jan (ARG) Explain the difference between micro and macroeconomics? Microeconomics is looking at individual segments of the economy, looking at the effects of certain company’s actions such as social costs and benefits, macroeconomics is looking at the economy as a whole. Macroeconomics covers the objectives of the government such as growth, inflation, balance of payments and employment. These are all causes of the actions of the economy as a whole, such as growth is the increase in production over the whole economy, inflation is a general rise in the price level across the whole UK market and employment is an effect and cause of aggregate demand. What is ‘economic activity’? The actions of the economy as a whole, it is the input, production and output of all of the individual firms in the economy. It covers all sectors, primary, secondary, tertiary, private and public and can be defined as: “the process of producing a good/service and for it to then be exchanged in a market place” Economic activity comprises all activities involved in producing goods and services for sale in the marketplace. Explain in detail the main economic objectives of a government. Why are they desirable? To maintain full employment or aim to achieve as higher employment as possible. High employment/ low unemployment is key to a healthy economy because high employment means
Unemployment: Where is it Going?
Unemployment: Where is it Going? By Mohamed Abdel Raouf SID: 900-00-1018 Course: ECLT 113 Instructor: Dr. Magda Amin Section: 02 Paper #3 - Draft #4 Unemployment: Where is it Going? Unemployment, due to overpopulation and increasing privatization, is causing economic and social instability in Egypt. I. Unemployment is caused by many problems in Egypt. a. Privatization may be considered a major cause of unemployment. b. The rapid increase in Egypt's population is another cause. II. Overpopulation increases the percentage of the unemployed workforce: Egypt has high birth rates which is equal to 2%. III. Another danger is privatization a. Private sector was considered a risk in our grandparents' age. b. Economic changes have led to private sector jobs becoming more promising and more appealing. c. The privatization program aims to strengthen the Egyptian economy, although it is a main cause of the rise of the unemployment rates. d. The private sector jobs don't supply sufficient jobs to the Egyptian labour market, as the government was supplying more jobs. IV. The government is trying to find a solution. a. Birth control program, which appeared to be a failure. b. Making new laws to protect the workers in the private sector, as not to be dismissed. c. The privatization program must be slowed down in order to decrease the rapid increase rate of the
