Introductory econometrics assignment. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 an
INTRODUCTORY ECONOMETRICS ASSIGNMENT PART 1 a. By using 'Genr' function from eview, to generate two new relative price variables: RPRICE 2 = APR1/APR2 and RPRICE3 = APR1 / APR3. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 and no.3 canned tuna are the substitute goods of no.1 canned tuna. Dependent Variable: LOG(SAL1) Method: Least Squares Date: 10/20/11 Time: 23:05 Sample: 1 52 Included observations: 52 Variable Coefficient Std. Error t-Statistic Prob. C 0.27575 0.518528 9.81716 0.0000 RPRICE2 -1.858067 0.513899 -3.615630 0.0007 R-squared 0.207265 Mean dependent var 8.437187 Adjusted R-squared 0.191410 S.D. dependent var 0.813654 S.E. of regression 0.731651 Akaike info criterion 2.250676 Sum squared resid 26.76564 Schwarz criterion 2.325723 Log likelihood -56.51756 Hannan-Quinn criter. 2.279447 F-statistic 3.07278 Durbin-Watson stat .353070 Prob(F-statistic) 0.000696 b. The table above shows the result of estimate function: . is equalled to -1.858067, which means one unit change in RPRICE2 or the relative price change of no.1 and no.2 canned tuna will result in -1.858067 % change in SAL1 or unit sale of no.1 canned tuna. Also, the 95% confidence
Elasticity of demand
Transport Economics Assignment 1 a) Elasticity is the ratio of the incremental percentage change in one variable with respect to an incremental percentage change in another variable. Elasticity is usually expressed as a positive number when the sign is already clear from context. The factors that could affect elasticity of demand for public transport operations would be the rise in public transport costs. An essential service will have a relatively inelastic demand, for example London commuters travelling into the central business district to work. This means that if the fares increase on London underground it will not significantly affect the number of peak passenger's trips because there is no close alternative mode to the rail or tube travel apart from the car and the roads and car parks have inadequate facilities to cope with the additional flows this will leave the commuter spending a lot of time in traffic. For leisure trips that are not essential then demand will be relatively elastic, for example a family trip to the countryside may not take place if fares are high, while at lower fares or with a pricing policy the price per person would be reduced resulting in more unnecessary trips. In the case of a long distance business trip of more than 200 miles, then air travel is the only practical option if a return journey has to be made in one day. This leaves this
"arguaby the annual general report is a poor aid to economic decision making" Discuss.
ELEMI ATIGOLO-0325936 FINANCIAL ACCOUNTING Financial Accounting: First assignment, Kingston University "ARGUABY THE ANNUAL GENERAL REPORT IS A POOR AID TO ECONOMIC DECISION MAKING". DISCUSS. HOW USEFUL ARE ANNUAL GENERAL REPORTS FOR ECONOMIC DECISION MAKING. DO THEY POSE ANY WEIGHT WITH THE OVERALL DECISIONS OF A BUSINESS OR ORGANISATION? DISCUSS CONTENTS PAGES Abstract 3 Introduction 4 Discussion, Annual General Report as an aid to economic decisions 4 Conclusion 9 References 10 Bibiography 13 "ARGUABLY THE ANNUAL GENERAL REPORT IS A POOR AID TO ECONOMIC DECISION MAKING". DISCUSS. HOW USEFUL ARE ANNUAL GENERAL REPORTS FOR ECONOMIC DECISION MAKING. DO THEY POSE ANY WEIGHT WITH THE OVERALL DECISIONS OF A BUSINESS OR ORGANISATION? ABSTRACT The following essay focuses on the Annual General Reports, and their usefulness in helping to make economic decisions. Companies and businesses, use Annual General Reports to help communicate their financial affairs to interested parties. The statements in these reports often hold valuable information for many parties; but how useful are they as aids to economic decision making. Some have argued that they are essential, while others have maintained that they are of no real benefit. This essay discusses some of the issues surrounding the apparent usefulness of the Annual General Report to economic decision making.
The New Keynesians Theory of Value.
The New Keynesians Theory of Value By Nikoleta Petkanska One of the enduring questions of economics is "Where do profits come from?" One of the ways in which economic philosophers have tried to answer it is by first answering the question of value. At the center of most economic paradigms is a Theory of Value. The classical political economists found value to be determined in production; since most of the cost of production could be reduced to labor, this approach was refined into the Labor Theory of Value. Neoclassical economist looked for value in the market act of exchange and developed the Marginal Theory of Value. Both of these theories are currently under challenge by the post-Keynesians with their Sraffian Theory of Value, which, like the labor theory of value, is based on production rather than exchange. Any theory of value in economics is an extremely abstract formulation. "When people attempt to save more, the actual result may be only a lower level of output..." - Paul A. Samuelson "Higher saving leads to faster growth..." - N. Gregory Mankiw The two quotations above dramatically demonstrate the stark contrast between the "old" Keynesians and the "new". Samuelson and the old-style Keynesians start with the "general" theory of unemployment equilibrium and end with the classical model of full employment as a "special" case. As long as there are unemployed
McDonalds - dissertationt
CHAPTER 1: INTRODUCTION This chapter will give the reader a clear statement of the research question and the problem statement that will be addressed in this research. Moreover, the background information on definitions of key terms and the chosen organisation will be presented. Finally, the 'route map' will be illustrated in order to guide the reader to the rest of the report. .1 Consumer behaviour Referring to Solomon (2006, p.27) consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, idea or experiences. Consumer behaviour focuses on how individuals make decisions to spend their available resources on consumption related items. That includes what they buy, why they buy, when they buy, where they buy it, how often they buy it how often they use it, how they evaluate it after they purchase and the impact of such evaluations on future purchases, and how they dispose it. Schiffman and Kanuk (2004, p.8) 1.1.2 Consumer attitudes According to Ajzen (1998) the attitudes are the first determinant of behaviour intention. In consumer behaviour context attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect of a given object. There is a general agreement that attitudes are learned. This means that attitudes relevant to purchase behaviour are
Tiger or Dragon, who's next?
Who would be the next global super power - India or China? It is inevitable. The rate at which the economies of India and China are growing, it is time that one of them is crowned the undisputed global leader. INDIA - A resilient and vibrant democracy, a multicultural nation with a complex mix of race, religion, caste and language and a rich artistic heritage that can be excavated all the way back to Harappa. Five million cell phones sold in the last month. GDP touching 10 per cent, sensex flirting with the 20,000 point mark, Indian computer scientists forming the bulk of Silicon Valley, IIT trained engineers working all over the world and also finding time to appear in Dilbert comics. Well, it is spring time in India. On the other had, we have China. The story of superlatives here is not just restricted to the population figures. The largest and most modern stock exchange - Shanghai Stock Exchange; tallest TV tower (Shanghai) and the longest Olympic torch relay ever all the way to the Mt Everest. Well, China has been delivering and the whole world is taking notice. Rapid economic growth, global trading ties, and expanding diplomatic cooperation have pushed China to the first rank of nations. The Chinese economy has been growing at 9.67 per cent since 1978. In 2006, it reached a staggering 10.7 per cent. China's research and development budget has been growing at 20 per
Deşi recent s-au nregistrat progrese incontestabile, Romnia rămne ncă ţara cu cel mai nalt nivel al inflaţiei dintre ţările n tranziţie.
CAUZELE INFLATIEI ÎN ROMÂNIA SI IMPLICATIILE ACESTEIA Desi recent s-au înregistrat progrese incontestabile, România ramâne înca tara cu cel mai înalt nivel al inflatiei dintre tarile în tranzitie. Combaterea acestui dezechilibru macroeconomic major pe parcursul ultimilor 16 ani s-a dovedit a fi un tratament costisitor si dureros pentru toate categoriile economico-sociale, care au platit pretul erodarii continue a puterii de cumparare a leului si au trebuit sa faca fata scaderii nivelului de trai si incertitudinii. Una din cauzele principale ale inflatiei din prima parte a anilor '90 a fost aceea ca economia româneasca acumulase o serie de dezechilibre majore în momentul prabusirii regimului totalitar, iar PIB/locuitor (p.p.c.) era unul dintre cele mai scazute din Europa. Saracia si lipsa de competitivitate erau însa "cosmetizate" prin acumularea de însemne monetare fara acoperire în bunuri si servicii, iar inflatia era înabusita printr-un control rigid al preturilor, moneda nationala lasând aparenta unei stabilitati si a unei valori departe de realitate.1 În aceste conditii, liberalizarea preturilor, chiar treptata si cu numeroase ezitari si întârzieri, a fost o decizie fireasca. Incidenta inflatiei corective era inevitabila. Reforma economica întârziata însa a determinat o continua scadere a puterii de cumparare a
Crime is a social concern and one of the biggest political issues in these days. As Fadaei-Tehrani (1990) said, an economic approach to understanding criminal behavior and the design of effective policies would be a helpful tool for dealing with the probl
APPLIED ECONOMICS FINAL PROJECT A RELATIONSHIP BETWEEN ECONOMIC CONDITIONS & CRIME RATE SUBMITTED TO: SIR AHSAN ABBAS SUBMITTED BY: JUNAID JAVAID 06108082 DATE OF SUBMISSION: 7-FEBUARY-20011 Acknowledgement All praises and thanks to Almighty Allah. The Lord and Creator of this universe by whose power and glory all good things are accomplished. He is also the most merciful, who best owed on me the potential, ability and an opportunity to work on this project. We are grateful to our respected teacher Sir Ahsan Abbas who has guided us in each and every step of this project. Indeed, without his kind guidance we may not be able to even start this project. May ALLAH give him the reward, which he deserves. We are also grateful to all those members who are related to this section. Abstract Crime is a social concern and one of the biggest political issues in these days. As Fadaei-Tehrani (1990) said, an economic approach to understanding criminal behavior and the design of effective policies would be a helpful tool for dealing with the problem of criminal activity (p.1). From qualitative analysis, we conclude that the unemployment rate and media reporting are important factors for people to feel the economy is becoming worse. Economic conditions are one of the contributing factors for rising crime rates. Also, we conclude that people believe that an economic downturn
Economics of Development
Economics of Development Economics of Development A) Pick a country or industry in developing world and write in detail about economic history, conditions and problems My essay will be written on the economy of Zimbabwe and how the current economic crisis compares to the one which was one of Africa's strongest. The current state of its economy is best described as being in turmoil mostly due to the dictatorship of its President, Robert Mugabe. I will be discussing how Zimbabwe experienced a successful economy since their independence in 1980 and how the economy has changed to its present state. Zimbabwe is located in Southern Africa, between South Africa and Zambia with a population of roughly 13 million. The capital is Harare where most of the country's trading and main businesses operate. Zimbabwe was initially the British colony of Southern Rhodesia from the late 1800s until 1965, when its white settlers declared it the state of Rhodesia. Before the arrival of the settlers in the late 19th century, the country's main practice was mixed farming. Its other agriculture industries were gold mining and trade. The arrival of the British led to the growth of the commercial farming sector. By the 1930s, the main product of agriculture was tobacco. Gold mining was successful, but after 1945 the development of a large mining and industrial sector was increasing, due to Southern
Discussion of Substitution and Income Effects in Consumption as Price Varies by Using the Compensating Variation Methods.
Discussion of Substitution and Income Effects in Consumption as Price Varies by Using the Compensating Variation Methods Tutor: Mr. Pedro E. Moncars Microeconomics Tian Ni Zhang A change in price results in a change in quantity demanded, shifting the bundles of consumption from one equilibrium to another equilibrium. This effect is called total effect. Total effect includes two sections. One is called substitution effect; the other is called income effect. The definitions of the two effects will be discussed in the follows associated with their roles in consumption varies as price changes by using the compensating variation. Substitution effect defines as the change in bundles that people can consume when the relative price changes caused by a change in price as holding real income constant. It uses the same indifference curve to show that when the price of a good increases, to what extent people would like to substitute other goods for it and vice versa. Income effect defines as the change in quantity demanded when the real income changes as a result of a change in price. It keeps relative price constant to show what happens to people's consumption ability when the price of a good varies. The changes in consumption are different for varieties of good. The situation of normal good, whose quantity