User Account

All Pages

Endogenous variable chosen by the government

Assignment Help Macroeconomics
Reference no: EM131298883

In One-period general equilibrium model, what if the level of the public good is endogenous variable that is chosen by the government.

We know consumer's preference and budget, firm's production function and the government is imposing a labour income tax on household.

The normal case is when the public good G is and exogenous variable, but my question is what if it is an endogenous variable?

1. Is it realistic to assume the public good is an endogenous variable chosen by the government?

2. What kind of information the government need to implement the optimal policy?

SOS, please be quick

Reference no: EM131298883

Questions Cloud

Estimate the value using the linear model : Estimate this value, mod(2π), using the linear model. How do they compare? Repeat for λ = 0, λ = 0.05, and λ = 0.2. What do you conclude?
Perfect competitors or price takers : Since under price leadership by the dominant firm, the firms in the industry following the leader behave as perfect competitors or price takers by always producing where the price set by the leader equals the sum of their marginal cost curves, the..
Define and explain the two types of unemployment : What type of unemployment is affected when online job search engines reduce the time necessary for job searches? Does this outcome affect the natural rate of unemployment? If so, how?
Important risk in investing in the financial futures market : Identify the most important risk in investing in the financial futures market. Recommend one strategy to manage the risk
Endogenous variable chosen by the government : The normal case is when the public good G is and exogenous variable, but my question is what if it is an endogenous variable? 1. Is it realistic to assume the public good is an endogenous variable chosen by the government?
How does this sale affect gdp : Real GDP for 2010 is less than nominal GDP for that year. But real GDP for 2000 is more than nominal GDP for that year. Why?
Renegotiate a new employment contract : Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million).
Make an enhancement to the ilabs you have been working : For this lab you are going to make an enhancement to the iLabs you have been working on this session. You will be adding two classes to your UML and developing those classes in C#.
Determine that a suitable sampling frequency is being used : Repeat the simulation using a sampling frequency of 10,000 Hz. What does this last simulation tell you? How can you determine that a suitable sampling frequency is being used?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd