What is dynamic inconsistency

Assignment Help Econometrics
Reference no: EM131136287

What is dynamic inconsistency? Explain intuitively how it might arise in the case of the short-run tradeoff between inflation and unemployment.

Reference no: EM131136287

Questions Cloud

The effects of the increased government spending : What policy actions can be taken to put GDP back on target each period?
Research about effect of video game to the children : Write a 700- to 1,050-word essay (not counting title or reference page material) about the topic you chose in Week 1. Incorporate at least two research sources.
Describe the proper decontamination stage : The facility has been hit by a chemical terrorist attack. Describe the proper decontamination stage and initial decontamination considerations that are specific to the facility that has been hit in your area
Why is real gdp targeting the riskier of the two strategies : Why is real GDP targeting the riskier of the two strategies?
What is dynamic inconsistency : Explain intuitively how it might arise in the case of the short-run tradeoff between inflation and unemployment.
Examine the purpose of defense in depth : Examine the purpose of defense in depth, and determine why this is widely considered a best practice for securing a company's assets and physical and logical barriers. Determine whether or not you believe the implementation of defense in depth is ..
Explain what types of cases reach the supreme court : Explain what types of cases reach the Supreme Court and how the decision is made on which cases to hear. Describe the process used by the Court to reach decisions, and define and differentiate between the different types of opinions, explaining t..
Purpose for completing a thorough literature review : Jane wants to search for information about the variety of attention disorders that are seen in childhood. Which of the following sets of keywords would best get Jane started on an effective and efficient search?
What is the source of this uncertainty : There is always some uncertainty with respect to predictions based on such models. Why? What is the source of this uncertainty?

Reviews

Write a Review

Econometrics Questions & Answers

  What prices would seller charge the different groups

(a) If the seller can price discriminate between the two markets, what prices would she charge the different groups (b) If the seller cannot discriminate, but must charge the same price p1 = p2 = p to each group, what will be her profit-maximizing ..

  Determine what is the optimal level of pollution

find the optimal level of pollution as recommended, we need to set total marginal cost = 0, then I have 2 + 2P -3 = 0 => 2P -1 = 0 => P = 0.5 You have already evaluated MCP = 2 + 2P and MCC = -3 B) At this level of pollution, what is the marginal cos..

  How many computers will monopolist sell to maximize profits

To develop a domestic computer industry, the government prohibits imports of computers and gives a single local firm the right to produce and sell computers. The demand curve shows the local demand for computers.

  What are initial levels of real gdp and labor productivity

Initally, the population of Cape Despair is constant and real GDP per hour of labor is at the subsistence level of $15. Then a technological advance shifts the production function upward by 50 percent at each level of labor.What are the initial le..

  What is the equivalent uniform annual worth and irr

Automotive Rebuilders, Inc., is considering a new automated assembly line to automate assembly of rebuilt alternators. The new line can be installed for $525,000 today and will have a life of 9 years until technological obsolescence.

  What would be percentage-age reduction in monthly scrap cost

If an 80% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would be the percentage-age reduction in monthly scrap costs be after the charts have been used for 12 months

  Is a bivariate model adequate to explain vehicle prices

Interpret the slopes. Are the intercepts meaningful? Explain. Assess the fit of each model. Is a bivariate model adequate to explain vehicle prices?

  What was apples optimal output and pricing policy

In 1994, the marginal cost of producing the Power Mac was about $1500 per unit, and a rough estimate of the monthly demand curve was: P= 4500-.15Q. At the time, what was Apple's optimal output and pricing policy

  Determine the present worth of the annual disbursements

The maintenance costs associated with an investment are $0 for the first 8 years and $ 700 per year thereafter. The investment has an infinite life. With interest at 9 % per annum, determine the present worth of the annual disbursements.

  What is the hicksian demand function for good 1

If a consumer has expenditure function e(p; u) = au(p1b + p2c), where a; b; c are strictly positice constants, what is the Hicksian demand function for good 1.

  What must be nominal and effective interest rates per year

An engineer starts to make quarterly deposits of $1,500 (at the end of a quarter) into an investment account at age of 45. If he wants to have $250,000 when he retires at age of 65, what must be the nominal and effective interest rates per year

  Describe the econometric model used by econsult

Describe your approach to improving upon or extending their main analyses, explaining why this is economically and/or statistically important.

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!

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