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Application of Revealed Preference Approach
It has been strongly argued, especially by Sir John Hicks, that one major advantage of revealed preference theory is that it is explicitly designed to allow econometricians to make use of it. Above all, econometric studies suggest that the conclusions of the theory are realistic. For executives, the consumer behaviour model forms a basis for advanced courses of marketing.
Consider the following macroeconomic model: Y = C + I + G + NX C = 100 + 0.8 YD I = 300 - 1000 i NX = 195 - 0.1 Y - 100 (E.R.) E.R. = 0.75 + 5 i M = ( 0.8
Liberalisation and Changing Sources of FDI: European countries had been major sources of FDI inflows to India until 1990. However, their relative importance declined in the
Analyze how taxes and subsidies impact market efficiency. Speculate if market efficiency would be increased or decreased without issues of taxes and subsidies. Justify your respons
Foreign Institutional Investment: Foreign investment flows in the balance of payments (BOP) comprise FDI flows and portfolio flows. The latter consists of resources mobilis
Assume that a Mazda 2 sells for 16,000 Australian dollars in Australia and 10,000 Canadian dollars in Canada If purchasing-power parity holds, what is the Canadian dollar/Australia
Price Mechanism Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of pricing. The price mechanism is one, which permits the p
I''m trying to figure out what the effect would be on LM or IS curve, and additionally the interest rate and income if (a) the transactional demand for money increases, (b) the liq
casual factors of the traditional business cycle and its effect on sectors of the economy?
Interest rate determination The real interest rate r will be equal to the equilibrium real interest rate In the classical model we define equil
State the Private sector in the circular flow Private sector total income is known as the national income. As private sector receives entire return from the factors of prod
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