Macroeconomics

Expanding- The Expanding Pyramid represents developing nations. It has high birth rates, slightly lower death rates in comparison to Early Expanding Pyramids. Early Expanding-Early Expanding Pyramids have high birth rates, but also have high death rates. The entire population represented doesn’t seem like they have long life expectancies. Stable- Stable Pyramids represent developed countries. This pyramid has moderate or stable population increases, but has declining birth and death rates. The…

Rachel Cohen's essay, "Education Isn't the Key to a Good Income," published at The Atlantic on 26 Sept. 2017, was written to show the many different studies and opinions on the idea that school quality might not be the most significant force in economic growth. Cohen uses several studies done by well-known economists Raj Chetty and Jesse Rothstein. Though several other people and their opinions were mentioned, the essay was focused around the two main studies. The 25.7 million readers of The…

The Berger, Easterly, Nunn, and Satyanath article “Commercial Imperialism?” once again takes a different route in determining what compels a state to participate in international trade. Focusing on US exports they find that political influence from CIA interventions were used to increase demand for US products in areas where there was a comparative disadvantage. In their study the independent variable is the level US government influence on other states and the dependent variable is the annual…

Till 1991, the Indian business was in a rather sorry state of affairs. The private sector was not allowed to prosper and was kept under strict regulatory control. The public sector was expected to play a major part in the economic growth of the country but it was found to be lacking as various problems plagued the system. Red tapism, corruption, bureaucracy, etc all threatened to destroy the Indian economy’s growth. This led to an economic crisis in India in 1991 as foreign exchange reserves…

Canadian economy enters recession Canada has entered recession due to a fall in the price of US crude oil, which has contributed to a lower demand for oil produced in Canada, therefore leading to a decrease in exports and thus a fall in real GDP. The Canadian economy has a negative growth and a contraction of 0.8% and hence indicating a recession. A recession occurs due to a period of a decline of GDP and consequently leading to an increase in unemployment. This occurs in the contraction…

Substitution effects: it is a situation whereby if there is an increase in price or decrease in income, consumers will substitute high-priced items with less expensive alternatives. Substitution effects shows the change in the consumption of goods due to the change in the prices of the products. Consumers tends to replace/substitute luxury goods with cheaper items when income decreases or price rises. However, the consumers also tend to substitute cheaper items with luxury goods when their…

Published in the The Journal of Law & Economics in 1985, George J. Stigler and Robert A. Sherwin’s “The Extent of the Market” focuses on using the movements of prices in separate markets to determine if it is only one market. Stigler and Sherwin use examples from the silver, flour, oil, and labor markets to present their method for determining similarity of price movements. To determine if markets are integrated, Stigler and Sherwin propose a test based on the movement of prices; this parallel…

Introduction In 1970, industrialized countries entered a period of structural crisis caused by disproportions in the development of certain spheres and sectors of the economy. The crisis caused the loose of capital from industries with rising costs, forcing them to seek ways to modernize them. Especially acute situation was created in energy-intensive and material-intensive industries, for example, metallurgy. Since the middle of 1970', there were several structural crises and the…

To what will foreign shareholders lead our economy? Back in 1989 Harvard Business School professor Michael Jensen in his article "The Eclipse of the Public Corporation" has announced that public companies with a large number of shareholders, which were created in the West throughout the twentieth century, nowadays impede the further development of the economy in many sectors. The reason is simple: the shareholders' interests do not coincide with those of managers. For the first ones it is…

In his work The Wealth and Poverty of Nations: Why Some Are So Rich And Some So Poor, Landes offers an extensive overview of the history of global economy as he investigates the factors that create disparities in the prosperity of nations. In doing so, Landes employs both theoretical and empirical cases of the economic development that various states have gone through over the past two thousand years. Throughout his analysis, Landes uncovers an interaction between technological progress and…