The Cambiant model provides a dynamic model of economic performance and income distribution based on modeling molecular interactions in an atmosphere flowing over a surface, similar to airflow over an airfoil. It introduces an actual economic structure into gas models to integrate agent behavior and avoid constraints of efficient markets and rational agents. The model shows income distribution places the economy within a defined performance envelope. It compares the model's output to US income distribution data from 1979-2007, showing a close match between the model and actual data.
1. The document discusses the IS-LM model and how it can be used to analyze the effects of fiscal and monetary policy. It presents the IS and LM curves and how they represent equilibrium in the goods and money markets.
2. Fiscal policy like increases in government spending can shift the IS curve right, raising output and interest rates. Monetary policy like increases in the money supply can shift the LM curve down, lowering interest rates and raising output.
3. Shocks to aggregate demand are analyzed using the IS-LM model, and the model can also show the transition from short-run to long-run equilibrium when prices adjust over time.
This document presents an overview of the IS-LM model in an open economy context. It extends the basic IS-LM model to include an additional variable - the real exchange rate - and introduces a balance of payments equilibrium condition.
Under the model, there are three equilibrium conditions: the goods market (IS curve), money market (LM curve), and foreign exchange market (BOP curve). The effectiveness of monetary policy depends on the exchange rate regime - it has a greater impact under flexible rates through exchange rate movements, while under fixed rates the money supply must adjust to maintain the fixed rate.
This document outlines the key components of an online commercial presence including search engine optimization, paid search, retargeting, email opt-ins, e-commerce stores, social media, blogs, media, and an inbound marketing process to guide visitors through stages of discovery, interest, desire, and action. It also addresses website architecture considerations like global vs local sites, content management systems, and different access levels and page types for visitors, readers, members, and customers.
The document describes an educational institution management system called eduLink. It allows students, teachers, parents and administrators to access the same platform for tasks like student profiles, attendance, online exams, library management, placements and more. Some key features include centralized access to institutional data, timetable configuration, student and teacher performance analysis, and automated alerts. The system aims to simplify daily operations through an integrated suite of modules.
Bagaimana sebuah mesin pencari atau sebauh search engine bekerja adalah langkah awal yang sangat penting untuk SEO agar web Anda berada di halaman pertama Google
Epigenetic dysregulation talk at NGSAsia 2016 Altuna Akalin
The document discusses epigenetic dysregulation in acute myeloid leukemia (AML). It describes how mutations in genes involved in epigenetic regulation, like IDH1/2, TET2, and WT1, can disrupt the production of 5-hydroxymethylcytosine (5hmC) and lead to epigenetic dysregulation in AML. The document outlines strategies for analyzing bisulfite sequencing data to identify differentially methylated regions and changes in methylation, and how to integrate these analyses with other genomic data.
This document provides several corporate examples of Lean implementation:
- Kenworth Truck reduced lead time for custom trucks from 6-8 weeks to 3 weeks through techniques like upside-down assembly and ceiling-mounted tools.
- A Lean firm doubled its product range while more than doubling productivity for 33.3% annual growth compared to a 3% industry average.
- Freudenberg-NOK achieved rapid gains through thousands of small improvement events, increasing savings from $2 million initially to $31 million.
The document discusses the English alphabet and sounds of letters and words. It notes that the alphabet contains 26 letters including 5 vowels and 21 consonants. The letter Y can be either a vowel or consonant. Short vowels have a brief sound while long vowels are sustained. Some words are spelled exactly as they sound but others do not sound as their letters are spelled, such as "was" sounding like "woz".
1. The document discusses the IS-LM model and how it can be used to analyze the effects of fiscal and monetary policy. It presents the IS and LM curves and how they represent equilibrium in the goods and money markets.
2. Fiscal policy like increases in government spending can shift the IS curve right, raising output and interest rates. Monetary policy like increases in the money supply can shift the LM curve down, lowering interest rates and raising output.
3. Shocks to aggregate demand are analyzed using the IS-LM model, and the model can also show the transition from short-run to long-run equilibrium when prices adjust over time.
This document presents an overview of the IS-LM model in an open economy context. It extends the basic IS-LM model to include an additional variable - the real exchange rate - and introduces a balance of payments equilibrium condition.
Under the model, there are three equilibrium conditions: the goods market (IS curve), money market (LM curve), and foreign exchange market (BOP curve). The effectiveness of monetary policy depends on the exchange rate regime - it has a greater impact under flexible rates through exchange rate movements, while under fixed rates the money supply must adjust to maintain the fixed rate.
This document outlines the key components of an online commercial presence including search engine optimization, paid search, retargeting, email opt-ins, e-commerce stores, social media, blogs, media, and an inbound marketing process to guide visitors through stages of discovery, interest, desire, and action. It also addresses website architecture considerations like global vs local sites, content management systems, and different access levels and page types for visitors, readers, members, and customers.
The document describes an educational institution management system called eduLink. It allows students, teachers, parents and administrators to access the same platform for tasks like student profiles, attendance, online exams, library management, placements and more. Some key features include centralized access to institutional data, timetable configuration, student and teacher performance analysis, and automated alerts. The system aims to simplify daily operations through an integrated suite of modules.
Bagaimana sebuah mesin pencari atau sebauh search engine bekerja adalah langkah awal yang sangat penting untuk SEO agar web Anda berada di halaman pertama Google
Epigenetic dysregulation talk at NGSAsia 2016 Altuna Akalin
The document discusses epigenetic dysregulation in acute myeloid leukemia (AML). It describes how mutations in genes involved in epigenetic regulation, like IDH1/2, TET2, and WT1, can disrupt the production of 5-hydroxymethylcytosine (5hmC) and lead to epigenetic dysregulation in AML. The document outlines strategies for analyzing bisulfite sequencing data to identify differentially methylated regions and changes in methylation, and how to integrate these analyses with other genomic data.
This document provides several corporate examples of Lean implementation:
- Kenworth Truck reduced lead time for custom trucks from 6-8 weeks to 3 weeks through techniques like upside-down assembly and ceiling-mounted tools.
- A Lean firm doubled its product range while more than doubling productivity for 33.3% annual growth compared to a 3% industry average.
- Freudenberg-NOK achieved rapid gains through thousands of small improvement events, increasing savings from $2 million initially to $31 million.
The document discusses the English alphabet and sounds of letters and words. It notes that the alphabet contains 26 letters including 5 vowels and 21 consonants. The letter Y can be either a vowel or consonant. Short vowels have a brief sound while long vowels are sustained. Some words are spelled exactly as they sound but others do not sound as their letters are spelled, such as "was" sounding like "woz".
This document provides an overview of computable general equilibrium (CGE) modeling and how it can contribute to decision making. Some key points:
- CGE modeling captures the interconnectedness of an economy and how changes in one sector can impact others, allowing managers to understand broader economic effects of decisions.
- CGE models are based on general equilibrium theory, which posits that markets are interconnected and changes in one will impact others through supply and demand linkages.
- CGE modeling involves translating the theoretical representation of an economy into a computable model with consistent microeconomic foundations that can be used to simulate impacts of changes.
- While CGE modeling requires detailed data and parameters, the underlying concepts and steps involved
The cost of production/Chapter 7(pindyck)RAHUL SINHA
content
•MEASURING COST: WHICH COSTS MATTER?
•Fixed and variable cost
•Fixed versus sunk cost
•Amortizing Sunk Costs
•Marginal cost
•Average cost
•Determinants of short run cost
•Diminishing marginal returns
•The shapes of cost curves
•The Average–Marginal Relationship
•Costs in a long run
•Cost minimizing input choices
•Isocost lines
•Marginal rate of technical substitution
•Expansion path
•The Inflexibility of Short-Run Production
•Long run average cost
•Economies and Diseconomies of Scale
•The Relationship Between Short-Run and Long-Run Cost
•Break even analysis
This document provides an overview of cost-volume-profit (CVP) analysis. It defines CVP analysis and notes that it is used to study how profits change with volume, costs, and prices. The key assumptions of CVP analysis are described, including constant unit costs and prices. The components of a CVP analysis, including fixed costs, variable costs, sales price, and contribution margin, are defined. The relationships between these components in a CVP graph and chart are explained. The document then discusses how profits are affected by changes in volume, price, variable costs, fixed costs, and combinations of factors. It also covers the utility and limitations of CVP analysis and break-even charts.
Monte Carl Simulation is a powerful and effective tool when used properly helps to navigate the expected Net Present Value NPV. This presentation helps to improve the pattern to ackowlege onthe Odessa Investment by Decision Dres.
The document summarizes key aspects of the Solow growth model. It explains that the Solow model replaced the fixed production function of the Harrod-Domar model with a neoclassical production function allowing for factor substitution. It presents the basic equations of the Solow model showing that changes in capital per worker are determined by savings, population growth, and depreciation. It illustrates the Solow diagram and how steady state equilibrium is reached. It analyzes how changes in the saving rate and population growth rate impact the model.
The Roads Not Taken: Graph Theory and Macroeconomic Regimes in Stock-Flow Con...pkconference
This document discusses representing stock-flow consistent macroeconomic models using graph theory. It summarizes:
1) Stock-flow consistent macroeconomic models track cash flows between economic sectors. These models can be represented as graphs with nodes as sectors and directed edges as cash flows.
2) Choosing a "spanning tree" divides cash flows into independent variables not in the tree and dependent variables in the tree. Dependent variables are determined by accounting relations given independent variables.
3) Different spanning trees produce different classifications of variables and institutional structures like demand-driven, supply-driven, or financialized economies. This provides insight into macroeconomic regimes and the effects of policy changes.
4) Future work includes
Directions Flexible Budget Performance Report Project You a.docxmariona83
Directions
Flexible Budget Performance Report Project
You and your partner will each work on this project on your own laptops, using each other for resources while completing the assignment. In the end, you will Turn in ONE project per team. If you or your partner feels you did not share equally in the work, email me for a possible grade adjustment. Otherwise, you will both receive the same grade. Upload your completed project to Canvas using “Flex Budget_Last Name ID#_Last name ID# “ as the file name.
Kelsey’s Frozen Confectionaries buys and distributes single-serve ice cream treats to convenience stores, ballparks, and amusement parks. In this project, you will create 1) a master budget performance report, and 2) a flexible budget performance report for Kelsey's Frozen Confectionaries. Your performance reports should be developed in such a way that any changes to the original assumptions will correctly ripple through the entire spreadsheet. After developing the performance reports, you will answer questions about the variances and determine whether the variances are consistent with management's explanation about operational changes that took place during the period.
Part 1) DIRECTIONS for Master Budget Performance Report:
1) Use the budget assumptions, along with Excel formulas, to populate the Master Budget column. Note: Your formulas must work such that if ANY of the budget assumptions change, the new assumptions ripple through the entire budget. Part of your grade will be based on whether you correctly formulate the cells. Do NOT TYPE A NUMBER IN ANY CELL!!!
2) Use a formula to calculate the “variance” in cell H7: (Actual – Budget). Copy and paste (or use the fill handle to drag) the formula to the rest of the cells in the column. Leave as positive or negative, rather than absolute values.
3) Use a formula to calculate the “Variance percentage”. NOTE: The percentage is the variance as a percent of the Master Budget. Copy and paste (or drag) the formula to the rest of the cells in the column
4) Format cells appropriately. Attention to detail makes a report look more professional. (For example, percentages shown as %, dollar signs using the accounting or currency format, underlines and double underlines where appropriate, zero decimal places for dollar amounts, etc.,).
5) Use the “If” statement function to show the variances as U or F. The “If” statement can be found under “Formulas, Logical”. Example: =IF(H7>=0,"F","U"). This formula means: If cell H7>0 or H7=0, then mark as “F”; If not greater than or equal to 0, mark as “U”. Be careful with revenues and expense variances since they should be opposite of one another. ALSO- The formula you use should mark any variance of “0” as an “F” since a zero variance means that budget expectations have been met. After using the function, check each line to make sure it is going in the direction you believe it should go.
6) Check your answers us.
Directions Flexible Budget Performance Report Project You a.docxcuddietheresa
This document provides directions for creating a master budget performance report and flexible budget performance report for Kelsey's Frozen Confectionaries. It includes instructions for populating the reports with formulas to calculate variances, percentages, and conditional formatting. It also provides questions to analyze the variances and determine if they are consistent with management's explanations for operational changes. The directions are extensive and provide examples to check calculations.
This document provides an overview of cost-volume-profit (CVP) analysis, including definitions, assumptions, components and graphs used. CVP analysis studies how costs, volume and prices impact profits. It assumes costs can be separated into fixed and variable portions. The key aspects covered are the linear relationships between total costs/revenue, calculating break-even point, and how profits are affected by changes in volume, price, variable costs and fixed costs. Utility and limitations of CVP analysis are also discussed.
FINANCAL MANAGEMENT PPT BY FINMANLeverage and capital structure by bosogon an...Mary Rose Habagat
This document discusses leverage and capital structure. It begins by defining leverage as the use of fixed costs to magnify returns, and discusses how leverage increases risk and return. The document then outlines 6 learning goals covering topics like breakeven analysis, the different types of leverage (operating, financial, total), and theories of capital structure. It provides examples and formulas to demonstrate concepts like calculating breakeven points and measuring the degrees of different types of leverage.
Chapter 5 The Solow Growth ModelHikaru SaijoUniversitWilheminaRossi174
The document summarizes Chapter 5 of the Solow Growth Model. It introduces the Solow model, which uses a Cobb-Douglas production function to model how capital accumulates over time. It shows graphically and mathematically how the model reaches a steady state where growth stops. While the model does not explain long-term growth, it can be used to understand differences in output across countries and experiment with changes to parameters. The strengths and weaknesses of the Solow model are also discussed.
The document discusses key concepts in aggregate demand and demand-side stabilization policies according to the Keynesian model. It defines aggregate demand and its components. It then explains the Keynesian model's goal of using fiscal policy tools like government spending, taxation, to increase or decrease total demand and stabilize GDP and unemployment. The multiplier effect is discussed as how a change in spending can impact GDP multiple times through subsequent rounds of consumption. The relationships between income, consumption, savings, and how these determine the multiplier are also summarized.
Production analysis by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
The document provides information on production functions and related concepts:
- A production function describes the technological relationship between inputs and outputs. It represents the maximum output attainable from various combinations of inputs.
- Inputs can be fixed or variable. The short run is when some inputs are fixed, while the long run allows variation in all inputs.
- Isoquants represent combinations of inputs that produce equal output. They have properties like being negatively sloped, non-intersecting, and convex to the origin.
- Laws of production include diminishing marginal returns and variable proportions. Returns to scale can be increasing, constant, or decreasing in the long run depending on output and input changes.
This document provides an overview of modern macroeconomic practices, including key theories such as the IS-LM model, Phillips Curve, and monetary and fiscal policy frameworks. It discusses concepts like the IS curve, monetary policy reaction functions, inflation targeting, fiscal rules, and transmission mechanisms. It also analyzes recent economic performance and developments in different countries/regions, monetary policies, debt levels, inflationary pressures, and global imbalances. Looking ahead, it notes risks from global imbalances but broad growth if issues are addressed, and need for reforms in China to balance risks of sudden adjustment.
Chapter 5 Macroeconomy Policy Practice sSabrina377028
This document provides an overview of modern macroeconomic practices, including key theories such as the IS-LM model, Phillips Curve, and monetary and fiscal policy frameworks. It discusses concepts like aggregate demand, inflation expectations, monetary policy reaction functions, and fiscal rules. Models presented include the IS-MR-PC framework and how shocks to the economy can be analyzed using the IS and Phillips curves. It also examines transmission mechanisms of monetary policy and challenges like data revisions and limits to policy effectiveness.
1) The document discusses cost-volume-profit (CVP) analysis, which studies how costs and profits are affected by changes in volume. It examines variable costs, fixed costs, and contribution margin.
2) Variable costs vary with activity and remain the same per unit. Fixed costs remain constant total but vary per unit. Mixed costs have both fixed and variable components.
3) The high-low method is used to determine the fixed and variable portions of mixed costs using data from two activity levels.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
Asset shortages and the Great Recession: A Kaldorian Perspectivepkconference
This document discusses Nicholas Snowden's perspective on the relationship between asset shortages and the Great Recession based on Kaldorian economic theory. It argues that the subprime boom may have been a "necessary bubble" to transfer purchasing power from high-saving young people to low-saving old people, in order to compensate for declining corporate investment and rising profits in the US. As corporate investment spending declined after 2001, the housing sector boosted consumption through rising house prices and equity withdrawal, but this proved unsustainable and led to financial crisis when the housing bubble burst.
A producer seeks to maximize profits by producing at the level of output where marginal revenue equals marginal cost. This occurs at the producer's equilibrium. There are three main approaches to determining the producer's equilibrium: (1) where the isoquant is tangent to the isocost line, (2) where marginal revenue equals marginal cost, and (3) where the difference between total revenue and total cost is maximized. The equilibrium level of output is where profits are maximized and will fall if output increases beyond this level. Producer equilibrium can occur when price is constant, as in perfect competition, or when price decreases with increased output, as in imperfect competition.
This document provides an overview of computable general equilibrium (CGE) modeling and how it can contribute to decision making. Some key points:
- CGE modeling captures the interconnectedness of an economy and how changes in one sector can impact others, allowing managers to understand broader economic effects of decisions.
- CGE models are based on general equilibrium theory, which posits that markets are interconnected and changes in one will impact others through supply and demand linkages.
- CGE modeling involves translating the theoretical representation of an economy into a computable model with consistent microeconomic foundations that can be used to simulate impacts of changes.
- While CGE modeling requires detailed data and parameters, the underlying concepts and steps involved
The cost of production/Chapter 7(pindyck)RAHUL SINHA
content
•MEASURING COST: WHICH COSTS MATTER?
•Fixed and variable cost
•Fixed versus sunk cost
•Amortizing Sunk Costs
•Marginal cost
•Average cost
•Determinants of short run cost
•Diminishing marginal returns
•The shapes of cost curves
•The Average–Marginal Relationship
•Costs in a long run
•Cost minimizing input choices
•Isocost lines
•Marginal rate of technical substitution
•Expansion path
•The Inflexibility of Short-Run Production
•Long run average cost
•Economies and Diseconomies of Scale
•The Relationship Between Short-Run and Long-Run Cost
•Break even analysis
This document provides an overview of cost-volume-profit (CVP) analysis. It defines CVP analysis and notes that it is used to study how profits change with volume, costs, and prices. The key assumptions of CVP analysis are described, including constant unit costs and prices. The components of a CVP analysis, including fixed costs, variable costs, sales price, and contribution margin, are defined. The relationships between these components in a CVP graph and chart are explained. The document then discusses how profits are affected by changes in volume, price, variable costs, fixed costs, and combinations of factors. It also covers the utility and limitations of CVP analysis and break-even charts.
Monte Carl Simulation is a powerful and effective tool when used properly helps to navigate the expected Net Present Value NPV. This presentation helps to improve the pattern to ackowlege onthe Odessa Investment by Decision Dres.
The document summarizes key aspects of the Solow growth model. It explains that the Solow model replaced the fixed production function of the Harrod-Domar model with a neoclassical production function allowing for factor substitution. It presents the basic equations of the Solow model showing that changes in capital per worker are determined by savings, population growth, and depreciation. It illustrates the Solow diagram and how steady state equilibrium is reached. It analyzes how changes in the saving rate and population growth rate impact the model.
The Roads Not Taken: Graph Theory and Macroeconomic Regimes in Stock-Flow Con...pkconference
This document discusses representing stock-flow consistent macroeconomic models using graph theory. It summarizes:
1) Stock-flow consistent macroeconomic models track cash flows between economic sectors. These models can be represented as graphs with nodes as sectors and directed edges as cash flows.
2) Choosing a "spanning tree" divides cash flows into independent variables not in the tree and dependent variables in the tree. Dependent variables are determined by accounting relations given independent variables.
3) Different spanning trees produce different classifications of variables and institutional structures like demand-driven, supply-driven, or financialized economies. This provides insight into macroeconomic regimes and the effects of policy changes.
4) Future work includes
Directions Flexible Budget Performance Report Project You a.docxmariona83
Directions
Flexible Budget Performance Report Project
You and your partner will each work on this project on your own laptops, using each other for resources while completing the assignment. In the end, you will Turn in ONE project per team. If you or your partner feels you did not share equally in the work, email me for a possible grade adjustment. Otherwise, you will both receive the same grade. Upload your completed project to Canvas using “Flex Budget_Last Name ID#_Last name ID# “ as the file name.
Kelsey’s Frozen Confectionaries buys and distributes single-serve ice cream treats to convenience stores, ballparks, and amusement parks. In this project, you will create 1) a master budget performance report, and 2) a flexible budget performance report for Kelsey's Frozen Confectionaries. Your performance reports should be developed in such a way that any changes to the original assumptions will correctly ripple through the entire spreadsheet. After developing the performance reports, you will answer questions about the variances and determine whether the variances are consistent with management's explanation about operational changes that took place during the period.
Part 1) DIRECTIONS for Master Budget Performance Report:
1) Use the budget assumptions, along with Excel formulas, to populate the Master Budget column. Note: Your formulas must work such that if ANY of the budget assumptions change, the new assumptions ripple through the entire budget. Part of your grade will be based on whether you correctly formulate the cells. Do NOT TYPE A NUMBER IN ANY CELL!!!
2) Use a formula to calculate the “variance” in cell H7: (Actual – Budget). Copy and paste (or use the fill handle to drag) the formula to the rest of the cells in the column. Leave as positive or negative, rather than absolute values.
3) Use a formula to calculate the “Variance percentage”. NOTE: The percentage is the variance as a percent of the Master Budget. Copy and paste (or drag) the formula to the rest of the cells in the column
4) Format cells appropriately. Attention to detail makes a report look more professional. (For example, percentages shown as %, dollar signs using the accounting or currency format, underlines and double underlines where appropriate, zero decimal places for dollar amounts, etc.,).
5) Use the “If” statement function to show the variances as U or F. The “If” statement can be found under “Formulas, Logical”. Example: =IF(H7>=0,"F","U"). This formula means: If cell H7>0 or H7=0, then mark as “F”; If not greater than or equal to 0, mark as “U”. Be careful with revenues and expense variances since they should be opposite of one another. ALSO- The formula you use should mark any variance of “0” as an “F” since a zero variance means that budget expectations have been met. After using the function, check each line to make sure it is going in the direction you believe it should go.
6) Check your answers us.
Directions Flexible Budget Performance Report Project You a.docxcuddietheresa
This document provides directions for creating a master budget performance report and flexible budget performance report for Kelsey's Frozen Confectionaries. It includes instructions for populating the reports with formulas to calculate variances, percentages, and conditional formatting. It also provides questions to analyze the variances and determine if they are consistent with management's explanations for operational changes. The directions are extensive and provide examples to check calculations.
This document provides an overview of cost-volume-profit (CVP) analysis, including definitions, assumptions, components and graphs used. CVP analysis studies how costs, volume and prices impact profits. It assumes costs can be separated into fixed and variable portions. The key aspects covered are the linear relationships between total costs/revenue, calculating break-even point, and how profits are affected by changes in volume, price, variable costs and fixed costs. Utility and limitations of CVP analysis are also discussed.
FINANCAL MANAGEMENT PPT BY FINMANLeverage and capital structure by bosogon an...Mary Rose Habagat
This document discusses leverage and capital structure. It begins by defining leverage as the use of fixed costs to magnify returns, and discusses how leverage increases risk and return. The document then outlines 6 learning goals covering topics like breakeven analysis, the different types of leverage (operating, financial, total), and theories of capital structure. It provides examples and formulas to demonstrate concepts like calculating breakeven points and measuring the degrees of different types of leverage.
Chapter 5 The Solow Growth ModelHikaru SaijoUniversitWilheminaRossi174
The document summarizes Chapter 5 of the Solow Growth Model. It introduces the Solow model, which uses a Cobb-Douglas production function to model how capital accumulates over time. It shows graphically and mathematically how the model reaches a steady state where growth stops. While the model does not explain long-term growth, it can be used to understand differences in output across countries and experiment with changes to parameters. The strengths and weaknesses of the Solow model are also discussed.
The document discusses key concepts in aggregate demand and demand-side stabilization policies according to the Keynesian model. It defines aggregate demand and its components. It then explains the Keynesian model's goal of using fiscal policy tools like government spending, taxation, to increase or decrease total demand and stabilize GDP and unemployment. The multiplier effect is discussed as how a change in spending can impact GDP multiple times through subsequent rounds of consumption. The relationships between income, consumption, savings, and how these determine the multiplier are also summarized.
Production analysis by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
The document provides information on production functions and related concepts:
- A production function describes the technological relationship between inputs and outputs. It represents the maximum output attainable from various combinations of inputs.
- Inputs can be fixed or variable. The short run is when some inputs are fixed, while the long run allows variation in all inputs.
- Isoquants represent combinations of inputs that produce equal output. They have properties like being negatively sloped, non-intersecting, and convex to the origin.
- Laws of production include diminishing marginal returns and variable proportions. Returns to scale can be increasing, constant, or decreasing in the long run depending on output and input changes.
This document provides an overview of modern macroeconomic practices, including key theories such as the IS-LM model, Phillips Curve, and monetary and fiscal policy frameworks. It discusses concepts like the IS curve, monetary policy reaction functions, inflation targeting, fiscal rules, and transmission mechanisms. It also analyzes recent economic performance and developments in different countries/regions, monetary policies, debt levels, inflationary pressures, and global imbalances. Looking ahead, it notes risks from global imbalances but broad growth if issues are addressed, and need for reforms in China to balance risks of sudden adjustment.
Chapter 5 Macroeconomy Policy Practice sSabrina377028
This document provides an overview of modern macroeconomic practices, including key theories such as the IS-LM model, Phillips Curve, and monetary and fiscal policy frameworks. It discusses concepts like aggregate demand, inflation expectations, monetary policy reaction functions, and fiscal rules. Models presented include the IS-MR-PC framework and how shocks to the economy can be analyzed using the IS and Phillips curves. It also examines transmission mechanisms of monetary policy and challenges like data revisions and limits to policy effectiveness.
1) The document discusses cost-volume-profit (CVP) analysis, which studies how costs and profits are affected by changes in volume. It examines variable costs, fixed costs, and contribution margin.
2) Variable costs vary with activity and remain the same per unit. Fixed costs remain constant total but vary per unit. Mixed costs have both fixed and variable components.
3) The high-low method is used to determine the fixed and variable portions of mixed costs using data from two activity levels.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
Asset shortages and the Great Recession: A Kaldorian Perspectivepkconference
This document discusses Nicholas Snowden's perspective on the relationship between asset shortages and the Great Recession based on Kaldorian economic theory. It argues that the subprime boom may have been a "necessary bubble" to transfer purchasing power from high-saving young people to low-saving old people, in order to compensate for declining corporate investment and rising profits in the US. As corporate investment spending declined after 2001, the housing sector boosted consumption through rising house prices and equity withdrawal, but this proved unsustainable and led to financial crisis when the housing bubble burst.
A producer seeks to maximize profits by producing at the level of output where marginal revenue equals marginal cost. This occurs at the producer's equilibrium. There are three main approaches to determining the producer's equilibrium: (1) where the isoquant is tangent to the isocost line, (2) where marginal revenue equals marginal cost, and (3) where the difference between total revenue and total cost is maximized. The equilibrium level of output is where profits are maximized and will fall if output increases beyond this level. Producer equilibrium can occur when price is constant, as in perfect competition, or when price decreases with increased output, as in imperfect competition.
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
These slides walk through the story of 1 Samuel. Samuel is the last judge of Israel. The people reject God and want a king. Saul is anointed as the first king, but he is not a good king. David, the shepherd boy is anointed and Saul is envious of him. David shows honor while Saul continues to self destruct.
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...TechSoup
Whether you're new to SEO or looking to refine your existing strategies, this webinar will provide you with actionable insights and practical tips to elevate your nonprofit's online presence.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
1. The Cambiant
Economic Model
A dynamic model of economic performance
and income distribution
“The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves
too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is
flat again”. John Maynard Keynes
"Many economic theories don't even come close to producing the wealth distribution we see, and if you can't
produce that, you're dead in the water." J. Doyne Farmer
Cambiant: from the latin Cambiare....to exchange, to trade and camber as in airfoil properties
3. The Cambiant model:
Going with the flow
• The model looks at molecular interactions in an atmosphere flowing over a
surface, just as the airflow over a wing instead of modeling molecules as
individual agents whose level of activity is governed by heat, as in Yakovenko
et. al. and other econophysics models.
• Introduces an actual ‘economic’ structure into gas models which integrates
the behavior of agents and thus avoids the artifical constraints of ‘efficient
market’ and ‘rational agent’ underpinning much of economic modeling.
• Just as in an economy, circulation is required to generate growth/lift which
changes with flow conditions. Flow generates forces on the surface that
have direct economic relevance. Most importantly, it shows income
distribution and places the economy within a defined performance envelope.
• For any given balance of forces, there is only one specific stable velocity, and
when disturbed, the model will tend to return to this velocity, as long as the
model is within its performance envelope. There is no general economic
equilibrium per se, but rather a trimmed velocity to which the model, when
disturbed, may return after a number of cycles, dependent on its stability.
4. Precursors to the Cambiant
Model:
Econophysics: From Pareto to Bouchard
• Pareto: Power law Pareto Probability Distribution
wealth distributions.
The ‘80/20’ rule
• Mandelbrot: Fractal
geometry and Exponent
market stability
• Yakovenko:
Combined Pareto
and Boltzmann
distributions
Distribution
• Bouchard: Wealth
condensation
5. Creating the Cambiant
structure of the economy
• Surface created to
approximate pressure
distribution using
conformal mapping
aerodynamics model
to match income
distribution derived
from CBO data and
matched to NACA
airfoil surface.
• Flow relative to
surface modified to
produce 2007 data by
changing angle of
surface to flow. (alpha)
• Results then compared
with data series from
1979-2007 as shown in
next slide.
6. Comparing Cambiant model
with CBO Data 1979-2007
The CBO plot (below) is produced from their time series of
Quintile data plus top 10,5 and 1% of earnings 1979-2007.
The peaks and contours plotted from actual CBO data match
very closely to the Cambiant model output. (Cambiant model
produces 32 data points per year vs. 8 points for CBO model)
(Note that there is some distortion in the right hand axis of
the graphs, due to formatting of the CBO data and the graph
only reflects the population that reports taxable income...see
previous slide)
!
The Cambiant model (above) shows the income
distributions from 1979-2007 produced by the model.
The plot was produced by varying the alpha of the
Cambiant model relative to the flow. No other variables
were changed. (See previous slide)
The vertical scale is income and
the right hand scale shows the income of the various
percentages of the population.
7. Equilibrium: Balancing the
Forces
• The Cambiant model correlates the
forces that define equilibrium or steady
state in flight with the analogous
economic forces.
• Alpha represents the anticipated level
of economic performance (public/
private plus government policy).
• Growth and Pre values vary with single
control input, the changing alpha value.
• Model shows optimum alpha values and
the effects of income distribution on
performance as pressure/income
distributions vary with alpha value.
• Force coefficients for Lift and Drag
drive dynamic simulation of economic
performance. High Lift/Drag ratios
indicate more efficient economic
performance at optimum levels.
8. Visualizing the flow
• Cambiant model replicates flow over
surface representing structure of
economy.
• Wind tunnel model shows actual
state of flow as alpha varies, from
low growth/lift coefficient to stall.
• Conditions in the boundary layer
produce pressure/income
distributions. The video shows hows
how various segments of the
economy are impacted: wealthiest at
leading edge, poorest at trailing edge.
• Flow exists in multiple states
depending on alpha, from low lift to
separation and stall condition,where
those in the separated region have
no income.
• Model places limits on economic
performance which are defined by
nature of flow over surface, which
also defines income distribution.
9. Click here for Cambridge University’s
visual demonstration of a wind tunnel.
10. Force Coefficients for U.S.
• Force coefficients and alpha
produced by model analysis
of Congressional Budget
Office (CBO) data on income
distribution 1979-2007.
• Alpha drives coefficients of
performance, the growth and
requirements for production
coefficients. Sufficient
production of value vs. cost of
production is required to
maintain a given alpha.
• Lots of instability in
relationship of alpha/growth
coefficient/cost of production
coefficient.
• Top earnings largely driven by
financial sector.
• Relationship of growth
coefficient to cost of
production coefficient shows
relative efficiency of economy.
11. Force Coefficients for
Sweden
• Force coefficients from
Cambiant model using
Dominican income
distribution database.
• Mainly a trading nation with
emphasis on engineering and
technology.
• Very different from U.S. but
approaching US Alpha levels
from 1979.
• No instability on Alpha vs.
growth/COP coefficients.
• Sweden’s exports account
for large percentage of GDP.
12. Comparative Income
Distribution
Sweden-U.S. 1979-2007
• Graphs reflect force
coefficients from previous
slides.
• Far more middle class wage
earners in Sweden.
• Swedish economy driven by
export, of which engineering
and manufacturing represent
large percentage.
• U.S. top 20% incomes mostly
driven by financial sector/
stock markets.
13. Cambiant model
performance envelope
The limits of economic performance
• Forces give an envelope
of performance for
maximum and minimum
velocity in equilibrium
conditions.
• Changing alpha moves
along Pre curve which
defines levels of
performance vs. Pav.
• Model imposes limits on
performance, modeled by
nature of flow.
• As with an airfoil,
insufficient velocity will
cause economy to stall.
14. Stability and Debt
• Debt burden is weight on the
economy.
• Shifting burden rearward
causes instability.
• Financial instability is caused
when financial instruments
value is based on people and
institutions with less
discretionary income and
marginal ability to service debt.
• Examples are securitization of
home mortgages, student
loans, commercial paper, etc.
15. Model output with debt/
stability changes.
Using the model to isolate one variable: stability
• Model run starts with
stable conditions and shifts
debt to less stable
condition over time,
starting post ’87 crash.
• Sharp impulse applied at
start of crash of ’87
and .com crash. to trigger
instability.
• Production of value is held
constant.
• No other inputs, so model
shows only impact of
destabilizing financial
instruments.
16. Model simulation of Crash of
2008
• Model run starts at 2008
crash.
• TARP bailout preserves cash
flow in financial sector.
• At its peak, stimulus arrests
rate of decline of asset value
with increased (Pav) to a
nearly stable condition.
• Reduction of stimulus leads
to further instability and
decline. (Pav held constant)
• Total asset value continues to
decline at steepening rate.
Pav is insufficient to maintain
stable conditions and any
shock results in substantial
instability and loss.
17. What the Cambiant model
shows
In general:
• No economy can grow without sufficient capability to create value.
• Income distribution is a very important indicator of economic performance and
efficiency. A large middle class with discretionary income is vital to a consumer
economy and excessive income inequality degrades economic performance.
• Optimum wealth distribution depends on the structure of the economy as shown
by the Cambiant surface model of the structure. It is important to note that some
inequality is required for optimum economic performance.
• No segment of the economy can extract more value than it creates without
causing excessive drag on the economy.
• Evaluating economic performance without taking into account depletion of
resources, externalities and public well-being can lead to major errors in policy
18. What the model tells us
about economic stimulus
• Recent financial bailouts stimulated the leading edge of the economy,
maintaining alpha at highly inefficient ranges. Those at the leading edge
are extracting too much momentum from the flow of transactions
causing separation and thus unemployment at the trailing edge of the
economy.
• Without stimulating the necessary demand to utilize the available
potential production of value, stimulus results disappear with removal of
stimulus.
• Without creation of demand, application of financial stimulus to maintain
asset values will lead to liquidity traps and stagflation (behind the power
curve) situations which can only be escaped by reduction of total asset
value or incurring debt to fund productive investment.
• Market turbulence can lead to economic stall when the economy is
operated at excessive values of alpha.
19. The Cambiant model and
policy.
• There is an optimum point of wealth distribution, a ‘Bentham point’, that
produces the greatest good for the greatest number for any given structure of
an economy. It is clearly differentiated from the optimum capital market point,
but both points are within prudent economic limits. Excess beyond this range
in either direction can substantially reduce economic efficiency.
• A given economic structure reaches a maximum ceiling in asset value, much as
an aircraft has a maximum ceiling, which ceiling can only be raised by increasing
the efficiency of the economy, or by improving its structure. Policy that
maintains existing structures will inhibit changes to more efficient
configurations and technologies.
• Economic efficiency can be improved by providing greater access to markets for
greater numbers of participants. Excessive inequality in wealth distribution can
be corrected by taxation, which if invested mainly in value-producing programs
in the national interest, will allow the economy to achieve higher ‘altitude’ and
asset value.
20. Next Steps
• Develop software
to allow scripted
runs with complex 10
Earnings X $100,000
inputs. 9
•
8
Refine Cambiant
surface modeling to 7
more closely model 6
employment, 2002 Model Output
Earnings x $100,000
5
underemployment
and unemployment.
4
2002 CBO Data
3
• Refine ‘aircraft’ 2
model of the 1
1979 CBO Data
1979 Model Output
economy to more 0
closely tie Middle Quintile Top Quintile
simulation input -1
and output to -2 Model output vs. CBO after tax income
actual economic
studies.
Editor's Notes
\n
\n
Owes a lot in concept to Phillips (Phillips curve of relationship between inflation and employment) Phillips made fluid mechanics analog computer in the ’50’s that accurately modeled British economy, nicknamed the Moniac\n\nPerformance of model checked against actual economic values. Used as valuable teaching tool\nShowed relationship of stocks & flows.\n\nDiscuss problems with individual agent modeling\n
Define econophysics\n\nPareto: 1906 compared wealth distributions for various gov’ts The ‘80/20’ rule (See graphic)\nMandelbrot:1999 Critique of stability/portfolio planning/likelyhood of events.\nYakovenko: starting in 2000 Boltzmann is gas law distribution combined with Pareto distribution\nBouchard: starting in 2000 Wealth condensation/polymer physics/state change. \nWhat does it tell us about wealth distribution? \nSays redistributive taxes and more open markets improve wealth distribution but not about how it relates to economic performance. \nProblems modeling agents.\nModels imply distribution coefficient, which Pareto expressed as exponent.\n
Possible to produce closer match and show unemployment etc. but used NACA surface to avoid complications in feeding into flight dynamic portion of model. (Show refined slide at end of presentation?)\n
Show me the trickle down\n
\n
\n
\n
So much for “The great moderation” Lot going on that looks pretty immoderate in retrospect.\n\nGraph shows force coefficients for Pre/cost of production coefficient and growth coefficient. Model uses these coefficients in conjunction with Pav/thrust, and economic characteristics to develop model outputs.\n
Trade percentage: http://www.wto.org/english/res_e/statis_e/miwi_e/paper_june11_e.htm\n\nSwedish economy operates in much more stable mode, but in a much more variable market.\n\n\n
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Explain: level flight can only be maintained in conditions within envelope.\nregions of reversed command/Bartels explanation (maybe slide?)\nNote: edit labels on graphic. \n