Standard Harmonization & Consumers
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Kids In Danger (KID) was founded in 1998 following the death of Danny Keysar in an unsafe portable crib. KID's mission is to promote safer children's products, advocate for children, and educate the public on safety. As a member of several standards committees, KID reviews and comments on mandatory standards and regulations. Harmonization should increase safety standards rather than lower them, and not prioritize ease of compliance over safety. A strong standards process includes adequate consumer participation, transparency, and oversight to effectively address safety hazards. Harmonization must consider impacts on all stakeholders and regulations while strengthening global consumer safety.
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Assignment 3
Economics 202-01
Macroeconomic Theory I
Question 1
Suppose we allow for installation costs, the utility function and production function are given
by
U(ct) = ln ct (1)
yt = F(kt) = Ak
α
t (2)
In addition, the resource constraint and capital accumulation are given by
yt = ct +
(
1 +
φ
2
it
kt
)
it and (3)
4kt+1 = it − δkt, (4)
where φ ≥ 0.
(a) Write the First Order Conditions for consumption, capital, investment, and Lagrange
multipliers for the optimal solution.
(b) Derive the equation for Tobin’s q.
(c) Using (a) and (b), derive the Euler equation in terms of Tobin’s q, capital, and con-
sumption.
(c) Determine the steady state levels for Tobin’s q, capital, investment, and consumption.
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Question 2
Suppose we allow for technological progress, the utility and production functions are given
by
U(Ct) = ln Ct and (5)
Yt = (1 + µ)
tKαt N
1−α
t , (6)
where µ > 0. In addition, capital accumulation is given by
4Kt+1 = It − δKt. (7)
1
(a) Write the First Order Conditions for consumption, capital, labor, and Lagrange mul-
tiplier for the optimal solution .
(b) Derive the Euler equation.
(c) Discuss the issues with steady-state optimal growth paths for consumption, capital
and output.
(d) Derive the per capita production function, yt = F(kt). [Note: yt =
Yt
Nt
and kt =
Kt
Nt
denote per capita output and capital in period t, respectively]
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*
This multimedia product and its contents are protected under copyright law. The following are prohibited by law:
• any public performance or display, including transmission of any image over a network;
• preparation of any derivative work, including the extraction, in whole or in part, of any images;
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Chapter Six:
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*
*
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Chapter 6
*
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- 1. Standard Harmonization &Consumers Nancy A. Cowles Executive Director Kids In Danger ©Kids In Danger 2016
- 2. Kids In Danger Kids In Danger (KID) was founded in 1998, following the death of Danny Keysar in an unsafe portable crib. About KID
- 3. KID’s Mission •Promote the development of safer children’s products •Advocate for children • Educate the public, especially parents and caregivers, about keeping their children safe.
- 4. Standards Work Member of ASTM F15 committee and serves on juvenile products, toys, hoverboards, laundry packets and furniture safety sub-committees. Board member of ANSI Reviews and submits comments on CPSC mandatory standards Section 104 of the CPSIA is named after Danny – his legacy.
- 5. Danny’s Law
- 7. Consumer Goals Harmonization should increase safety, not lower standards Ease of complying should not outweigh safety Local consumers shouldn’t lose power over their own marketplace
- 8. What makes a strong standard process? Adequate participation by consumers Transparent and logical process Participation by regulatory agency and potential for regulatory oversight if warranted The standard has to be widely used and accepted Standard process should not be wholly controlled by regulated industry Must effectively address the hazard at issue
- 9. What should be considered when harmonizing Are all stakeholders at the table? Are all potential impacts discussed? What changes will it require from the regulated industry? What changes will it make in protecting consumers? What is the impact on any publically developed regulations or bans? Were the standards under consideration developed under the parameters stated above?
- 10. TTIP Discussions Reducing technical barriers to trade: ie, regulations and standards, certification and testing TheWTO Agreement onTBT encourages coherence among parties, but specifically does not require parties to change their levels of protection.
- 11. Trans Atlantic Consumer Dialogue Cooperation or harmonization should aim at maintaining or improving the level of protection Cooperate on enforcement aspects Strengthen consumer representation nationally and internationally
- 12. Dangers of Mutual Recognition Agreements Equivalency is hard to measure Consumers are left in the dark about the products safety – assuming it meets the same standards as other products Regulators have a hard time monitoring injury and safety
- 13. Benefits of Harmonization Opportunity to review standards and certification for efficiencies and areas of agreement Strengthen consumer safety when aligned toward the stronger standard or process Better serve a global marketplace
- 14. Questions? NancyA Cowles Executive Director Kids In Danger nancy@kidsindanger.org www.KidsInDanger.org
Editor's Notes
- This panel will look at industry good practices that actors engage in beyond their legal obligations regarding the safety of products sold online. The panel will also discuss win-win scenarios for industry and consumers