chapter 1 the economic way of thinking ppt

... market trades Chapter The Economic Way of Thinking The Scope of Economics MBA students often associate economics with a rather narrow portion of the human experience: the pursuit of wealth; money ... from their moving from cell 4, the “state of nature,” to cell 1, a state in which a social contract is agreed upon 11 Locke, The Second Treatise, p 32 17 Chapter The Economic Way of Thinking 18 There ... Inc., 19 68 (first published 16 51] , pp 18 5 -18 8, with editing by the authors 14 Chapter The Economic Way of Thinking In an idealized world in which people are fully considerate of each other’s...

Ngày tải lên: 17/12/2013, 15:18

Ngày tải lên: 20/12/2013, 18:15

... 51: - 45 Hutt, William H., (19 64) The Economics of the Colour Bar: A Study of the Economic Origins and Consequences of Racial Segregation in South Africa (London: Published for the Institute of ... illegally on the street I calculated the likelihood of getting a ticket, the size of the penalty, and the cost of putting the car in a lot I decided it paid to take the risk and park on the street ... the analysis in Lindbeck and Weibull [19 87], Bergstrom [19 89], and Becker [19 91, pp 9 -13 ]) The Bible, Plato’s Republic, and other early writings discussed the treatment of young children by their...

Ngày tải lên: 17/03/2014, 08:20

... Taxation of Annuities Appendix 11 8 11 8 11 9 12 2 12 5 12 9 Chapter 15 Bundling of Annuities and Other Insurance Products 15 .1 Introduction 15 .2 Example 13 1 13 1 13 2 Chapter 16 Financial Innovation—Refundable ... Appendix 10 9 10 9 11 2 11 3 11 6 Chapter 14 Optimum Taxation in Pooling Equilibria 14 .1 Introduction 14 .2 Equilibrium with Asymmetric Information 14 .3 Optimum Commodity Taxation 14 .4 Optimum Taxation of ... xiii Chapter Introduction 1. 1 Brief Outline of the Book 1. 2 Short History of Annuity Markets 1. 3 References to Actuarial Finance 11 Chapter Benchmark Calculations: Savings and Retirement 12 Chapter...

Ngày tải lên: 20/06/2014, 20:20

... λ > is the Lagrange multiplier of (14 .18 ) August 18 , 2007 Time: 11 :22am chapter1 4.tex 12 4 • Chapter 14 Rewrite (14 .19 ) in the more familiar form: ˆ tS = − ˆ ˆ ˆ ˆ 1( λ X + K Q) Q 1 , 1+ λ and ... using the identities εi0 + εi1 + εi2 = 0, i = 1, 2, where denotes the untaxed numeraire, ˆ ˆ ˆ ˆ ˆ ta 11 + ε22 + 10 + k 11 ε22 /θ a − k12 12 /θ b = ˆ ˆ ˆ ˆ tb ˆ 11 + ε22 + ε20 + k12 11 /θ ... write (14 .29) in elasticity form, using symmetry si j = s ji , 11 = qa s 11 /a, ˆ ˆ ˆ ˆ ˆ ˆ 12 = qa s12 /a, ε 21 = qbs 21 /b, ε22 = qbs22 /b: ˆ ˆ 11 ta + 12 tb = −θ − ˆ k 11 , ˆ a ˆ ˆ ε 21 ta +...

Ngày tải lên: 20/06/2014, 20:20

... L., 11 Brown, J R., 1 3, 13 , 33, 67, 81, 14 0n49 August 18 , 2007 Time: 11 :35am index.tex 15 8 • Index Brugiavini, A., 82n26, 13 6, 14 2n 51 bundling, xiii, 8; adverse selection and, 13 1; cost of, 13 1–32; ... conditions and, 11 8, 12 4–25, 12 7; rate of return and, 71; stability and, 12 9; uniqueness and, 12 9; welfare function and, 12 0 August 18 , 2007 Time: 11 :35am index.tex Index • 16 1 population theory: aggregate ... Duncan, R M., 11 elasticity: consumption and, 13 14 ; demand, 89; optimum taxation and, 12 4, 12 7–28; price and, 11 3 14 ; steady-state age density distributions and, 10 1 envelope theorem, 31, 13 9 equations:...

Ngày tải lên: 20/06/2014, 20:20

... 0.002309 10 7 0.000 311 0.0 013 94 10 8 0.00 017 5 0.000 813 10 9 0.000094 0.000455 11 0 0.000049 0.000244 11 1 0.000025 0.00 012 5 11 2 0.000 012 0.0000 61 113 0.000005 0.000028 11 4 0.000002 0.000 012 11 5 0.000000 ... 0.8655 41 0.843998 0.8 211 57 0.796868 0.7 710 44 0.743735 0. 715 046 0.685027 0.653585 0.620632 0.586205 0.550354 0. 513 134 0.4746 41 0.435065 0.394 715 0.354020 0. 313 509 0.273776 0.235444 0 .19 912 1 0 .16 5364 ... 0 .13 46 41 0 .10 7438 0.084 018 0.064 413 0.048453 0.035806 0.0259 61 0. 018 442 0. 012 814 0.008695 0.0057 51 0.989007 0.977086 0.96 410 3 0.949935 0.934490 0. 917 697 0.899490 0.879829 0.858678 0.835989 0. 811 695...

Ngày tải lên: 21/06/2014, 00:20

... that a1 ( p, y1 ) > for all y1 ≥ y1 > y1 ( p) and a1 ( p, y1 ) = for all 1 y1 ≤ y1 < y1 ( p) (see figure 16 .1) August 18 , 2007 Time: 11 :25am chapter1 6.tex 14 2 • Chapter 16 Figure 16 .1 Pattern of ... max [u(c1 ) + pu(c2 )], a1 ≥0, b1 ≥0 (16 .5) where c1 = y0 + y1 − q0 a0 − q1 a1 + q1 b1 , c2 = a0 + a1 − b1 (16 .6) The first-order conditions are −u (c1 )q1 + pu (c2 ) ≤ (16 .7) u (c1 )q1 − pu (c2 ... r of q1 and q0 is the price of the refundable annuity.5 r In view of (16 .11 ), maximization of (16 .1) with respect to b1 and a1 yields first-order conditions u (c1 )r − pu (c2 ) ≤ (16 .28) −u (c1...

Ngày tải lên: 21/06/2014, 00:20

... c1 u (c1 )/u(c1 ) < 1, inserting again (13 A .1) into (13 A.2), we obtain 0> as stated in the text ∗ ∗ (1 + p1 ) ∂c1 > 1, ∗ c1 ∂ p1 (13 A.4) August 18 , 2007 Time: 11 :06am chapter1 3.tex Chapter 13 ... (c2 ) (1 + p1 ) , (13 A.2) where (using (13 A .1) ) =− (1 + p1 ) (1 + p2 )λ2 2 [W 11 W2 − 2W12 W1 W2 + W22 W1 ] 2 W1 W2 ∗ ∗ − (1 + p1 )W2 u (c2 ) − (1 + p2 )W1 u (c1 ) (13 A.3) Strict quasi-concavity of ... differentiating (13 A .1) with respect to p1 yields ∗ (1 + p1 ) ∂c1 ∗ (1 + p1 ) (1 + p2 ) (W 11 u (c1 )2 = ∗ c1 ∂ p1 c∗ u (c∗ ) ∗ ∗ ∗ ∗ −W12 u (c1 )u (c2 )) ∗ − W12 u (c1 )u (c2 ) u(c1 ) ∗ ∗ +W22 u...

Ngày tải lên: 21/06/2014, 09:20

... dG(α) = W z (11 .3) August 18 , 2007 Time: 10 :40am chapter1 1. tex 84 • Chapter 11 Maximization of (11 .2) subject to (11 .3) yields a unique first-best allocation, (a ∗ , b∗ ), independent of α, which ... ax )δ p(α) − λ pa = 0, (11 .20) ˆ ˆ ˆ v (b + δ ax ) p(α) + v (b) (1 − p(α)) − λ = 0, (11 . 21) where λ > is the Lagrangean associated with (11 .18 ) Equations x ˆ (11 .18 )– (11 . 21) jointly determine positive ... August 18 , 2007 Time: 10 :40am chapter1 1. tex Life Insurance • 91 ˆ ˆ a > 0, ax = Condition (11 .20) becomes an inequality x ˆ ˆ z u (a)¯ + v (b)δ p(α) − λ pa ≤ 0, (11 .23) ˆ while (11 .19 ) and (11 . 21) ...

Ngày tải lên: 21/06/2014, 09:20

... 0.002309 10 7 0.000 311 0.0 013 94 10 8 0.00 017 5 0.000 813 10 9 0.000094 0.000455 11 0 0.000049 0.000244 11 1 0.000025 0.00 012 5 11 2 0.000 012 0.0000 61 113 0.000005 0.000028 11 4 0.000002 0.000 012 11 5 0.000000 ... 0.8655 41 0.843998 0.8 211 57 0.796868 0.7 710 44 0.743735 0. 715 046 0.685027 0.653585 0.620632 0.586205 0.550354 0. 513 134 0.4746 41 0.435065 0.394 715 0.354020 0. 313 509 0.273776 0.235444 0 .19 912 1 0 .16 5364 ... 0 .13 46 41 0 .10 7438 0.084 018 0.064 413 0.048453 0.035806 0.0259 61 0. 018 442 0. 012 814 0.008695 0.0057 51 0.989007 0.977086 0.96 410 3 0.949935 0.934490 0. 917 697 0.899490 0.879829 0.858678 0.835989 0. 811 695...

Ngày tải lên: 21/06/2014, 09:20

... 1) + (1 − e− 1 (R −M) ) + (1 − e−α2 (R −M) ) α 1 α2 αM p 1 p (e − 1) + + α 1 α2 (8. 31) August 3, 2007 Time: 04 :13 pm chapter0 7.tex CHAPTER Moral Hazard 7 .1 Introduction The holding of annuities ... from the point of view of the age-M self Expected utility beyond age M from the point of view of the age-0 self, denoted VM , is VM = ∞ F (z)u(ˆ (z)) dz − c ˆ R F (z)e(z) dz (6 .11 ) M M The optimum ... consumption, thereby decreasing the marginal utility of consumption and hence the value of this postponement Which of these opposite effects dominates depends on whether the elasticity of the marginal...

Ngày tải lên: 21/06/2014, 09:20

... Retirement ρ= M=0 c 1 c W ρ= M=5 89 11 5.37 68 32 10 .14 M=0 M=5 86 14 6. 91 66 34 11 . 31 The values chosen for ρ take into account that social security (SS) benefits provide (in the United States) ... in chapter 11 August 22, 2007 Time: 09:50am chapter0 1. tex • Chapter Figure 1. 1 Survival functions for the social security population in the United States for selected calendar years (19 00, 19 50, ... personal pension The prices of annuities are higher in the voluntary market (valued at $11 1 million) than in the compulsory market (valued at $15 billion), reflecting the higher average age of annuitants...

Ngày tải lên: 21/06/2014, 09:20

... that a1 ( p, y1 ) > for all y1 ≥ y1 > y1 ( p) and a1 ( p, y1 ) = for all 1 y1 ≤ y1 < y1 ( p) (see figure 16 .1) August 18 , 2007 Time: 11 :25am chapter1 6.tex 14 2 • Chapter 16 Figure 16 .1 Pattern of ... max [u(c1 ) + pu(c2 )], a1 ≥0, b1 ≥0 (16 .5) where c1 = y0 + y1 − q0 a0 − q1 a1 + q1 b1 , c2 = a0 + a1 − b1 (16 .6) The first-order conditions are −u (c1 )q1 + pu (c2 ) ≤ (16 .7) u (c1 )q1 − pu (c2 ... r of q1 and q0 is the price of the refundable annuity.5 r In view of (16 .11 ), maximization of (16 .1) with respect to b1 and a1 yields first-order conditions u (c1 )r − pu (c2 ) ≤ (16 .28) −u (c1...

Ngày tải lên: 21/06/2014, 09:20

... L., 11 Brown, J R., 1 3, 13 , 33, 67, 81, 14 0n49 August 18 , 2007 Time: 11 :35am index.tex 15 8 • Index Brugiavini, A., 82n26, 13 6, 14 2n 51 bundling, xiii, 8; adverse selection and, 13 1; cost of, 13 1–32; ... conditions and, 11 8, 12 4–25, 12 7; rate of return and, 71; stability and, 12 9; uniqueness and, 12 9; welfare function and, 12 0 August 18 , 2007 Time: 11 :35am index.tex Index • 16 1 population theory: aggregate ... Duncan, R M., 11 elasticity: consumption and, 13 14 ; demand, 89; optimum taxation and, 12 4, 12 7–28; price and, 11 3 14 ; steady-state age density distributions and, 10 1 envelope theorem, 31, 13 9 equations:...

Ngày tải lên: 21/06/2014, 09:20

... 31: 16 21- 1629 10 Bennett RM, Bushmakin AG, Cappelleri JC, Zlateva G, Sadosky AB: Minimal clinically important difference in the fibromyalgia impact questionnaire J Rheumatol 2009, 36 :13 04 -13 11 ... (11 -point Likert scale) increases costs by 1, 453 per year The higher the level of impact of the disease on patients’ daily lives, the lower the changes in these levels have to be to increase costs ... First, there is still an unmet need for increasing the awareness of chronic pain and comorbidities in FM patients, the impact on their daily lives, and the resulting socioeconomic burden Furthermore,...

Ngày tải lên: 09/08/2014, 14:21

... Countries, 2009 13 5 13 7 13 9 14 1 14 2 14 4 14 5 14 7 14 7 14 9 15 0 15 5 15 7 16 0 xiv Contents S3 .1 Concern about Climate Change among Populations of Europe and Central Asia Countries, 2 010 6 .1 Life-Cycle ... anyone To thrive in the long Introduction FIGURE 1. 1 Median GDP Growth in Europe and Central Asia, 19 90–2 010 17 5 Real GDP (19 90 = 10 0) 15 0 12 5 10 0 75 50 19 90 19 95 2000 Median 2005 2 010 Interquartile ... component of the content included in the work The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties The risk of...

Ngày tải lên: 08/08/2015, 19:25

... NOTES: In 19 13 there were 25,843 emigrants from Germany, of whom 19 ,12 4 went to the United States The net decrease of the German population at the end of 19 18 by decline of births and excess of deaths ... as they last, and thus precipitate the hour of their confiscation IV The Relation of the Old World to the New The accumulative habits of Europe before the war were the necessary condition of the ... 18 90, 11 0 million tons in 19 00, and 19 0 million tons in 19 13 Round Germany as a central support the rest of the European economic system grouped itself, and on the prosperity and enterprise of...

Ngày tải lên: 09/08/2014, 20:20

... Business  Weaknesses of the basic legal forms of business organisation Table 1. 1, page Copyright © 2 011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 97 814 42 518 193/ Gitman et ... Page 12 Copyright © 2 011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 97 814 42 518 193/ Gitman et al / Principles of Managerial Finance / 6th edition Goal Of The Firm  Profit ... legal forms of business organisation Table 1. 1, page Copyright © 2 011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 97 814 42 518 193/ Gitman et al / Principles of Managerial...

Ngày tải lên: 16/12/2013, 14:45

... $ $ 1, 5 61, 5 91 $ 462,662 $ $ $ 1, 114 ,684 $ 589,745 $ $ $ 8,946 ,10 1 $ 5, 612 ,554 $ $ $ 12 , 015 ,9 71 $ 16 ,587,2 31 $ $ $ 239,620 $ 412 ,854 $ Total 13 0,677,3 81 16,464 357,2 51 82,760,653 2,024,253 1, 704,429 ... 2, 518 ,583 5, 612 ,752 50 1, 556,497 4,589,500 25 765,905 1, 690,555 554,565 908, 615 18 1,234 232,696 11 1, 414 304,026 232,769 377,422 16 8 ,12 1 353,587 44,786 424,027 57 ,11 8 11 4,035 Source: Civic Economics, ... Income Output 10 3,445 282,280 211 ,10 5 397,854 42,302 400, 518 200,870 316 ,644 55,573 99,527 48,382 96,594 54,579 10 0 ,15 5 15 4,037 311 ,17 0 14 , 016 14 ,360 31, 874 15 7,037 Source: Civic Economics, IMPLAN,...

Ngày tải lên: 15/02/2014, 13:20