2. Consider an overlapping generations model with a pay-as-you-go pension system. The government collects the contributions from young generation and transfers them to old generation. d is the contribution from a young person to the pension system. b is the benefit received by old person. (a) Derive the following intertemporal budget constraint, b 1 + rt+1 C₁t + C2t+1 1 + rt+1 = W₂ - d + (b) Derive the following saving function, 1 St= -(wt - d) — 2+p 1+p (2 + p)(1 + rt+1) ·bl

2. Consider an overlapping generations model with a pay-as-you-go pension system. The government collects the contributions from young generation and transfers them to old generation. d is the contribution from a young person to the pension system. b is the benefit received by old person. (a) Derive the following intertemporal budget constraint, b 1 + rt+1 C₁t + C2t+1 1 + rt+1 = W₂ - d + (b) Derive the following saving function, 1 St= -(wt - d) — 2+p 1+p (2 + p)(1 + rt+1) ·bl

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

14. If the pension benefits for a person is determined by the contributions into the plan and their earnings over time, then the pension is a Question 14 options: a) defined contribution plan. b) defined benefit plan.
8. Question 1 Fatu took out an endowment policy. The first annual payment was Rx, whereafter it increased yearly by R1 700. After 20 years the policy paid out R1 005 962. The applicable yearly interest rate is 10%. The value of x is approximately A. R11 816. B.R17 564. C.R6 500. D.R564. Question 2 Daniel asks to reschedule the compensation in three payments,the first payment now ,the second payment twice the size of the first payment for four years from now and the third payment three times the size of the first payment nine years from now.The boxing fund agrees on condition that the interest rate changes to 10.95% per year compounded monthly .The amount to the nearest hundred rand that Daniel can expect to receive four years from now is A R 864 000 B.R 557510 C.184 800 D.369 600
Ruth collected pension benefits of $220 a month in 2015. If the price index rose from 90 to 105 in the period 2015-2015, what should her pension benefits for 2015 be? a. $256.67 b. $252.43 c. $253.00 d. $231.00 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
6. Describe the nature of omitted variable bias as it relates to time series. In what casesdoes controlling for trend variables solve the omitted variable bias? 7. Event studies.a. Describe the six steps to conduct a financial event study.b. What is the relationship between the efficient capital market hypothesis and theuse of financial event studies for causal inference?
Do not use chatgpt.
Match the contribution with the appropriate scholar. Who believed that framing the general equilibrium of the entire microeconomy is better treated one market at a time? v Choose... Modigliani Who is considered the father of Modern Portfolio Theory? Marshall Fisher Who demonstrated why people are either savers or dissavers? Keynes Who provided a general existence proof of a competitive equilibrium? Markowitz Ricardo Who developed the distinction between comparative and absolute advantage? Arrow Hotelling Who first developed a working model of options pricing? Bachelier Smith Who argued that competition in physical space can result in minimum differentiation? Choose... Who determined that, unlike the neoclassical microeconomic theory of equilibrium, we may be in a state of persistent Choose... disequilibrium in the macroeconomy? Who considered the regard by others as an important driver of human behavior? Choose... Who developed a complete Life Cycle Model of spending and saving…
Pls help ASAP on both
Which of he following statements is CORRECT about beneficiary designalions? A.By naming an irrevocable beneliciary, a policyowner forfeits he right to change he beneficiary B.A primary beneficiary may not be a minor. C.primary beneficiary and a contingent beneficiary each receive one-half of he proceeds. D.In group insurance, lhe employer is the beneficiary for each employee.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
8:02 PM Mon Nov 21 + 10 Assignme... ents Ho... Submit Check my work 48%
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Emerging Asia: Capital Flows $ billion Emerging Europe: Capital Flows $ billion 2013 2014 2015 Est. 2016 Proj. 2015 Est. 2016 Proj. 2013 2014 Non-Resident Capital Inflows 676 619 191 350 Non-Resident Capital Inflows Private Inflows 214 38 51 Private Inflows 668 613 185 344 218 31 -20 43 Equity Investment 396 442 378 375 Equity Investment 64 52 17 44 Direct Investment 349 372 364 313 Portfolio Investment Direct Investment 66 59 33 42 47 70 14 62 Portfolio Investment -2 -7 -16 Private Creditors 272 171 -193 -31 Commercial Banks 127 73 -165 -38 Private Creditors 154 -22 -37 -1 Nonbanks 145 99 -29 Commercial Banks 20 32 -14 10 Official Inflows International Financial Institutions Nonbanks 134 -54 -23 -11 3 4 4 Official Inflows -4 17 8 Bilateral Creditors 3. International Financial Institutions -12 14 10 Bilateral Creditors 4 3 -2 Resident Capital Outflows Private Outflows Equity Investment Abroad Resident Lending/Other Reserves (- = Increase) Net Capital Flows incl. Reserves -961 -801 -543…