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Q. Answer whether the following examples of Foreign Direct
Investment (FDI) describe horizontal or vertical FDI. Explain your
answers.
a) Volvo builds a car factory in Austin, Texas, which is similar
to Volvo’s factory in Gothenburg. The main purpose is to avoid US
import tariffs.
b) H&M relocates production of its clothes from Sweden to
Bangladesh to reduce wage costs. (5...
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a) Suppose the annual interest rate is 10%. Would you prefer
obtaining 1000 $ today or 1150 $ in a year from now?
b) Assume that you are 18 years old and deciding whether to go
to college or start working.
If you work, you will earn...
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question and help me with all the details? BR/Ha
Q.) State whether the following statements are true or false.
Shortly explain your answer in 1-2 sentences.
a) In the basic model of individual labor supply, if leisure is
a normal good, an increase in non-labor in-come will reduce hours
worked.
b) In the basic model of...
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Q. Consider a researcher interested in the causal effect of
class size in primary school on educational attainments. The
research strategies he is contemplating are (i) regression-control;
(ii) randomization; (iii) difference-indifferences and (iv)
regression-discontinuity. Explain the workings of each method along
with the identification assumptions that enable...
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related to discrimination in the housing market.
Discrimination in the housing market:
Carlsson and Eriksson (2014) have carried out the most
comprehensive field experiment...
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State whether the following statements are true or false.
Shortly explain your answer in 1-2 sentences.
a) In a model with a perfectly competitive firm, if two input
factors (e.g. employment and capital) are perfect complements, then
a change in wages leads to a large substitution effect.
b) In a simple model of labor demand with a competitive firm
that uses capital and labor in production, the effect of a...
Hi I need the solution showing the work (in details) of this
problem. Monthly sales at a coffee shop have been analyzed. The
seasonal index values are Month Index Jan 1.38 Feb 1.42 Mar 1.35
Apr 1.03 May 0.99 June 0.62 July 0.51 Aug 0.58 Sept 0.82 Oct 0.82
Nov 0.92 Dec 1.56 and the trend line is 74123 + 26.9(t). Assume
there is no cyclical component and forecast sales for year 8
(months 97 - 108).
I need solution for this issue with all the details./Br/Ha
Nada Eissa and Jeffrey Liebman analysed an extension of the EITC
that took place in 1987 in their study titled “Labor Supply
Response to the Earned Income Tax Credit”.
a) How did the study exploit the extension of the EITC? That is
what was the empirical strategy? What is the main assumption when
using this strategy? Do you think that this assumption was
satisfied in the case here?
b) What...
Hi I need the solution in details (show your work) Monthly sales
at a coffee shop have been analyzed. The seasonal index values are
Month Index Jan 1.38 Feb 1.42 Mar 1.35 Apr 1.03 May 0.99 June 0.62
July 0.51 Aug 0.58 Sept 0.82 Oct 0.82 Nov 0.92 Dec 1.56 and the
trend line is 74123 + 26.9(t). Assume there is no cyclical
component and forecast sales for year 8 (months 97 - 108).
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a and b and c and d.Br/Ha
a) Describe their findings about the evolution of income
inequality over time.
b) A key finding is that labor earnings have become more
important over time as a share of total income among top-earners.
How do the authors explain this finding?
c) Can we interpret their explanation as causal evidence?
Motivate your answer.
d) Describe the three arguments for why economists...