Question

In: Economics

You are informed that there is empirical evidence that developed countries have much higher rates of...

You are informed that there is empirical evidence that developed countries have much higher rates of COVID-19 infection than developing countries. A researcher informs you that this is a very strong and significant evidence on the negative causal relationship between economic development and infection rates. a- Do you agree that this reflects a negative relation between economic development and infection rates? Explain. (hint: negative is referring to the direction of the relation or the slope if you were to graph it). [2.5 marks]

b- Do you agree that this evidence is significant? Explain [2.5 marks]

c- Do you agree that this is a causal relation? Support your answer by providing a reason

Solutions

Expert Solution

a. I don't agree that there is negative relation between economic development and infection rates as developed countries have often other factors which are common such as temperature and eating habits.

b. I don't agree that this evidence is significant as much reasoning is not given behind the reason for spread of the infection. The infection is now spreading in developing countries and only after observing a longer term period after the virus subsides can one be able to determine the relation. Only discrepancy is that South Korea is a developed country and it was able to control the spread of the virus. So one requires much more evidence to conclude.

c. No, I don't agree as one can trust developed countries statistics, but one can't trust developing countries as they often don't give out data. So it isn't necessarily true that developed countries have much higher rates as not everyone is being tested in developing countries.


Related Solutions

Why do you think that the standard of living in developed countries is much higher compared...
Why do you think that the standard of living in developed countries is much higher compared to less developed countries?
Tuberculosis is seen in much higher levels in developing countries versus developed countries. Why and Which...
Tuberculosis is seen in much higher levels in developing countries versus developed countries. Why and Which risk factors have the greatest impact on this  phenomena occurring?
Average inflation rates tend to be higher in countries that have relatively weak judicial systems and...
Average inflation rates tend to be higher in countries that have relatively weak judicial systems and property rights (remember chapter 1 and the importance of secure property rights?). Why do you think this is the case? Would you expect these countries to have higher or lower national debt? Why?
Can we forecast exchange rates? Justify your answer with empirical evidence.
Can we forecast exchange rates? Justify your answer with empirical evidence.
Unemployment rates have been higher in many European countries in recent decades than in the United...
Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly
Unemployment rates have been higher in many European countries in recent decades than in the United...
Unemployment rates have been higher in many European countries in recent decades than in the United States. At the same time, the unemployment rates differ among different countries in the Euro Area. Explain what are the main reasons for this difference in unemployment rates between Europe and the United States, and among European countries?
According to empirical evidence, nominal interest rates are procyclical. They rise when the economy booms and...
According to empirical evidence, nominal interest rates are procyclical. They rise when the economy booms and they fall during recessions. Is this empirical evidence consistent with DAD-DAS models? Explain and use graphs to illustrate your answer.
Q13) Please explain why different countries around the world have developed at different rates?
Q13) Please explain why different countries around the world have developed at different rates?
why developed countries has a higher iit(intra industry trade)?
why developed countries has a higher iit(intra industry trade)?
A. price and income elasticities of demand; B. empirical evidence from Newly Industrialised Countries of South...
A. price and income elasticities of demand; B. empirical evidence from Newly Industrialised Countries of South East Asia; C. protectionism and its consequences; D. an argument on free trade vs protectionism.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT