Question

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning  not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha

Q. Suppose that you are deciding whether to move to the United States or to stay in Sweden. Assume that (i) your decision is based only on wage differences; (ii) there are some fixed costs of moving and (iii) you live forever. The interest rate is given by r and wages in the US and Sweden are constant over time.

a) Derive the condition under which you will move.

b) Suppose now that you are making this decision together with your partner and you act as one unit. Explain the concept of tied stayer and tied mover.

Answer 1

Though I can personally advise a lot which I will try anyway as it could be a matter of life but I would recommend not restricting your purview to these three spots.

Ans (i) Wages: US is far better off in terms of employment and pay range and dollar was doing very well untill C!9 cropped. Sweden is Europe (Euro or Pound) and Brexit is heading - all this will afefct the way work is carried out in thsi part of the world. This is comparatively expensive region becuase of high taxes. Locals are shifting from Europew to cheaper placess like Bangkok, Australia etc because what good are high wages if you are paying 33% - 40% to goverment. (ii) Every migration has fixed cost in bot the countires. Comparatively US is cheaper compared to Sweden, Europe is anyways expensive so FC will be high. (iii) For ever - think about amentities, climate, school & education, medical facilites and employment opportunities. Europe is abundant of all these with high tax rate but extreme climate cold and dark (Sweden) atleast half of the year (even kids know that). US is also good with these offering and ametities but has places where a poor can survivie and is full of far opportnities than Sweden - for that matter.

(a) Condition: Up side should be up that is if all goes weel then movement would be profitable. I don't get wiped-off if migration doesn't work for me & lastly, odd should be in y favour. If all these conditions are true - Go For It!!   

(b) Tied Movers: who moved to anotehr country or migrated to another contry but would not have moved had they been single (unmarried). Tied Stayers: who stayed back while there family migrated or moved but would have moved or migarted to new country had they been single. The conditional dependency in both the cases is the state of being Single or Married.