1. Using the Ben-Porath model discussed in class, (a) What is the marginal benefit and marginal...

1. Using the Ben-Porath model discussed in class,

(a) What is the marginal benefit and marginal cost of investing in human capital production at a given t? How r,T, and t affect the marginal benefit? How b affects the marginal cost?(b) Explain how t∗(the time period when the agent is done with schooling) is determined using the marginal benefit and marginal cost in part a.(c) Illustrate in 3 diagrams how s (subt) (the share of human capital devoted to investment at period t) ,Kt (the human capital stock at the beginning of period t), and Et(earnings at period t) change over time. (Please indicates also t∗c (the time period when the agent is done with schooling) and T(Life Expectancy) )(d) Suppose the agent has bigger b(higher ability in producing new human capital), repeat the exercise in a. (Indicate the t∗i n part c as t∗c and t∗ in part d as t∗d for comparison)(e) Suppose the agent has bigger T(Longer life expectancy), repeat the exercise in a. (Indicate the t∗c and t∗e for comparison)(f) Compare part d and part e, what is the difference between the agents’ and schooling choices and earning? To what extent and improvement in health (in terms of longer life expectancy(T)) has the same effect as an improvement in learning ability (b)?

this is a labor market economics problem

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

1. What is the main benefit of using the OSI reference model? 2. What are the...

1. What is the main benefit of using the OSI reference model? 2. What are the pros and cons of using SMF optical cable? 3. What is a patch cable used for? 4. What is the difference between a E1 and a T1 leased line? 1. What part of TCP/IP provides flexibility? 2. What Ethernet class (A, B or C) is most used? Why? 3. Why is subnetting used? 4. (3 points): What is a layer 3 switch?

Marginal Analysis: Draw and explain the Marginal Benefit (MB) – Marginal Cost (MC) model. Use marginal...

Marginal Analysis: Draw and explain the Marginal Benefit (MB) – Marginal Cost (MC) model. Use marginal analysis to analyze the proper amount of pollution clean-up efforts in the Chesapeake Bay. Make a graph illustrating marginal benefits and marginal costs. Explain the analysis. Why does the intersection between the MB and MC curves illustrate the optimal level of pollution clean-up? The PPF: Draw a Production Possibilities Frontier (PPF) for the production of two goods, machine tools (a capital good) and donuts...

Describe a model of prokaryotic gene regulation that was discussed in class, or a part of...

Describe a model of prokaryotic gene regulation that was discussed in class, or a part of your readings for this semester. How are genes in this “model” turned on, turned off, or how the rate of transcription can be slowed down.

Consider the model of welfare discussed in class, where individuals are guaranteed at least a minimum...

Consider the model of welfare discussed in class, where individuals are guaranteed at least a minimum income of y and there is an implicit tax, t, applied to earnings. (a) Graph an individual's budget constraint under the welfare program, assuming the individual has no other non-labor income and could potentially earn a wage, w, if he/she chooses to work. Be sure to label all aspects of the graph, including the slopes of the budget line segments, the axes, and the...

As discussed in this class, what is a 'perception'? What is the 'external world'? What is...

As discussed in this class, what is a 'perception'? What is the 'external world'? What is meant by a 'transcendental realm'? Can you ever experience another person's perceptions? Why or why not?

what is the benefit of using DOM2 event model rather than DOM0? Explain with an example...

what is the benefit of using DOM2 event model rather than DOM0? Explain with an example please exaplain with a basic example thanks in advance

a) Using the AD-AS framework discussed in class, demonstrate the impacts of spending on infrastructure and...

a) Using the AD-AS framework discussed in class, demonstrate the impacts of spending on infrastructure and a tax cut on output and inflation in the shortrun. b) Also explain the likely impact of spending on infrastructure on output in the long-run and show this on your AS-AD diagram. c) Explain (using your own words) what would happen to unemployment and output in the short run if job support payments (both Jobseeker and Jobkeeper) were switched off.

Reflect on the concepts and differences between benefit, marginal benefit, cost, and marginal cost. We have...

Reflect on the concepts and differences between benefit, marginal benefit, cost, and marginal cost. We have applied these ideas to several scenarios: tax rates, how many employees should a firm hire, and how many years of education should an individual pursuit. Outside of the examples we have discussed, describe an application of the ideas of marginal benefit/cost to a situation in your personal or professional life. Clearly explain the difference between total benefit and marginal benefit and total cost and...

Marginal Cost and Marginal Benefit Suppose you are given a benefit equation as B(t) = -3t2...

Marginal Cost and Marginal Benefit Suppose you are given a benefit equation as B(t) = -3t2 + 15t + 160 and cost equation as C(t) = t2 -5t + 60, where t = time in hours. Find a NB equation. b. Solve for MB, MC, and find a MNB expression. c. Find the optimal amount of time you should spend on the activity and the value of NB associated with that optimal time. d. If you were given the following...

Under the job search model discussed in class, how will a company bankruptcy, like in part...

Under the job search model discussed in class, how will a company bankruptcy, like in part a, affect your labour force participation and wage a year later, if at all? Why

Subjects