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This question is based on the empirical papers of Acemoglu et al (2001) that estimate the population regression function of the form: Yi= B0 +B1X1+ui with the help of an instrumental variable Zi. The variables are defined as in class.
a) Briefly explain why the colonizers introduced extractive economic institutions in some colonies and inclusive ones in others.
b) Briefly explain why the form of the current institutions (extractive vs. inclusive) is highly correlated with the form of institutions introduced by the colonizers.
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
Suppose that the domestic demand and supply for books in a small open economy are given by:
Certainly we can nod to the idea that economic growth needs to keep up with population growth to maintain our current standard of living. However, does growth in excess of population growth increase well-being. Others argue that the pursuit of growth..
Should Joe continue to search or buy a DVD player at a price of $200. Elucidate your answer and show your calculations.
Mid-America Shipping is considering purchasing a new barge for use on its Ohio River routes.
Explain the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes. Do you agree or disagree with this view.
Given that the military is a federal organization, what reasons might they have for addressing the spiritual and emotional needs of some soldiers but not others
A recent survey reported in Business Week dealt with the salaries of CEOs at large cor-porations and whether company shareholders made money or lost money.
A nation’s aggregate real income is growing at an annual rate of 3.3 percent, and its current rate of growth of per capita real income is 0.4 percent. What is the rate of population growth in this nation?
A monopolistically competitive firm is operating in the short run, is operating at the optimal level of output, and is earning positive economic profits. Describe how this industry will adjust in the long run.
Explain the effect of each of the following on either the short run aggregate supply curve or the aggregate demand curve 1 improvement in business expectations
neither person may trade away any water to the other for exchange for more bread. Set up an Edgeworth Box to depict this situation and elucidate why it is unlikely to be Pareto efficient.
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