Reference no: EM131248113
Random withdrawal rate:-
Consider a three-date Diamond-Dybvig economy (t = 0, 1, 2). Consumers are ex ante identical; they save 1 at date 0. At date 1, consumers learn their preferences. A fraction λ has utility u(c1) and a fraction (1 - λ) has utility u(c2). At date 0, the consumers put their savings in a bank. They later cannot withdraw and invest in financial markets, so the Jacklin critique does not apply. That is, incentive compatibility issues are ignored in this exercise (a patient depositor cannot masquerade as an impatient one).
The bank invests the per-depositor savings into short- and long-term projects: i1+i2 = 1. The long-term technology yields (per unit of investment) R > 1 at date 2, but only l 1 = r2 = 1).
(i) • Show that the optimal allocation (c1, c2) satisfies
(ii) Suppose now that there is macroeconomic uncertainty, in that λ is unknown: λ = λL with probability β and λ = λHwith probability 1 - β, where 0 L H ω and zω denote the fraction of short-term investment that is not rolled over, and the fraction of long-term investment that is liquidated, respectively, in state of nature ω ∈ {L, H}). What does the solution look like for l = 0 and l close to 1? (Showoffs: characterize the solution for a general l!)
|
Identify which level of government uses the budget
: Identify which level of government uses the budget. Create a document (please feel free to use a chart to illustrate your work) describing a minimum of six budget types to include the Description of each type of budget.
|
|
What is the name of the terminals
: What is the name of the terminals (formerly known as cash registers) that often connected to complex inventory and sales computer systems?
|
|
Explain the concept of true collaboration in health care
: Explain the concept of true collaboration in health care and describe the benefits of effective interdisciplinary collaboration. Then, describe the characteristics required for effective collaboration, describe barriers to collaboration, and offer..
|
|
Presentation will be a group of department managers
: The audience for this week's presentation will be a group of department managers within the company. The objectives of this presentation are to:
|
|
Random withdrawal rate
: The fraction of long-term investment that is liquidated, respectively, in state of nature ω ∈ {L, H}). What does the solution look like for l = 0 and l close to 1?
|
|
Find an international version of an advertisement
: What differences do you detect in the international version of the ad? How did the underlying aspects of marketing and psychology utilized in the advertisement change?
|
|
Describe the perpetual and the periodic inventory systems
: What are the different types of inventory, and what are the uses of these types - Describe the perpetual and the periodic inventory systems. How are they differ-ent? Are there circumstances in which one system better than the other?
|
|
Employ the attention cognition process
: Imagine that you have been asked to design a GPS product that will have voice recognition and Bluetooth capability. Discuss and conceptualize a user interaction model. Predict two (2) problems that may arise in GPS products with voice recognition ..
|
|
Is the policy a shared responsibility of federal government
: Is the policy a shared responsibility of federal, state, or local government? What level of government should have the primary responsibility for the issue?
|