Chapter 1 EconomicsFoundations and Models
学习经历的作文
学习经历的作文英文回答：Throughout my academic journey, I have embarked on a continuous pursuit of knowledge, embarking on anexplorative trek through diverse disciplines. My initial forays into the realm of learning unfurled within the confines of primary education, where I laid the foundations for my intellectual growth. The structured curriculumignited within me an insatiable thirst for understanding, propelling me to unravel the intricacies of the natural world, delve into the annals of history, and unravel the complexities of human nature.As I progressed through secondary school, my academic horizons expanded, affording me the opportunity to delve deeper into specific subjects. The allure of mathematics captivated me with its intricate patterns and logical deductions, while the eloquence of literature stirredwithin me a profound appreciation for the power of language.Foreign languages, particularly Spanish and French, opened doors to new cultures and perspectives, fostering within me a spirit of global citizenship.Upon graduating from secondary school, I embarked on my undergraduate studies at a prestigious university, where I pursued a double major in economics and political science. The rigorous coursework challenged my intellect, honing my analytical and critical thinking skills. I immersed myselfin economic models, grappling with the intricate interplayof supply and demand, market equilibrium, and fiscal policy. Political science, with its focus on the intricacies of governance, power dynamics, and international relations, captivated my attention, sparking within me a passion for understanding the complexities of human society.Beyond the classroom, I sought to enrich my academic experience through various extracurricular activities. I joined the debate team, where I honed my eloquence and developed a deep understanding of current events. Participating in research projects under the guidance of renowned professors ignited within me a love forindependent inquiry and critical analysis. I also seizedthe opportunity to study abroad in Europe, broadening my horizons and immersing myself in different cultural contexts.My academic journey has been a transformative odyssey, characterized by both challenges and triumphs. It has instilled within me a deep appreciation for the power of knowledge, fostering an unyielding curiosity that propels me to continually seek out new experiences and perspectives. As I embark on the next chapter of my life, I carry with me the invaluable lessons I have learned, confident that they will serve as a compass guiding me through the uncharted territories that lie ahead.中文回答：我的学习经历是一段不断追求知识的旅程，我探索了不同的学科。
计量经济学 伍德里奇 第一章
The main challenge of an impact evaluation is the construction of a suitable counterfactual situation.
An ideal experiment can be conducted to obtain the causal effect of fertilizer amount on yield when the levels of fertilizer are assigned to plots independently of other plot features that affect yield.
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1. Introduction
Course Structure
1. Introduction (We4 Chapter 1) 2. Mathematical Foundations,Probability Theory (We4 Appendix B & C) 3. The Bivariate Linear Regression Model (We4 Chapter 2) 4. The Multivariate Linear Regression Model (We4 Chapter 3) 5. Inference (We4 Chapter 4) 6. Further Issues (We4 Chapter 6) 7. Multiple Regression Analysis with Qualitative Information (We4 Chapter 7) 8. Heteroscedasticity (We4 Chapter 8) 9. Specification and Data Issues (We4 Chapter 9) 10. Instrument variables (We4 Chapter 15) 11. Panel Data (We4 Chapter 14)
凯恩斯英文原版书
凯恩斯英文原版书English:"Keynesian Economics" by Paul Krugman is a great academic resource for anyone interested in understanding the fundamental principles and theories of Keynesian economics. It delves into the works of John Maynard Keynes, the influential economist who revolutionized economic thought with his ideas on government intervention in the economy to manage economic fluctuations. The book provides in-depth analysis of Keynesian theory, including concepts such as aggregate demand, the multiplier effect, and the role of government spending in stimulating economic growth. It also explores the historical context of Keynesian economics and its impact on policy making, especially during times of economic crises. Overall, "Keynesian Economics" is a comprehensive and informative read for those seeking to grasp the complexities of Keynesian economic theory.中文翻译:"凯恩斯经济学"是保罗·克鲁格曼的一本杰出的学术著作，适合任何有兴趣了解凯恩斯经济学基本原理和理论的人。
经济学论文的参考文献
经济学论文的参考文献1. Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.2. Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money.3. Friedman, M. (1962). Capitalism and Freedom.4. Solow, R. M. (1956). A Contribution to the Theory of Economic Growth.5. Arrow, K. J. (1951). Social Choice and Individual Values.6. Scott, W. R. (2013). Institutions and Organizations: Ideas, Interests, and Identities.7. Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty.8. Sen, A. (1999). Development as Freedom.9. Duflo, E., & Banerjee, A. (2011). Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty.10. Ostrom, E. (1990). Governing the Commons: The Evolution of Institutions for Collective Action.11. Barro, R. J., & Sala-i-Martin, X. (1995). Economic Growth.12. Stiglitz, J. E. (2002). Globalization and its Discontents.13. Mankiw, N. G. (2014). Principles of Economics.14. Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty.15. Krugman, P. (2009). The Return of Depression Economics and the Crisis of 2008.16. Piketty, T. (2014). Capital in the Twenty-First Century.17. Friedman, M., & Schwartz, A. J. (1963). A Monetary Historyof the United States, 1867-1960.18. Romer, P. M. (1986). Increasing Returns and Long-Run Growth.19. Akerlof, G. A., & Shiller, R. J. (2009). Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism.20. Nordhaus, W. D., & Tobin, J. (1972). Is Growth Obsolete?21. Duflo, E., & Banerjee, A. (2019). Good Economics for Hard Times: Better Answers to Our Biggest Problems.22. Rogoff, K. (2011). This Time is Different: Eight Centuries of Financial Folly.23. Sachs, J. (2005). The End of Poverty: Economic Possibilities for Our Time.24. Shiller, R. J. (2015). Irrational Exuberance.25. Easterly, W. (2006). The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good.26. Thaler, R. H. (2015). Misbehaving: The Making of Behavioral Economics.27. Sen, A. (1999). Development as Freedom.28. Obstfeld, M., & Rogoff, K. (1996). Foundations of International Macroeconomics.29. Rajan, R. G. (2010). Fault Lines: How Hidden Fractures Still Threaten the World Economy.30. McCloskey, D. N. (2010). Bourgeois Dignity: Why Economics Can't Explain the Modern World.These books cover a wide range of economic topics, from growth and development to globalization, behavioral economics, and the history of economic thought. Each provides valuable insights into the complex and dynamic field of economics.。
货币银行学 英语
货币银行学英语The intricate world of monetary banking, rooted in the foundations of economics, finance, and policy-making, holds a pivotal position in shaping the global economy. The dynamics of currency, credit, and financial institutions are at the core of this discipline, influencing the flow of funds, interest rates, and inflation rates. As the global economy becomes increasingly interconnected, the significance of monetary banking in English, as a lingua franca of international finance, cannot be overstated.In the realm of monetary banking, the English language serves as a bridge that connects diverse financial markets, institutions, and policies across the globe. English is the language of financial reports, market analysis, and international agreements, facilitating the seamless exchange of information and ideas. This linguistic unity not only enhances the efficiency of financial markets but also promotes stability and growth by fostering transparency and accountability.The integration of English and monetary banking is evident in the global financial architecture. Internationalfinancial institutions such as the International Monetary Fund (IMF) and the World Bank conduct their operations primarily in English, ensuring that financial policies and strategies are communicated effectively to a wide range of stakeholders. The common language of finance enables policymakers to respond quickly to crises, coordinate global economic efforts, and promote sustainable development.Moreover, the rise of English in monetary banking has accelerated the pace of financial innovation and technology adoption. Financial technologies (FinTech) such as blockchain and artificial intelligence are revolutionizing the banking industry, and English serves as the language of choice for research, development, and implementation. This linguistic统一性促进了金融服务的普及和效率提升，同时也加强了全球金融市场的连通性和竞争力。
萨缪尔森：《经济学》英文版目录
Economics, 18/ePaul A. Samuelson, Massachusetts Institute of Technology William D. Nordhaus, Yale UniversityISBN: 0072872055Copyright year: 2005Table of ContentsPart One: Basic Concepts1 The Fundamentals of EconomicsAppendix 1 How to Read Graphs2 Markets and Government in a Modern Economy3 Basic Elements of Supply and DemandPart Two: Microeconomics: Supply, Demand, and Product Markets4 Applications of Supply and Demand5 Demand and Consumer BehaviorAppendix 5 Geometrical Analysis of Consumer Equilibrium6 Production and Business Organization7 Analysis of CostsAppendix 7 Production, Cost Theory, and Decision of theFirm8 Analysis of Perfectly Competitive Markets9 Competition and Its Polar Case of Monopoly10 Oligopoly and Monopolistic Competition11 Uncertainty and Game TheoryPart Three: Factor Markets: Labor, Land, and Capital12 How Markets Determine Incomes13 The Labor Market14 Land and CapitalAppendix 14 Markets and Economic EfficiencyPart Four: Applied Microeconomics: International Trade, Government, and the Environment15 Comparative Advantage and Protectionism16 Government Taxation and Expenditure17 Promoting More Efficient Markets18 Protecting the Environment19 Efficiency vs. Equality: The Big TradeoffPart Five: Macroeconomics: Economic Growth and Business Cycles20 Overview of MacroeconomicsAppendix 20 Macroeconomic Data21 Measuring Economic Activity22 Consumption and Investment23 Business Fluctuations and the Theory of Aggregate Demand24 The Multiplier Model25 Money, Banking, and Financial Markets26 Central Banking and Monetary PolicyPart Six: Economic Growth and Macroeconomic Policy27 The Process of Economic Growth28 The Challenge of Economic Development29 Exchange Rates and the International Financial System30 Open-Economy MacroeconomicsPart Seven: Unemployment, Inflation, and Economic Policy31 Unemployment and the Foundations of Aggregate Supply32 Ensuring Price Stability33 The Warring Schools of Macroeconomics34 Policies for Growth and Stability。
金融学必读书籍
金融学必读书籍1、曼昆《经济学原理》北京大学出版社点评:很多人真正读懂西方经济学都是从曼昆的《经济学原理》开始的,因为有趣、易懂,“十大经济学原理”令人印象深刻,当年学萨缪尔森的经济学时感觉经济学像个严谨的老学究,读曼昆的就不一样了,像个会讲故事的朋友,即使不从事金融行业,相信你也会喜欢上她的。
这绝对是一本让人拿得起,放不下的枕边图书。
2、弗雷德里克S.米什金《货币金融学》(原书第2版) 机械工业出版社点评:但凡从事金融行业的专业人士对这本书都不会感到陌生,这是金融专业第一本专业基础课教材。
过去我国大学课程里叫“货币银行学”,后来随着金融业的发展,货币逐渐成为金融产品里的一部分而非全部,银行也是金融机构的一个分支,于是和国际接轨改成“金融学”或者“货币金融学”,其实是同一类书。
弗雷德里克S.米什金是这个领域绝对的权威。
中国人民大学出版社出版了这本书的另一个版本,但是最新版删去了非银行金融机构、衍生金融工具和金融行业内的利益冲突等章节,感觉不爽!3、弗兰克J. 法博齐《金融市场与金融机构基础》(原书第4版)机械工业出版社点评:米什金也写过《金融市场与金融机构》,但我个人更倾向于这本由耶鲁大学弗兰克J. 法博齐编写的《金融市场与金融机构基础》,因为米什金的长项在于货币理论研究方面,对于金融机构方面略逊,而且法博齐这本书也是耶鲁大学公开课的指定教材,本人很喜欢主讲教师罗伯特.席勒的谦逊、严谨与博学,还有他上课时不时的害羞模样,哈哈。
况且公开课网上视频随处可以下载,对照视频看书,会有在耶鲁大学上课的感觉呢!4、滋维.博迪《投资学》(原书第7版) 机械工业出版社点评:还能找到比这本书更权威的吗？答案是否定的。
如果说以前威廉.夏普版《投资学》还可以与之掰掰手腕的话,如今夏普版《投资学》第5版已经被定格在2002年的现实再一步证实:博迪版《投资学》已经是投资学领域绝对的NUMBER 1,当之无愧的集大成者。
但是第7版的翻译确实有些问题,英语好的朋友们可以找找对应的英文版。
英国留学国际金融专业
英国留学国际金融专业英国留学金融专业详解分类及介绍国外关于金融专业的设置，是两方面都有。
一、以微观为主，也就是研究与公司个体有关的投资、融资等行为。
另一方面就是和国内类似的宏观金融的研究。
专业细分英国大学的金融专业按细分不同通常设置在商学院、经济学院或数学学院。
在参考专业排名时需要考虑会计与金融、经济、商学三个方向。
金融专业细分可分为：金融学、公司金融、金融与投资、国际金融、银行与金融、金融与管理、会计与金融、风险管理、房地产金融与投资、金融与经济、金融工程。
金融学：对金融各个细分领域的综合介绍。
下面以曼彻斯特大学为例来看下金融学专业的课程设置：第一学期必修课：Introductory Research Methods for Accounting and Finance; 会计与金融学方法导论Essentials of Finance;金融学精要Derivative Securities衍生证券选修一门：Portfolio Investment证券投资International Macroeconomics and Global Capital Markets国际宏观经济学与全球资本市场Foundations of Finance Theory金融学基础第二学期Financial Econometrics金融计量经济学Advanced Empirical Finance高级实证金融学Corporate Finance; 公司金融选修一门International Finance国际金融Financial Statement Analysis财务报表分析Real Options in Corporate Finance公司金融中的实物期权Mergers and Acquisitions: Economic and Financial Aspects关于企业并购的经济金融思考Dissertation毕业论文公司金融：解决以公司财务、公司融资、公司治理为核心的公司治理结构方面的问题，综合运用各种形式的金融工具与方法，进行风险管理和财富创造。
经济学学习计划英语
经济学学习计划英语IntroductionEconomics is the study of how individuals, businesses, and governments make decisions about allocating resources to achieve their goals. It helps us understand the mechanisms of production, consumption, and distribution of goods and services. A deeper understanding of economics can help us make better decisions, whether we are an individual making choices about how to spend money, a business making decisions about how to produce and price goods, or a government making policies that affect the economy.As an aspiring economist, I am dedicated to developing a strong foundation in economic theory and its real-world applications. In this study plan, I will outline my goals, resources, and timeline for achieving my learning objectives.GoalsMy primary goal in studying economics is to develop a comprehensive understanding of economic theory and its application in the real world. I aim to master the various concepts and principles in microeconomics and macroeconomics, and develop an ability to critically analyze economic policies and their implications. I also intend to improve my quantitative skills, particularly in using economic models to analyze and interpret data. Furthermore, I aim to gain a solid understanding of the history of economic thought, including the contributions of key economists and their impact on economic theory. This will enable me to appreciate the evolution of economic thinking and its relevance to contemporary economic issues.Finally, I hope to develop strong writing and communication skills in economics, as well as the ability to apply economic principles in solving real-world problems.ResourcesTo achieve my goals, I plan to utilize a variety of resources, including textbooks, academic journals, online courses, and educational videos. I will also seek out opportunities for hands-on learning, such as internships or research projects, to apply economic concepts in real-world settings.Textbooks: I will begin with introductory textbooks on microeconomics and macroeconomics, such as "Principles of Microeconomics" by N. Gregory Mankiw and "Macroeconomics" by Paul Krugman and Robin Wells. As I progress, I will explore more advanced texts on specific areas of economics, such as international trade, public finance, and development economics.Academic Journals: I will regularly read articles published in reputable economic journals, such as the American Economic Review, the Journal of Economic Perspectives, and theQuarterly Journal of Economics. This will help me stay updated on the latest research and advancements in the field of economics.Online Courses: I will enroll in online courses offered by prestigious institutions, such as Coursera, edX, and Khan Academy. These courses will provide me with in-depth lectures, quizzes, and assignments, allowing me to learn at my own pace and test my understanding of the material.Educational Videos: I will supplement my reading with educational videos on economics, available on platforms such as YouTube and TED Talks. These videos will provide visual explanations of economic concepts and real-world examples, making the material more engaging and relatable.Hands-On Learning: I will seek opportunities to apply economic principles in practical settings, such as internships at economic research institutions, government agencies, or private businesses. I will also consider conducting independent research projects or participating in economic competitions to further deepen my understanding of economics.TimelineTo ensure a structured and sustainable approach to my learning, I have outlined a timeline with specific milestones to be achieved.Year 1: Foundations of Economics- Read introductory textbooks on microeconomics and macroeconomics- Enroll in online courses on economic principles- Familiarize myself with key economic concepts, such as supply and demand, elasticity, GDP, inflation, and unemployment- Develop basic quantitative skills in economics, such as graphing and interpreting economic data- Begin reading academic journal articles to understand real-world applications of economic theoryYear 2: Advanced Topics in Economics- Dive deeper into specific areas of economics, such as international trade, public finance, and economic development- Explore more advanced textbooks and academic literature on economic theory and policy- Enhance quantitative skills through data analysis and modeling- Consider pursuing internships or research opportunities to apply economic concepts in practical settings- Develop critical thinking skills by analyzing and evaluating economic research and policy proposalsYear 3: Specialization and Application- Choose a specialization within economics, such as environmental economics, labor economics, or behavioral economics- Pursue advanced coursework and research in the chosen specialization- Apply economic principles to real-world problems and develop solutions through research or projects- Strengthen writing and communication skills through composing research papers and reports- Explore opportunities for presenting research at conferences or workshopsYear 4: Culmination and Reflection- Consolidate knowledge and skills acquired throughout the study of economics- Prepare for comprehensive exams or thesis defense, if applicable- Reflect on the journey of learning economics and identify areas for further development - Consider pursuing postgraduate studies or professional certifications in economics- Connect with professionals in the field for mentorship and career guidanceConclusionIn conclusion, my study plan for economics is designed to equip me with a comprehensive understanding of economic theory, quantitative skills, critical thinking, and application of economic principles. By effectively utilizing various resources and committing to a structured timeline, I am confident that I will achieve my learning objectives and develop a strong foundation for a successful career in economics. I am excited to embark on this journey of learning and look forward to the intellectual challenges and opportunities that await me.。
The Economics of Microfinance-chapter 1
The Economics of Microfi nanceBeatriz Armendáriz and Jonathan MorduchThe MIT PressCambridge, MassachusettsLondon, EnglandSecond Edition© 2010 Massachusetts Institute of TechnologyAll rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher.For information about special quantity discounts, please email special_sales@mitpress. .This book was set in Palatino by Toppan Best-set Premedia Limited.Printed and bound in the United States of America.Library of Congress Cataloging-in-Publication DataArmendáriz, Beatriz.The economics of microfinance / Beatriz Armendáriz and Jonathan Morduch.—2nd ed.p. cm.Includes bibliographical references and index.ISBN 978-0-262-01410-6 (hardcover : alk. paper)—ISBN 978-0-262-51398-2 (pbk. : alk. paper) 1. Microfinance. I. Morduch, Jonathan. II. Title.HG178.3.A76 2010332—dc22200903476010 9 8 7 6 5 4 3 2 11 1.1 IntroductionIn March 1978, seven years after Bangladesh won its war for indepen-dence, a small group of young men joined together to make a secret pledge. They vowed to create a new and dynamic organization dedi-cated to fi ghting rural poverty. Some saw Bangladesh’s plight as hope-less, as the country struggled in a world increasingly divided between haves and have-nots. Thirty years later, however, the organization started by the young men serves nearly six million villagers in Bangladesh and is celebrated by global business leaders. The Associa-tion for Social Advancement (now best known by its acronym, ASA) targets Bangladesh’s poorest villagers, many of them women, offering tools to create better lives. ASA found success by applying fundamen-tal lessons from economics and management, coupled with important (and not obvious) new insights. In the process, ASA is expanding fi nancial markets and creating fresh ways to think about business strat-egies, economics, and social change.1The hurdles have been high and ASA’s leaders have had to rethink their plans more than once. While ASA started with a commitment to fomenting political transformation, its course shifted radically. Today ASA is squarely a bank for the poor, headquartered in a new offi ce tower in Bangladesh’s capital. In this, ASA stands as part of a global “microfi nance” movement dedicated to expanding access to small-scale loans, savings accounts, insurance, and broader fi nancial services in poor and low-income communities. Their bet is that access to microfi -nance can offer powerful ways for the poor to unlock their productive potential by growing small businesses. Increasingly, the focus is also on helping customers save for the future and create more stable lives. InRethinking Banking2 Chapter1doing so, ASA and institutions like it are challenging decades ofthinking about markets and social policy in low-income communities.ASA’s customers borrow on average around $120 per loan, andrepay the loans over the better part of a year. Traditional commercialbanks avoid this population. First, the loans are so small that profitsare typically hard to find, and, second, lending seems risky since theborrowers are too poor to offer much in the way of collateral. But atthe end of 2008 ASA reported loan recovery rates of 99.6 percent, andtheir reported revenues have fully covered costs in every year since1993.For many observers, microfinance is nothing short of a revolution ora paradigm shift (Robinson 2001). Innovators are profi led in leadingnewspapers and business magazines (in December 2007, ASA toppedForbes magazine’s global ranking of microfinance providers), andthe 2006 Nobel Peace Prize, awarded to the microfi nance pioneersMuhammad Yunus and Grameen Bank, signals the ways in whichmicrofinance has shaken up the world of international development.One of the most striking elements is that the pioneering models grewout o f e xperiments i n l ow-income c ountries l ike B olivia a nd B angladesh—rather than from adaptations of standard banking models in richercountries.Entrepreneurs, academics, social activists, and development expertsfrom around the world have been attracted by the lessons about retailbanking through microfinance, as well as by the promise that bankslike ASA hold for getting much-needed resources to underserved pop-ulations.2 Scores of doctoral dissertations, master’s theses, and aca-demic studies have now been written on microfinance. Some focus onthe nontraditional contracts used to compensate for risks and to addressinformation problems faced by the microlenders. Others focus onmicrofinance as a way to better understand the nature of markets inlow-income economies—with possible lessons for how to supply insur-ance, water, and electricity through markets rather than throughinefficient state-owned companies. Still others focus on the ways thatmicrofinance promises to reduce poverty, fight gender inequality, andstrengthen communities. This book provides a critical guide to someof the most important new ideas.The ideas give reasons for hope. Banks and NGOs like ASA areflourishing at a time when the effectiveness of foreign aid to ease theburdens of the world’s poor faces fundamental questions (e.g., Boone1996; Easterly 2006). Governments around the world routinely faceRethinking Banking 3criticism for at times being corrupt, bloated, and uninterested in reform. Against this background, banks and NGOs like ASA offer the promise of innovative, cost-effective paths to poverty reduction and social change.ASA is not the only microlender flourishing in rural Bangladesh. ASA’s leadership could learn from the experiences of Grameen Bank and from BRAC (formerly the Bangladesh Rural Advancement Com-mittee). When we looked at the fi gures at the end of 2003, Grameen claimed 3.1 million members, BRAC claimed 3.9 million, and ASA claimed 2.3 million, nearly all of whom had been written off by com-mercial banks as being “unbankable.” Just four years later, at the end of 2007, the 3 biggest microlenders in Bangladesh claimed over 20 million customers: Grameen counted 7.4 million members, BRAC counted another 7.4 million, and ASA counted 5.4 million.3 Even accounting for the fact that people may belong to more than one micro-lending program at a time, both the absolute and relative fi gures show the potential for rapid growth and scale.The institutions anchor a movement that is global and growing. Microfinance programs have created new opportunities in contexts as diverse as villages along the Amazon, inner-city Los Angeles, the Paris outskirts, and war-ravaged Bosnia. Programs are well-established in Bolivia, Bangladesh, and Indonesia, and momentum is gaining in Mexico and India. Table 1.1 shows the results of a survey conducted by the Microcredit Summit Campaign. By the end of 2007, the campaign had reports of 154.8 million microfinance clients served worldwide by over 3,350 microfinance institutions. Of these clients, 106.6 million were reported as being in the bottom half of those living below their nation’s poverty line or were living in households earning under $1 per day per person (defined as “the poorest”; Daley-Harris 2009). Between 1997 and 2007, the numbers grew on average by about 30 percent per year, and the movement’s leaders expect continued expansion as credit unions, commercial banks, and others enter the market.Microfinance presents a series of exciting possibilities for extending markets, reducing poverty, and fostering social change. But it also presents a series of puzzles, many of which have not yet been widely discussed. One aim of this book is to describe the innovations that have created the movement. Another aim is to address and clarify the puzzles, debates, and assumptions that guide discussions but that are too often overlooked. Debates include whether the poorest are best4 Chapter 1served by loans or by better ways to save, whether subsidies are a help or a hindrance, whether providing credit without training and other complements is enough, and which aspects of lending mechanisms have driven successful performances. Many of the insights from the microfinance experience can be seen fruitfully through the lens of recent innovations in economics (especially the economics of informa-tion, contract theory, and behavioral economics). Other microfinance insights point to areas where new research is needed, especially around possibilities and constraints for saving by the poor and for estimating social impacts.Another aim of the book is to tackle the myths that have made their way into conversations on microfinance. The first myth is that microfinance is essentially about providing loans. In chapter 6 we show that providing better ways for low-income households to save and insure can be as important. But we take issue with the argument that, for the poorest, saving is more important. The second myth is that the secret to the high repayment rates on loans is tied closely to the use of the group lending contracts made famous by Bangladesh’s Grameen Bank and Bolivia’s BancoSol. (Grameen’s original approach is described in section 1.4 and in chapter 4.) Group lending has indeed been a critical innovation, but we note emerging tensions,Table 1.1Growth of microfi nance coverage as reported to the Microcredit Summit Campaign, 1997–2007End of year Total number ofinstitutionsTotal number of clients reached (millions)Number of “poorest” clients reported (millions)1997 65516.59.01998 70518.710.71999 96421.813.020001,47738.221.620012,03357.329.520022,33467.841.620032,57781.355.020042,81499.772.720053,056135.296.220063,244138.796.220073,352154.8106.6Source : Daley-Harris 2009.Rethinking Banking 5and in chapter 5 we describe a series of innovations in contracts and banking practices that go beyond group lending. We believe that the future of microfinance lies with these less-heralded innovations—including the focus on female customers (discussed in greater detail in chapter 7) and the improved management practices described in chapter 11.The third myth is that microfinance has a clear record of social impacts and has been shown to be a major tool for poverty reduction and gender empowerment. We believe that microfinance can make a real difference in the lives of those served (otherwise we would not have written this book), but microfinance is neither a panacea nor a magic bullet, and it cannot be expected to work everywhere or for everyone. Relatively few rigorous studies of impacts have been com-pleted, and the evidence on statistical impacts has been mixed so far. There is not yet a widely acclaimed study that robustly shows strong impacts, but many studies suggest the possibility. Better impact studies can help resolve debates, and we review recent results using random-ized control trials. Chapter 9 describes approaches and challenges to be confronted in pushing ahead.The final myth is that most microlenders today are both serving the poor and making profits. We show in chapters 8 and 10 that profitability has been elusive for many institutions, and we describe why good banking practices matter—and how subsidies can be deployed strategi-cally to move microfinance forward.Unlike most discussions of microfinance oriented toward practitio-ners, we do not begin by describing new microfinance institutions.4 We will have much to say about recent innovations later, but our approach begins instead with the nature of poverty and the markets and institutions that currently serve poor households. By beginning with households, communities, and markets, we develop analytical tools and insights that can then be used to think about the new institu-tions, as well as to think about directions that go beyond current approaches.1.2 Why Doesn’t Capital Naturally Flow to the Poor?From the viewpoint of basic economics, the need for microfinance is somewhat surprising. One of the first lessons in introductory econom-ics is the principle of diminishing marginal returns to capital, which says that enterprises with relatively little capital should be able to earn6 Chapter 1higher returns to their investments than enterprises with a great deal of capital. Poorer enterprises should thus be able to pay banks higher interest rates than richer enterprises. Money should flow from rich depositors to poor entrepreneurs.The “diminishing returns principle” is derived from the assumed concavity of production functions, as illustrated in figure 1.1. Concav-ity is a product of the plausible assumption that when an enterprise invests more (i.e., uses more capital), it should expect to produce more output, but each additional unit of capital will bring smaller and smaller incremental (“marginal”) gains. When a tailor buys his first $100 sewing machine, production can rise quickly relative to the output when using only a needle and thread. The next $100 investment, say for a set of electric scissors, will also bring gains, but the incremental increase is not likely to be as great as that generated by the sewing machine. After all, if buying the scissors added more to output than the sewing machine, the wise tailor would have bought the scissors first. The size of the incremental gains matter since the marginal return to capital determines the borrowers’ ability to pay.5 As figure 1.1 shows, concav-ity implies that the poor entrepreneur has a higher marginal return to capital (and thus a higher ability to repay lenders) than a richerentrepreneur.O u t p u t CapitalFigure 1.1Marginal returns to capital with a concave production function. The poorer entrepreneur has a greater return on his next unit of capital and is willing to pay higher interest rates than the richer entrepreneur.Rethinking Banking 7On a larger scale, if this basic tool of introductory economics is correct, global investors have got it all wrong. Instead of investing more money in New York, London, and Tokyo, wise investors should direct their funds toward India, Kenya, Bolivia, and other low-income countries where capital is relatively scarce. Money should move from North to South, not out of altruism but in pursuit of profit. The Nobel-winning economist Robert Lucas Jr. has measured the extent of the expected difference in returns across countries (assuming that marginal returns to capital depend just on the amount of capital relative to other productive inputs). Based on his estimates of marginal returns to capital, Lucas (1990) finds that borrowers in India should be willing to pay fifty-eight times as much for capital as borrowers in the United States. Money should thus flow from New York to New Delhi.6The logic can be pushed even further. Not only should funds move from the United States to India, but also, by the same argument, capital should naturally flow from rich to poor borrowers within any given country. Money should flow from Wall Street to Harlem and to the poor mountain communities of Appalachia, from New Delhi to villages throughout India. The principle of diminishing marginal returns says that a simple cobbler working on the streets or a woman selling flowers in a market stall should be able to offer investors higher returns than General Motors or IBM or the Tata Group can—and banks and inves-tors should respond accordingly.Lucas’s ultimate aim is to point to a puzzle: given that investors are basically prudent and self-interested, how has introductory economics got it wrong? Why are investments in fact far more likely to flow from poor to rich countries, and not in the other direction? Why do large corporations have a far easier time obtaining financing from banks than self-employed cobblers and flower sellers?The first place to start in sorting out the puzzle is with risk. Investing in Kenya, India, or Bolivia is for many a far riskier prospect than invest-ing in U.S. or European equities, especially for global investors without the time and resources to keep up-to-date on shifting local conditions. The same is true of lending to cobblers and flower sellers versus lending to large, regulated corporations. But why can’t cobblers and flower sellers in the hinterlands offer such high returns to investors that their risk is well compensated for?One school argues that poor borrowers can pay high interest rates in principle but that government-imposed interest rate restrictions prevent banks from charging the interest rates required to draw capital8 Chapter1from North to South and from cities to villages.7 If this is so, the chal-lenge for microfinance is wholly political. Advocates should just con-vince governments to remove usury laws and other restrictions onbanks, then sit back and watch the banks flood into poor regions. Thatis easier said than done of course, especially since usury laws (i.e., lawsthat put upper limits on the interest rates that lenders can charge) havelong histories and strong constituencies.Reality is both more complicated and more interesting. Even if usurylaws could be removed, providing banks with added freedom to servethe poor and cover costs is not the only answer. Indeed, as we showin chapter 2, raising interest rates can undermine institutions by weak-ening incentives for borrowers. Once (lack of) information is broughtinto the picture (together with the lack of collateral), we can more fullyexplain why lenders have such a hard time serving the poor, evenhouseholds with seemingly high returns. The important factors are thebank’s incomplete information about poor borrowers and the poorborrowers’ lack of collateral to offer as security to banks.The first problem—adverse selection—occurs when banks cannoteasily determine which customers are likely to be more risky thanothers. Banks would like to charge riskier customers more than safercustomers in order to compensate for the added probability of default.But the bank does not know who is who, and raising average interestrates for everyone often drives safer customers out of the credit market.The second problem, moral hazard, arises because banks are unable toensure that customers are making the full effort required for theirinvestment projects to be successful. Moral hazard also arises whencustomers try to abscond with the bank’s money. Both problems aremade worse by the difficulty of enforcing contracts in regions withweak judicial systems.These problems could potentially be eliminated if banks had cheapways to gather and evaluate information on their clients and to enforcecontracts. But banks typically face relatively high transactions costswhen working in poor communities since handling many small trans-actions is far more expensive than servicing one large transaction fora richer borrower. Another potential solution would be available ifborrowers had marketable assets to offer as collateral. If that were so,banks could lend without risk, knowing that problem loans werecovered by assets. But the starting point for microfinance is that newways of delivering loans are needed precisely because borrowers aretoo poor to have much in the way of marketable assets. In this sense,1.3 Good Intentions Gone Awry: The Failures of State-Owned Development BanksThe lack of banks does not mean that poor individuals are unable to borrow. They do—but from informal sources such as moneylenders, neighbors, relatives, and local traders. Such lenders often have the rich information (and effective means of enforcing contracts) that banks lack. Their resources, however, are limited. Microfinance presents itself as the latest solution to the age-old challenge of finding a way to combine the banks’ resources with the local informational and cost advantages of neighbors and moneylenders. Like traditional banks, microfinance institutions can bring in resources from outside the com-munity. Microfinance is not the first attempt to do this, but it is by far the most successful.The success of microfinance depends in part on studiously avoiding the mistakes of the past. As low-income countries attempted to develop their agricultural sectors after World War II, rural finance emerged as a large concern then too. Large state agricultural banks were given the responsibility for allocating funds, with the hope that providing sub-sidized credit would induce farmers to irrigate, apply fertilizers, and adopt new crop varieties and technologies (e.g., Reserve Bank of India 1954). The hope was to increase land productivity, increase labor demand, and thereby to increase agricultural wages.Heavy subsidies were also deployed to compensate the banks for entering into markets where they feared taking huge losses due to high transactions costs and inherent risks. The subsidies were also used to keep interest rates low for poor borrowers. In the Philippines, for example, interest rates charged to borrowers were capped at 16 percent before a reform in 1981, while inflation rates were around 20 percent annually (David 1984). The negative real interest rates created excess demand for loans, adding pressure to allocate loans to politically favored residents, rather than to target groups. Meanwhile, the interest rates offered to rural depositors were only about 6 percent per year, so inflation eroded the purchasing power of savings at a rate of about 14 percent per year. Not surprisingly, such policies turnedout disastrously. David (1984, 222) concludes that in the PhilippinesIndia’s Integrated Rural Development Program (IRDP) is, to many, a too perfect example of inefficient subsidized credit. The program allocated credit according to “social targets” that in principle pushed 30 percent of loans toward socially excluded groups (as signified by being a member of a “scheduled” tribe or caste) and 30 percent toward women. Achieving social goals became as important as achieving efficiency. Under the system, capital was allocated according to a series of nested planning exercises, with village plans aggregating to block plans aggregating to district plans aggregating to state plans. Subsidies between 1979 and 1989, a period of rapid IRDP growth, amounted to $6 billion (roughly 25 percent to 50 percent of loan volume made to weak sectors). Those resources did not generate good institutional performance. According to Pulley (1989), IRDP repayment rates fell below 60 percent, and just 11 percent of borrowers took out a second loan after the first (which is particularly striking given the importance accorded to repeat lending by microfinance practitioners). In 2000, the IRDP loan recovery rate fell to just 31 percent (Meyer 2002).10 As insti-tutional performance dramatically weakened, the IRDP failed to be a reliable and meaningful source of services for the poor.In the late 1970s and early 1980s, the Rural Finance Program at Ohio State University launched a devastating critique of government-led development banks like the IRDP and the Philippine programs.11 Its starting point was that credit is not like fertilizer or seeds. Instead, Ohio School critics argued, credit should be thought of as a fungible tool of financial intermediation (with many uses) and not as a specific input into particular production processes. Thus one problem, according to such criticisms, came from mistakenly believing that credit could be “directed” to particular ends favored by policymakers (e.g., expanding the use of high-yielding crop varieties). And that, coupled with cheap credit policies, created havoc in rural financial markets and ultimately undermined attempts to reduce poverty (Adams, Graham, and von Pischke 1984). The story hinges on a failure to adequately account forthe incentive effects and politics associated with subsidies. SubsidizingThus, critics of the subsidized state banks argue that poor house-holds would often have been better off without the subsidies. This is in part because, first, subsidized banks pushed out informal credit sup-pliers on which the poor rely. Second, the market rate of interest is a rationing mechanism—those who are willing to pay for credit are only those with projects that are most worthy. But with subsidies driving interest rates well below market rates of interest, the rationing mecha-nism broke down. Credit was no longer allocated to the most produc-tive recipients, but instead was often allocated on the basis of politics or social concerns. Good projects thus went unfunded. Third, bankers’ incentives to collect savings deposits were diminished by the steady flow of capital from the government, so poor households were left with relatively unattractive and inefficient ways to save. Fourth, the fact that the banks were state banks led to pressure to forgive loans just before elections, to privilege the powerful with access to cheap funds meant for the poor, and to remove incentives for management to build tight, efficient institutions. Braverman and Guasch (1986) conclude that gov-ernment credit programs in Africa, the Middle East, Latin America, South Asia, and Southeast Asia have, with a few exceptions, ended up with default rates between 40 percent and 95 percent. And at such rates, borrowers can be excused for seeing the credit programs as pro-viding grants rather than loans. The misallocation of resources hap-pened so regularly that González-Vega (1984) dubs it the “iron law of interest rate restrictions.”Critics hold that these kinds of subsidies undermined the poor, although the evidence from India at least provides a more nuanced picture. Empirical work by Burgess and Pande (2005), for example, shows net positive average impacts on the poor in India.12 Similarly, Binswanger and Khandker (1995) find that between 1972–1973 and 1980–1981 the state banks in India increased nonfarm growth, employ-ment, and rural wages. Still, the Indian programs have been clearly inefficient, and a great deal of money that was originally targeted to the poor ended up being wasted or going into the “wrong” hands. As a result, Binswanger and Khandker find only modest impacts on agri-cultural output and none on agricultural employment, and they con-clude that the costs of the government programs were so high that they nearly swamped the economic benefits. More than any positive histori-cal precedent, it is the repudiation of these negative legacies that has1.4 Grameen Bank and the Beginnings of MicrofinanceThe roots of microfinance can be found in many places, but the best-known story is that of Muhammad Yunus and the founding of Bangladesh’s Grameen Bank. We briefly tell the story now and return to Grameen’s experience in later chapters.13In the middle of the 1970s, Bangladesh was starting down the long road to build a new nation. The challenges were great: independence from Pakistan had been won in December 1971 after a fierce war, and two years later widespread flooding brought on a famine that killed tens of thousands (Sen 1981). Government surveys found over 80 percent of the population living in poverty in 1973–1974 (Bangladesh Bureau of Statistics 1992).Muhammad Yunus, an economist trained at Vanderbilt University, was teaching at Chittagong University in southeast Bangladesh. The famine, though, brought him disillusionment with his career as an economics professor. In 1976, Yunus started a series of experiments lending to poor households in the nearby village of Jobra. Even the little money he could lend from his own pocket was enough for villag-ers to run simple business activities like rice husking and bamboo weaving. Yunus found that borrowers were not only profiting greatly by access to the loans but that they were also repaying reliably, even though the villagers could offer no collateral. Realizing that he could only go so far with his own resources, in 1976 Yunus convinced the Bangladesh Bank (the central bank of Bangladesh) to help him set up a special branch that catered to the poor of Jobra. That soon spawned another trial project, this time in Tangail in North-Central Bangladesh. Assured that the successes were not region-specific flukes, Grameen went nation-wide. One innovation that allowed Grameen to grow explosively was group lending, a mechanism that essentially allows the poor borrowers to act as guarantors for each other. With group lending in place, the bank could quickly grow village by village as funding permitted. And funding—supplied in the early years by the International Fund for Agriculture and Development, the Ford Foun-dation, and the governments of Bangladesh, Sweden, Norway, and the Netherlands—permitted rapid growth indeed. As figure 1.2 shows, thebank grew by 40 percent per year at its peak. By 1991 the Grameen。
Instructor-NYUStern
316-466Monetary EconomicsSemester2,2003InstructorChris EdmondOffice Hours:Wed1:00pm-3:00pm,Economics and Commerce Rm419Email:<********************.au>Prerequisites316-312Macroeconomics and316-313MicroeconomicsClassesMon9:00am-10:30am Babel Lower TheatreWed9:00am-10:30am Old Arts-204(CLS)Textbook•Carl E.Walsh.(1998)Monetary Theory and Policy.Cambridge,MA:MIT Press.In addition to the text by Walsh(above),we will also make use of material from:•Michael Woodford.(2003)Interest and Prices:Foundations of a Theory of Monetary Policy.Princeton,NJ:Princeton University Press,forthcoming.Subject overviewAn advanced introduction to modern monetary economics.Covers topics such as:neoclassi-cal monetary theory;price rigidities;interest rates,inflation targeting and central banking; rules versus discretion in monetary policy;microeconomic foundations of monetary eco-nomics.Both theoretical and empirical issues will be emphasized.Open economy aspects of monetary economics will be covered where appropriate.AssessmentEither(a):180minutefinal examination(70%)and homework assignments(30%);or (b)90minute mid-semester examination(20%),180minutefinal examination(50%)and homework assignments(30%).1Schedule of topics•Students with strong interests in international monetary economics are also encouraged to attend my PhD course,316-632International Monetary Economics,where many related topics will be covered.•I plan to split the course into four parts of varying lengths.There will be one homework assignment for each part.Part I:Intertemporal Prices and Choices1.Introduction and course overview.One lecture.•Some provocative reading:—J.Bradford De Long.(2000).“The Triumph of Monetarism?”Journal ofEconomic Perspectives.14(1):83-94.—Milton Friedman.(1968).“The Role of Monetary Policy,”American Eco-nomic Review.58(1):1-17.—Robert E.Lucas,Jr.(1996).“Nobel Lecture:Monetary Neutrality,”Journalof Political Economy.104(4):661-682.2.Monetary economics concepts.One lecture.Barter and exchange economies.Dou-ble coincidences.Money as a medium of exchange,store of value,and unit of account.Money as memory.Fiat money versus commodity money.The“Hahn problem.”In-flation.Liquidity.Quantity theories and Fisher equations.Etc.3.Asset pricing basics.Four lectures.Choice under uncertainty.Intertemporal prices.Intertemporal budget constraints.Consumption-based asset pricing.•Concise textbook treatment:—Lars Ljungqvist and Thomas J.Sargent.(2000).Recursive MacroeconomicTheory.Cambridge,MA:MIT Press.Chapters7and10.•A classic article:—Robert E.Lucas,Jr.(1978).“Asset Prices in an Exchange Economy,”Econo-metrica.46(6):1429-1445.•An excellent text for future reference:—John H.Cochrane.(2001).Asset Pricing.Princeton,NJ:Princeton Univer-sity Press.•First homework due at end of week three.2Part II:Monetary Economics with Flexible Prices1.Money demand and money-in-the-utility-function models(Chapter2of Walsh).Three lectures.Money demand.Monetary neutrality and superneutrality.Speculative hyperinflations.Welfare costs of inflation.•References:—Robert E.Lucas,Jr.(1980).“Two Illustrations of the Quantity Theory ofMoney,”American Economic Review.70(5):1005-1014.—Robert E.Lucas,Jr.(1988).“Money Demand in the United States:AQuantitative Review,”Carnegie-Rochester Conference Series on Public Pol-icy.29(1):137-167—Robert E.Lucas,Jr.(2000).“Inflation and Welfare,”Econometrica.68(2):247-274.—George T.McCandless Jr and Warren E.Weber.(1995).“Some MonetaryFacts,”Federal Reserve Bank of Minneapolis Quarterly Review.19(3):2—11.—Maurice Obstfeld and Kenneth Rogoff.(1983).“Speculative Hyperinflationsin Maximizing Models:Can We Rule Them Out?”Journal of Political Econ-omy.91(4):675-687.2.Cash-in-advance models(Chapter3of Walsh).Four lectures.Pricing nominalassets.Interest rates and inflation.Liquidity effects and asset market segmentation(if time permits).•References:—Fernando Alvarez,Andrew Atkeson,and Patrick J.Kehoe.(2002).“Money,Interest Rates,and Exchange Rates with Endogenously Segmented Markets,”Journal of Political Economy.110(1):71-112.—Fernando Alvarez,Robert E.Lucas,Jr and Warren E.Weber(2001).“Inter-est Rates and Inflation,”American Economic Review91(2):219-225.—Alberto Giovannini and Pamela Labadie.(1991).“Asset Prices and InterestRates in Cash-in-Advance Models,”Journal of Political Economy.99(6):1215-1251.—Robert J.Hodrick,Narayana Kocherlakota,and Deborah Lucas.(1991).“The Variability of Velocity in Cash-in-Advance Models,”Journal of PoliticalEconomy.99(2):358-384.—Robert E.Lucas,Jr.(1984).“Money in a Theory of Finance,”Carnegie-Rochester Conference Series on Public Policy.21(2):9—45.—Robert E.Lucas,Jr and Nancy L.Stokey.(1987).“Money and Interest in aCash-in-Advance Economy,”Econometrica.55(3):491-513.—Cyril Monnet and Warren E.Weber.(2001).“Money and Interest Rates,”Federal Reserve Bank of Minneapolis Quarterly Review.25(4):2—13.33.Money and exchange rates.Two lectures.Open economy extensions of theflexibleprice approach.Two-country cash-in-advance models.Monetary approach to exchange rates.Evidence for nominal rigidities.•A classic reference for theflexible price approach:—Robert E.Lucas,Jr.(1982).“Interest Rates and Currency Prices in a Two-Country World,”Journal of Monetary Economics.10:335-360.•Concise textbook treatment:—Maurice Obstfeld and Kenneth Rogoff.(1996).Foundations of InternationalMacroeconomics.Cambridge,MA:MIT Press.Chapter8.•Second homework due at end of week seven.Part III:Monetary Economics with Nominal Rigidities1.Money and output in the short run–sticky price models(Chapter5ofWalsh,Chapters1though6of Woodford).Five lectures.Goods market imperfec-tions.Sticky prices.Phillips curves,natural rates,etc.Overview of“new Keynesian”macroeconomics.Interest rate rules.Reduced form and structural models.•References:—Olivier Blanchard and Nobuhiro Kiyotaki.(1987).“Monopolistic Compe-tition and the Effects of Aggregate Demand,”American Economic Review.77(4):647-666.—Guillermo,A.Calvo.(1983).“Staggered Prices in a Utility-MaximizingFramework,”Journal of Monetary Economics.12(3):383-398.—V.V.Chari,Patrick J.Kehoe,and Ellen R.McGrattan.(2000).“Sticky-Price Models of the Business Cycle:Can the Contract Multiplier Solve thePersistence Problem?”Econometrica.68(5):1151-1179.—Richard Clarida,Jordi Galí,and Mark Gertler.(1999).“The Science of Mon-etary Policy:A New Keynesian Perspective,”Journal of Economic Literature.37(4):1661—1707.—Richard Clarida,Jordi Galí,and Mark Gertler.(2000).“Monetary PolicyRules and Macroeconomic Stability:Evidence and Some Theory,”QuarterlyJournal of Economics.115(1):147-180.—John B.Taylor(1980).“Aggregate Dynamics and Staggered Contracts,”Journal of Political Economy.88(1):1-23.—John B.Taylor(1993).“Discretion Versus Policy Rules in Practice,”Carnegie-Rochester Conference Series on Public Policy.39:195-214.42.Inflation dynamics(Chapter5of Walsh,Chapter3of Woodford).One lecture.Empirical models of inflation dynamics.•References:—JeffFuhrer and George Moore.(1995).“Inflation Persistence,”QuarterlyJournal of Economics.110(1):127-159.—Jordi Galíand Mark Gertler.(1999).“Inflation Dynamics:A StructuralEconometric Analysis,”Journal of Monetary Economics.44(2):195-222 3.Evidence on sticky prices(Chapter3of Woodford).One lecture.Empirical testsof price stickiness.Implications for structural models.•References:—Mark Bils and Peter J.Klenow.(2002).“Some Evidence on the Importanceof Sticky Prices,”NBER Working Paper No.9069.—Mark Bils,Peter J.Klenow,and Oleksiy Kryvtsov.(2003).“Sticky Pricesand Monetary Policy Shocks,”Federal Reserve Bank of Minneapolis QuarterlyReview.27(1):2-9—Argia M.Sbordone.(2002).“Prices and Unit Labor Costs:A New Test ofPrice Stickiness,”Journal of Monetary Economics.49(2):265-292.•Third homework due at end of week eleven.Part IV:Central Banking(if time permits)1.Central banks and incentives(Chapter8of Walsh).Two lectures.Rules vs dis-cretion.Time mitment.•References:—Andrew Atkeson and Patrick J.Kehoe.(2001).“The Advantage of Trans-parent Instruments of Monetary Policy,”NBER Working Paper No.8681.—Robert J.Barro and David B.Gordon.(1983).“A Positive Theory of Mon-etary Policy in a Natural Rate Model,”Journal of Political Economy.91(4):589-610.—David Backus and John Driffill.(1985).“Inflation and Reputation,”Ameri-can Economic Review.75(3):530-538.—Finn E.Kydland and Edward C.Prescott.(1979).“Rules Rather than Dis-cretion:The Inconsistency of Optimal Plans,”Journal of Political Economy.85(3):473-492.—Nancy L.Stokey.(2002).“‘Rules versus Discretion’after Twenty-Five Years,”in Mark Gertler and Kenneth Rogoff(eds).NBER Macroeconomics Annual.Cambridge,MA:MIT Press.•Fourth homework due at end of week twelve.5。
金融学-兹维博迪--第一章PPT课件
• 1.1 Defining Finance
• 1.2 Why Study Finance
• 1.3 Financial Decisions of Households
• 1.4 Financial Decisions of Firms
• 1.5 Forms of Business Organization
• 1.6 Separation of Ownership and Management
• 1.7 The Goal of Management
• 1.8 Market Discipline: Takeovers
• 1.9 The Role of the Financial Specialist in a Corporation
– the set of quantitative models used to help evaluate alternatives, make decisions, and implement them
• These concepts and models apply at all levels and scales of decision making
• I’m thinking about starting a new business – will it reward me adequately?
• The company is looking to expand into telecommunications. – how should you advise the CFO?
• Understanding finance helps you evaluate these uncertain cash flows
萨缪尔森《经济学》第1章
经济学
宏观经济学
亚当· 斯密通常被认为是微观经济学 (microeconomics)的创始人.
微观经济学研究对象
单 个 实 体 的 市 场 行 为
企 业 行 为
家 庭 行 为
现代意义上的宏观经济学(macroeconomics)出现的标志是1935 年约翰· 梅纳德· 凯恩斯发表的革命性巨著《就业、利息与货币 通论》。
后此谬误或称因果谬误（the post hoc fallacy）：根据 发生于其后者，得出是其结果的结论。 误用“其他情况保持不变”条件（failure to hold other things constant）：仅仅依据假定“其他情况保 持不变”的条件得出结论。 当你分析一个变量对于经济体系的影响时,一定 要保持其他条件不变 合成谬误（the fallacy of composition）：将局部正确 的结论推向整体。
某些特殊的图
时间序列图 表示某一特定变量如何随时间变化而变动。例 如本书第一张图。 散点图 散点图是为了 描绘出变量在不同年 份的组合，一个重要 的例子就是消费函数。 多曲线图 在同一图中做出两条曲线从而得到一个多曲线图， 这通常是非常有用的。最重要的例子是第3章的供给和需求 图。
在绘制和运用曲线图时，我们要注意以下3点：
◇ ◇◇◇◇ 经多 观哈 平 约 格 济恩 点尔 狄 瑟 里 学布 》 克 夫 高 》什 范 、 斯利 里 、 安鲁蒂曼 费 《宾格昆 希 微费利《 尔 观尔茨经 、 经德《济 斯 济《经学 塔 学微济原 兹 ：观学理 《 现经》》 宏 代济 观 学 》 • •
• • •
•
参 考 书 目
经济研究与文献查阅
曲线的斜率
微观经济学英文版
Chapter 1: The Fundamentals of Economics（A. Introduction）
1.1 Scarcity and Efficiency
What is economics ?
Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
Microeconomics
Yan YAN
Chapter 1: The Fundamentals of Economics（A. Introduction）
You want to buy a clock in the grocery near the campus. The price is $20. A friend tells you that it is $10 in the supermarket in downtown. Would you buy the clock in the supermarket？
1) plot the straight-line relationship between all combinations of X and Y on a blank piece of graph paper.
2)let us say that you absolutely need 6 hours of leisure per day, no more, no less. On the graph, mark the point that corresponds to 6hours of leisure.
经典：南京财经大学电子商务英文版课件chapter1
毛彦妮
1
About E-Commerce Course
Interdisciplinary Nature of EC Marketing Computer science Consumer behavior and psychology Finance Economics Management information system Accounting and auditing Management Business law and Ethnic Others
Electronic Commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services, and information via computer networks including the Internet.
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The case of marks & spencer •Why E-Commerce(The problem)?
–Competition was intense –Profit margin was dropping down –Customer service and supply chain activities was inefficient
Community
provides a gathering place for community members to learn, transact, and collaborate
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Perspec -tives
Commun -ications
Business Process
Economics 12 Chapter 1Foundation
Economics 12 Chapter 1: Foundations of EconomicsSection1.1What is Economics?A science that deals with the allocation, or use, of scarce resources for the purpose of fulfilling society have needs and wants. – Addison-WesleyOBJECTIVES 1.1EXPLAIN why scarcity and choice are basic problems of economicsIDENTIFY land, labor, and capital as the three factors of production, and identify the two types of capitalEXPLAIN the role of entrepreneursEXPLAIN why economists say all resources are scarceWhat is Economics?●So then the big two concepts are that:●Resources are scarce!●Society has unlimited needs and wants!Economics decides the “best” way of providing one to the otherVOCABULARY:●Need:●Want:●Economics:●Goods:●Services:●Shortage●Factors of Production●Land●Labor●Capital●Physical Capital●Human Capital●EntrepreneursScarcityA situation in which the amount of something actually available would not be sufficient to satisfy the desire for it, if it were provided free of charge.Factors of Production●There are 4 factors that must all be used to produce anything●Natural Resources (also referred to as “land”)●Labor – effort of a person for which they are paid●Capital – human-made resources used to create other goods●Entrepreneurship –person who takes a risk in combining the other 3factors to create a new good●→3 Kinds of Capital●Physical Capital – Also called Capital Goods, objects that are usedto produce other goods●Human Capital – knowledge or skills workers get from educationand experienceFACTORS of PRODUCTION●Example of FRENCH FRIES … page 6●IN N OUTMaking Economic Decisions●Every decision we make involves trade-offs –alternatives that we must give upwhen we make a choice●Example –“I could stay up for 3 hours playing Halo, study, or sleep.”Quiz Review1. Which of the following are factors of production? Capital and Land2. Which of the following is an example of using physical capital to save time and money? Building extra space in a factory to simplify production3. To what part of an industry does a worker’s education contribute? Human capital4. Which of the following is an entrepreneur? a person who starts an all-organic cleaning supplies business that employs others5. What is the difference between a shortage and scarcity? A shortage can be temporary or long-term, but scarcity always exists.6. What does an economist mean by the term land? All natural resources used to produce goods and servicesSection 1.2 – Opportunity CostMaking Economic Decisions●The most desirable of the options you pass up is called the Opportunity Cost●Rank sleep, studying, and playing video games 1st, 2nd, and 3rd on a list for whatyou value the most●1st Place is what you would choose to do●2nd Place is your opportunity cost (you give it up to do option 1)What other option do you have other than using 3 hours for one task?●You could split your time among multiple activities!●Thinking at the Margin –decision involving adding one unit and subtractingone unit, rather than all or nothing●There is a point at which you are paying the same increase in cost, but seeinglower benefits●You must make the decision as to whether the cost is worth it●This same process is used by businesses and consumers to make decisions Quiz Review1. The economic concept of guns or butter means that? a government must decide whether to produce more or less military or consumer goods2. If a person who wants to buy a compact disc (CD) has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the opportunity cost3. A decision-making grid is a visual way of: examining opportunity costs.4. A decision is made at the margin when each alternative considers: cost and benefit ranked in progressive unitsSection 1.3 – Production Possibilities CurvesProduction Possibilities●Production Possibilities Graph –shows alternatives to what an economy canproduce●Let’s say we can produce 2 things: Guns and Butter●Production Possibilities Graph –shows alternatives to what an economy canproduce●The outer red line shows the maximum possible output with any givencombination●This is the Production Possibilities Frontier (or Curve)●To move from one point to another, the economy must make trade-offs●Any point along the line shows the economy operating at maximum efficiency●Any point below the line is underutilization –they are not getting all that theycould●Any point above the line is presently impossible, until new resources areavailable●Why does the graph curve instead of making a straight line?●Law of Increasing Costs –as production increases for one item, more andmore resources are necessary to increase production of the second item!The OPPORTUNITY COST increases…●Every resource is best suited for certain types of goods●Farmland and cows make butter●Metals and factories make guns and many times you hear about butter vs.guns due to military spending on weaponry using resources …●To convert butter production to guns, you must sell the cows and buildnew factories on the landQuiz Review1. A production possibilities curve shows the relationship between the productions of: any two categories of goods2. The line on a production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the production possibilities frontier3. The law of increasing costs means that as production shifts from one item to another, more and more resources are necessary to increase production of the second item4. The curve usually seen in a production possibilities frontier can be explained by: the law of increasing costsAn economy that is efficient is producing the maximum amount of goods and services.。
国际经济学英文版(internationaleconomics)PPT课件
▪ Growth of emerging markets ▪ international capital movements regain importance
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Economic interdependence
Exports of goods and services as percent of Gross Domestic Product, 2001
Ch 16 Exchange-Rate Systems
Ch 17 Macroeconomic Policy in an Open Economy
Ch18 International Banking: Reserves, Debt and Risk
International Economics
By Robert J. Carbaugh 9th Edition
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Economic interdependence
Interdependence: Impact
Overall standard of living is higher
▪ Access to raw materials & energy not availo goods & components made less expensively elsewhere
International Economics
By Robert J. Carbaugh 9th Edition
Ch 1 The International Economy Ch 2 Foundations of Modern
Trade Theory
Ch 3 International Equilibrium
Economics Foundations and Models
Scarcity The situation in which unlimited wants excee
LEARNING OBJECTIVE
1 Market A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.
CCentrally planned economy EEconomic model EEconomic variable EEconomics EEquity
Appendix 1A: Using Graphs and Formulas
Appendix 1A: Using Graphs and Formulas
Appendix 1A: Using Graphs and Formulas
Appendix 1A: Using Graphs and Formulas
Appendix 1A: Using Graphs and Formulas
Appendix 1A: Using Graphs and Formulas
SSecond level TThird level FFourth level FFifth level
LEARNING OBJECTIVES
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Many U.S., Japanese, and European firms have been moving the production of goods and services to other countries.
Click to edit Master text styles
Stock 计量经济学ppt一到三章
The Statistical Analysis of Economic (and related) Data
Brief Overview of the Course
Economics suggests important relationships, often with policy implications, but virtually never suggests quantitative magnitudes of causal effects. What is the quantitative effect of reducing class size on student achievement? How does another year of education change earnings? What is the price elasticity of cigarettes? What is the effect on output growth of a 1 percentage point increase in interest rates by the Fed? What is the effect on housing prices of environmental improvements?
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Initial data analysis: Compare districts with “small” (STR < 20) and “large” (STR ≥ 20) class sizes:
Class Size Average score (Y ) Small 657.4 Large 650.0 Standard deviation (sBYB) 19.4 17.9 n 238 182
高等数学经典外文教材
高等数学经典外文教材A Study of Advanced Mathematics: A Classic Foreign TextbookIntroductionAdvanced mathematics is a crucial subject for students pursuing higher education in science, engineering, economics, and other related fields. In order to gain a solid foundation in this discipline, it is essential to have access to high-quality textbooks that provide comprehensive and accurate content. This article aims to explore a classic foreign textbook on advanced mathematics, discussing its significance, content, and impact on the learning process.Significance of a Classic Foreign Textbook on Advanced MathematicsA classic foreign textbook on advanced mathematics holds immense significance in the field of education. It offers a unique perspective, often with a different pedagogical approach than traditional local textbooks. Exposure to foreign teaching methodologies and problem-solving techniques broadens students' horizons and enhances their critical thinking abilities. Additionally, it fosters cross-cultural communication and encourages students to engage with a global academic community.Content OverviewThe selected classic foreign textbook on advanced mathematics covers a wide range of topics essential for a comprehensive understanding of the subject. It begins with a rigorous introduction to mathematical analysis, including concepts of limits, continuity, and differentiability. The textbookalso explores topics such as integrals, sequences, series, and differential equations.One of the standout features of this textbook is its emphasis on theoretical foundations while offering practical applications. It provides real-life examples and encourages students to apply mathematical concepts to various problem-solving scenarios. Furthermore, the textbook incorporates historical context, highlighting the contributions of renowned mathematicians and their impact on the development of advanced mathematics.Furthermore, the textbook adopts a systematic approach to present complex mathematical concepts. Each chapter progresses logically from fundamental principles to advanced theories, ensuring a smooth learning curve for students. The inclusion of exercises, both theoretical and applied, enables students to test their understanding, reinforce their knowledge, and develop problem-solving skills.Impact on the Learning ProcessThe utilization of this classic foreign textbook on advanced mathematics significantly enhances the learning experience for students. Its well-structured content allows for better assimilation and retention of knowledge. The rigorous theoretical explanations, combined with practical examples, ensure that students grasp the fundamental principles while simultaneously understanding their real-world applications.The inclusion of exercises and problem sets promotes active learning and facilitates the development of critical thinking skills. By solving intricate mathematical puzzles and analyzing complex scenarios, students arechallenged to think critically and apply their mathematical knowledge effectively. This process instills confidence in their abilities and prepares them for future academic and professional endeavors.The Impact of Technology in Supplementing the TextbookIn today's digital era, the integration of technology in education has become increasingly significant. By complementing the classic foreign textbook with appropriate technological resources, the learning process can be further enhanced. Online platforms, interactive simulations, and computer-based exercises can provide additional support and facilitate independent learning.Digital platforms can offer supplementary materials, including video lectures, interactive demonstrations, and virtual experiments, which can reinforce the concepts introduced in the textbook. These resources create an interactive and engaging environment, catering to different learning styles and allowing students to explore advanced mathematics at their own pace.ConclusionIn conclusion, a classic foreign textbook on advanced mathematics plays a pivotal role in education by providing a comprehensive and unique perspective on the subject. Through its well-structured content, emphasis on theoretical foundations, and practical applications, the textbook enhances the learning process and fosters critical thinking skills. When supplemented with appropriate technological resources, students can further benefit from the integration of advanced learning tools. Ultimately, this combination empowers students to develop a strong foundation in advanced mathematics, paving the way for success in their academic and professional endeavors.。
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Market A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade. As we study how people make choices and interact in markets, we will return to three important ideas: 1. People are rational. Economists assume that consumers and firms use all available information as they act to achieve their goals, weighing the benefits and costs of each action, and choosing an action only if the benefits outweigh the costs. 2. People respond to economic incentives. The economic incentive to banks, for instance, is clearer to economists than to FBI agents: It is less costly to put up with bank robberies than to take additional security measures. 3. Optimal decisions are made at the margin. Most decisions in life involve doing a little more or a little less. Economists reason that the optimal decision is to continue any activity up to the point where the marginal benefit equals the marginal cost—in symbols, where MB = MC. Marginal analysis Analysis that involves comparing marginal benefits and marginal costs.
• How are the prices of goods and services determined? e.g., iPhone (or mobile phones as a group), Univ. tuition fees
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Why do firms engage in international trade, and how do government policies affect international trade?
APPENDIX: Using Graphs and Formulas
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Economics: Foundations and Models
Economics (including microeconomics and macroeconomics) can be used to answer questions such as the following:
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Solved Problem 1.1
A Doctor Makes a Decision at the Margin
A doctor is considering keeping her office open 9 hours per day rather than 8 hours. The doctor’s office manager argues, ―Keeping the office open an extra hour is a good idea because your practice will make a total profit of $300,000 per year when the office is open 9 hours per day.‖ Do you agree with the office manager’s reasoning? What, if any, additional information do you need to decide whether the doctor should keep her office open an additional hour per day?
Economics The study of the choices people make to attain their goals, given their sca A simplified version of reality used to analyze real-world economic situations.
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Which of the following statements best describes scarcity? a. Scarcity studies the choices people make to attain their goals. b. Scarcity is a situation where unlimited wants exceed limited resources. c. Scarcity is an imbalance between buyers and sellers in a specific market. d. Scarcity refers to a lack of tradeoffs.
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Solved Problem 1.1
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Which of the following statements best describes scarcity? a. Scarcity studies the choices people make to attain their goals. b. Scarcity is a situation where unlimited wants exceed limited resources. c. Scarcity is an imbalance between buyers and sellers in a specific market. d. Scarcity refers to a lack of tradeoffs.
How does a consumer / household determine how much to consume in the current period and how much to save for the future? e.g., changes in saving when life expectancy increases
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CHAPTER
Economics:
Foundations and Models
Chapter Outline and Learning Objectives
1.1
1.2 1.3 1.4 1.5
Three Key Economic Ideas
The Economic Problem That Every Society Must Solve Economic Models Microeconomics and Macroeconomics A Preview of Important Economic Terms
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In economics, as well as in life, the decision of how much of an activity is the optimal amount is made ________________ associated with that activity. a. by considering the costs only, regardless of the benefits b. by considering the benefits only, regardless of the costs c. by considering the total benefits and the total costs d. by considering the marginal benefits and marginal costs
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Three Key Economic Ideas
1.1 LEARNING OBJECTIVE