Saturday, February 22, 2020

Empirical paper assignment Essay Example | Topics and Well Written Essays - 1000 words

Empirical paper assignment - Essay Example The accuracy of estimation is subject to various factors some of which are beyond control of economists. However in most cases there are counterweights that help balance an error in estimation. This means that in a normal estimation there are over and underestimations that cancel out partially or completely. The fact that stands out in the economists’ estimation is that these overestimations occur year after year and indications point at misinformed estimates. Overestimation of interest rates on government bonds has some serious results. Higher borrowing costs imply that the government sets aside more funds to cover this cost. The end effect is that the government will reduce budgets for other functions and allocate more funds for paying up its public debt. According to the article, economists have a duty come up with ways to increase economic growth. The reasons for this overestimation could be an increase in the amount of funds available for borrowing and to avert any stagnation of bond rates. According to Jared, increased funds available for loaning have the effect of pushing down the costs of borrowing. This can only mean that the estimation techniques used by the economist could be overlooking the increase. Secondly, cost of borrowing is reduced by economic forecasts that indicate growths and inflation. In instances where inflation or reduced economic growth is predicted, costs of borrowing fall. In order to prevent this fall, economists overestimate bond rates so that this acts as a stimulant that will prevent significant drop in borrowing rates. Another aspect of effects of bond rates overestimation is that they give a wrong impression of economic performance. The cost of borrowing influences calculations on Gross Domestic Product since in effect it influences the rate of economic growth. Later in this assignment we shall have a graphical representation of the public debt expressed as a

Thursday, February 6, 2020

Can There be Development without Security and Security without Essay

Can There be Development without Security and Security without Development - Essay Example For some it may be the amount of resources available to the society, for some it is freedom of the masses, for others peace and security and for some it may be equitable distribution of income. This difference between perceptions is what causes a substantial difference between the statuses of the two countries that may otherwise be equal based on other factors. The term ‘sustainable development’ used fervently by many can be defined as development that produces economic benefits in a surplus without generating great cost to the environment. Also in order for a development to be sustainable it is important that all the current necessities are met without over consumption taking place and causing any disturbance for future generations in meeting their needs. World Bank (2004) further states that there are different requirements of development; for example reducing poverty is one of the indicators of development taking place. One of the methods to reduce poverty would be to increase income generating activities which again result in development, occurring as an industry is supported and developed. To safeguard human life from any sort of invasive threats is the most critical element of security. A house, land or region is secure if the people who live in it can move freely without any fear of threats that could harm their life or property (Alkire, 2003, pp.3). Human security is proactive. It assumes the possibility of a threat to human life that may exist in form of physical violence, financial crisis, pollution or natural disaster. These threats can be managed just like any other conflict because every conflict has a solution; a threat from earthquakes can be minimized by building earthquake resistant properties (Alkire, 2003, pp.3). Another method to provide security in the wake of emerging threats is to respect human lives. Respect for human security will enable individuals and institutions to make decisions which will acknowledge the importance of human lives and does not have implications that might compromise it. Threats to security may be direct or indirect. An indirect form of threat would consist of reduction in public expenditure or the recently incurred global financial meltdown. Other forms of threats are direct which means that they not only affect the essential functions of a human life but human life itself; for example civil wars and natural disasters (Alkire, 2003, pp.5). Recently literatures have recognized an inverse relationship between threats to security and development. International Cooperation for Development and Solidarity (2005) conducted a study in which it defined the relationship between security and development. The study states that when there is a decrease in security which means an increase in violence inadvertently there will be a decrease in development because threats to human life or their property transfers into a slowed down developmental process. Relationship between security and developm ent After World War 1 and till the Cold War, security was taken to be a matter of discussion between different states, super powers and blocs. However, as the world evolved and such wars have ceased to exist, inter-state conflicts evolved the term security into a concept of human security (Adam, 2008, pp.1). Latest findings state that security and development are inter-related; one cannot exist without the other. Bernard Adam (2008, pp.1) goes