GIFFEN EFFECT MODEL

2020 ◽  
Vol 10 (7) ◽  
pp. 1228-1245
Author(s):  
V.I. Tsurikov ◽  
Keyword(s):  
Consumer Choice ◽  
Demand Curve ◽  
Aggregate Demand ◽  
Negative Slope ◽  
Individual Values ◽  
Effect Model ◽  
Demand Curves ◽  
Income Individual ◽  
The Mathematical Model

The mathematical model of the Giffen effect proposed in the article clearly demonstrates both the effect itself and the reasons for its manifestation. The main advantages of the model include its extreme simplicity, which opens up access to the widest circle of readers, the use of standard methods for solving the consumer choice problem, and the most important fundamental agreement with the results of the field experiment of Jensen and Miller. The model shows that any good for which there is a more expensive substitute can be of little value. This or that good is endowed with the appropriate property by a particular consumer due to his or her own preferences, income level and prevailing prices. Any good of little value, including those that can only be consumed by a high-income individual, may turn out to be Giffen’s goods. Therefore, the consumption of Giffen’s product cannot be considered as evidence of the low standard of living of the consumer. According to the model, an increase in demand for an increasingly expensive low-value good, which is the essence of the Giffen paradox, is the result of optimizing a set of goods, i.e. the result of rational consumer behavior. It is shown that for the manifestation of the Giffen effect, it is necessary that the amount of funds allocated by the consumer for the purchase of a low-value good and its more expensive substitute falls into a certain rather narrow range of values. The failures of numerous and long-term studies aimed at detecting empirical manifestations of Giffen behavior in various historical events are explained by the fact that the corresponding analysis was carried out on the basis of averaged rather than individual values of demand for all categories of consumers. As a result, the negative slope of the aggregate demand curve turned out to be dominant over the positive sections of certain individual demand curves.

scholarly journals Positive Slope Model of Aggregate Demand

2018 ◽  
Vol 7 (3) ◽  
pp. 63-85
Author(s):  
Alqi Naqellari
Keyword(s):  
Interest Rates ◽  
Demand Curve ◽  
Aggregate Demand ◽  
Balance Sheet ◽  
Objective Analysis ◽  
Negative Slope ◽  
Synthesis Methods ◽  
External Trade ◽  
Positive Slope ◽  
Aggregate Supply

Abstract This paper analyzes Internal Aggregate Demand. This aggregate, along with other production indicators, is the main indicator of the country’s economic performance rate. Objective analysis is important for their perspective, as well as for a set of other related indicators, such as inflation rate, unemployment rate, etc. In economic theory, the Aggregate Demand Curve (AD) deals with negative slope. At the point where AD interrupts the AS (aggregate supply curve) there is macroeconomic equilibrium. Creating this equilibrium, shifting curves, creates a number of other figures that show how the level of output, prices and employment will be, and overall the level of economy in the future. In this study, with the data of the Albanian economy, was built, for a period of 17 years, the Internal Demand Curve. Three effects are analyzed: the real balance sheet effect, the interest rates and the external trade effect. The internal demand curve has resulted in a Positive Slope. The equilibrium is not created at the intersection point of the curves. These curves stand facing each other. The equilibrium is set by the different aggregate price level. The Gross Domestic Product Curve (GDP) is the equilibrium curve created by the interaction of Aggregate Demand and Aggregate Supply. This position is real, and creates opportunities for objective analysis of the economy. This paper uses econometric, statistical, comparative and synthesis methods.

AGGREGATE DEMAND CURVES: A GUIDE TO USE AND ABUSE

1982 ◽  
Vol 21 (38) ◽  
pp. 37-48 ◽  
Author(s):  
P. H. HALL ◽  
M. L. TREADGOLD
Keyword(s):  
Aggregate Demand ◽  
Demand Curves

GEOLOGICAL STUDY AND MINING PLAN IMPORTANCE FOR MITIGATING ALKALI SILICA REACTION IN AGGREGATE QUARRY OPERATION

2016 ◽  
Vol 78 (7-3) ◽  
Author(s):  
Edy Tonnizam Mohamad ◽  
Bhatawdekar Ramesh Murlidhara ◽  
Mohd Nur Asmawisham Bin Alel ◽  
Danial Jahed Armaghani
Keyword(s):  
Aggregate Demand ◽  
Peninsular Malaysia ◽  
Alkali Silica Reaction ◽  
Petrographic Analysis ◽  
Kuala Lumpur ◽  
Developing Regions ◽  
Geological Structures ◽  
Rock Types ◽  
Mine Plan

More than 80 million tonnes of construction aggregate are produced in Peninsular Malaysia. Majority of construction aggregate are produced from granite. Developing regions of Johor Bahru, Kuala Lumpur, Penang and Selangar utilize granite aggregates. Normally it is considered aggregates as non-alkali reactive. Geological study can identify various rock types, geological structures, and reactive minerals which contribute to Alkali Silica Reaction (ASR). Deformed granites formed through faulting results in reduction of quartz grain size. Microcrystalline quartz and phyllosilicates are found in granites in contact with country rocks. Secondary reactive minerals such as chalcedony and opal may be found in granite. Alkali Silica reaction is slow chemical reaction in concrete due to reactive silica minerals in aggregates, alkalis in cement and moisture. For long term durable concrete, it is essential to identify potential alkali silica reactive aggregates. Lack of identifying reactive aggregates may result spalling, cracking in concrete and ultimately ASR can result in hazard to concrete structure. This paper deals with geological study of any aggregate quarry to identify rock type and geological structures with laboratory test –petrographic analysis and bar mortar test can identify type of aggregates being produced. Mine plan with Surpac software can be developed for systematic working for aggregate quarry to meet construction aggregate demand.

Remaking Medicare: The Voucher Myth

1998 ◽  
Vol 28 (1) ◽  
pp. 29-46
Author(s):  
Jonathan Oberlander
Keyword(s):  
Consumer Choice ◽  
Baby Boom ◽  
Market Competition ◽  
The Elderly ◽  
Medicare Beneficiaries ◽  
Short Term ◽  
Medicare Program ◽  
The Stability ◽  
Voucher System

There is growing enthusiasm for transforming Medicare into a voucher system. Advocates claim vouchers would increase the health care choices available to Medicare beneficiaries, reduce the regulatory burden on the federal government, and promote the benefits of fair market competition. In addition, some analysts contend vouchers are the only feasible solution to Medicare's short-term financing problems and the long-term “crisis” of the retirement of the baby-boom generation. The author argues against these claims. Vouchers would not work as advertised by proponents because of the limitations of risk-adjustment methods and unrealistic assumptions about consumer choice. Moreover, the elderly and disabled Medicare population is ill-suited to cope in a competitive insurance system. Implementation of vouchers would therefore pose a threat to both the health of beneficiaries and the stability of the Medicare program. The implications of this analysis for Medicare reform are discussed.

scholarly journals A SLR Pre-Processing Algorithm Based on Satellite Signature Effect

2021 ◽  
Vol 11 (19) ◽  
pp. 8880
Author(s):  
Bowen Guan ◽  
Cunbo Fan ◽  
Ning An ◽  
Ricardo Cesar Podesta ◽  
Dra Ana Pacheco ◽  
...  
Keyword(s):  
Mean Value ◽  
Observation Data ◽  
Short Term ◽  
Error Sources ◽  
Effect Model ◽  
The Mean ◽  
The Stability ◽  
First Time ◽  
Satellite Signature Effect

As one of the major error sources, satellite signature effect should be reduced or even erased from the distribution of the post-fit residuals to improve the ranging precision. A simulation of satellite signature effect removal process for normal point algorithm is conducted based on a revised model of satellite response, which fully considers the structural and distribution characteristics of retroreflectors. In order to eliminate both long-term and short-term satellite signature effect, a clipping method for SLR data processing is proposed by defining the clipping location as 5.6 mm away from the mean value of the long-term fit residuals to select effective returns for normal points. The results indicate that, compared to normal points algorithm, the RMS per NP of LAGEOS-1 observation data processed by the clipping method is reduced from 62.90 ± 9.9 mm to 56.07 ± 4.69 mm, and the stability of RMS is improved 53%. This study improves the satellite signature effect model and simulates the fluctuation of normal points caused by satellite signature effect for the first time. The new method based on the simulation of satellite signature effect has stronger robustness and applicability, which can further minimize the influence of satellite signature effect on the SLR production and significantly improve the data property.

Asset-Liability Management

2019 ◽  
pp. 75-95
Author(s):  
Hyun Song Shin
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Pension Funds ◽  
Fixed Income ◽  
Asset Liability Management ◽  
Life Insurers ◽  
Liability Management ◽  
Demand Curves

Life insurers and pension funds have obligations to policy holders and beneficiaries and hold fixed income assets to meet those obligations. Asset-liability management matches the duration of assets to duration of liabilities to minimise risks from interest rate changes. However, this rule can lead to upward sloping demand curves for fixed income assets and can lead to overshooting of long-term interest rates.

scholarly journals Internal consistency of the Regional Brewer Calibration Centre for Europe triad during the period 2005–2016

2018 ◽  
Vol 11 (7) ◽  
pp. 4059-4072 ◽  
Author(s):  
Sergio Fabián León-Luis ◽  
Alberto Redondas ◽  
Virgilio Carreño ◽  
Javier López-Solano ◽  
Alberto Berjón ◽  
...  
Keyword(s):  
Standard Deviation ◽  
Relative Standard Deviation ◽  
Data Sets ◽  
Individual Values ◽  
Relative Standard ◽  
The World ◽  
The Mean ◽  
The Individual ◽  
Ozone Column

Abstract. Total ozone column measurements can be made using Brewer spectrophotometers, which are calibrated periodically in intercomparison campaigns with respect to a reference instrument. In 2003, the Regional Brewer Calibration Centre for Europe (RBCC-E) was established at the Izaña Atmospheric Research Center (Canary Islands, Spain), and since 2011 the RBCC-E has transferred its calibration based on the Langley method using travelling standard(s) that are wholly and independently calibrated at Izaña. This work is focused on reporting the consistency of the measurements of the RBCC-E triad (Brewer instruments #157, #183 and #185) made at the Izaña Atmospheric Observatory during the period 2005–2016. In order to study the long-term precision of the RBCC-E triad, it must be taken into account that each Brewer takes a large number of measurements every day and, hence, it becomes necessary to calculate a representative value of all of them. This value was calculated from two different methods previously used to study the long-term behaviour of the world reference triad (Toronto triad) and Arosa triad. Applying their procedures to the data from the RBCC-E triad allows the comparison of the three instruments. In daily averages, applying the procedure used for the world reference triad, the RBCC-E triad presents a relative standard deviation equal to σ = 0.41 %, which is calculated as the mean of the individual values for each Brewer (σ157 = 0.362 %, σ183 = 0.453 % and σ185 = 0.428 %). Alternatively, using the procedure used to analyse the Arosa triad, the RBCC-E presents a relative standard deviation of about σ = 0.5 %. In monthly averages, the method used for the data from the world reference triad gives a relative standard deviation mean equal to σ = 0.3 % (σ157 = 0.33 %, σ183 = 0.34 % and σ185 = 0.23 %). However, the procedure of the Arosa triad gives monthly values of σ = 0.5 %. In this work, two ozone data sets are analysed: the first includes all the ozone measurements available, while the second only includes the simultaneous measurements of all three instruments. Furthermore, this paper also describes the Langley method used to determine the extraterrestrial constant (ETC) for the RBCC-E triad, the necessary first step toward accurate ozone calculation. Finally, the short-term or intraday consistency is also studied to identify the effect of the solar zenith angle on the precision of the RBCC-E triad.

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