Macroeconomics is important within IB Economics because some important and far-reaching economic objectives cannot be understood, modelled or analysed at the microeconomics level. Such totals are termed ‘aggregates’ in macroeconomics. Important IB Economics concepts such as the overall total levels of employment, investment, exports and imports are studied. The total output of an economy is examined, and not how much is produced at the level of the individual firm or industry. The total demand for goods and services are examined, and not individual consumer demand or the market demand for individual products. In the IB Economics macroeconomics section of the course, attention focusses on the general price level of an economy and not the individual prices of goods and services it constitutes. In some economies, such as China and India, consumers number in their billions, so you can see that macroeconomics is quite different from that of microeconomics. Of course, an entire economy comprises much larger collections of consumers, business and resource owners. Now this section of the IB Economics course shifts its attention to a much bigger picture of economies. The study of the whole, overall economy is termed macroeconomics. Our synthesis of the micro evidence points to Hicksian elasticities of 0.3 on the intensive and 0.25 on the extensive margin and Frisch elasticities of 0.5 on the intensive and 0.25 on the extensive margin.In contrast to microeconomics, where specific resource and product markets and the behaviour of consumers, producers and the owners of resources are studied by the IB Economics student. Hence, indivisible labor supply does not explain the large gap between micro and macro estimates of intertemporal substitution (Frisch) elasticities. However, micro estimates of extensive-margin elasticities are an order of magnitude smaller than the values needed to explain business cycle fluctuations in aggregate hours. We find that micro estimates are consistent with macro evidence on the steady-state (Hicksian) elasticities relevant for cross-country comparisons. Second, we present a meta-analysis of quasi-experimental estimates of extensive margin elasticities. First, we use a standard calibrated macro model to simulate the impacts of tax policy changes on labor supply. We evaluate whether existing calibrations of macro models are consistent with micro evidence on extensive margin responses using two approaches. One prominent explanation for this divergence is that indivisible labor generates extensive margin responses that are not captured in micro studies of hours choices. Macroeconomic calibrations imply much larger labor supply elasticities than microeconometric studies. Transportation Economics in the 21st Century.Training Program in Aging and Health Economics.The Roybal Center for Behavior Change in Health.Retirement and Disability Research Center.Measuring the Clinical and Economic Outcomes Associated with Delivery Systems.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |