Essays on National Bureau Of Economic Research

Introduction

A leveraged buyout (LBO) is the process through which a company is acquired by another one that gets a significant amount of capital from borrowed money. This act is a process that involves the buyer putting up the assets or expected profits of the newly acquired company as collateral to the financial institution that is giving out the loan (Haddad, Loualiche, Plosser, & National Bureau of Economic Research, 2016). This type of purchase carries significant risk for the buyer since the ratio of borrowed money to the invested money is usually 9: 1. The borrowed money accounts for eighty to ...

Currency is valueless, and it is all about the confidence of the people in it. Since the start of the economic crisis in 2007, the Federal Reserve has juxtapositionaly employed conventional and non-conventional monetary policies to caution the effects of such crisis on economic activities and stabilize the financial market. Price stability and maximum employment were necessary for the nation and the world that uses the US dollar as the standard. To achieve this, the Federal Reserve turned to Large Scale Asset Purchases. Although the ends of all the policies formulated are the same, ambiguity shrouds the means to ...

Eclectic Forecasting Research Paper

1. The year 2007 is the third year of a series of three consecutive years of broad-based growth in the world. Although developed economies and underdeveloped economies had a world average growth of 3.4 % in 2007 with a previous growth of 4.9 in 2006, the perspective for that year was to an increase in the world growth in 2008 with a value of 3.6% (QUOTE). In the year 2006, 96 of 159 economies of the world increased their gross domestic product with a value higher than 3%, and only nine countries had a negative growth in 2006. The challenge ...

Abstract

Given the importance of human resource economics to address labor utilization together with its implications for the greater economy, the accumulation of human capital is one of the major related topics. Human capital collection greatly drives the instrumental economic considerations such as unemployment, employment turnover, and the functions of both the labor unions and government policies. Unlike most of the resources that depreciate with time, investment in human capital increases in appreciation and continually exploits the available resources. Although it may consume time, it ensures effective use of qualities and skills while enhancing other resources. The human resource plays ...

Immigrants in California are an evolving part of the workforce whereby both employed and people seeking for employment opportunities comprise of many migrants. They constitute a larger portion of the general labor force vis-à-vis to the native-born labor providers in the region. Due to the rapidly aging population in the United States, the economy depends heavily on migrants’ work. This paper discusses the widespread utilization of immigrants’ labor in California and how their services can efficiently be supported to reduce the economic problems associated with the issue of immigration in the region. In addition, the article examines both ...

Abstract

The current paper explores the main differences of the Great Recession in 2007-2009 from other economic collapses in the history if the United States. Section I discusses the general features of a recession and describes the main responsibilities of the National Bureau of Economic Research. Section II is devoted to the comparison of the Great Recession with the recession of 1980s. The section is divided into four subsections. Subsection A presents the basic comparison of recessions in the U.S. history and explains the choice of the 1980s period for the further comparison. Subsection B explores differences in unemployment in ...

The US is one of the many wealthiest countries in the world and according to research it has the highest obesity rates. The research shows that one-third of US population is obese, and a third is overweight. Other researchers show that high-income countries have greater rates of obesity compared to middle and low-income countries (Averett and Korenman 15). Over the years, obesity has increased even among children. Research on obesity between adults and children show that approximately 36% of adults and 17% of children in the US are obese. Statistics of the children reveal that a quarter of 2-5 ...

Introduction

Resource curse has been one of the most debated economic issues for the past four to five decades. Indeed, it refers to a theoretical approach that connects certain indicators of a country’s economic growth to its reliance on natural resources such as oil, gas, and minerals. According to a general belief (termed as ‘resource curse’), the countries that are rich in natural and non-renewable resource are characterized by lower levels of democracy, economic growth, and development as compared to the countries with less or no reliance on these resources (Sachs, and Wartner, 2001). On the basis of the ...

Introduction

Graham and Harvey surveyed about 4,440 firms chief finance officers, and only 392 reviews came back. Large enterprises rely primarily on present value methods, capital structure and capital asset pricing models whereas small businesses likely use the payback period technique (Graham 12). Companies are more concerned about sustaining financial flexibility, healthy credit rating, stock appreciation, and EPS (earnings per share) dilution, especially when the entities are issuing equity. Little evidence was also found that organizational executives have a great concern about asymmetric information, personal taxes, free cash flows, and asset substitution. There is also some support for trade ...

Many public institutions of learning continue practicing the traditional way of determining the pay of a teacher based on the years of service and their level of education. However, many public schools are now practicing the system which ties the salaries and bonuses on the performance and success of the teachers. The practice is in a bid to make teachers work hard to ensure performance of their pupils. If students do not excel in their examinations, it is assumed that the teacher is not putting much effort. Teachers who put a lot of effort in educating their students are ...

Global Financial Crisis in the US

Introduction It was hard for the economists, professional analysts and policymakers among other players in the financial industry to foresee the crisis in the US mortgage lending industry in 2007 that resulted in the world's worst economic recession in two years' time (Sher and Iyanatul 2010). Initially, there was a housing bubble characterized by high house prices, low-interest rates, more support for subprime mortgage and increased speculation by the buyers (Acharya and Schnabl 2010). Eventually, there were decline of house market prices, increased lending rates and increased default and foreclosures by the mortgagors (John 2009). Notably, by mid-2008 the ...

Abstract

Education is a critical sector in most countries regardless of whether developed or developing. Efforts to ensure quality and meaningful education for the citizens consumes significant government and state resources in supporting education and related researches that seek to improve education. A lot of research has been done, both in the past and ongoing, to find out ways of ensuring better education, and other aspects of teachings that can facilitate efficacy in cost and value creation to learners across all levels of education. The research cuts long, diverse areas of the education, each having its approaches and objectives. The ...

Insurance Rating

Companies are rated according to their risk of defaulting credit. Credit rating agencies such as S&P and Moody use many criteria to assess the likelihood that a company will default on its debt payment. The ratings of these companies are important because it gives valuable information to potential investors, issuers and the corporations themselves. A good credit rating enables a company to raise money easily in the financial market. S&P assesses a lot of criteria before giving a rating to any company. Some of the criteria used to evaluate the companies include micro and macro regulations, ERM and the ...

Generally, during recession period, there are theories that are implemented to try and remedy the situation. The two major theories that have been utilized during the United States of America to try and save big businesses are: supply side economics and Keynesian theory. Arguments have been put across regarding the best theory that is capable of rescuing big businesses during the recession. According to Boskin, many have been in favor of Keynesian while others have been in favor of Supply-side. In this paper therefore, is going to investigate both theories arguing in favor of supply-side. This paper will also ...

Foreign Direct Investment

Foreign direct investment (FDI) is an investment made to acquire long-term interest in an enterprise operating in an economy other than that of the investor (World Bank, 2011). FDI has been more beneficial to both investors and host countries as compared to alternatives. The two parties, investors and host countries, engage in FDI and benefit in various ways. Investors gain new markets, attain efficiency, and aquire cheaper and more readily available resources, from the host countries.Moreover, FDI benefits the host countries by contributing to their economic growth, creating empolyoment, transfering technology and knowlegde, and increasing government revenue through ...