Social and Behavioral Sciences Commons^™

Consumers Support A Slowing Economy, Eric Thompson

Business in Nebraska

Nebraska will record moderate economic growth during the forecast period but will lag U.S. growth. Like the national economy, growth Nebraska’s goods producing sector will struggle. Farm incomes will be flat from 2020 to 2022 after improving this year. Manufacturing employment also is expected to drop. However, most other sectors will expand, including services, finance and construction. Projected growth rates for 2020 to 2022 are presented in Table 1.

Employment will grow by 0.6% to 0.8% per year, below the national rate. Non-farm income will grow between 3.7% and 3.8% each year. This growth readily exceeds inflation and population growth, …

Trade Models And Macroeconomics, Ray C. Fair

Cowles Foundation Discussion Papers

This paper discusses some macro links that are missing from trade models. A multicountry macroeconometric model is used to analyze the effects on the United States of increased import competition from China, an experiment that is common in the recent trade literature. In the macro story a fall in Chinese export prices is stimulative. Domestic prices fall, which increases real wage rates and real wealth, which increases household expenditures. In addition, the Fed may lower the interest rate because of the lower prices, which is stimulative. Trade models do not have these channels, and they likely overestimate the negative effects …

Modeling The Economic Machine Using Bayesian Inference And Statistical Networks, And Optimal Portfolio Construction Using Operations Research, Richard Yang

ENGS 88 Honors Thesis (AB Students)

In this paper, we propose a network-based model to attempt to connect modern macroeconomic theory with real world economic observations and trends. We find that by extending macroeconomic theory with credit leveraging/deleveraging thresholds, we are able to explain economic cycles in addition to long-term growth. Furthermore, we specifically explore the growth-inflation view of the macro economy as a basis for optimal portfolio construction and efficient asset trading. Connecting our network-based macroeconomic model and our optimal portfolio construction algorithm, we create a novel macroeconomic asset-trading framework.

The Impact Of Immigrants’ Entries On Destination Countries’ Economies, Qingyu Zhu

Economics Honors Projects

Whether immigration brings benefit or harm has always been controversial. In this paper, I develop a Real Business Cycle model with a search-based labor market to examine how an unexpected influx of immigrants impacts destination economies. I divide households and firms into two types, namely natives and immigrants, and conduct a general equilibrium analysis. The simulated results suggest that even though natives face a temporary rise in unemployment after the shock, recovery occurs quickly, and levels of aggregate output and consumption become higher.

Trends And Tariffs: Nebraska In An Aging Recovery, Eric Thompson

Business in Nebraska

Nebraska will record solid economic growth during the forecast period but will lag U.S. growth. Nebraska’s large farming sector is struggling and will not contribute much to economic growth during the forecast period. Job growth also will be sluggish in transportation and retail trade. Job growth, however, will be stronger in the services, finance, manufacturing and construction. Projected growth rates for 2019 to 2021 are presented in Table 1.

Employment will grow by 0.7% to 0.9% per year, below the national rate. Nonfarm income will grow between 4.4% and 4.5% each year. This growth readily exceeds inflation and population growth, …

What Should We Teach In Intermediate Macroeconomics?, Dean D. Croushore

Economics Faculty Publications

The major focus of a course in Intermediate Macroeconomics is building and understanding macroeconomic models and how they work. The course is the most analytical course in the curriculum and should lead students to embark on deep thinking about models and equilibrium. Students learn the essentials of a model and develop the concept of how to simplify a model to understand key concepts. Once the core of a model is developed, additional model features can be added to increase realism. Perhaps the most important macroeconomic concept in the course is that of general equilibrium—students learn to go beyond examining initial …

Teaching Courses In Macroeconomics And Monetary Policy With Bloomberg Analytics, Dean D. Croushore, Hossein S. Kazemi

Economics Faculty Publications

In this article, the authors illustrate the use of Bloomberg for analyzing topics in macroeconomics and monetary policy in economics and finance courses. The hands-on experience that students gain from such a course has many benefits, including deeper learning and clearer understanding of data. The authors describe goals and learning objectives, then compare Bloomberg with Federal Reserve Economic Data (FRED). In addition, they provide examples of how to use Bloomberg in the classroom, describe how to have students perform sector analysis, show how Bloomberg tools are useful for analyzing monetary policy, discuss how to use Bloomberg to analyze the financial …