Economics 398 Winter 2017
http://econ398.academic.wlu.edu
Future Perfect: Technology and Growth — Early-Fielding 200 TuTh 11:50am-1:15pmMon, 20 Feb 2017 20:23:18 +0000en-UShourly1Mortgage Performance
http://econ398.academic.wlu.edu/2017/02/mortgage-performance/
http://econ398.academic.wlu.edu/2017/02/mortgage-performance/#respondFri, 17 Feb 2017 04:52:42 +0000http://econ398.academic.wlu.edu/?p=3561Courtesy of the graphs to Prof. Smitka who made them in excel using data from CoreLogic – thank you (Apologies if they’re blurry – I couldn’t make them any better than this as they are pictures)

The data for mortgage performance can be found at http://www.corelogic.com/ for anyone who wants the specifics of numbers. You [...]]]>
http://econ398.academic.wlu.edu/2017/02/mortgage-performance/feed/0Labor Force Participation Rates
http://econ398.academic.wlu.edu/2017/02/labor-force-participation-rates/
http://econ398.academic.wlu.edu/2017/02/labor-force-participation-rates/#commentsMon, 13 Feb 2017 22:02:00 +0000http://econ398.academic.wlu.edu/?p=3551The labor force participation rate is the percentage of people in the civilian noninstitutionalized (not in prison or the military) population, aged 16 and older, who are either working or actively seeking work. This rate has been gradually decreasing since the early 2000s, but appears be leveling off around 62.5% (Graph 1). There are two [...]]]>http://econ398.academic.wlu.edu/2017/02/labor-force-participation-rates/feed/1Construction per Capita and Construction as a Percentage of GDP
http://econ398.academic.wlu.edu/2017/02/construction-per-capita-and-construction-as-a-percentage-of-gdp/
http://econ398.academic.wlu.edu/2017/02/construction-per-capita-and-construction-as-a-percentage-of-gdp/#commentsThu, 09 Feb 2017 22:32:43 +0000http://econ398.academic.wlu.edu/?p=3540A multitude of useful construction data was released last week. In addition to overall construction spending, public construction spending, and total housing starts, it is perhaps equally as telling to examine construction per capita, and construction as a percentage of GDP. These metrics are necessary to assess real estate development within a slightly more realistic [...]]]>http://econ398.academic.wlu.edu/2017/02/construction-per-capita-and-construction-as-a-percentage-of-gdp/feed/2Full Employment
http://econ398.academic.wlu.edu/2017/02/full-employment/
http://econ398.academic.wlu.edu/2017/02/full-employment/#commentsWed, 08 Feb 2017 04:18:47 +0000http://econ398.academic.wlu.edu/?p=3514Full employment is usually defined as any level of employment under 5%. Full employment means that all eligible workers regardless of skill level are in jobs. Economists believe that unemployment falls until it reaches the “natural rate” where everyone is employed and new hires only occur when people leave their current jobs for higher wages [...]]]>http://econ398.academic.wlu.edu/2017/02/full-employment/feed/22016 Construction Industry Overview
http://econ398.academic.wlu.edu/2017/02/2016-construction-industry-overview/
http://econ398.academic.wlu.edu/2017/02/2016-construction-industry-overview/#commentsTue, 07 Feb 2017 00:52:36 +0000http://econ398.academic.wlu.edu/?p=3518Overall, the construction industry has experienced far from rapid growth in 2016. With oil prices low, major capital projects from firms involved in the energy and power industry saw low demand, correlating to a lackluster year within the greater engineering and construction sector. Total construction spending growth from a year ago, including residential [...]]]>http://econ398.academic.wlu.edu/2017/02/2016-construction-industry-overview/feed/4Long-run CPI trend
http://econ398.academic.wlu.edu/2017/01/long-run-cpi-trend/
http://econ398.academic.wlu.edu/2017/01/long-run-cpi-trend/#commentsSat, 21 Jan 2017 18:13:15 +0000http://econ398.academic.wlu.edu/?p=3477Long-run CPI trend

Figure 1: CPI for all items and all items less food and energy

This graph shows the long-run CPI trends since the 1950’s. Specifically, after 1955, when the reorientation of the economy following WWII was complete. There seems to be a steadily rising trend throughout the years as observed in the [...]]]>
http://econ398.academic.wlu.edu/2017/01/long-run-cpi-trend/feed/5Subjective Analysis of the CPI
http://econ398.academic.wlu.edu/2017/01/subjective-analysis-of-the-cpi/
http://econ398.academic.wlu.edu/2017/01/subjective-analysis-of-the-cpi/#commentsFri, 20 Jan 2017 21:33:41 +0000http://econ398.academic.wlu.edu/?p=3470Wednesday’s release of the Consumer Price Index (seasonally adjusted for All Urban Consumers) revealed inflation of .3% in December of 2016, leaving annual 2016 inflation at 2.1% before seasonal adjustment. This data release signals year over year price growth not seen since 2013 and a significant increase from the meager .7% inflation in 2015.

It [...]]]>
http://econ398.academic.wlu.edu/2017/01/subjective-analysis-of-the-cpi/feed/2Solow
http://econ398.academic.wlu.edu/2017/01/solow/
http://econ398.academic.wlu.edu/2017/01/solow/#respondThu, 19 Jan 2017 18:54:33 +0000http://econ398.academic.wlu.edu/?p=3454Try to build a simple Excel simulation of our growth model, streamlined. We can embed it in a full production function, but just use the following for simplicity:

Y0 = AK0α – output is a function of capital I0 = S0 = sY0 – investment is equal to savings K1 = K0 (1-δ) + [...]]]>http://econ398.academic.wlu.edu/2017/01/solow/feed/0Mortgage Rates
http://econ398.academic.wlu.edu/2017/01/mortgage-rates/
http://econ398.academic.wlu.edu/2017/01/mortgage-rates/#commentsTue, 17 Jan 2017 02:59:02 +0000http://econ398.academic.wlu.edu/?p=3440For many people, mortgage rates are the most important rates they will consider in their entire lives. Because of this, mortgage rates need to be understood and analyzed. This post delves into correlations that mortgage rates share with other interest rates and the maximum percentage of income that people should dedicate to mortgage [...]]]>http://econ398.academic.wlu.edu/2017/01/mortgage-rates/feed/4The Logic of a Tax Cut
http://econ398.academic.wlu.edu/2017/01/the-logic-of-a-tax-cut/
http://econ398.academic.wlu.edu/2017/01/the-logic-of-a-tax-cut/#respondSat, 14 Jan 2017 20:02:01 +0000http://econ398.academic.wlu.edu/?p=3402We frequently see claims that a lower tax rate – particularly of corporate or personal income taxes – will work miracles. That is seldom the case.

First, the stated tax rates are not the realized tax rates. While on paper someone with $500,000 in income is paying a 39.9% rate, the rate on [...]]]>
http://econ398.academic.wlu.edu/2017/01/the-logic-of-a-tax-cut/feed/0