US and California Compared Free Essays

The United States Census is taken at regular intervals all together for the U. S. government to check precisely what number of individuals live in the nation as well as could be expected. We will compose a custom paper test on US and California Compared or on the other hand any comparable point just for you Request Now Beside taking the populace, the registration poses numerous different inquiries, for example, the age of the people living in a given family unit, their race and ethnicity, the dialects that are spoken at home, their instructive accomplishment level, and family unit pay. These inquiries, when replied by the whole populace, give the administration a feeling of the structure and the necessities of its kin. Without this data, open administrations, for example, training, medical clinics, medicinal services, and government disability can't be given to all out of luck and along these lines it is significant information that merits our cautious assessment. For my research project, I have chosen to look at the information of the province of California to the United States of America to find how comparative or distinctive the arrangements of information might be. I would foresee a portion of these information to be comparable, for example, age dissemination, because of the way that California is a generally enormous state with a huge enough populace that it would fill in as a quite decent example of the whole country. Be that as it may, I would hope to consider contrasts to be factors, for example, race and ethnicity and the dialects verbally expressed at home, since California has a moderately bigger Hispanic and Asian populace than most different states in the US. Additionally, the salary level of California will be somewhat higher than the country because of the presence of two enormous metropolitan urban communities in the state. The paper investigates the different socio-segment factors that are taken by the United States Census so as to contrast the territory of California with the country all in all. The principal clear advance in my examination is to take a gander at the two populaces tallied by the 1990 United States registration. The number of inhabitants in the United States is assessed to be 248,709,873 and California is evaluated to be 29,760,021. This information is critical to this paper since when making examinations between the two geographic areas, I will utilize rates taken from the genuine information given in the statistics partitioned by the all out populaces. Thusly, the correlations are scaled according to each other and it is simpler to examine and to make examinations. The primary segment variable that I will inspect is the age conveyance between the two territories. The age appropriation given by the populace age pyramid (Graph 1) show that both are very comparative, with a pyramid-like shape beginning from age 25 to 80+, with the enormous base of the pyramid starting at age 25. From age 0 to 24, there is a general tightening in from the base of the pyramid above as the ages decline, showing a less number of individuals matured 0 through 24. It implies that the biggest number of people in the two districts is between the ages of 25 and 34 out of 1990. This suggests there were a bigger number of births during the 1950s and 1960s than during the 1970s and 1980s. This marvel can be clarified by the way that the time of increased birth rates youngsters had arrived at conceptive stage in their lives and brought forth numerous children during the 50s and 60s. There is additionally generally less individuals matured 45 to 80+. The upper thin upper district of the chart, ages 65 and up, can be clarified by the way that the future in the United States is around 70 years of age and it is normal to see a tightening of the populace at these ages. Notwithstanding, the age bunch from 45 to 64 is additionally very tight. This is probably because of the way that these are the individuals who battled in World War II. Taking a gander at the diagram, the main recognizable contrast between the two areas is that California has a moderately less number of individuals matured 10 through 19. This could be because of numerous financial, social, and physical factors during the 1970s that influenced California births, yet not the whole country. I would foresee that since offspring of the people born after WW2 (ages 25 to 34) have now arrived at regenerative stage, the enumeration 2000 would show that the base of the chart would keep on growing somewhat more extensive, from babies being conceived during the 1990s. The second segment variable I will concentrate on is the racial creation of California and the United States. Chart 2 shows the rates of the absolute populace, which fall under the five racial classifications: 1. White 2. Dark 3. Native American, Eskimo, or Aleut 4. Asian or Pacific Islander and 5. Other. Note that individuals of Hispanic source are for the most part sorted as either White or Other, contingent upon how every individual has decided to order oneself. The class, Other, likewise incorporate individuals who are blended, for example, Mulatto, Creole, and Mestizo. The breakdown of the races are really comparative, as can be seen by the diagram with Whites being the mind lion's share of the absolute populace for the two areas. In any case, it might be fascinating to take note of that the inceptions of the individuals who make up the White class for the two districts might be very unique. For the United States, the piece of the individuals who make up the White classification are for the most part of European source. The inception of individuals who make up the White classification for California additionally incorporate numerous individuals of European beginning, yet in addition huge numbers of Hispanic starting point. This is because of the way that California imparts the outskirt to Mexico and accordingly would have a bigger Mexican or Latino populace. Likewise because of the huge Mexican and Latino populace, the Other classification for California is practically 10% bigger than for the United States. The lower Black populace in California can be ascribed to the way that most of Blacks in this nation are amassed in the southern conditions of the US, for example, Alabama, raising the structure for the country, however not for California. In conclusion, the Asian and Pacific Islander class is nearly 8% higher in California on the grounds that numerous Asians will in general be focused on the west shoreline of the US. The third socio-segment variable I will inspect is language spoken at home. The primary thing to note on Graph 3 is that English is spoken in most of homes both in California and the United States. The populace communicating in dialects other than English at home is higher in California because of the racial arrangement analyzed previously. The higher Asian/Pacific Islander and Latino fixation has raised this California rate to twice that of the US. Of these â€Å"other† dialects, the presence of Spanish spoken in homes is in excess of 10 percent higher in California than in the remainder of the country. In this manner, the English at home unexpected will be littler in rate examination for California. This kind of information is critical to the administration since it raises issues, for example, the suitability of ESL programs, bilingual training, and open administrations that must be given to general society in numerous dialects. Looking at two changed areas, for example, California and the US may appear to be futile because of the comparative information, however it is contrasts, for example, these that make the statistics vital information that merit our cautious investigation. Instructive Attainment is another variable I will investigate between the two locales. Chart 4 uncovers that in the US, highschool graduates (counting equivalency) make up the most noteworthy level of instruction achieved. This isn't amazing in light of the fact that proper training in the US is required for all youngsters until the age of 14 through 18, contingent upon the state, and along these lines it is normal that most kids would complete secondary school. In California, individuals going to some school without acquiring a degree make up the most elevated rate. This infers California†s understudies tend to seek after their training farther than the national understudy. The higher level of Californian†s going to some school can be ascribed to the multiplication of junior universities in the state. The worry for California should lie in the way that a higher level of kids don't advance past the ninth grade than in the country. This might be ascribed to the huge Spanish talking populace who are padded in schools by bilingual educators during their rudimentary and optional tutoring years however are left to themselves in non-bilingual secondary schools to make due all alone and accordingly, drop out. At last, the correlation of family salary among California and the US shows that pay levels for the two areas are thought under $60,000 every year (Graph 5). In dissecting these information, I have taken the salary information from the registration and separated that figure with the all out number of family units, not the populace, so an immediate correlation between the pay of every families would be conceivable. As a rule, Californians have higher pay than the US all in all. The 1990 Census shows that the middle family unit salary of California is $35,798. This figure is higher than the national middle family unit salary of $30,056. The information on the diagram shows that the higher level of Californians acquire earnings higher than $30,000. The higher pay in California can be credited to the two metropolitan territories of Los Angeles and San Francisco as referenced before and moreover, to the ongoing blast of the PC and web industry in Silicon Valley, which has expanded the quantity of Californians procuring higher wages. The various factors inspected in this paper have uncovered a few segment drifts among California and the US in general. While the two districts share comparable segment profiles, a few contrasts emerge upon nearer examination of the information. For the most part, California has a higher centralization of racial minorities. In this manner, a greater number of families communicate in dialects other than English at home. The information likewise shows that a higher level of Californians seek after degrees in advanced education than the national rate. Since school gradu

Economic Policy and Practice

Financial Policies And Practices ECO2072/Professor Gordon 4/5/2013 Assignment Due Date †4/3/2013 Economic Policies And Practices Understanding the establishment for which our economy and society all in all is based upon, the requirement for a controlled and oversaw fiscal framework to work successfully so as to encourage exchange and balance out the stream inside our economy is a must.To encourage this need the national government actualizes apparatuses for breaking down the economy so as to manage and control, and choices are made dependent on the data sources and perceptions made to balance out and empower the cash to develop and withdraw as required inside our monetary framework. Once more, in light of the previously mentioned, the expression â€Å"money causes the world to go around† in this manner can be ascribed to the controlled frameworks, arrangements and additionally a systems of our government for which are administered to upgrade and oversee both the degrees o f and impacts of our money related financial system.As we continue, we will endeavor to clarify different government approach changes or impromptu occasions which can and may happen, and the subsequent monetary occasions or movement that will be affected inside our economy and the impacts it has upon and inside our economy. Actualized Budget Plan Resulting In Increases In Debt And No Plan For Problems As we take a gander at our Federal Governments job in execution and control of our nation’s financial plan and the present spending shortfall we can just ask that those accountable for the choices use the devices accessible to them to oversee and mollify the hit to the economy as the shortage grows.Where for the situation our administration utilizes a spending plan more than a few monetary years and results wherein our economy supports noteworthy increments in the nation’s obligation and shows no indications of alleviation nor presents no designs to manage the issues, a f ew results would be likely in the economy. Mankiw, 2009, Ch. 32, P. 706 depicts one impact being the place government spending surpasses government income hence speaking to negative open sparing, accordingly lessening national reserve funds, in this way decreasing the flexibly of loanable assets, Increasing financing costs, and groups out investment.Amadeo, 2013 offers extra impacts of this situation wherein the shortage adds to a country’s obligation every year and as the obligation increments and the enthusiasm on the obligation must be paid, it expands spending while at the same time adding no advantage to the economy. In the event that the intrigue installments keep on rising, it can start to make a delay the economy’s development. Mankiw, 2009, Ch. 32, P. 706 states extra impacts in that when spending deficiencies raise loan costs, both local just as remote practices cause U. S. net capital outpouring to fall.Therefore, in an open economy, our government’s spending shortfall raises the economy’s genuine loan costs, hence swarming out residential venture, and making the cash acknowledge, therefore pushing the exchange balance toward deficiency. Institution Of New Tariffs And Quotas On All Imports The economy utilizes a model of total interest and total flexibly as a way to dissect the monetary changes of gracefully and request. This model delineates both the general value levels in the economy and the general amount of products and ventures created in the economy.If in reality the Federal Government were to authorize new duties and portions on all imports, the economy would for sure experience impacts from this movement. Mankiw, 2009, Ch. 33, P. 725-726 portrays the model of total interest and flexibly being what most business analyst use to clarify short-run variances in financial movement around the since quite a while ago run pattern. The total interest bend shows the amount of merchandise and enterprises for which family uni ts, firms, the legislature, and clients abroad need to purchase at each value level.The total gracefully bend shows the amount of products and ventures that organizations decide to deliver and sell at each value level. The effect the economy would bring about on account of duties sanctioned being charges forced on imported products is the expansion of the cost of the merchandise in the household advertise, hence residential makers advantage because of they get more significant expenses, the administration benefits through the assortment of duty incomes therefore bringing about less merchandise created and the purchaser follows through on greater expenses (Investopedia, 2013).In the instance of quantities and their impact on the economy, we find that shares are numerical cutoff points which are forced on imported merchandise and in such an instance of authorization buyers are genuinely hurt by the standards while local and outside makers will profit by and by getting more significant expenses for products and ventures (Investopedia, 2013). Loss Of Confidence In Leadership In Ability To Manage And Create Jobs The Federal government is the substance that means in when our economy causes undesirable conditions inside its business cycle.It is assumed that our administration has devices to identify and break down our economy to comprehend those occasions that can possibly modify the economy’s balance. Concerning the previously mentioned, issues emerge when the overall population loses trust in the administration and their capacity to deal with the economy to incorporate occupation creation. Mankiw, 2009, Ch. 33, P. 741 offers, that in the situation of absence of certainty we find that customers again change their arrangements for the future reducing buys and spending.The impact of this reduction impacts the total interest bend just as the total gracefully bend along these lines affecting either the short-run balance or potentially the since quite a while ago run harmony. The outcomes bring about falling earnings and rising joblessness because of decrease of yield reflecting the move in total interest reacting to bring down deals and creation. Amadeo, 2013 states; â€Å"consumers who drive 70% of the economy won’t spend in the event that they don’t accept the future will be sheltered and secure.Therefore, the fundamental job of the administration is to make certainty, fueling the financial development expected to make jobs†. Reduction Taxes In Effort To Stimulate The Economy Another apparatus inside our administration and its monetary approach to manage and control financial development is the tax collection level. Some case that, charge rate slices can prompt expanded monetary development, and riches, while others guarantee that by diminishing assessments associates to the profiting of the affluent because of they pay the most duties already.Our government has the forces to burden which thusly gives it more prominen t command over its incomes. Mankiw, 2009, Ch. 34, P. 773 offers, that when our legislature lessens individual annual charges, it builds the salary of shoppers. These families will spare a portion of this extra pay, and will likewise invest some of it on products and ventures. Since decreasing duties expands buyer spending in this manner animating the economy, the tax break moves the total interest bend to one side. Then again, an expense increment subdues shopper spending and moves the total interest bend to the left.The more prominent inquiry lies in ‘what is the effect in our economy of a duty decrease for those creation over $250,000’? Amadeo, 2013 offers that, the administration considers those families that gain more than $250,000 yearly are affluent and accordingly should pay more expenses because of their capacity to manage the cost of it. Amadeo, 2013 proceeds by expressing that, market analyst state they don't spend these tax breaks, yet spare and contribute th em and along these lines tax reductions for the riches don't invigorate the economy. Speculation Level’s Decrease Due To Lack Of Confidence In EconomyThe economy rotates around the capacity of purchasers to put their cash in products and enterprises or store ones overabundance cash into enthusiasm bearing bank accounts wherein which the monetary foundations would utilize the assets to make credits to buyers to put resources into individual premiums. The capacity to contribute is critical to the since quite a while ago run of our economy’s achievement and the elements of total interest and flexibly and when these degrees of speculation decline because of an absence of trust in the economy a few outcomes start to unfurl in the economy. Mankiw, 2009, Ch. 33, P. 41 offers that, during such an occasion numerous individuals lose trust later on and change their arrangements, along these lines family units cut back on their spending and cease from significant buys, and organiz ations withdraw from the acquisition of new gear. AmosWeb, 2013 states; â€Å"the certainty that customers have in the economy influences their ability to embrace utilization expenditures†. Any adjustment in the certainty of buyers wherein by changing utilization consumptions, will prompt changes in the economy’s total interest along these lines causing a leftward move of the interest bend. Loan fees Kept Artificially Low By Fed’s For Several YearsThe economy spins around the financing costs on the numerous ventures of the buyers and has a vital influence in the spending on merchandise and enterprises. The effect on the economy can be supposed to be two overlap in the occasion that loan costs are kept misleadingly low by the Federal Reserve over a long timeframe. Mankiw, 2009, Ch. 33, P. 728 states that, financing costs influence spending on products and ventures, in this way a lower loan fee makes getting more affordable and it urges organizations to acquire to put resources into tasks and gear just as it urges shoppers to obtain to put resources into self and home.This stated, lower loan costs increment the amount of merchandise and enterprises in the economy. On the other hand, Shilling, 2012 offers that misleadingly lower financing costs can impactsly affect shoppers in where the individuals who are setting aside cash are presently accepting negligible to little profit for their bank and currency showcase accounts. Furthermore, the day of the free financial records are blurring endlessly just as banks and frugalities who manage the lower premium profit are expanding the measures of required parity

Capstone Workshops at SIPA COLUMBIA UNIVERSITY - SIPA Admissions Blog

Capstone Workshops at SIPA COLUMBIA UNIVERSITY - SIPA Admissions Blog The following was composed by John Hughes, a second year MIA student studying Political and Economic Risk Analysis.   Please note that in the past, only MPA students were required to complete a workshop.   Starting with the fall of 2010, all MPA and MIA students will be required to complete a workshop to graduate. _____________________________ This year SIPA has doubled the number of Capstone workshops available to students to 32, assuring that a wide range of students will be able to take a workshop this spring.      MPA students are required to take a workshop as part of their degree, as are concentrators in Economic and Political Development and Energy and Environmental Policy.   With so many workshops on offer this year, however, many students not in one of these groups should also have a chance to participate. The workshops range from one implementing global food security priorities with Booz Allen Hamilton to one looking at how America should deal with non-state terrorist groups for the Center for American Progress.   Each workshop gives students the chance to work directly with a real-world client, is limited to six students, and is assigned a faculty advisor to help facilitate interaction between the group and the client.   Thus, students have an amazing opportunity to work on a real project for a client in an intimate setting, ensuring that each has a chance to interact with the sponsor.   For a list of this year’s workshops check out this link: http://sipa.columbia.edu/academics/workshops/projects.html#core The Economic and Political Development (EPD) and Energy and Environmental Policy (EEP) concentrations, as mentioned, have their own set of workshops, separate from the list above.    This gives students in these concentrations the opportunity to choose from a number of workshops directly related to their field. The EPD workshops, in particular, are always highly regarded, as they give EPD students the opportunity to go abroad for a couple weeks to work in the field.   Many EPD students cite the workshop as the highlight of their SIPA education, providing them with valuable field experience that gives them a leg up when applying for development positions.   For more information on the EPD workshops check out this link: http://sipa.columbia.edu/academics/concentrations/epd/workshop.html

The Impacts Of Brazils Ever Changing Political Landscape

Brazil’s Ever Changing Political Landscape Never a quiet month in Brazil’s political scene. In May, there was the overwhelming impact of the taped conversation between President Temer and Joesley Batista, the meat tycoon, which allegedly addressed bribe payments and other criminal acts. Further convolutions in June, as the Prosecutor General denounced the head of the Executive branch for corruption. When conventional wisdom began to take hold that the country might witness the second government change in a little more than a year, a sudden turn of events happened in July. The Supreme Court needs the consent of the Chamber of Deputies to put Temer on a trial. In a show of force, however, the governing coalition swiftly passed a motion in†¦show more content†¦If the Court of Appeals upholds the conviction, he would probably be confined to home arrest and barred from seeking public office for eight years. Lula is a defendant in other four separate criminal cases and this blow might be the first of a series. He is the most prominent opposition leader and his perils further weaken the attempts to oust Temer. Brazilian asset prices reacted strongly (Charts I). Whereas investor sentiment deteriorated sharply when Temer’s taped conversations emerged in mid-May, the recent developments gave rise to rapid appreciation. The remarkable realized volatility in local financial markets came back to the forefront: 15% annualized for the exchange rate and 21% for the stock market index, year-to-date. In one specific case, however, there was a clearly defined trend underneath the noise. Lower-than expected CPI prints, and there has been a string of them, are driving inflation expectations down along with forward interest rates (Chart II). Political gyrations play a minor role here compared to successful disinflation and this speaks to the competence of the economic team. It is premature to conclude that the worst of the political crisis is over. The Prosecutor General will likely denounce President Temer again, this time for obstruction of justice, which should initiate another battle in the Chamber of Deputies.Show MoreRelatedEssay about Definition of Sustainability and a Good Structure of It3277 Words   |  14 Pagesbasic quality of life. The earth’s ecosystem is deteriorating and the climate is changing. We are consuming so much, and so quickly, that we are already living far beyond the earths capacity to support us. And yet, nearly a sixth of our fellow humans go to bed hungry each day: both an unnecessary tragedy and a source of social and political unrest. Meanwhile, our globalized world is more interconnected and volatile than ever, making us all more vulnerable. While sustainability is about the future ofRead MoreRise of Brics Economy and Its Impact on Global Stock Markets9547 Words   |  39 PagesIRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828 Vol. 2, No.1, February 2013 Rise of BRICS Economy and its Impact on Global Stock Markets Naganathan Venkatesh Research Scholar, NITTTR, Chennai, India Abstract The world is changing and becoming increasingly multipolar due to the emergence of China, India, Russia, Brazil and South Africa forming so called BRICS. The global influence of America is fading out due to the recent decline in their stockRead MoreNation Branding-Best Practices Through Sports, Laws and Science7411 Words   |  30 Pagesinternational images through marketing communications, and many of them continue to waste enormous sums of their taxpayers’ money every year in futile propaganda campaigns in press and television, without any indication whatsoever that this can succed in changing anybody’s mind. Countries are judged by what they do and what they make, not by what they say. I don’t, therefore, believe in nation branding: it’s a false and dangerous idea. Nations have brands – in the sense that they have images – and thoseRead MoreComment on How Changes in Macro and Market Environment Forces Impact on the Level of Competition in an Industry.18606 Words   |  75 Pagesnature of the marketing environment explain the distinction between the microenvironment and the macroenvironment discuss the impact of political and legal, economic, ecological/physical environmental, social/cultural and technological forces on marketing decisions explain how to conduct environmental scanning discuss how companies respond to environmental change Political and Legal Forces The marketing environment FIGURE CHAPTER 3 73 marketing-orientated ï ¬ rm looks outwards to the environmentRead MoreInternational Management67196 Words   |  269 Pageschallenges for international management reflect this dynamism and the increasing unpredictability of global economic and political events. Continued growth of the emerging markets is reshaping the global balance of economic power. Many emerging markets continued to experience growth during a period in which developed countries saw their economies stagnate or decline. The global political environment remains volatile and uncertain, with ongoing conflicts in the Middle East and Africa and continuing tensionsRead MorePepsico17216 Words   |  69 Pageshttp://www.pepsico.com/Purpose/Performance-with-Purpose.html To demonstrate transparency, PepsiCo has adopted a variety of statements and policies that are publicly available on our website below. * Caramel Coloring * Political Contributions Policy * Political Contributions and Public Policy: Process, Transparency, Trade Associations, and Priorities * Human Rights Policy * Responsible Research Statement * Animal Testing Policy * Genetically Modified Food and IngredientRead MorePepsico17225 Words   |  69 Pagesfrom http://www.pepsico.com/Purpose/Performance-with-Purpose.html To demonstrate transparency, PepsiCo has adopted a variety of statements and policies that are publicly available on our website below. * Caramel Coloring * Political Contributions Policy * Political Contributions and Public Policy: Process, Transparency, Trade Associations, and Priorities * Human Rights Policy * Responsible Research Statement * Animal Testing Policy * Genetically Modified Food and Ingredient PolicyRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesLeft Revisited David M. Scobey, Empire City: The Making and Meaning of the New York City Landscape Gerda Lerner, Fireweed: A Political Autobiography Allida M. Black, ed., Modern American Queer History Eric Sandweiss, St. Louis: The Evolution of an American Urban Landscape Sam Wineburg, Historical Thinking and Other Unnatural Acts: Charting the Future of Teaching the Past Sharon Hartman Strom, Political Woman: Florence Luscomb and the Legacy of Radical Reform Michael Adas, ed., AgriculturalRead MoreAn Impact Assessment of Science and Technology Policy on National Development of Nigeria61708 Words   |  247 PagesAN IMPACT ASSESSMENT OF SCIENCE AND TECHNOLOGY POLICY ON NATIONAL DEVELOPMENT OF NIGERIA BY ABUBAKAR ABDULLAHI October, 2 0 0 4 ii AN IMPACT ASSESSMENT OF SCIENCE AND TECHNOLOGY POLICY ON NATIONAL DEVELOPMENT OF NIGERIA BY ABUBAKAR ABDULLAHI (MATRICULATION NO. 3081) A Dissertation Submitted to St. Clements University in Partial Fulfillment of the Requirements for the Award of Doctor of Philosophy in Management St. Clements University October, 2004 iii DECLARATION I declare thatRead MoreEdexcel Igcse Economics Answer49663 Words   |  199 Pagesall the way back to less than $50 a barrel. However, again it is unlikely that the demand for the product rose by very much as a result of the huge price decrease. When demand for a product is very inelastic, price changes do not have very much impact on demand. (f) Oil is in demand worldwide. It has many uses. For example, it is used as a fuel and burnt to provide heat. It is converted into petrol, diesel and aviation fuel to power vehicles and other engines. And it is used by a range of different

A Timeline of the Decade 1910-1919

Gender Empowerment Measure Free Essays

Gender Empowerment Measure or GEM is a system used in measuring the gender inequality of a nation when it comes to both the political and economic opportunities. Using data from different nations, GEM is able to ranked nations on how the gender inequality issue is improving over time. We will write a custom essay sample on Gender Empowerment Measure or any similar topic only for you Order Now The system used a more complex formula when it comes to measuring the political and economic participation of women relative to that of men. The United Nations Development Programme (UNDP) used four indicators in order to create a composite GEM. These indicators are seats held by women in parliament, female professional and technical workers, female administrators and managers, and the real GDP per capita of women. A GEM table is an indicator of gender inequality between different nations. It captures three major areas of gender inequality among nations. The first area is the extent to which women participate in decision-making in terms of political aspect. The second is the economic participation of women as well as their decision-making power. The third area is the measure of the power that women exert over the nations economic resources. In the 2009 Human Development report, Sweden was ranked first in GEM with 47% sets in parliament held by women, 32% female legislators, senior officials and managers, 51% female professional and technical worker and 0. 67 ratio of estimated female to male earned income. The figures show that Swedish women enjoy the most gender equality than any other nation included in the report. GEM is also a measure of how the inequality between men and women are changing through time. Thus, having a greater GEM means that a country is likely to develop a sense of equality between the role of men and women in society. Reference Human Development Report (2009). Gender Empowerment Measure and its Components. How to cite Gender Empowerment Measure, Papers

”The Forgotten 500” by Gregory Freeman Essay Sample free essay sample

The Forgotten 500 by Gregory Freeman is an untold narrative of a deliverance undertaken by a group of work forces ( the OSS- finally the CIA ) . utilizing aircraft to deliver five hundred and twelve downed aviators from the mountains in Nazi occupied Yugoslavia. The aviators had to avoid gaining control while expecting a deliverance. some for months others for a twelvemonth or more. With the assistance of the Serbian people and General Mihailovich. who loved Americans and resisted Nazi business. built by manus a landing strip without alarming the Germans or jeopardizing local Serbs. to convey in multiple C47 aircraft in the largest deliverance behind enemy lines in World War II and since. Operation Halyard. General Mihailovich who one time had entire support by Allies until Tito’s agents infiltrated British central offices and presented false paperss which showed Mihailovich and his work forces join forcesing with Nazi business forces. Ultimately. Allied forces turned their support to communist leader Tito. We will write a custom essay sample on †The Forgotten 500† by Gregory Freeman Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Operation Halyard was non mentioned for over 40 old ages. Mihailovich and his attempts were erased from history along with the 500 downed American aviators. After British and US treachery. Mihailovich was captured by the Partisans. given a rigged test and executed after the war. Many of the rescued aviators and their protagonists held mass meetings on Mihailovich’s behalf pleading for clemency with no help. Mihaiovich’s girl was finally presented the Legion of Merit by President Harry Truman in award of her male parent who rescued. protected and returned to safety so many of our downed aviators.

3 Cases of Mixed Metaphors

3 Cases of Mixed Metaphors 3 Cases of Mixed Metaphors 3 Cases of Mixed Metaphors By Mark Nichol Efforts to describe something idiomatically with the use of metaphor- a word or phrase that figuratively provides an analogy- more than once in a sentence will likely distractingly interfere with reading comprehension, so avoid using more than one metaphor in a sentence, or at least ensure that they are complementary. Discussions after each example in this post explain the difficulty of using two metaphors, and revisions suggest a solution. 1. What you hear symbolizes something ominous- impending danger lurking just beneath the surface, which has been hanging over our heads in recent years. The metaphors in this sentence come at the reader from both directions, with an allusion to subterranean peril and an indirect reference to the anecdote of the sword of Damocles, in which a king suspends a sword over a courtier’s head by a single hair to teach the man a lesson about the peril of being in a position of power. To avoid this discordance, the metaphors should be consistent in imagery: â€Å"What you hear symbolizes something ominous- impending danger lurking just beneath the surface, which has percolating in recent years.† (Percolating is also a metaphor, but such one-word analogies embedded in our language do not distract as easily as more vivid imagery, and the verb is concordant with the preceding metaphor.) 2. These actions resulted in a significant redirection of market focus and gave the firms a ringside seat when the proverbial music stopped. â€Å"A ringside seat† refers to achieving a privileged position (literally, a front-row seat at a boxing match), and the phrase about music alludes to surviving a round of the game of musical chairs, in which competitors circle a group of chairs that numbers one less than the number of participants and vie to obtain a seat when music that is briefly played suddenly ceases, causing one person to be disqualified in each round. Although both metaphors deal, in a sense, with attainment of privilege, the contexts are different, and one is best abandoned in favor of the other: â€Å"These actions resulted in a significant redirection of market focus and gave the firms a ringside seat when that shift occurred.† 3. The same division within the party that derailed healthcare reform could also rear its head with respect to tax reform.   The reference to figurative derailment is at odds with the clichà ©d metaphor of a threatening creature preparing to strike. Again, sacrifice one metaphor for another (preferably, replacing the clichà © with a straightforward verb): â€Å"The same division within the party that derailed healthcare reform could also occur with respect to tax reform.† (An attempt to match the derailment reference with another train-related metaphor will only call attention to the symmetry at the expense of the point of the sentence.) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the General category, check our popular posts, or choose a related post below:4 Types of Gerunds and Gerund Phrases75 Idioms and Expressions That Include â€Å"Break†What is an Anagram?

Drug Courts and Their Efficiency

Drug Courts and Their Efficiency Introduction The growing rates of incarceration among people, who take drugs, prompted legislators to adopt different strategies in order to address this issue. Drug courts are believed to be one of the solutions to this problem. This paper is aimed at examining the functioning of these institutions and their efficiency.Advertising We will write a custom critical writing sample on Drug Courts and Their Efficiency specifically for you for only $16.05 $11/page Learn More These are the main questions that should be examined. Overall, it is possible to say that these organizations can reduce the level of recidivism among drug offenders and help them reintegrate into the society. To a great extent, these institutions can help people cope with their addition. However, they can be effective only in those cases when if there are well-developed rehabilitation programs that support people who are in the urgent need of help; otherwise this policy may not attend the res ults expected by the community. Moreover, much attention should be paid to the use of resources. Policy-makers should remember about opportunity costs associated with drug courts. Still despite these limitations, one can say that these organizations can help community develop better tools of crime prevention. This is the main thesis that should be analyzed more closely. The main rationale for the establishment of drug courts There are several reasons why that made policy-makers to consider some alternatives to existing methods of crime prevention. In particular, one can speak about the increasing rates of recidivism among people who had been previously convicted of drug offences (Longshore, Turner, Wenzel, Morral, 2001, p. 7). Additionally, substance abusers are overrepresented in the criminal justice system (Boyum Kleiman, 2002). As a rule, their dependence on substances is the underlying factor that increases the likelihood of their deviance (Boyum Kleiman, 2002). In many cases , these individuals are not able to reintegrate themselves in the society because very often they remain addicted to substances (Bennett 2005). Moreover, in many cases, these people can commit even more serious felonies provided that their addiction is not treated effectively (Franco 2011). Very often legislators advocate the use of minimum sentences on criminals; however, this policy is not sufficient for reducing the rates of recidivism (Waller, 2008). Thus, one can speak about the existence of a vicious cycle that should be broken in some way. This is one of the details that researchers focus on (Boyum Kleiman, 2002). Thus, the absence of an effective policy is the main factor that led to the establishment of drug courts. These institutions were supposed to be response to this problem. It should be noted that drug courts examine only non-violent offences such as possession of cannabis, the purchase of drugs with the help of forged prescriptions, or small-scale dealing.Advertisin g Looking for critical writing on constitutional law? Let's see if we can help you! Get your first paper with 15% OFF Learn More The offenders are obliged to undergo such procedures as in-patient detoxification and rehabilitation (Franco 2011, p. 20). Drug courts do not interact with individuals that can pose a threat to the life or health of other people. In most cases, there is no need to incarcerate these people. This is one of the issues that can be distinguished. The efficiency of these institutions There are various studies are aimed at evaluating the effectiveness of drug courts. In order to cope with this task, researchers compare the experiences of people who participated in drug court programs and those offenders who did not (Fulkerson, 2012). They pay attention to various indicators such the rates of recidivism or people’s ability to cope with drug addiction (Fulkerson, 2012). This is the main peculiarity of their research methodology. These academic sources can be divided into several groups. First, one can mention that many authors emphasize the reduced rates of recidivism. For example, according Cassia Spohn et al. (2001), people, who participated in drug courts programs, were less likely to be arrested for misdemeanor (p. 160). For instance, 42.1 of these people part were re-arrested; yet, this rate was 60.8 % for people who were tried in conventional courts (Spohn et al., 2001, p. 160). Moreover, these organizations can benefit juvenile offenders who are dependent on substances (Torgensen, Buttars, Norman, Bailey 2004). Additionally, the participation in drug courts reducing the risk of family conflicts (Green Rempel, 2012, p. 169). Finally, such rehabilitation programs can people who may have various forms of addiction. This is one of the improvements that these organizations can bring. However, much attention should be paid to characteristics of people who took part in this program. Much attention should be pa id such characteristics as the support of close relatives, peer pressure, employment opportunities, and many other forces that can influence a person’s behavior. This question is not closely examined in this research articles. This is one of the limitations that should not be overlooked by policy-makers who should evaluate the performance of drug courts programs. They should pay more attention to the factors that increase the efficiency of drug courts because in this way, they can make this policy more productive. This step is important for helping people reintegrate into the community. Other researcher point out that the efficiency of drug courts programs depends on such criteria, as marital status, education, or employment opportunities.Advertising We will write a custom critical writing sample on Drug Courts and Their Efficiency specifically for you for only $16.05 $11/page Learn More For example, Allison Mateyoke-Scrivner et al (2004) point out t hat older offenders are more likely to complete a rehabilitation program (p. 617). Additionally, researchers note that people with the history of intravenous drug use are less likely to rehabilitate (Roll, Prendergast, Richardson, Burdon, Ramirez, 2005, p. 641). This form of addiction is usually more difficult to overcome (Roll et al., 2005). Moreover, researchers point out the offenders, who have already undergone drug treatment, are less likely to benefit from rehabilitation programs (Miller Shutt, 2001, p. 91). Such individuals have already made an attempt to struggle with their dependence but some of them have lost confidence in their ability to overcome their addiction. Certainly, these studies indicate at the efficiency of drug courts. However, they also show that some participants can derive more benefits from the treatment that drug courts offer (Roll et al., 2005). This is one of the main aspects that should be considered by legislators, policy-makers as well medical work ers who develop rehabilitation programs. They should also bear in mind that some drug offenders will find it more difficult to reintegrate into the community. Legal professionals can anticipate the difficulties that they can encounter in the future. Overall, scholars, who examine this question, acknowledge that their studies cannot capture the complexity of social or economic factors that can shape the choices that drug offenders can take. As it has been said before, one can speak about employment opportunities or the support of relatives. Additionally, one should pay attention to the competence of people who should provide psychological assistance to drug offenders. These professionals should be able to find an approach to various individuals who may represent different educational backgrounds, races, ethnicities, cultures and so forth (Fulkerson, 2012). Therefore, one cannot argue the behavior of separate offenders can be attributed only to the role of drug courts. More attention should be paid to the competence of separate professionals, rather than organizations. This is one of the limitations that should be taken into account. Nevertheless, one can say that such forces always play an important role, but their presence does not mean that drug courts are not necessary. These organizations create a framework through which offenders can get access to efficient treatment. This is one of the arguments that can be put forward in support of this policy. Yet, there are researchers, who are highly skeptical about the efficiency of drug courts. One of their arguments is that there are many hidden costs of drug costs. In particular, the money which has been invested in these institutions might have been directed to other areas such as education, healthcare, or infrastructure (Carey Finigan 2004).Advertising Looking for critical writing on constitutional law? Let's see if we can help you! Get your first paper with 15% OFF Learn More They are important for creating opportunities to community members and researchers are aware of these concerns (Carey Finigan 2004). Thus, one can argue that policy-makers should consider the interest of other stakeholders. This is one of the objections that can be raised. Nevertheless, it is important to remember that the effects of drug-related crimes can be much more expensive because people, who cannot cope with their addiction to drugs, can pose a great threat to the lives, health, and property of many people (Carey Finigan 2004). By overlooking this problem, the society can be exposed to various risks (Carey Finigan 2004). This is one of the details that should not be overlooked by legislators. Therefore, the criticism of drug courts may not always be justified. Secondly, the critics of drugs courts say that the alleged successes of drug courts are often based on cherry picking. In other words, these institutions select only those offenders who are more likely to complete a rehabilitation program (Barnes, Miller, Miller, Gibson, 2008, p. 166). As a rule, these organizations lay stress on screening interviews which can determine whether an individual can benefit from the rehabilitation program (Barnes et al., 2008, p. 166). For instance, people, who have prior convictions, are less likely to qualify for drug courts programs (Duke, 2012; Shaffer 2011). Moreover, there are different forms of addition. Some of them are very difficult to treat. The main problem is that drug courts do not accept people with this form of dependence. Therefore, one can argue that such organizations may not work with people who urgently need their assistance. The adoption of this strategy is important for explaining the effectiveness of drug courts. However, this policy may not necessarily result in the reduction of recidivism among drug offenders. These examples are also vital for objective evaluation of drug programs. Therefore, while evaluating various studies related to d rug courts, researchers should closely examine the way in which these organizations select the participants for their programs. This examination is important for the validity of the research methodology. However, one can provide several objections to the criticisms of drug courts. First of all, one can say that screening interviews are necessary because one has to identify possible mental disorders and cognitive deficiencies. This information is necessary for determining whether a person can pose a danger to the lives of others (Miller Shutt, 2001). Therefore, legislators should make sure that the participants are able to benefit from these programs. Thus, one cannot say that screening interviews are not necessary because they are important for eliminating many risks. Secondly, the instances of cherry picking can be eliminated by introducing clear eligibility standards. The selection should not be based on the subjective opinion. These are the main details that should be considered by policy-makers who need to evaluate the positive and negative aspects of adopting this policy. These are one of the main points that can be made. Conclusion These examples suggest that the efficiency of drug courts is a subject of many studies. Numerous studies have confirmed that these institutions can benefit many people. In particular, they are able to overcome their dependence on drugs and avoid the risks of recidivism. However, it is important to examine possible criticisms that are related to such a practice as cherry picking because it can undermine the very goal of the organizations. These organizations should develop policies ensuring that people are not denied the access to rehabilitation programs because drug courts want to improve their performance indicators. Furthermore, it is vital to make sure that the resources allocated to these institutions are effectively used. Provided that these issues are addressed properly, drug courts can become an effective solution to c rime. These are the main details that should be considered. Reference List Barnes, J. C., Miller, J. M., Miller, H. V., Gibson, C. (2008). Juvenile drug court program admission, demeanor and cherry-picking: A research note. American Journal of Criminal Justice, 33(2), 166-176. Bennett, T. (2005). The Association Between Multiple Drug Misuse and Crime.  International Journal of Offender Therapy and Comparative Criminology, 49(1), 63-81. Boyum, D., Kleiman, M. (2002) Substance abuse policy from a crime-control perspective. In J. Wilson J. Petersilia (Eds.), Crime (2nd. Ed.) (pp. 95-1 11). San Franciscom, NC: ICS Press. Carey, S. Finigan, M. (2004). A Detailed Cost Analysis in a Mature Drug Court Setting A Cost-Benefit Evaluation of the Multnomah County Drug Court. Journal of Contemporary Criminal, 20(3), 315-338. Duke, K. (2012). From Crime to Recovery The Reframing of British Drugs Policy?  Journal of Drug Issues, 43(1), 39-55. Franco, C. (2011). Drug courts: Background, Effe ctiveness and Policy Issues for Congress. Journal Of Current Issues In Crime, Law Law Enforcement, 4(1), 19-50. Fulkerson, A. (2012). Understanding Success and Nonsuccess in the Drug Court, International Journal of Offender Therapy and Comparative Criminology,  57(10), 1297-1316. Green, M., Rempel, M. (2012). Beyond crime and drug use: Do adult drug courts produce other psychosocial benefits? Journal of Drug Issues, 42(2), 156-177. Longshore, D., Turner, S., Wenzel, S., Morral, A (2001). Drug courts: A conceptual framework. Journal of Drug Issues, 31(1), 7-25. Mateyoke-Scrivner, A., Webster, J., Staton, M., Leukefeld, C. (2004). Treatment Retention Predictors of Drug Court Participants in a Rural State. The American Journal of Drug and Alcohol Abuse, 30(3), 605-625. Miller, J., Shutt, J. (2001). Considering the need for empirically grounded drug court screening mechanisms. Journal of Drug Issues, 31(1), 91-106. Roll, J., Prendergast, M., Richardson, K., Burdon, W., Ramirez, A. (2005). Identifying Predictors of Treatment Outcome in a Drug Court Program. The American Journal of Drug and Alcohol Abuse, 30(3), 605-625. Shaffer, D. (2011). Outcomes Among Drug Court Participants: Does Drug of Choice Matter? Journal of Drug Issues, 31(1), 259-291. Spohn, C., Piper, R. K., Martin, T., Erika, D. F. (2001). Drug courts and recidivism: The results of an evaluation using two comparison groups and multiple indicators of recidivism. Journal of Drug Issues, 31(1), 149-176. Torgensen, K., Buttars, D. C., Norman, S. W., Bailey, S. (2004). How drug courts reduce substance abuse recidivism. The Journal of Law, Medicine Ethics, 32(4), 69-72. Waller, B. (2008). You decide!: current debates in criminal justice. New York, NY: Pearson Prentice Hall.

Lesson plan on Identifying Synonyms Coursework Example | Topics and Well Written Essays - 250 words - 1

Lesson plan on Identifying Synonyms - Coursework Example 2. Prompt students to think of other pairs of words that mean the same thing. Write these synonyms on sentence strips, and cut them apart so that you have one word for each student in the class. If students are having difficulty thinking of synonyms, give them one of these words and prompt them to think of a synonym: big/huge, tiny/small, scared/afraid, cute/pretty, rock/stone, loud/noisy, sofa/couch, dinner/supper, store/market, lady/woman, rug/carpet, yell/scream, finish/end, start/begin, quick/fast. 3. Shuffle the words. Explain to students that they will be going on a synonym hunt and that each of them will receive a card with a word on it that they must not look at until they are told. The object of the game is for each student to move around the room and find his/her partner, who has a word that means the same thing. When students find their partners, they should sit down. The game is over when each student has found a partner. To begin, fold each word in half so that the word cannot be seen and give one word to each student. When each student has a card say, â€Å"Let the hunt begin!† 5. As a fun follow-up activity or one to incorporate into the lesson, have students make their own puppets with various facial expressions. They can create puppet skits with partners or groups and think of synonyms. I decided to get someone from the crowd and get to know their feelings. From the line, I encountered Sofia Contreras, a housewife. She was very excited to be part of the event and was sure that the beauty store is a good initiative for the whole town. Prepare sentences with words underlined, and have students select a synonym from a word box for the underlined word in each sentence. For example, have students choose from among the words huge, fast, couch, small, and large to select synonyms for the

Antitrust Case Study Research Paper Example | Topics and Well Written Essays - 1750 words

Antitrust Case Study - Research Paper Example The agreement was signed on 17th February 1983 by the chairmen of Toyota and GM, and triggered one of the biggest and most controversial antitrust investigations in recent history. The vital question was whether it was plausible that the joint venture would actually lead to an increase in domestic small cars that were manufactured more efficiently, with good insights that GM and other firms could use in their plants, or whether it could lead to the regulation of pricing and other conduct between GM and Toyota and merely supplant less-anticompetitive options that GM could have employed in order to realize its objectives. The examination of these question shed light on a number of issues: the changes in behavior that could crop up from the joint venture, the scale of the efficiencies resulting from the venture, economic impacts of the joint venture, and the options available to GM. Some new tools were developed in order to evaluate and examine the joint venture, but they did not result in an agreement with regard to its consequences. Key words Antitrust, GM, Toyota, joint venture, small cars Analysis Most proposed joint ventures, acquisitions, and mergers above a particular size require that, under the stipulations of the Hart-Scott-Rodino premerger notification act of 1976, the Department of Justice and the FTC (Federal transition Commission) be notified. This process provides both agencies with time to investigate a proposed arrangement before it is consummated. In this case, the FTC was mandated to carry out the investigation. In April 1983, Toyota and GM filed initial information and responded to calls for additional information during the summer (White, 1991). The investigation was referred to as one of the most intensive and extensive antitrust examinations ever conducted. The final judgment was delivered by five FTC commissioners, and was founded on different memoranda from a consulting economist, the Bureau of Competition (the legal personnel), and the Bu reau of Economics. The two bureaus recommended that the joint venture be approved, but the consultant’s report recommended that it should be contested. In December 1983, and based on these analyses, the FTC commissioners voted 3-2 provisionally to allow the joint venture to be effected, subject to a few minor revisions. Final approval was confirmed by the same margin (3-2) in April of 1984. The fact that there were no court proceedings means that Toyota and GM did not formally account for their positions. In addition to this, there was no direct merging of the issues between the critics and proponents of the joint venture, and not even a public disclosure of evidential paperwork (Cole & Andrea, 1987). The only thing that existed was a set of documents amounting to 1364 pages that the FTC released in January of 1984. Cooperative Behavior and Market Definition This is the first issue in the analysis of the joint venture, and involves the possibility of cooperative behavior in t he appropriate market. This called for a determination of the geographic market and appropriate product and then an evaluation of the likelihood that the companies in that market might cooperate in a way that would hurt market efficiency and consumers. Clearly, if the

Effect of Remittances on Household Consumption Patterns

Effect of Remittances on Household Consumption Patterns Do remittances affect the consumption pattern of the Filipino households? Objectives The objective of this paper is to formulate structural models to illustrate the change in consumption pattern of the Filipino households. In this study, our aim is to use an advanced econometric approach to find out if there is indeed such change in the consumption pattern of the household receiving remittances as compared to those who only get their income from domestic sources. Review of Related Literature There are several studies regarding the consumption patterns of household. One of which is the study made by Taylor and Mora (2006), they studied about the effect of migration in reshaping the expenditure of rural households in Mexico. The conclusion that they made is that remittances has positive effects on total expenditures and investment. They also found out that as the remittances of rural household increases, the proportion of the income on consumption decreases (Taylor Mora, 2006). Another one is the study of Rasyad A. Parinduri Shandre M. Thangavelu (2008), wherein they used the Indonesia Family Life Survey data to observe the effect of remittances to the consumption patterns of the Indonesian households. In their study, they used the matching and difference-in-difference matching estimators to observe the relationship. They found out that remittances do not improve the living standard of the households, nor do remittances have an effect on economic development. They used t he education and medical expenditure as indicators of economic development. The major findings that they have are that most of the Indonesian households used the remittances in terms of investing them into luxury goods such as house and jewelries (Parinduri Thangavelu, 2008). Using the same study, we intend to observe the consumption pattern of the households, based not only on the remittances but also to other sources of income. In addition to that, instead of looking at economic development, we intend to look at the consumption goods that households normally consume, and see if there are indeed changes in the consumption patterns of the selected households. Theoretical Framework Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law Methodology and Data In the methodology and data part, our main concern is to find ways to observe the consumption patterns of the Filipino households here in this country. In order to do that, we tried to find a dataset that will explain such relationship. Based from the available datasets here in the country, we would say that the Family Income and Expenditure Survey or the FIES best suits our study. The dataset enlists all the possible consumption goods that were being consumed by the households during a specific year. In addition to that, we can also determine the source of income of the different households that was made available in the dataset. By examining the relationship of consumption and income, we will be able to observe the behavioral aspect of the Filipino householdsà ¢Ã¢â€š ¬Ã¢â€ž ¢ consumption based from the income that they received. Due to the inaccessibility of the latest data, we settled for the 2003 edition. Based on this data, we will be able to observe the impact of the different sources of income to the kind of goods that the Filipino families consume, using an advanced econometric approach called the simultaneous equation model (SEM). After acquiring the right dataset for this study, we must next formulate the different structural equations to illustrate the consumption patterns. In this paper, we have formulated four equations, one of which is based from the Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law, which again, states that when an individualà ¢Ã¢â€š ¬Ã¢â€ž ¢s income increases, his/her percentage of consumption decreases (Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law, n.d.). As for the other three other equations which are mainly composed of different sources of income, mainly wages, domestic source, and foreign source, we have used other studies conducted by (SOURCE) ,to see what are the factors that affects or determine the different sources of income. After formulating the equations, we decided to use the log-log model for the estimation, simply because our study aims to observe the income elasticity of the different goods. With the use of the log-log model, we will be able to determine the elasticity of the different consumption goods, by just looking at their respective estimated coefficients. Another reason why we chose the log-log model is because of the limited information about the domestic and foreign source of income in the FIES data. There are several households in the data who either do not receive domestic or foreign source of income, or the data gatherers failed to obtain these data from the respective respondents. By using the log-log model, we will be able to exclude those unrecorded observations, so that the results will be not inconsistent and will not be affected by the people who do not receive income from either domestic or foreign source. After citing the reasons for the construction of the model, next, we will be observing three consumption goods, particularly the total food expenditures, the total non food expenditures, and the tobacco-alcohol consumption. Model 1: Food Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: food = total food expenditures Condo = domestic source of income Conab = foreign source of income Wage = wages or salaries of the household Wsag = wages or salaries from agricultural activities Wsnag = wages or salaries from non-agricultural activities S1021_age = household head age S1041_hgc = household head highest grade completed S1101_employed = total number of family employed with pay Lc10_conwr = contractual worker indicator In order to observe the consumption patterns of the Filipino household based from the different sources of income, we will be modifying the first equation of the model, by replacing one good to the other good, while maintaining the same structural forms. For example, in the initial first model, we have chosen food expenditure as our first consumption good. Later on, we will be observing other consumption goods such as non food expenditure, and alcoholic tobacco-alcohol consumption, and we will replace the food consumption with these other goods. This is because consumption goods are all affected by the income, and we have chosen the different income sources based from the availability of the FIES data, which was released on 2003. A-priori expectation Given the interrelationship of the equations, it seems like we have to solve the equations simultaneously to estimate for the unknown variables. Before we can use the simultaneous equation model (SEM) approach, there are several identification problems that we must solve in order to know whether SEM is an appropriate method or not. According to Gujarati and Porter (2009), the identification problem process consists of the following tests: a. order and rank condition, b. Hausman specification test, which is also known as the simultaneity test, and c. exogeneity test. Identification Problem Order and rank condition Before we proceed with the order and rank condition, we must first define the different variables that we will be using in order to test whether the equations are under-identified, exactly identified or over-identified. Legend: M à ¯Ã†â€™Ã‚  number of endogenous variables in the model m à ¯Ã†â€™Ã‚  number of endogenous variables in the equation K à ¯Ã†â€™Ã‚  number of exogenous/predetermined variables in the model k à ¯Ã†â€™Ã‚  number of exogenous/predetermined variables in the equation Order Condition The order condition is a necessary but not sufficient condition for identification (Gujarati and Porter, 2009). This test is used to see whether an equation is identified by comparing the number of excluded exogenous/predetermined variables in a given equation with the number of endogenous variables in the equation less one. There will be three instances where we can determine if the equation is identified or not. First, if K-k (number of excluded predetermined variables in the equation) In the first model, there are four endogenous variables namely lnfood, lnwages, lncondo, and lnconab (M=4). And there are also six exogenous variables in the equation which are the variables that were not named (K=6). With that, the order condition of the food consumption is illustrated below: Equation K-k m-1 Conclusion Lnfood 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over In the first case, all the equations are considered to be over-identified, simply because K-k > m-1. In the order condition, we have concluded that the model is identified. However, the order condition is not sufficiently enough to justify whether an equation is identified or not, that is why there is another condition that must be satisfied before we can proceed to the estimation process, which is the rank condition. Rank Condition The rank condition is a necessary and sufficient condition for identification. In order to satisfy the rank condition, à ¢Ã¢â€š ¬Ã…“there must be at least one nonzero determinant of order (M-1) (M-1) can be constructed from the coefficients of the variables excluded from that particular equation but included in the other equations of the modelà ¢Ã¢â€š ¬?(Gujarati and Porter, 2009). Ys Xs Eq. Food Wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnfood 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 Lncondo 0 0 1 0 0 0 Lnconab 0 0 0 1 0 0 We simplify the variableà ¢Ã¢â€š ¬Ã¢â€ž ¢s notation, but ità ¢Ã¢â€š ¬Ã¢â€ž ¢s basically the same as the variables in the model, it only lacks the à ¢Ã¢â€š ¬Ã…“lnà ¢Ã¢â€š ¬? in some variables, and some variablesà ¢Ã¢â€š ¬Ã¢â€ž ¢ descriptions are shortened. We can observed that the (M-1) x (M-1), which in this case is 3 x 3 matrices, have at least one nonzero determinant, therefore the rank condition is satisfied. We can now proceed to the other identification test. Hausman specification test The Hausman specification test is to test whether the equations exhibits simultaneity problem or not. According to Gujarati and Porter (2009), if there is not simultaneity problem, then OLS is BLUE (best linear unbiased estimator). But if there is simultaneity problem, then OLS is not blue, because the estimated results will be bias and inconsistent. With that, we have to use the different estimation techniques of the SEM in order to regress the given equations. The Hausman specification test involves the following process: First, we regress an endogenous variable with respect to all of the exogenous/predetermined variables in the system, after which we obtain the value of the residual, in which it is the predictedThe second step is to regress the endogenous variable with respect to the other endogenous variables plus the predicted . If the is statistically significant, this means that we have all the evidence to reject the null hypothesis, which states that there is no simultaneity bias in the model. But if it is insignificant, we have no evidence to reject the null hypothesis, and if that happens, there is no simultaneity problem. The variable that exhibits no simultaneity bias should not be treated as an endogenous variable. (Gujarati and Porter, 2009) Dependent variable: lnwages P-values Independent variables: lncondo 0.370 lnconab 0.014 uhat 0.000 For the simultaneity test in the first model, we follow the steps in the Hausman specification test. After that, we observed the predicted uhat in this regression and we can see that the predicted uhat here is 0.000. This means that the null hypothesis is rejected, and there exist simultaneity bias in the first model, therefore we should use other estimation techniques other than OLS, to produce unbiased and consistent estimates. Exogeneity test After the simultaneity test, we must also test for the other exogenous/predetermined variables, to check whether these variables are truly exogenous or not. The process is similar to the Hausman specification test, but instead of regressing the endogenous variables, we regress each exogenous/predetermined variable with respect to the . If the is statistically significant, then we have to reject the null hypothesis that it is truly an exogenous variable. But if the p-value of the is 1.000, this means that we have no evidence to reject the null hypothesis, and we conclude that the corresponding variables are truly exogenous or truly predetermined variables. Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2nd equation Resulting p-values for uhat Lnwsag 1.000 lnwsnag 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 3nd equation Resulting p-values for uhat s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4nd equation Resulting p-values for uhat s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Based from the table given above, each exogenous variable is regressed against the predict uhat and looking at the respective p-values, which are all 1.000. This means that we have no evidence to reject that these variables are indeed truly exogenous variables in each of the equations. Model 2: Non Food Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: nonfood = total non food expenditure In model 2, we basically changed the total food expenditure with the total non food expenditure. Before we can regress the model, this model should also undergo series of identification problem process to see if whether the model is identified or not. We will also test if the nonfood expenditure model exhibits simultaneity bias and if all of its exogenous variables are truly exogenous. Order and Rank Condition Order Condition Equation K-k m-1 Conclusion Lnnonfood 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over Similar to the food consumption order condition, the non food consumption is also identified based on the order condition. All equations are concluded to be over-identified; therefore we can say that the model is identified. But again, we must use the rank condition to further validate if the equations are truly identified or not. Rank Condition Ys Xs Eq. nonfood wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnnonfood 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 lncondo 0 0 1 0 0 0 lnconab 0 0 0 1 0 0 Based from the sub 33 matrices, we can say that there exists at least one nonzero determinant in the equation, therefore rank condition is satisfied. This means that the equations are identified. Hausman specification test Dependent variable: lnwages P-values Independent variables: lncondo 0.533 lnconab 0.011 uhat2 0.001 For the simultaneity test in model 2, we can see that uhat2 is statistically significant, meaning there exists a simultaneity bias in the model. Therefore we must use the SEM estimation techniques similar to model 1, to estimate the impact of income and consumption goods. Exogeneity test Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2nd equation Resulting p-values for uhat2 Lnwsag 1.000 lnwsnag 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 3nd equation Resulting p-values for uhat2 s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4nd equation Resulting p-values for uhat2 s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Similar to the food consumption model, the exogenous variables in the nonfood model are truly exogenous, since all the resulting p-values for uhat2, are all 1.000. Model 3: Tobacco-Alcohol Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: at = tobacco-alcohol consumption The same process in model 2 was made here in model 3, we now check for the identification problems for the tobacco-alcohol consumption Order and Rank Condition Order Condition Equation K-k m-1 Conclusion Lnat 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over Order condition is satisfied here in model 3, since all of the equations are concluded to be over-identification. We now proceed to the rank condition to check if the equations are ultimately identified. Rank Condition Ys Xs Eq. at wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnat 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 lncondo 0 0 1 0 0 0 lnconab 0 0 0 1 0 0 Rank condition is satisfied because there is at least one nonzero determinant here in the sub 33 matrices. Hausman specification test Dependent variable: lnwages P-values Independent variables: lncondo 0.911 lnconab 0.063 uhat3 0.003 In model 3, there is no simultaneity problem because uhat3 is statistically significant. Therefore, we have all the evidence to reject the null hypothesis that there is no simultaneity bias in the equation. The same procedure as for food and nonfood model, we will be using the different estimation techniques to estimate these unknown variables. Estimation Techniques and Results Estimation Techniques After the identification problems of the simultaneous equation problem, we proceed to the estimation techniques. As discussed by Gujarati and Porter (2009), they provided three estimation techniques in order to solve for SEM, namely the ordinary least squares (OLS), indirect least squares (ILS), and the two-stage least squares (2SLS). The OLS is used for the recursive, triangular, or causal models (Gujarati and Porter, 2009). Meanwhile, the ILS focuses more on the reduced form of the simultaneous equations, wherein there exists only one endogenous variable in the reduced form equation and it is expressed in terms of all existing exogenous/predetermined variables in the model. It is estimated through the OLS approach, and this method best suits if the model is exactly identified (Gujarati and Porter, 2009). Lastly, the 2SLS approach, wherein the equations are estimated simultaneously. Unlike ILS, 2SLS can used to estimate exact and over-identified equations. (Gujarati and Porter, 2009 ) The three approaches discussed by Gujarati and Porter (2009) are all based from the single equation approach. If there are CLRM violations such as autocorrelation and heteroscedasticity in the models, we must use the system approach, particularly the three-stage least squares (3SLS), to correct these violations. The only drawback of the 3SLS method is that if any errors in one equation will affect the other equations. Ordinary Least Squares (OLS) Since all three models suffer from simultaneity bias, we will not use the OLS in this paper. This is because if we used the OLS in estimating the equation which there exist simultaneity bias, the results will be biased and inconsistent. Therefore, OLS is not a good estimator for the three models. Indirect Least Squares (ILS) Food consumption model reduced form: Where: | Nonfood model reduced form: Where: | Tobacco-Alcohol model reduced form: Where: | We will not estimate anymore the coefficient for the ILS, because our main goal is to observe the relationship of consumption goods with the different sources of income and not the other determinants of the different sources of income. The ILS results will not yield standard error for the structural coefficients; therefore it will be hard to obtain the values of the structural coefficients. In addition to that, all of our equations are over-identified, therefore ILS is an inappropriate method to estimate the coefficients. Two-stage least squares (2SLS) Consumption Goods Food (948 obs) Non Food (1078 obs) Tobacco-Alcohol (634 obs) 1st Equation Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 6.428484 (0.000) 1.401963 (0.070) 12.94298 (0.001) lnwages 0.2235283 (0.000) 0.2880426 (0.000) 0.7781965 (0.000) lncondo 0.0223739 (0.622) 0.2036453 (0.013) -1.47202 (0.000) lnconab 0.205797 (0.001) 0.5110999 (0.000) 0.6098058 (0.121) 2nd Eq. lnwages Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 2.122649 (0.000) 2.122649 (0.000) 1.884011 (0.000) lnwsag 0.3611279 (0.000) 0.3611279 (0.000) 0.42199 (0.000) lnwsnag 0.5175117 (0.000) 0.5175117 (0.000) 0.483135 (0.000) 3rd Eq. lncondo Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 7.75861 (0.000) 7.75861 (0.000) 7.887869 (0.000) s1021_age -0.0003422 (0.903) -0.0003422 (0.903) 0.0014345 (0.720) s1041_hgc 0.0346237 (0.000) 0.0346237 (0.000) 0.1302147 (0.000) s1101_employed -0.023387 (0.450) -0.023387 (0.450) -0.0601213 (0.111) lc10conwr 0.1583353 (0.345) 0.1583353 (0.345) 0.0871853 (0.710) 4th Eq. lnconab Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 10.39914 (0.000) 10.39914 (0.000) 9.947326 (0.000) s1021_age 0.004519 (0.169) 0.004519 (0.169) 0.0145833 (0.002) s1041_hgc 0.0210221 (0.000) 0.0210221 (0.000) 0.150857 (0.000) s1101_employed 0.0420871 (0.245) 0.0420871 (0.245) 0.0273189 (0.541) lc10conwr -0.6848394 (0.000) -0.6848394 (0.000) -0.7780885 (0.005) Since FIES is a cross sectional data, the model maybe exposed to the violations of multicollinearity and heteroscedasticity. As shown in the appendix1, under the CLRM violations, there exists no multicollinearity in the equations, but there exists heteroscedasticity three out of four equations in the model. The only way to correct for the heteroscedasticity problem is by estimating the simultaneous equations using the three-stage least squares method, which is considered to be full information approach. Three-stage least squares (3SLS) Consumption Goods Food (948 obs) Non Food (1078 obs) Tobacco-Alcohol (634 obs) 1st Equation Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 6.383871 (0.000) 0.7926094 (0.289) 18.63624 (0.000) lnwages 0.2224267 (0.000) 0.2831109 (0.000) 0.7374008 (0.000) lncondo 0.0245077 (0.582) 0.3151916 (0.000) -2.405262 (0.000) lnconab 0.2101956 (0.001) 0.4810778 (0.000) 0.9024638 (0.020) 2nd Eq. lnwages Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 2.142826 (0.000) 2.126479 (0.000) 1.895235 (0.000) lnwsag 0.3560053 (0.000) 0.3594587 (0.000) 0.419183 (0.000) lnwsnag 0.5203181 (0.000) 0.5187091 (0.000) 0.4846674 (0.000) 3rd Eq. lncondo Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 7.66644 (0.000) 7.420188 (0.000) 8.252266 (0.000) s1021_age 0.0000462 (0.987) -0.0005333 (0.840) 0.0042572 (0.224) s1041_hgc 0.0344578 (0.000) 0.0327889 (0.000) 0.0972984 (0.002) s1101_employed -0.0109756 (0.720) 0.030168 (0.302) -0.0811008 (0.009) lc10conwr 0.173369 (0.296) 0.234941 (0.151) -0.0362562 (0.860) 4th Eq. lnconab Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 9.635422 (0.000) 9.760654 (0.000) 9.899007 (0.000) s1021_age 0.0025551 (0.394) 0.0034051 (0.195) 0.0140427 (0.003) s1041_hgc 0.0212975 (0.000) 0.0171248 (0.000) 0.1589354 (0.000) s1101_employed 0.1534522 (0.000) 0.1464836 (0.000) 0.0291422 (0.510) lc10conwr -0.484862 (0.011) -0.5302148 (0.004) -0.761339 (0.006) By using the 3SLS, the models are now corrected and it is free from any CLRM violations. Therefore, the table shown above is already the final model of estimation, and we can now interpret the results equation per equation basis. Check for equality and unit elasticity As indicated in the appendices (last part), we also check if there lnwages and lnconab in the food consumption equation are indeed equal. We used the test command in STATA, to see if the two variables are equal, by looking at its p-value. The resulting p-value of the test is 0.8614, meaning we have no evidence to reject the null hypothesis that the two variablesà ¢Ã¢â€š ¬Ã¢â€ž ¢ coefficients are equal. We made the same process for the lnwages and lncondo in the nonfood consumption equation, and the resulting p-value of the test is 0.6846, which means that lnwages and lncondo are also equal in the estimation. Aside from the check for equality, we also check if the lnconabà ¢Ã¢â€š ¬Ã¢â€ž ¢s income elasticity to tobacco-alcohol consumption is equal to 1. The resulting p-value for the test is 0.8007, which means that the income elasticity of lnconab to tobacco-alcohol consumption is 1, meaning it is unit elastic. Results Model 1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Food Consumption In the first model, which is the total food expenditure model, the variable domestic source of income in the 1st equation is considered to be statistically insignificant. This means that it will be meaningless to interpret the results of that particular variable. As for wages and foreign source of income, we can see that the two coefficients are very similar, which means that for every one percent increase in wages and foreign source of income, food consumption increases by 0.22 and 0.21 percent respectively. The results are clearly consistent with Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law of food consumption that the proportion of food expenditure decrease as an individualà ¢Ã¢â€š ¬Ã¢â€ž ¢s income increases. For the 2nd equation, which is the wage equation, the result shows that the impact of non-agricultural activities is greater compared to agricultural activities. This is consistent with our a-priori expectation of one having a larger impact than the other. In reality, we can see that non-agricultural activities result to higher income due to its high value added products that it produces. The higher the value added the work is, the higher the changes are that wages or salaries received will be also higher. For the 3rd and 4th equation, which is considered to be similar except for the source of income where it comes from, the results show that only highest grade completed is considered to be statistically significant in the 3rd equation, while in the 4th equation, the household headà ¢Ã¢â€š ¬Ã¢â€ž ¢s age is the only one which is statistically insignificant. For the domestic source of income, we can observed that people who has a larger share of the wages or salaries in the company, have typically higher educational attainment compared to those who have lower educational attainment. The result of the 3rd equation maybe attributed to that factor. For the 4th equation, it is the same explanation for the highest grade completed by the household head as in the 3rd equation. While for the total family members employed with pay, it has a positive relationship, simply because if there are larger number of family members who are working and receiving salaries, the cumulative source of income wi ll be larger, compared to those families who have fewer number of family members working with pay. The last variable in the 4th equation, which is the dummy variable contract worker, we can see in the result that if an individual is a contract worker, generally, that individual will receive lower wages compared to those regular employees. This is because contractual workers are given limited period of time to work for certain companies, and companies hire contractual workers for short term uses. With that, companies usually pay lower amount of wages to these short term workers. Model 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Non food consumption For the 2nd model, the nonfood consumption model, all the variables in the 1st equation are all statistically significant. The coefficients of wages and domestic source of income are similar, but there is a disparity between these two variables and the foreign source of income, which resulted to a higher coefficient. The higher coefficient means that the foreign source of income is more sensitive to nonfood consumption compared to the initial two variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" wages and domestic income. We can see in the result that a ho Effect of Remittances on Household Consumption Patterns Effect of Remittances on Household Consumption Patterns Do remittances affect the consumption pattern of the Filipino households? Objectives The objective of this paper is to formulate structural models to illustrate the change in consumption pattern of the Filipino households. In this study, our aim is to use an advanced econometric approach to find out if there is indeed such change in the consumption pattern of the household receiving remittances as compared to those who only get their income from domestic sources. Review of Related Literature There are several studies regarding the consumption patterns of household. One of which is the study made by Taylor and Mora (2006), they studied about the effect of migration in reshaping the expenditure of rural households in Mexico. The conclusion that they made is that remittances has positive effects on total expenditures and investment. They also found out that as the remittances of rural household increases, the proportion of the income on consumption decreases (Taylor Mora, 2006). Another one is the study of Rasyad A. Parinduri Shandre M. Thangavelu (2008), wherein they used the Indonesia Family Life Survey data to observe the effect of remittances to the consumption patterns of the Indonesian households. In their study, they used the matching and difference-in-difference matching estimators to observe the relationship. They found out that remittances do not improve the living standard of the households, nor do remittances have an effect on economic development. They used t he education and medical expenditure as indicators of economic development. The major findings that they have are that most of the Indonesian households used the remittances in terms of investing them into luxury goods such as house and jewelries (Parinduri Thangavelu, 2008). Using the same study, we intend to observe the consumption pattern of the households, based not only on the remittances but also to other sources of income. In addition to that, instead of looking at economic development, we intend to look at the consumption goods that households normally consume, and see if there are indeed changes in the consumption patterns of the selected households. Theoretical Framework Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law Methodology and Data In the methodology and data part, our main concern is to find ways to observe the consumption patterns of the Filipino households here in this country. In order to do that, we tried to find a dataset that will explain such relationship. Based from the available datasets here in the country, we would say that the Family Income and Expenditure Survey or the FIES best suits our study. The dataset enlists all the possible consumption goods that were being consumed by the households during a specific year. In addition to that, we can also determine the source of income of the different households that was made available in the dataset. By examining the relationship of consumption and income, we will be able to observe the behavioral aspect of the Filipino householdsà ¢Ã¢â€š ¬Ã¢â€ž ¢ consumption based from the income that they received. Due to the inaccessibility of the latest data, we settled for the 2003 edition. Based on this data, we will be able to observe the impact of the different sources of income to the kind of goods that the Filipino families consume, using an advanced econometric approach called the simultaneous equation model (SEM). After acquiring the right dataset for this study, we must next formulate the different structural equations to illustrate the consumption patterns. In this paper, we have formulated four equations, one of which is based from the Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law, which again, states that when an individualà ¢Ã¢â€š ¬Ã¢â€ž ¢s income increases, his/her percentage of consumption decreases (Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law, n.d.). As for the other three other equations which are mainly composed of different sources of income, mainly wages, domestic source, and foreign source, we have used other studies conducted by (SOURCE) ,to see what are the factors that affects or determine the different sources of income. After formulating the equations, we decided to use the log-log model for the estimation, simply because our study aims to observe the income elasticity of the different goods. With the use of the log-log model, we will be able to determine the elasticity of the different consumption goods, by just looking at their respective estimated coefficients. Another reason why we chose the log-log model is because of the limited information about the domestic and foreign source of income in the FIES data. There are several households in the data who either do not receive domestic or foreign source of income, or the data gatherers failed to obtain these data from the respective respondents. By using the log-log model, we will be able to exclude those unrecorded observations, so that the results will be not inconsistent and will not be affected by the people who do not receive income from either domestic or foreign source. After citing the reasons for the construction of the model, next, we will be observing three consumption goods, particularly the total food expenditures, the total non food expenditures, and the tobacco-alcohol consumption. Model 1: Food Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: food = total food expenditures Condo = domestic source of income Conab = foreign source of income Wage = wages or salaries of the household Wsag = wages or salaries from agricultural activities Wsnag = wages or salaries from non-agricultural activities S1021_age = household head age S1041_hgc = household head highest grade completed S1101_employed = total number of family employed with pay Lc10_conwr = contractual worker indicator In order to observe the consumption patterns of the Filipino household based from the different sources of income, we will be modifying the first equation of the model, by replacing one good to the other good, while maintaining the same structural forms. For example, in the initial first model, we have chosen food expenditure as our first consumption good. Later on, we will be observing other consumption goods such as non food expenditure, and alcoholic tobacco-alcohol consumption, and we will replace the food consumption with these other goods. This is because consumption goods are all affected by the income, and we have chosen the different income sources based from the availability of the FIES data, which was released on 2003. A-priori expectation Given the interrelationship of the equations, it seems like we have to solve the equations simultaneously to estimate for the unknown variables. Before we can use the simultaneous equation model (SEM) approach, there are several identification problems that we must solve in order to know whether SEM is an appropriate method or not. According to Gujarati and Porter (2009), the identification problem process consists of the following tests: a. order and rank condition, b. Hausman specification test, which is also known as the simultaneity test, and c. exogeneity test. Identification Problem Order and rank condition Before we proceed with the order and rank condition, we must first define the different variables that we will be using in order to test whether the equations are under-identified, exactly identified or over-identified. Legend: M à ¯Ã†â€™Ã‚  number of endogenous variables in the model m à ¯Ã†â€™Ã‚  number of endogenous variables in the equation K à ¯Ã†â€™Ã‚  number of exogenous/predetermined variables in the model k à ¯Ã†â€™Ã‚  number of exogenous/predetermined variables in the equation Order Condition The order condition is a necessary but not sufficient condition for identification (Gujarati and Porter, 2009). This test is used to see whether an equation is identified by comparing the number of excluded exogenous/predetermined variables in a given equation with the number of endogenous variables in the equation less one. There will be three instances where we can determine if the equation is identified or not. First, if K-k (number of excluded predetermined variables in the equation) In the first model, there are four endogenous variables namely lnfood, lnwages, lncondo, and lnconab (M=4). And there are also six exogenous variables in the equation which are the variables that were not named (K=6). With that, the order condition of the food consumption is illustrated below: Equation K-k m-1 Conclusion Lnfood 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over In the first case, all the equations are considered to be over-identified, simply because K-k > m-1. In the order condition, we have concluded that the model is identified. However, the order condition is not sufficiently enough to justify whether an equation is identified or not, that is why there is another condition that must be satisfied before we can proceed to the estimation process, which is the rank condition. Rank Condition The rank condition is a necessary and sufficient condition for identification. In order to satisfy the rank condition, à ¢Ã¢â€š ¬Ã…“there must be at least one nonzero determinant of order (M-1) (M-1) can be constructed from the coefficients of the variables excluded from that particular equation but included in the other equations of the modelà ¢Ã¢â€š ¬?(Gujarati and Porter, 2009). Ys Xs Eq. Food Wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnfood 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 Lncondo 0 0 1 0 0 0 Lnconab 0 0 0 1 0 0 We simplify the variableà ¢Ã¢â€š ¬Ã¢â€ž ¢s notation, but ità ¢Ã¢â€š ¬Ã¢â€ž ¢s basically the same as the variables in the model, it only lacks the à ¢Ã¢â€š ¬Ã…“lnà ¢Ã¢â€š ¬? in some variables, and some variablesà ¢Ã¢â€š ¬Ã¢â€ž ¢ descriptions are shortened. We can observed that the (M-1) x (M-1), which in this case is 3 x 3 matrices, have at least one nonzero determinant, therefore the rank condition is satisfied. We can now proceed to the other identification test. Hausman specification test The Hausman specification test is to test whether the equations exhibits simultaneity problem or not. According to Gujarati and Porter (2009), if there is not simultaneity problem, then OLS is BLUE (best linear unbiased estimator). But if there is simultaneity problem, then OLS is not blue, because the estimated results will be bias and inconsistent. With that, we have to use the different estimation techniques of the SEM in order to regress the given equations. The Hausman specification test involves the following process: First, we regress an endogenous variable with respect to all of the exogenous/predetermined variables in the system, after which we obtain the value of the residual, in which it is the predictedThe second step is to regress the endogenous variable with respect to the other endogenous variables plus the predicted . If the is statistically significant, this means that we have all the evidence to reject the null hypothesis, which states that there is no simultaneity bias in the model. But if it is insignificant, we have no evidence to reject the null hypothesis, and if that happens, there is no simultaneity problem. The variable that exhibits no simultaneity bias should not be treated as an endogenous variable. (Gujarati and Porter, 2009) Dependent variable: lnwages P-values Independent variables: lncondo 0.370 lnconab 0.014 uhat 0.000 For the simultaneity test in the first model, we follow the steps in the Hausman specification test. After that, we observed the predicted uhat in this regression and we can see that the predicted uhat here is 0.000. This means that the null hypothesis is rejected, and there exist simultaneity bias in the first model, therefore we should use other estimation techniques other than OLS, to produce unbiased and consistent estimates. Exogeneity test After the simultaneity test, we must also test for the other exogenous/predetermined variables, to check whether these variables are truly exogenous or not. The process is similar to the Hausman specification test, but instead of regressing the endogenous variables, we regress each exogenous/predetermined variable with respect to the . If the is statistically significant, then we have to reject the null hypothesis that it is truly an exogenous variable. But if the p-value of the is 1.000, this means that we have no evidence to reject the null hypothesis, and we conclude that the corresponding variables are truly exogenous or truly predetermined variables. Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2nd equation Resulting p-values for uhat Lnwsag 1.000 lnwsnag 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 3nd equation Resulting p-values for uhat s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4nd equation Resulting p-values for uhat s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Based from the table given above, each exogenous variable is regressed against the predict uhat and looking at the respective p-values, which are all 1.000. This means that we have no evidence to reject that these variables are indeed truly exogenous variables in each of the equations. Model 2: Non Food Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: nonfood = total non food expenditure In model 2, we basically changed the total food expenditure with the total non food expenditure. Before we can regress the model, this model should also undergo series of identification problem process to see if whether the model is identified or not. We will also test if the nonfood expenditure model exhibits simultaneity bias and if all of its exogenous variables are truly exogenous. Order and Rank Condition Order Condition Equation K-k m-1 Conclusion Lnnonfood 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over Similar to the food consumption order condition, the non food consumption is also identified based on the order condition. All equations are concluded to be over-identified; therefore we can say that the model is identified. But again, we must use the rank condition to further validate if the equations are truly identified or not. Rank Condition Ys Xs Eq. nonfood wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnnonfood 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 lncondo 0 0 1 0 0 0 lnconab 0 0 0 1 0 0 Based from the sub 33 matrices, we can say that there exists at least one nonzero determinant in the equation, therefore rank condition is satisfied. This means that the equations are identified. Hausman specification test Dependent variable: lnwages P-values Independent variables: lncondo 0.533 lnconab 0.011 uhat2 0.001 For the simultaneity test in model 2, we can see that uhat2 is statistically significant, meaning there exists a simultaneity bias in the model. Therefore we must use the SEM estimation techniques similar to model 1, to estimate the impact of income and consumption goods. Exogeneity test Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2nd equation Resulting p-values for uhat2 Lnwsag 1.000 lnwsnag 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 3nd equation Resulting p-values for uhat2 s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Exogenous variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4nd equation Resulting p-values for uhat2 s1021_age 1.000 s1041_hgc 1.000 s1101_employed 1.000 lc10_conwr 1.000 Similar to the food consumption model, the exogenous variables in the nonfood model are truly exogenous, since all the resulting p-values for uhat2, are all 1.000. Model 3: Tobacco-Alcohol Consumption Equation 1: Equation 2: Equation 3: Equation 4: Where: at = tobacco-alcohol consumption The same process in model 2 was made here in model 3, we now check for the identification problems for the tobacco-alcohol consumption Order and Rank Condition Order Condition Equation K-k m-1 Conclusion Lnat 6 3 Over Lnwages 4 0 Over Lncondo 2 0 Over Lnconab 2 0 Over Order condition is satisfied here in model 3, since all of the equations are concluded to be over-identification. We now proceed to the rank condition to check if the equations are ultimately identified. Rank Condition Ys Xs Eq. at wages condo conab 1 wssag wsnag hh_age hh_hgc employed conwr lnat 1 0 0 0 0 0 0 lnwages 0 1 0 0 0 0 0 0 lncondo 0 0 1 0 0 0 lnconab 0 0 0 1 0 0 Rank condition is satisfied because there is at least one nonzero determinant here in the sub 33 matrices. Hausman specification test Dependent variable: lnwages P-values Independent variables: lncondo 0.911 lnconab 0.063 uhat3 0.003 In model 3, there is no simultaneity problem because uhat3 is statistically significant. Therefore, we have all the evidence to reject the null hypothesis that there is no simultaneity bias in the equation. The same procedure as for food and nonfood model, we will be using the different estimation techniques to estimate these unknown variables. Estimation Techniques and Results Estimation Techniques After the identification problems of the simultaneous equation problem, we proceed to the estimation techniques. As discussed by Gujarati and Porter (2009), they provided three estimation techniques in order to solve for SEM, namely the ordinary least squares (OLS), indirect least squares (ILS), and the two-stage least squares (2SLS). The OLS is used for the recursive, triangular, or causal models (Gujarati and Porter, 2009). Meanwhile, the ILS focuses more on the reduced form of the simultaneous equations, wherein there exists only one endogenous variable in the reduced form equation and it is expressed in terms of all existing exogenous/predetermined variables in the model. It is estimated through the OLS approach, and this method best suits if the model is exactly identified (Gujarati and Porter, 2009). Lastly, the 2SLS approach, wherein the equations are estimated simultaneously. Unlike ILS, 2SLS can used to estimate exact and over-identified equations. (Gujarati and Porter, 2009 ) The three approaches discussed by Gujarati and Porter (2009) are all based from the single equation approach. If there are CLRM violations such as autocorrelation and heteroscedasticity in the models, we must use the system approach, particularly the three-stage least squares (3SLS), to correct these violations. The only drawback of the 3SLS method is that if any errors in one equation will affect the other equations. Ordinary Least Squares (OLS) Since all three models suffer from simultaneity bias, we will not use the OLS in this paper. This is because if we used the OLS in estimating the equation which there exist simultaneity bias, the results will be biased and inconsistent. Therefore, OLS is not a good estimator for the three models. Indirect Least Squares (ILS) Food consumption model reduced form: Where: | Nonfood model reduced form: Where: | Tobacco-Alcohol model reduced form: Where: | We will not estimate anymore the coefficient for the ILS, because our main goal is to observe the relationship of consumption goods with the different sources of income and not the other determinants of the different sources of income. The ILS results will not yield standard error for the structural coefficients; therefore it will be hard to obtain the values of the structural coefficients. In addition to that, all of our equations are over-identified, therefore ILS is an inappropriate method to estimate the coefficients. Two-stage least squares (2SLS) Consumption Goods Food (948 obs) Non Food (1078 obs) Tobacco-Alcohol (634 obs) 1st Equation Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 6.428484 (0.000) 1.401963 (0.070) 12.94298 (0.001) lnwages 0.2235283 (0.000) 0.2880426 (0.000) 0.7781965 (0.000) lncondo 0.0223739 (0.622) 0.2036453 (0.013) -1.47202 (0.000) lnconab 0.205797 (0.001) 0.5110999 (0.000) 0.6098058 (0.121) 2nd Eq. lnwages Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 2.122649 (0.000) 2.122649 (0.000) 1.884011 (0.000) lnwsag 0.3611279 (0.000) 0.3611279 (0.000) 0.42199 (0.000) lnwsnag 0.5175117 (0.000) 0.5175117 (0.000) 0.483135 (0.000) 3rd Eq. lncondo Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 7.75861 (0.000) 7.75861 (0.000) 7.887869 (0.000) s1021_age -0.0003422 (0.903) -0.0003422 (0.903) 0.0014345 (0.720) s1041_hgc 0.0346237 (0.000) 0.0346237 (0.000) 0.1302147 (0.000) s1101_employed -0.023387 (0.450) -0.023387 (0.450) -0.0601213 (0.111) lc10conwr 0.1583353 (0.345) 0.1583353 (0.345) 0.0871853 (0.710) 4th Eq. lnconab Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 10.39914 (0.000) 10.39914 (0.000) 9.947326 (0.000) s1021_age 0.004519 (0.169) 0.004519 (0.169) 0.0145833 (0.002) s1041_hgc 0.0210221 (0.000) 0.0210221 (0.000) 0.150857 (0.000) s1101_employed 0.0420871 (0.245) 0.0420871 (0.245) 0.0273189 (0.541) lc10conwr -0.6848394 (0.000) -0.6848394 (0.000) -0.7780885 (0.005) Since FIES is a cross sectional data, the model maybe exposed to the violations of multicollinearity and heteroscedasticity. As shown in the appendix1, under the CLRM violations, there exists no multicollinearity in the equations, but there exists heteroscedasticity three out of four equations in the model. The only way to correct for the heteroscedasticity problem is by estimating the simultaneous equations using the three-stage least squares method, which is considered to be full information approach. Three-stage least squares (3SLS) Consumption Goods Food (948 obs) Non Food (1078 obs) Tobacco-Alcohol (634 obs) 1st Equation Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 6.383871 (0.000) 0.7926094 (0.289) 18.63624 (0.000) lnwages 0.2224267 (0.000) 0.2831109 (0.000) 0.7374008 (0.000) lncondo 0.0245077 (0.582) 0.3151916 (0.000) -2.405262 (0.000) lnconab 0.2101956 (0.001) 0.4810778 (0.000) 0.9024638 (0.020) 2nd Eq. lnwages Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 2.142826 (0.000) 2.126479 (0.000) 1.895235 (0.000) lnwsag 0.3560053 (0.000) 0.3594587 (0.000) 0.419183 (0.000) lnwsnag 0.5203181 (0.000) 0.5187091 (0.000) 0.4846674 (0.000) 3rd Eq. lncondo Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 7.66644 (0.000) 7.420188 (0.000) 8.252266 (0.000) s1021_age 0.0000462 (0.987) -0.0005333 (0.840) 0.0042572 (0.224) s1041_hgc 0.0344578 (0.000) 0.0327889 (0.000) 0.0972984 (0.002) s1101_employed -0.0109756 (0.720) 0.030168 (0.302) -0.0811008 (0.009) lc10conwr 0.173369 (0.296) 0.234941 (0.151) -0.0362562 (0.860) 4th Eq. lnconab Coefficients (P-value) Coefficients (P-value) Coefficients (P-value) constant 9.635422 (0.000) 9.760654 (0.000) 9.899007 (0.000) s1021_age 0.0025551 (0.394) 0.0034051 (0.195) 0.0140427 (0.003) s1041_hgc 0.0212975 (0.000) 0.0171248 (0.000) 0.1589354 (0.000) s1101_employed 0.1534522 (0.000) 0.1464836 (0.000) 0.0291422 (0.510) lc10conwr -0.484862 (0.011) -0.5302148 (0.004) -0.761339 (0.006) By using the 3SLS, the models are now corrected and it is free from any CLRM violations. Therefore, the table shown above is already the final model of estimation, and we can now interpret the results equation per equation basis. Check for equality and unit elasticity As indicated in the appendices (last part), we also check if there lnwages and lnconab in the food consumption equation are indeed equal. We used the test command in STATA, to see if the two variables are equal, by looking at its p-value. The resulting p-value of the test is 0.8614, meaning we have no evidence to reject the null hypothesis that the two variablesà ¢Ã¢â€š ¬Ã¢â€ž ¢ coefficients are equal. We made the same process for the lnwages and lncondo in the nonfood consumption equation, and the resulting p-value of the test is 0.6846, which means that lnwages and lncondo are also equal in the estimation. Aside from the check for equality, we also check if the lnconabà ¢Ã¢â€š ¬Ã¢â€ž ¢s income elasticity to tobacco-alcohol consumption is equal to 1. The resulting p-value for the test is 0.8007, which means that the income elasticity of lnconab to tobacco-alcohol consumption is 1, meaning it is unit elastic. Results Model 1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Food Consumption In the first model, which is the total food expenditure model, the variable domestic source of income in the 1st equation is considered to be statistically insignificant. This means that it will be meaningless to interpret the results of that particular variable. As for wages and foreign source of income, we can see that the two coefficients are very similar, which means that for every one percent increase in wages and foreign source of income, food consumption increases by 0.22 and 0.21 percent respectively. The results are clearly consistent with Engelà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law of food consumption that the proportion of food expenditure decrease as an individualà ¢Ã¢â€š ¬Ã¢â€ž ¢s income increases. For the 2nd equation, which is the wage equation, the result shows that the impact of non-agricultural activities is greater compared to agricultural activities. This is consistent with our a-priori expectation of one having a larger impact than the other. In reality, we can see that non-agricultural activities result to higher income due to its high value added products that it produces. The higher the value added the work is, the higher the changes are that wages or salaries received will be also higher. For the 3rd and 4th equation, which is considered to be similar except for the source of income where it comes from, the results show that only highest grade completed is considered to be statistically significant in the 3rd equation, while in the 4th equation, the household headà ¢Ã¢â€š ¬Ã¢â€ž ¢s age is the only one which is statistically insignificant. For the domestic source of income, we can observed that people who has a larger share of the wages or salaries in the company, have typically higher educational attainment compared to those who have lower educational attainment. The result of the 3rd equation maybe attributed to that factor. For the 4th equation, it is the same explanation for the highest grade completed by the household head as in the 3rd equation. While for the total family members employed with pay, it has a positive relationship, simply because if there are larger number of family members who are working and receiving salaries, the cumulative source of income wi ll be larger, compared to those families who have fewer number of family members working with pay. The last variable in the 4th equation, which is the dummy variable contract worker, we can see in the result that if an individual is a contract worker, generally, that individual will receive lower wages compared to those regular employees. This is because contractual workers are given limited period of time to work for certain companies, and companies hire contractual workers for short term uses. With that, companies usually pay lower amount of wages to these short term workers. Model 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Non food consumption For the 2nd model, the nonfood consumption model, all the variables in the 1st equation are all statistically significant. The coefficients of wages and domestic source of income are similar, but there is a disparity between these two variables and the foreign source of income, which resulted to a higher coefficient. The higher coefficient means that the foreign source of income is more sensitive to nonfood consumption compared to the initial two variables à ¢Ã¢â€š ¬Ã¢â‚¬Å" wages and domestic income. We can see in the result that a ho