Benefits and Costs of Regulation
It is usual for regulators to evaluate the cost-benefit of the regulatory suggestions. Such evaluation aims to determine the trade-offs related to regulatory action and suggest alternative solutions. Regulators rely on economic principles when developing methods to measure a regulation’s…
The Regulatory Tools
The regulatory and government policies should be predictable, contemplative, and effective in reaching their goals. This is because it is challenging for any business entity to operate in an environment governed by an uncertain regulatory system. In other words, regulators…
The Regulatory Interdependencies
Regulated bodies in a market react differently to new proposed regulations. They often fight new rules but not outrightly since such wars easily attract public attention. However, according to the regulatory capture theory, laws work in the best interest of…
Study Notes for CFA® Level III – Behavioral Finance – offered by AnalystPrep
Reading 1: The Behavioral Biases of Individuals -a. Compare and contrast cognitive errors and emotional biases; -b. Discuss commonly recognized behavioral biases and their implications for financial decision making; -c. Identify and evaluate an individual’s behavioral biases; Reading 2: Behavioral…
Study Notes for CFA® Level III – Capital Market Expectations – offered by AnalystPrep
Reading 1: Capital Market Expectations – Part 1 (Framework and Macro Considerations) Los 1 a: Discuss the role of, and a framework for, capital market expectations in the portfolio management process Los 1 b: Discuss challenges in developing capital market…
Study Notes for CFA® Level III – Asset Allocation – offered by AnalystPrep
Reading 5: Overview of Asset Allocation -a. Describe elements of effective investment governance and investment governance considerations in asset allocation; -b. Describe elements of effective investment governance and investment governance considerations in asset allocation; -c. Compare the investment objectives of…
Growth Accounting Relations
Growth accounting relations is a quantitative model Robert Solow developed in 1957. It is used to measure the effect of different factors of economic growth. In addition, it indirectly estimates the technological progress in an economy. In other words, it…
Theories of Growth
There are three growth theories based on the per capita growth in an economy: The classical growth theory. The neoclassical growth theory. Endogenous growth theory. The Classical Theory (Malthusian Theory) Thomas Malthus developed the classical growth theory in 1798. The…
Effects of Investment in Physical Capital, Human Capital, and Technological Development on Economic Growth
Human Capital Human capital is the amassed knowledge and skills that the labor force reaps from education, training, or life experiences. In other words, human capital is the “labor quality of the labor quantity.” Better educated and skilled workers will…
Capital Deepening and Technological Progress
Capital deepening is a condition in which an economy’s capital per worker (capital-labor ratio) is rising. The rate of change in the capital stock per labor hour. measures capital deepening. On the other hand, technological progress is the innovation of…
