Business cycle Essay Example | Topics and Well Written Essays - 500 words

Business cycle - Essay Example For instance, the choice of the parameter values depends on the macroeconomic evidences available for comparison purposes (Romer 217-220). It is also apparent that the calibration model can result in the statistical rejection of adoption of a concept in business operations. This is because most models are always difficult to interpret and a model that fits the data properly, within different dimensions, may be statistically rejected if one aspect is omitted (Summers 129-148). A model may still be ignored if the data is consistent with a wide variety of options. The models are calibrated to ensure that they undergo testing via the formal econometric methods. This is normally done through the identification of available evidence against the variances of other data in the series. For instance, the comparison of labor against capital and output can adopt the calibrated model (Romer 217-220). This means that government intervention and technological components do not apply in the final determination of outputs. The calibration is different from other models like the Solow theory that assumes the prevalence of technology in productivity. However, an alternative model for calibration is the proper assessment of fully specified models in which the researchers determine models using macroeconomic evidences (Romer 217-220). This focuses on the main building aspects or through the evaluation of the model’s consistency with other statistics. According to Summers (p. 129-148), calibration model enables economists to apply different concepts in the interpretation of their business performance. The historical data comparison helps in speculation purposes in which a firm can change its methods to suit the trend. This is done through the relation between variables and independent factors present in the industry (Summers 129-148). As a result, the real-business cycle model relies on

Another 10 questions about china law Essay Example | Topics and Well Written Essays - 1000 words

Another 10 questions about china law - Essay Example A and European Union, China had violated the national treatment in the China’s Auto parts case as it followed protectionist policy for its domestic auto-industry. United States of America and European Union have filed a case in WTO under dispute settlement mechanism alleging the unfair treatment of China towards foreign auto parts. China’s complex tariff system is the main reason for favoring domestic industry and damaging the interests of foreign auto companies. However it may not be true completely as some analysts find political reasons behind this complaint. Majority car making companies in China are having collaboration or joint venture with foreign firms and hence will get the benefit of low cost domestic spare parts that result in lower manufacturing costs. Hence they will not prefer purchasing higher cost imported spare parts from foreign companies. The term â€Å"like product† means the product that is identical to the dumped import, or in the absence of such a product, another product that has characteristics closely resembling the dumped import (Article 12 of the Anti dumping regulations of PRC, 2004) . According to Article 3 of the Anti dumping regulations, 2004 of PRC, The term â€Å"dumping† means that an import is introduced, in the ordinary course of trade, into the market of the People’s Republic of China at an export price less than its normal value. Hence its meaning is almost similar to that of WTO definition. The margin of dumping is the amount by which the export price of an import is less than its normal value (Article 6). The margin of dumping shall be established on the basis of a comparison of a weighted average normal value with a weighted average of prices of all comparable export transactions or by a comparison of the normal value and export price on a transaction-to-transaction basis. According to the Anti dumping regulations of PRC, 2004, The term â€Å"injury† means material injury or threat of material injury caused by