They explain the heterogeneity across states in the current house prices by the different exposures to national shocks. They find significant regional difference in the response of house price to monetary policy measured by Federal Funds rate but monetary policy shocks are small relative to the size of recent price boom in their study. Allen and Carletti (2010) find that interest rates can be used as an
National saving includes public and private saving. Household saving typically constitutes a major part of private saving compared to private corporations (Gersovitz, 1988; Rehman, Bashir, & Faridi, 2011). Saving is an important way to improve the well-being of household. It allows households to smooth consumption in case of high income volatility and increase the opportunity to invest in physical and human capital (Ashraf et al., 2003). For households, the tradeoff between current and future consumption results in saving (Sturm, 1983).
They are the production approach, the income approach, or the expenditure approach. In this research, the way of estimating GDP is by using the second approach- income approach. In this approach, an economist believes that the money each family brings home is a better way to evaluate the economic strength of the country. Therefore, this method will measure the annual incomes of all individuals in a country. GDP calculated in this way is sometimes called as gross domestic incomes (GDI).
Cost of living can be an important factor on accumulation of personal wealth, where small salary can survive in small town and large salary is not enough to survive in expensive city. According to Mercer (2015) in Cost of Living Survey, cities with the highest cost of living standards included Tokyo, Osaka, Moscow, Geneva, Hong Kong, Zurich, Copenhagen and New York City. U.S. cities with a highest cost of living as of 2015 included Honolulu, Los Angeles, Washington and San Francisco. In this research, we will discuss in detail about the factor that related to cost of living increase. There are so many factors that can increase the cost of living which are inflation, tax, level of income, supply, demand, changes in lifestyle.
Five macroeconomic objectives and definitions 1. Economic growth -an increase in the standard living of the people and an increase in the market value of the production of goods and services produced over time. -“an increase in economic goods and service”. (Eloff, M. Nel, D. Van Zyl, M. Clever Economics) How can it be measured? in the economy there are many methods that are used by economists to measure how fast the economy is growing the most common one is the REAL GDP(GROSS DOMESTIC PRODUCTS).GDP can be measured into three different ways of which are • Quarterly growth at annual rate • The fourth quarter or year over year growth rate • The annual average growth rate Formula GDP1 – GDP2 Economic growth = GDP1 CURRENT MEASUREMENTS/LEVELS • REAL GDP is the current measurement 2.
Methodology In order to analyze the distributional effects of access to basic services on household welfare, we use Benefit Incidence Analysis (BIA) method (see Demery, 2000 and Davoodi et al., 2003 for the description of the BIA method). In order to take account of the multidimensional character of the well-being and the simultaneous nature of its dimensions, we use the Structural Equations Model (SEM) with latent variables. This section describes the SEM and the data sources used. 3.1. The Structural Equations Model (SEM) Our goal here is to provide a measurement of well-being using the capability approach.
Pooling and diversification is a fundamental characteristic of pension funds. The meaning of a pension fund is further explained by the Organisation for Economic Cooperation and Development (OECD) (2005) as, “The pool of assets forming an independent legal entity that are bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits. The plan/fund members have a legal or beneficial right or some other contractual claim against the assets of the pension fund.” Jefferis and Tabengwa (1999) also view a pension fund as a form of contractual savings, in that they involve a contract to save regularly which is in most cases monthly, over a relatively long period of time. In the meantime, the accumulated contributions are invested in order to generate further returns that supplement the value of the fund and hence boost the value of the future pension that can be paid out. A pension is then defined by Princeton University online dictionary, (cited in Chowa et al., 2014), as a post retirement benefit that is received by an employee from his/her employer’s retirement plan whose main aim is to provide a regular source of subsistence to the non-working
Economic growth is the most powerful instrument for reducing poverty and improving the quality of life in developing countries. Economic growth can be measure by using gross domestic product (GDP). It also takes the country 's account for the entire economic output and also all goods and services that businesses in the country produce for sale. According to Leszek Balcerowicz, economic growth is a process of quantitative, qualitative and structural changes, standard of life, with a positive impact on economy and on the population’s whose tendency follows a continuously dominant. Besides, Meier (1964) studied the process of economic development is where an economy’s real national income rises long the period of time but this definition fails to take account that changes the growth of population.