Financial Literacy and Stock Market Participation

Financial Literacy and Stock Market Participation Kinar Timilsina THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND STOCK MARKET PARTICIPATION BY RETAIL INVESTORS IN NEPAL 1.1 Background 1.1.1 Financial Literacy Financial literacy is defined as education and understanding of various financial areas such as personal finance, corporate finance, financial services, public finance etc. It focuses on the ability to manage personal finance matters in an efficient and effective manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement and tax planning. (Investopedia). Financial literacy alerts individual to save money for their retirement period. Investments in financial asset helps them to increase their future wealth. Lusardi Mitchell (2008) write more financially literate people are more likely to plan for retirement and as a result they accumulate more wealth thus they participate in stock market . Guiso Jappelli (2008), Kimball Shumway (2007), Lusardi Mitchell (2006, 2007), and Lusardi Tufano (2009) (in Calcagno Monticone, 2011) confirm that knowledge about basic financ ial principles in consumer and products is scarce and may not be sufficient to guarantee that individuals make sound financial decisions. Less knowledge of financial literacy means little knowledge of financial matters and terms related to them such as interest rates and risk minimizing techniques. Retail Investors who has little or no knowledge of finance, that is a person who is not financially sophisticated, is more likely to fall prey to high cost borrowing and pay a great amount of money to attainment different financial services (Lusardi and Mitchell, 2011) . The financially literate persons have more financial wealth (Lusardi, 2004). The leading to the financial crisis of 2007 was financial illiteracy . It is important for decision makers to integrate financial knowledge and skills with real life processes leading to better financial interests (Atkinson and Messy). 1.1.2 Stock Market Participation Share trading in Nepal dates back to 1937 when the flotation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd commenced the share trading which were involved in opening plantations in Nepal . The establishment of a formal stock exchange took place in 13 January 1994 with the incorporation of the Nepal Stock Exchange (NEPSE), which took over the Securities Exchange Center Ltd. established in 1976. It currently has a membership of 2 market makers 50 stock brokers. As per the Securities Act 2007, rules and by-laws they operate on the trading floor. The Nepal Stock Exchange (Nepal) is the main stock exchange in Nepal. It is one of the modern stock exchanges in South Asia, providing a fully automated trading platform. NEPSE operates the market on the NEPSE Automated Trading System (NATS. It adopts the principle of an order driven market. NATS is used to purchase sell physical as well as dematerialized securities. The basic objective of NEPSE is to create without cost marketability and liquidity to the government and corporate securities which is done by facilitating transactions via market intermediaries such as brokers and market makers, etc. in its trading floor. The headquarters of the NEPSE have been situated at Singha Durbar Plaza, Kathmandu Nepal Nepal Stock Exchange is the only stock exchange licensed by the Securities Board of Nepal (SEBON). It was nearly 23 years ago that, formalized share trading commenced in Nepal under the Government of Nepal and trading was conducted under the rules and by laws formulated by the Association. It was only as recent as in 1994, that share trading in Nepal took a new turn with the establishment of a public trading floor and the introduction of the open outcry system of trading until 2007. In 2007, NEPSE moved to screen-based trading from open outcry by setting up Wide Area Network. It enabled stock brokers to be connected with NEPSEs server from their offices. The partial automation of stock trading has helped boost transaction volume. NEPSE has adopted a T+3 system. It implies that after 3 days of Trading, settlement of transactions should be done. The clearing and settlement procedures of the Nepal Stock Exchange were automated in 2011 with the establishment of the CDS and Clearing Limited. It is a company established under the company act promoted by NEPSE. The depository is known as the Central Depository System (CDS). CDS performs the role of central depository for Equity, Bonds etc. to handle these securities in dematerialized form. In 1994, an Over the Counter market for trading of unlisted shares was introduced for the first time in Nepal, Securities Exchange Center (SEC) managed the operation of secondary market over-the-counter facility. The delisted firms and state-owned corporations registers with the over the counter market (OTC) to allow trade of their shares. Shares without others finding out the price at which the transaction was done, can be bought and sold at the OTC market. Thus, the OTC market is less transparent than stock exchanges, and are also subject to fewer regulations in practice. The OTC market is rarely used to trades shares in Nepal. In 2012, shares of Nepal Bank Limited were traded in the OTC market for the first time where 71,928 Nepal Bank shares were transferred to its 2,664 employees that belonged to government. SEBON as the market regulator has been concentrating its efforts on intensifying statutory and legal frameworks which are the bases for the healthy development of Nepalese stock market. The main objective of SEBON is to flourish and safeguard the interest of investors by regulating the securities market, to supervise the entire stock market, sale and distribution of securities and purchase, sale or exchange of securities. SEBON provides licenses to stock exchange and securities business person. It also monitors the activities carried by stock exchange to know if they are in accordance with the laws, bye laws or not. As per the securities regulations the depository functions such as safekeeping, deposit, and securities certificates withdrawal and transfer of ownership/rights of the said instruments of Securities will be carried out by SEBON. Nepalese stock market is still underdeveloped and there is lapse that needs to be identified. Hence, the present study is conducted in order to f ind investors awareness and participation in Nepalese stock market. 1.1.3 Retail Investors in Nepal Investing Answers defines retail investors as an individual who purchases securities for his or her own personal account rather than for an organization. Generally retail investors trade in much smaller amounts than institutional investors such as pensions and mutual funds. Unfortunately, there is no data on the investors. But estimates are that there could be nearly 1 million retail investors (Ghimire, 2016) .The major problems of the stock market are unavailability of information, influenced by small number of large investors, insufficiency of legal rules and regulations, insufficient number of brokers and issue managers rumor based market, insufficient knowledge of investors etc. The retail investors are mainly driven by the rumor based market. (Dahal, 2010) . 1.1.4 Stock Market Participation and Financial Literacy While reviewing the previous research, I found that financial literacy can have direct implications on stock market participation by retail investors . People with low financial literacy are more likely to have problems with debt (Lusardi and Tufano 2009), are less likely to participate in the stock market (van Rooij, Lusardi and Alessie 2007), are less likely to choose mutual funds with lower fees (Hastings and Tejeda-Ashton, 2008), are less likely to accumulate wealth and manage wealth effectively (Stango and Zinman, 2007; Hilgert, Hogarth and Beverly 2003). 1.2 Statement of Problem There has been few research conducted on financial literacy in Nepal. Some of them are (Bharat Singh Thapa, 2015) College students have basic level of financial knowledge and their level of financial knowledge is determined by their family income, age, stream of education, type of college they study and their financial attitude. The study found that in basic level of finance, students are more knowledgeable while students are less familiar with bank credit, taxes, financial statement, insurance, and share markets. (Chaulagain, 2015) Financial literacy of individuals increases the likelihood of access to sustainable finance for identifying and consuming appropriate financial services competitively. The financial literacy is necessary but not sufficient condition for enhancing access to finance, neither it is a panacea for all the financial problems. Baidhya and Parajuli (2004) Awareness increase amongst the general public about the capital market, regarding nature of risk and return, through promotional campaigns, seminars, publications, and programs in FM/TV etc. In those research, they are focused about determinant of financial literacy and stock market awareness. In this research, we are concerned about the relationship between financial literacy and stock market participation by retail investors in Nepal. Probably this research has never been conducted in Nepal before. This research tends to meet the shortcoming of comprehensive measures of financial literacy and is linked with the economic outcome: Stock market participation by Nepali retail investors. 1.3 Research Objectives The main objective of this study is to find out the relationship between financial literacy and stock market participation by retail investors in Nepal and to measure retail investors financial knowledge. 1.4 Significance of the study The findings of this study will be useful to Nepal Stock exchange (NEPSE), Security Board of Nepal (SEBON), Policy makers, individual retail investors and different government agencies. With the help of my research, people will be able to know the impact of financial literacy on stock market participation by retail investors. My research will help the academic sector and business school students. Part of the core activity of the Securities Board of Nepal is investor education and awareness. As such the SEBON has a division to facilitates this divisions. Different financial awareness programs have been actively conducted over the years in diverse location. With this research, SEBON can formulate targeted financial literacy programmes, especially on stock market. 1.5 Limitation of the study There will certain limitation while doing this study . There is time constraint of 6 months Study is conducted in Kathmandu area only . The respondent while doing survey may not be willing to give the proper data 1.6 Research question/hypotheses Research Question What is the relationship between financial literacy and stock market participation by retail investors in Nepal? Hypothesis 1: Null Hypothesis: (There is no significant relationship between financial literacy and stock market participation by retail investors in Nepal.) Hypothesis 2: Null Hypothesis: (Gender, age, level of education and specialization on personal financial management has no impact on stock market participation by retail investor in Nepal) . 1.7 Theoritical framework       The theoretical framework is developed as it serves as a foundation on which the entire research is based . Investors awareness is referred as the investor literacy and updated information about the investment environment. InvestorsÃâ€" ³ exposure and information about the industry is measured by the level of awareness. Many research has been conducted in this area. some of them are: Paudyal (2010) Nepal particularly can learn from Indian market. India has formed National Institute of Securities Market (NISM) with huge physical infrastructure with the collaboration of industrial houses and different universities regarding investors education and awareness. Similarly, it can learn in the areas of the functioning of stock exchange central depository system of securities, instruments diversification, investors education and awareness building, adoption of information technology and opening the secondary market for NRN and foreign institutional investors (FIIs). Baidhya and Parajuli (2004) Promotional campaigns, seminars, publications, and programs in FM/TV etc. can be used to increase awareness amongst the general public about the capital market, regarding nature of risk and return. Volpe et al. (2002) Investors knowledge varied with peoples age, experience, education, income and gender. The online investors are more likely to be influenced by financial misinformation and manipulation. So, they should have more knowledge about stocks than normal investors to succeed in the securities market. Maditinos et al. (2007) Professional investors rely more on fundamental and technical analysis whilst individual investors rely more on noise in the market and newspapers/media when making their investment decisions. Jagongo and Mutswenje (2014) The very important factors that guide individual investment decisions were: reputation and firms status in industry, expected corporate earnings, expected divided by investors, and past performance firms stock. Luigi Guiso and Tullio Jappelli on Awareness and Stock Market Participation was conducted in 1995 and 1998. The objective of this study was a) to analyze the lack of awareness of financial assets (1995 and 1998) in Bank of Italy Surveys of Household Income and Wealth. b) to explore the determinants of awareness c) to find that the probability that survey respondents are aware of stocks, investments accounts and mutual fund is positively correlated with education, household resources, long- term bank relations and proxies for social interaction. Haliassos and Bertaut (1995) They investigated factors explaining financial education and finding among its results whether university education influences more weight in the decision to invest in the stock market or those with lower educational provision, preferring savings deposits as an investment option. Attanasio, Banks, and Tanner (2002) They studied about implications of limited participation in stock markets and the asset market. Their finding shows that a) the probability of having or invest in assets, is associated with factors such as age, and educational level b) the positive effect of higher education in the stock market tends to decrease over time. Roncallo (2009) In his findings, Colombian capital market was backward in comparison to developed countries, Latin American countries, and several Asian countries due to the lack of knowledge and awareness of the general public and businesses. And also, highlights that the creation of specially designed market such as the Centre for development of the capital market institutions, for the strengthening and development of this market, has failed to make a real impact on the target audience i.e. businesses and the general public, evidenced in the lack of knowledge about the importance and functioning of the capital market. (Chaulagain, 2015) Financial literacy of individuals increases the likelihood of access to sustainable finance for identifying and consuming appropriate financial services competitively. The financial literacy is necessary but not sufficient condition for enhancing access to finance, neither it is a panacea for all the financial problems. Baidhya and Parajuli (2004) Awareness increase amongst the general public about the capital market, regarding nature of risk and return, through promotional campaigns, seminars, publications, and programs in FM/TV etc. 3.1 Research Design A detailed outline of how an investigation will take place. A research design will typically include how data is to be collected, what instruments will be employed, how the instruments will be used and the intended means for analyzing data collected (Business Dictionary, 2016) . Descriptive survey research design will be used because research intended to explore the relationship between different variables which forms financial literacy and stock market participation by retail investors . 3.2 Population and Sample Size The population of study will be comprised of key players in the stock market, which includes investors, employees working in stock market and stock brokers. This study will be based in capital city Kathmandu, where stock market activities are concentrated and people get involved in share market from around the country. The sample size for study will be as per convenience-sampling technique and respondents will be selected as per their convenient accessibility. 3.3 Nature and Source of Data This study is both quantitative and qualitative in nature. It uses primary data obtained through questionnaires for analysis. Questionnaires are the most commonly used instrument in gathering and measuring qualitative data because they present the same questions to all respondents thereby fostering a comparable basis for assessment. 3.4 Instrumentation of Data Different statistical techniques will be used for analyzing data, which includes regression analysis and descriptive statistics . Graphs, frequency tables and charts were used for results 3.5 Models Specification The model that will be used in this study is based on the equation and econometric model adopted from Chong Lal, (2011) as below Y= ÃŽÂ ²0 + ÃŽÂ ²1 +ÃŽÂ ²2 +ÃŽÂ ²3 +ÃŽÂ ²4 + à ¢Ã‹â€ Ã‹â€  Where: Y = Stock market participation. ÃŽÂ ²o= constant term ÃŽÂ ²1 = Financial Literacy Score ÃŽÂ ²2 = Age of respondent ÃŽÂ ²3 = Gender of respondent ÃŽÂ ²4 = Income of respondent à ¢Ã‹â€ Ã‹â€ = disturbance term with an expected value of zero. The model helps better understand how the independent variables are related to the dependent variable and explored the form of their relationship. 3.6 Reliability and Validity of Data The research superviser and research expert of Business school will be requested to evaluate the applicability and validity of the research . Pre-test and re-test method will be done before the actual research . Bharat Singh Thapa, S. R. (2015). Financial Literacy in Nepal: A Survey Analysis from College Students. Financial Literacy in Nepal: A Survey Analysis from College Students, 26. Business Dictionary. (2016, 12 17). Retrieved from BusinessDictionary.com. WebFinance, Inc. : http://www.businessdictionary.com/definition/research-design.html CDS and Clearing Limited. (2011). Retrieved from CDS and Clearing Limited: http://www.cdscnp.com/ Chaulagain, R. P. (2015). Financial Literacy for Increasing Sustainable Access to Finance in Nepal. NRB Working Paper series, 18. Dahal, S. (2010). A STUDY ON NEPALESE STOCK MARKET IN THE LIGHT OF ITS GROWTH, PROBLEMS AND PROSPECTS. Kathmandu. Ghimire, S. (2016, December 8). Retail Share Investors In Nepal. (K. Timilsina, Interviewer) Investopedia. (n.d.). Retrieved from Investopedia: http://www.investopedia.com/terms/f/financial-literacy.asp Investopedia . (n.d.). Retrieved from NASDAQ: IAC: http://www.investopedia.com/terms/o/over-the-countermarket.asp Kathmandupost. (n.d.). Retrieved from Ekantipur: http://kathmandupost.ekantipur.com/news/2015-09-23/nepse-urges-otc-trade-of-shares.html NepalShareMarket. (n.d.). Retrieved from NepalShareMarket: http://www.nepalsharemarket.com/NepalShareMarket/NEPSE/Analysis/news/printerfriendly_news.aspx?news_id=NEW-003992 Securities Board Of Nepal . (n.d.). Retrieved from SEBON: http://www.sebon.gov.np/ The Himalayan TImes. (n.d.). Retrieved from http://thehimalayantimes.com/business/capital-market-may-need-another-exchange-to-spark-competition/ Wikipedia. (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Nepal_Stock_Exchange

A Character Analysis of the Book “A Painted House”

How do unpleasant realities of life are presented and experienced by a seven-year-old boy? As the child travels from being an innocent into becoming an experienced person, both the good and bad facets of life will eventually shape his emotions, perspectives and dealings with other people.In doing so, the breaking of the child’s innocence turns into a learning experience which he and even the people around him may use as an instrument to continue living in accordance with the norms of the society. While it is expected that life realities, when witnessed from a boy’s point of view, may be rather unclear or incomplete, this does not necessarily mean that the child is totally unaware and unmoved of its accompanying and eventual implications.This is because a child may be physically small but he is able to grasp what the society is presenting to him and ultimately identifies the good and bad things which he needs to keep and disregard, respectively. Manifestations of such ab ilities are evident among almost all children because they are naà ¯ve by nature.Such innate and youthful characteristics open a child to many opportunities and possibilities. When guided properly, a child may use life realities, however harsh they are, to work to his or her advantage and even to the benefit of other people and the society in general.One book which ideally depicts the said quality of a child in John Grisham’s 2001 book titled â€Å"A Painted House.† Aside from its notable plot, which is about the story-telling of a seven-year-old boy of the struggles facing his family’s cotton-picking business in rural Arkansas in 1952, the Grisham novel is most worth-reading because of the character of the young protagonist – Luke Chandler (Grisham, 2001).In fact, it is the said struggles which brought out the best in Luke because of the fact that even at a young age, he is determined to help out in their business and in his little way, solve the proble ms even if his mother always tells him: â€Å"Don’t worry.The men will find something to worry about† (Grisham 1). The ways how Luke dealt with his growing-up miseries through his exposure to the cruel realities of life, Grisham succeeded in imparting to the public a touching novel about a child’s journey from being an innocent child into becoming a knowledgeable person (Grisham, 2001).Manifestations of above awakening are evident with the power of Luke to overcome the cruelties in his life which he personally witnessed. These include a murder, a rape incident which has resulted into pregnancy and an illegitimate child, the poverty of the Mexicans and hill people and other adult-related obstacles.The novel, as seen from the view of Luke, told of the unwavering determination of the Chandler family to make their business survive and show to the people of Arkansas that despite living in an unpainted house, their cotton-picking trade will pick up. While the author s tands out in his law-related books because of their plots, Grisham’s A Painted House novel definitely shines because of the character of Luke.Using the first-person point of perspective of Luke, the author effectively provided the public with a view of the hardships which then challenged the people of Arkansas (Grisham, 2001).Through the eyes of Luke, A Painted House serves as a blank paper where the author excellently writes the details which happened in the United States after World War II. The character of the protagonist is one which is filled with many real incidents and people albeit presented through Luke’s youthful point of view. In fact, Luke’s life is very simple and his world is small with the family’s business of cotton-picking being his concentration.The child in Luke is presented in the book many times with the Chandler family trips to town on Saturdays, church activities on Sundays, special treats at carnivals and the boy’s ultimate dream to play baseball as attested by his statement that he will not be a farmer but a baseball player (Grisham 5).However, as Luke takes on his journey, becomes exposed to the characters in his life such as his family and the workers composed of the hill people and Mexicans as well as harsh realities of life, the boy unwittingly somehow grows as an experienced person even at a young age.Hence, it is worthy to consider how Luke, in his simple yet uplifting manner, is able to address and cope with cruel issues which confronted his young life. The life realities which are too enormous and difficult for Luke to realize but triumphantly handled include the ethical conflicts about a murder case, a child born out of wedlock and even the financial destruction that hit the area.Despite these cruelties which Luke’s innocence may be unable to understands, it is remarkable to consider that the boy’s naà ¯ve personality managed the said dilemmas. Beyond Luke’s notable trai ts and abilities in his original innocence as manifested by his child-like faith when he believes that God has control over anything just like there is reason when rains sweep away their harvests.It is during the boy’s journey, where he is faced with the true events of life, that Luke is able to attain his experience and realizes that indeed there is reason for every thing that happens. This is evident when he said â€Å"I was certain there was a reason the Cardinals lost the pennant, but I couldn’t understand why God was behind it† (Grisham 251).

Liquids and Solids Essay

The purpose of this experiment is to examine the properties of several gasses, which were the products of a reaction, and examine the way the gasses react under certain conditions. These conditions, such as introducing a flame to the gas as well as oxygen and CO2, caused other reactions to occur. Experiment Before I began the experiment I gathered all my supplies from the given list in the lab manual. From there I began the actual experiment and diluted the HCL placed in a test tube and then placed the ZN in the tube as well. I placed the stopper and gas delivery plastic system on the test tube and arranged the tube in the well plate. I then took the test tube filled with water inverted it and placed on top of the gas delivery system, I had the well plate in a large bowl in case of flow over. I then removed and placed my thumb over the opening so gas wouldn’t escape I lit a match and held it approx. 1 cm away and allowed a small drop from the pipet onto the flame to observe the reaction. From here I took my pipet bulb and marked it in 3 equal parts with a marker. I filled the pipet with water and set it into the gas generation tube. When it was about 2/3 full of gas I removed it and set it facing down into the well holder as per the directions. I then cleaned up the other test tube disposed of the acid and washed the test tube and rubber stopper with water thoroughly. I then began the oxygen portion of the experiment where I placed some Mn into a test tube. I added some hydrogen peroxide and filled to nearly the top. I placed the rubber stopper with gas delivery system and put into the well plate in a straight position. I filled the pipet with water and once again inverted it and placed in on top of the gas delivery system. I then watched as it became displaced with oxygen and removed it placed my thumb over it so it wouldn’t escape.

Fiscal And The New Classical Macro Models Analysis

The effectiveness of fiscal police to stimulate economic activities has been a polemic topic for several years. This controversy exists basically due to differences between the Keynesian and the New Classical macro models analysis. However, what it is clear is that the government has the tools to adjust to positive or negative responses of economic fluctuations. Fiscal and monetary policies must be timely adjusted to overpass economic phasedowns using government spending or taxes. Consequently, good decisions have to be done based on different factors that influence fiscal and monetary policies. The impact of fiscal policies in the government spending and taxes in the last years have shown several issues. For example, positive shocks to net taxes have brought private consumption down, and the multiplier remains stable throughout (Pereira and Lopez, 158). Moreover, expenditures have presented a New Classical model with negative expenditure multiplier in the past decades. What it means is that fiscal policies have presented a time variation in the countercyclical approach. Expenditures sometimes do not respond accordantly to a stimulation period. However, what we must take into consideration is that not only one or two parameters could be a determinant to adjust monetary and fiscal policies. Shocks in taxes to adjust the Federal Budget have presented a wide volatility compared to spending in many macroeconomic models (Romer and Romer 2008). That’s why sometimes tax adjustmentsShow MoreRelatedPolicy Review And The Lucas Criticisms Essay919 Words   |  4 Pagesaddition, new classical macroeconomics further argues that political measures to improve the total output and reduce unemployment have to find ways in the supply part. Therefore, policies work only when they inspire the microeconomic units to provide more products and labors (Grabel, 2000). Under this background, the Luca critique drew attention from the world. Lucas (1976) argued in his article that changes in government policies would result in the changes of parameters in the macro econometricRead MoreEssay about Divisions of The Field of Economics1407 Words   |  6 Pagescomplementary businesses at reduced prices. Our first objective is to develop an understanding of tools, theories, and techniques used in macroeconomic analysis. These will allow us to understand how to measure economic growth, productivity, and inflation. What is the impact of budgetary and trade deficits on these factors? How do changes in fiscal and monetary policy affect the length and strength of the current business cycle? If we are an active exporter, or produce components for a company thatRead MoreKayne vs Hayek1370 Words   |  6 Pagesas GDP, unemployment rates, and price indices to understand how the whole economy functions. They develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. The two major theories of economics are Classical Economics and Keynesian Economics. Classical economists believe that markets function very well, will quickly react to any changes in equilibrium and thatRead MoreThe Effect of Macro Economic Policy on Nigerian Economics Growth and Development6051 Words   |  25 PagesEFFECT OF MACRO ECONOMIC POLICY ON NIGERIAN ECONOMICS GROWTH AND DEVELOPMENT ABSTRACT This research work focus on the appraisal of Macroeconomic Policy on Inflation in Nigerian Economy, also to determine how it enhances the growth of Nigerian Economy. The aim of this research work is to look into challenges and numbers of hypothesis were drawn. Information necessary to address the test of hypothesis was gathered through secondary data, source from Central Bank of Nigeria (CBN). Economic analysis wasRead MoreKeynesian Views On Money Price Relationship Essay1617 Words   |  7 Pages2.4 Keynesian Views on Money-Price Relationship Keynes accepted the classical view that increase in money supply causes rising prices or inflation only when the aggregate output corresponds to full employment and aggregate supply curve is vertical. Keynes published an article entitled ‘How to Pay for the War’ in 1940, in which he developed a demand side model incorporating inflation process with temporarily rigid prices in the labor market. The primary concern of Keynes was to provide space forRead MoreIntermediate Macroeconomic Theory : Robert E. Lucas Essay1207 Words   |  5 Pagesengineer. This however wasn’t what happened. MIT didn’t grant him the scholarship he needed in order to attend college there, however, University of Chicago did. He studied Mathematics. Over time, it got hard and he lost interest. Instead, he found a new interest in liberal arts; which was the core of the University of Chicago. In 1963 Richard Cyert, the Dean of the Graduate School of Industrial Administration at Carnegie I nstitute of Technology offered Lucas a faculty position, where he taught untilRead MoreMacro Economics11524 Words   |  47 PagesUnit-1 Q1. Define micro and macro economics, Distinguish between them, and explain the scope, importance and its limitations Ans. modern economy analysis has been divided into two major branches that is micro and macro economics. Micro economics means the economics system which deals individual economics unit on the other hand macro economics means the economics unit which deals aggregate as a whole that is national income, general employment, and total out –put, general price level etc. These twoRead MoreEconomic Growth Theories and Models, A section of a Research Paper1524 Words   |  6 PagesLiterature review Classical Theory of Economic Growth Harrod Domar Growth Model The Neoclassical growth Model Empirical literature 2.1 Theoretical Literature The long history of ideas on economic growth started from the classical economists like Adam Smith, Robert Malthus, Ricardo and Marx. For more than three decades the Neoclassical and the Endogenous Growth theories were arguing and forwarding economic reasons on trend of economic growth through investment as a general and private investmentRead MoreAppraisal of Commercial Bank of Ethiopia’s Strategic Success3080 Words   |  13 PagesUNIVERSITY OF GREENWICH COURSEWORK COVERSHEET Student Name: Student ID number: Course Code: Title of Course: Title of Assessment: Type of Assessment Zelealem Mammo J. 000710039 BUSI 1271 Global Strategy Analysis and Practice Appraisal of Commercial Bank of Ethiopia’s Strategic Success Essay Reflective Report Group work report Other (Please specify __________________) Tutor’s Name: Date Assessment Due: Turnitin report Dr. Woubeshet _3_ % Appraisal of Commercial Bank of Ethiopia’s Strategic SuccessRead MorePublic Debt in India5785 Words   |  24 Pagesof public debt have been discussed to facilitate better understanding of the concept. We have also attempted to analyze the impact of certain macro economic variables on the public debt in our country. For this purpose, we have used the â€Å"SPSS 13.0 for windows† as a tool to carry out the regression analysis. index A ABSTRACT 3 ACKNOWLEDGEMENT 2 ANALYSIS 19 B BACKGROUND 5 M METHODOLOGY 18 O OBJECTIVES 5 R REFERENCES 23 S SUMMARY 22 Public debt in india 1. OBJECTIVES 1.1 To identify what is public