Assignment: Essay Writing: Welfare Analysis
2000 Words
In about 2000 words, analyze any economic entity, a situation or a phenomena related to a sector, subsector, industry, firm, a community (defined in economics as consumers), government or a local authority or an institution that you are familiar with which has been affected by government policy or some market condition rendering change in behavior and thus the economic and social outcomes. For instance the government of Fiji imposed stringent price controls to protect the consumers with the aim of boosting its popular image affected the behavior of economic agents and thus the economic outcomes. In a recent flip flop on policies, the government changed the Value Added Tax first from 12.5% to 15% and then to 9% which has impacted the behavior of economic agents and the outcomes. Change in other tax rates and a number of new revenue measures have also been applied by the Fiji government in recent times that impacted the people and the businesses. Another phenomenon, a global one, has been the fall in fuel prices that has altered the consumer behavior globally. Climatic phenomena of various kinds have also done their rounds in Fiji and everywhere that have altered behavior of consumers, institutions and the governments that have altered the economic outcomes.
Consider any such phenomena that you are interested in to analyze it in the context on the
Neoclassical economic theory we have studied in this course. You need to describe the phenomena you wish to analyze and contextualize it in economic terms. A systematic welfare analysis is prompted here to anchor your final conclusion and policy change.
Your essay must have the following components: 1) Title; Abstract; Introduction; Literature review; Data or logical analysis with appropriate equations, graphical and/or econometric analysis using models etc.; and finally, conclusion with some policy statements. A list of references must be provided to support your arguments and ideas. This essay can be written in a group of two (at most).