buad 5500, topic 3, part 2
DESCRIPTION
BUAD 5500 Supply and Demand Housing MarketTRANSCRIPT
Supply and demand: applications
Spring 2013Topic 3
Housing
Housing lessons
Shifters
Short-run vs. long-run dynamics
Short-run shifters
Price of related goods: mortgage
What determines the price?
Points and rate
Availability
Short-run shifters
Price of related goods: mortgage
Availability
Changes to the Community Reinvestment Act
Technological change
Tertiary markets
De facto deregulation
Short-run shifters
Price of related goods: mortgage
Availability
Short-run shifters
Price of related goods: mortgage
Availability
Rates
Short-run shifters
Price of related goods: mortgage
Availability
Rates
Short-run shifters
Price of related goods: mortgage
Availability
Rates
Long-run demand response
Speculative housing demand
Flipping
Momentum investing and speculative bubbles
Long-run supply response
Wages
Wages
Supply and demand model
Wages
Supply and demand model
Minimum wage
Positive and negative implications
Discrimination
Wages
Supply and demand model
Minimum wage
Why are the effects small?
Wages
Supply and demand model
Minimum wage
Why are the effects small?
Is this the correct model?
Monopsony model
Minimum wage reconsidered
What is economics?
Scarcity
Limited resources, unlimited wants
What is economics?
Scarcity
Economics is the study of the choices made due to scarcity
What is macroeconomics?
Microeconomics
Individual choices
Individual markets
What is macroeconomics?
Microeconomics
Macroeconomics
How individual choices combine to determine the macroeconomic BIG THREE
What are the big three?
Inflation
Nov. 2012
1.8%
What are the big three?
Inflation
Unemployment
Dec. 2012
7.8%
What are the big three?
Inflation
Unemployment
Output and growth
3rd quarter, 2012 estimate
$15.811 trillion
3.1%
How economists work
The scientific method
Observational versus experimental
How economists work
The scientific method
Economic models
The role of assumptions
How economists work
The scientific method
Economic models
Positive vs. normative economics
A first model: PPF
Production Possibilities Frontier
Models what the economy is capable of producing
A first model: PPF
Production Possibilities Frontier
Factors of production
Physical capital
Labor
Natural resources
Technological knowledge
A second model: the Circular Flow
Models the interconnections in the economy
Models how much of the productive potential the economy will use