{ dp economics how to write an economics ia commentary

{DP Economics

How to Write an Economics IA Commentary

Some one has once mentioned: "A good commentary turns non-economics

into economics”.

What is a good commentary?

1. Choose news articles by reporters NOT by economists

Because the authors have made much analysis and evaluation on the topic already:

You will have little input in the end.

When finding your article …

2. Articles must have something that you can evaluate

Should a tax be placed on that good? Should a subsidy be given for a product? Should that monopoly be regulated? Should the government impose a tariff? Should the government implement a price

ceiling? Is lowering/raising interest rates a good

idea? Is this country's economic growth unstable?

When finding your article …

articles that just list a bunch of statistics regarding something that has happened to the economy.

Do not choose …

3. Only have one issue/focus for your evaluation:

The word limit does not allow enough room to evaluate multiple situations and policy choices effectively .

Choose an article that only describes/focuses one situation/policy.

If article is very lengthy, highlight the relevant part of the article that you will discuss.

When finding your article …

4. Choose your concept before looking for the article:

Choose concepts in the area of the syllabus that you are most confident about evaluating.

When finding your article …

Microeconomics: Implementation of price floors and ceilings Indirect taxes Externalities Buffer stock schemes Regulation of monopolies and oligopolies Subsidies

Here are some examples …

Macroeconomics: Monetary policy decisions Fiscal policy decisions Economic growth implications

Here are some examples …

International Economics: Decision to implement protectionism (such

as tariffs) Decisions to influence the exchange rate

Here are some examples …

Development economics: Receiving aid Growth vs development

Here are some examples …

You may simply search Google (or other search engines) for related articles on the topic.

Try to type in this: Country + topic E.g. Denmark indirect tax (obesity tax),

United States tariff, Hong Kong price floor (minimum wage), etc.

Have some diversity with regards to which countries you discuss, i.e. don't talk about China for all of your three articles.

You may use internet to find the article …

1. Background (80 – 100 words)2. Definitions (80 – 100 words)3. Application and Analysis (300 words)4. Evaluation (200 – 250 words)

Suggested format for writing …

A short paragraph to summarize the key issue of the article (or extract of a section of the article and focus on it).

1. Background (80 – 100 words)

Identify the relevant key concepts and define terms used in the article.

2. Definitions (80 – 100 words)

Don't write: The Hong Kong government has imposed a

price ceiling on rental property. A ceiling price is defined as the maximum price that can be charged on a good or service.

Instead write: The Hong Kong government has imposed a

price ceiling price, the maximum price that can be charged on a good or service, on rental property.

Some tips on writing definitions …

NO NEED to define absolutely every single economic word in your essay.

Not all economics concepts are critical to your commentary.

Identify the most relevant terms (1st layer of definitions) to define.

Do not quote exactly a text book definition, try to use your own words to explain correctly in your analysis.

Some tips on writing definitions …

Avoid using footnotes Footnotes are included in your word limit .

Some tips on writing definitions …

Explanation of the key economic concepts/theories in the article with diagrams.

You should include quotes/phases from the article.

At the end of this part, use about 80 - 100 words to highlight implications an economic insights (e.g. any change in economic variables, any problems caused, effects/costs of the problem, possible solutions, etc.) – this helps to link to your last part of your commentary, i.e. the evaluation.

3. Application & Analysis (300 words)

Draw diagrams to reflect the exact situation mentioned in the article.

Label your diagrams appropriately according to the situation in the article.

Some tips on drawing diagrams …

Discuss your own viewpoints on: Effectiveness of the policy (its advantages

and disadvantages) Impact on different stakeholders

(consumers, producers, government, foreign producers, workers, society, etc.)

Short run and long run implications Priority of the arguments suggested in the

article (e.g. unemployment vs inflation, arguments in favour of protectionism vs against protectionism, etc.)

4. Evaluation (200 – 250 words)

Instead of simply writing "One important advantage is that the policy will reduce unemployment,”…,

Write "Given that the United States is likely to be experiencing a deflationary gap, an important advantage of the policy is that it will help to bring the economy closer to full employment."

Qualify your writing for better result …

An article on “Denmark + fat tax”

Are you ready? Now let’s start our practice …