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