The due date is April 12 2020. To receive credit, answers must be prepared in the form of a report of at most 5 pages, 10-12 point font, and e-mailed to me Reports that do not satisfy these conditions will not be considered.
economics
Description
The due date is April 12 2020. To receive credit, answers must be prepared in the form of a report of at most 5 pages, 10-12 point font, and e-mailed to me Reports that do not satisfy these conditions will not be considered.
Please attach the spreadsheet file and the code that you used to make your calculations, but treat it as reference. Do not assume I will be going over it, the report should be self-contained.
Think of this assignment as practice for creating professional reports in your future job. Put some effort into writing and editing it nicely. In particular, grammar and spelling errors will be penalized. Make sure your graphs are legible and clearly labeled.
Problem 1
Choose your favorite country among the European PIIGS (Portugal, Ireland, Italy, Greece, Spain). Find annual time series data starting around 1970s on real output, real investment, employment, working-age population and hours worked. Assume that production technology is described by the function Yt = AtKαLt 1−α , and that the resource constraint is Ct +It = Yt .
i. Discuss whether the country of your choice has experienced a Great Depression in the
last 20 years, as defined by Kehoe and Prescott (2007). If not, which criteria of the
definition are not satisfied and by how much?
