经济学原理 MAE101 Individual Assignment 代写

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  • 经济学原理MAE101  Individual Assignment  代写

    MAE101 Economic Principles, T2, 2017
    Individual Written Assignment
    Due date Monday 4 th September 2017
    This assignment is worth 25% of your final mark for MAE101. There is a 2,000 word
    limit.
    Please read the following instructions carefully:
    An electronic copy must be submitted to the unit website by 11:59 pm Monday 4 th
    September 2017. 1 You are strongly encouraged to submit before then to ensure that it
    is submitted on time. Assignments submitted after the due date without an approved
    extension will incur a penalty as follows:
    • 5% will be deducted from available marks for each day up to five days (that is, you
    will lose 1.25 marks for each 24 hour period after the due date, up to five days);
    and

    经济学原理MAE101  Individual Assignment  代写
    • where work is submitted more than five days after the due date, the assignment
    will not be marked and 0% be awarded.
    Digital literacy is one of the Deakin’s Graduate Learning outcomes and among the
    Unit Learning Outcomes of MAE101. It requires students to be capable of using
    modern technologies to find, use, and disseminate information. To achieve this goal,
    it is required that all contents of your assignment should be digitally produced,
    including explanations, diagrams, etc.
    To receive full marks you must show clear development and expression of economic
    ideas in clear paragraphs in addition to the correct answers. Please use concise,
    properly constructed sentences and paragraphs. Please also use 12pt sized font. You
    must cite all ideas that are not your own. Do not just quote chunks of text – you must
    express your answer in your own words.
    You may study with other students, discuss the assignment with whomever you wish
    and even outline answers with others. However, you must write this assignment on
    your own. Software will check each assignment for plagiarism and collusion. We
    realize that some sentences will occur in different students’ work because there are
    few ways to say them, e.g., “Price decreased from P1 to P2.” However there should be
    few such matches between any two assignments. Even the process of resolving the
    case of accidentally matching someone else’s work can be time-consuming and
    upsetting for students.
    1 All assignments are to be submitted online in the assignment drop box in CloudDeakin.
    MAE101  Individual Assignment  T2, 2017
    ~  2 ~
    Plagiarism and collusion constitute extremely serious academic misconduct. They
    are forms of cheating, and severe penalties are associated with them. So, please do
    your own work. It is also very good preparation for the exam.
    By clicking the SUBMIT button to submit your assignment to the unit assignment
    drop box, you are declaring that the assignment work is entirely your own except
    where material quoted or paraphrased is acknowledged in the text. You are also
    declaring that it has not been submitted for assessment in any other unit or course.
    For more information about plagiarism and collusion, please go to the Study Support
    website: http://www.deakin.edu.au/current-students/study-support/study-
    skills/handouts/refer-plag.php
    You must draw all diagrams by software. Please keep in mind that your future
    employers will expect you to be proficient with computers and that hand-drawn
    diagrams are usually unacceptable in professional business documents. A short video
    clip on how to draw graphs by computer in MSWord is available under the Assessment
    Resources, Assignment 1 folder in CloudDeakin.
    In some MSWord document submissions, graphs and other parts of the assignment
    may disappear and hence receive no grade. Hence, we prefer that you convert the
    assignment to PDF.
    Requirements:
    • Read through your work prior to submission, checking your spelling and
    grammar.
    • No more than 2,000 words in total excluding the task statements, tables,
    diagrams, and references. It is preferable if you do not include the actual task
    statements; just include the task number.
    • All content is electronically generated.
    • Convert your assignment to PDF format and check that all text, graphs, tables
    and formatting are accurate.
    • Make sure that you are using correct referencing.
    There are 80 marks total for Assignment 1. This will be converted to 25% of your
    final assessment.
    MAE101  Individual Assignment  T2, 2017
    ~  3 ~
    ABOLITION OF MAHOGANY HARVESTING, INCENTIVES, AND HOMICIDE
    Background
    An important area of economics is the analysis of conflict. While many social and
    political factors drive conflict, we here focus on economic causes. The aim of this task
    is to explore the links between economic activity and violence. We will use as a case
    study the harvesting of big leaf mahogany from Brazilian forests. Big leaf mahogany
    is one of the most beautiful and valuable woods in the world. 2 Brazil has been the
    main producer of big leaf mahogany timber. Concerns with excessive destruction of
    the Amazon and decline in the number of mahogany trees led to the eventual abolition
    of harvesting of big leaf mahogany in 2001. In this case study we will investigate
    whether making the harvesting of mahogany illegal had the unintended consequence
    of increasing homicide. When markets are legal, disputes can be settled through the
    justice system. However, when an activity becomes illegal, the justice system is no
    longer available and disputes are often resolved through direct violence.
    Figure 1: Brazilian big leaf mahogany forest
    Figure 2:  Harvesting Brazilian mahogany
    2 International trade of mahogany timber can be traced back to around 1700.
    MAE101  Individual Assignment  T2, 2017
    ~  4 ~
    Figure 3 illustrates patterns in Brazilian mahogany exports and other tropical timber
    species during four time periods: (A) before government policy towards harvesting
    changed significantly; (B) the period between 1999 and 2001 when 85% of licenses to
    harvest were revoked; (C) the period 2001 to 2008 when harvesting was banned but
    the government did not actively enforce the ban; and (D) the post-2008 period when
    greater penalties and enforcement were implemented. The graph illustrates that these
    government interventions reduced reported mahogany exports. However, at the same
    time, there was a significant increase in exports of “other tropical timber species” once
    regulations made it harder to harvest mahogany (period B) and then when mahogany
    harvesting was made illegal (period C). Exports of all timber products fell once greater
    enforcement of the law was introduced in 2008. These movements suggest that illegal
    harvesting of mahogany continued in the guise of ‘other’ timber until the ban on
    harvesting was enforced.
    Figure 3:  Government Intervention and Mahogany and Tropical Timber Exports
    Notes: The thick black line is the sum of Brazilian exports of mahogany and other tropical timber species.
    Source: Modified from Chimeli, A. B. and Soares, R. R. The Use of Violence in Illegal Markets: Evidence from Mahogany
    Trade in the Brazilian Amazon, American Economic Journal: Applied Economics, forthcoming.
    Our two broad research questions are:
    1. What impact did government intervention have on equilibrium price, quantity,
    and welfare?
    2. Did the ban on mahogany harvesting increase homicide?
    MAE101  Individual Assignment  T2, 2017
    ~  5 ~
    Task A: Welfare Effects of Government Intervention
    For this task you need to consider the market for mahogany from a theoretical
    perspective, i.e. you do not need to analyse data. To simplify the analysis we will
    assume that there are no externalities involved in the production or consumption of
    mahogany. (Externalities are discussed in week 9 of the course.)
    (a) In an attempt to reduce the harvesting of mahogany, the Brazilian government
    introduced a tax on producers for each ton of mahogany harvested. Use a demand
    and supply diagram to illustrate the market for big leaf mahogany before and after
    the tax. Explain the impact of the tax on equilibrium price, quantity traded, and
    welfare. (For this question assume a standard downward sloping demand curve
    and upward sloping supply curve.)
    (5 Marks)
    (b) In 1998, the Brazilian government introduced a harvesting quota that limited how
    much mahogany could be harvested. Use a demand and supply diagram to
    illustrate and explain the impact of the quota on equilibrium price, quantity traded,
    and welfare. (For this question ignore the existence of the tax.)
    (5 Marks)
    (c) In 2001, the harvesting of mahogany was made illegal. For each of the following
    three scenarios, use a separate demand and supply diagram to illustrate and
    briefly discuss what happens to the equilibrium price and quantity traded. (Hint:
    consider whether the change affects any of the determinants of demand or of
    supply, and in which direction.)
    i.  Producers fear punishment and the consumption of mahogany products
    becomes undesirable because of the stigma associated with possessing such
    products.
    (3 Marks)
    ii.  Producers fear punishment and the consumption of mahogany products
    becomes desirable as consumers derive satisfaction from possessing illegal
    goods.
    (3 Marks)
    iii.  In 2008, the Brazilian government significantly improved its monitoring of
    illegal harvesting, enforced the law, and increased penalties for illegal
    harvesting. Producers fear punishment and there is no change in the
    desirability of mahogany.
    (3 Marks)
    (3 + 3 + 3 = 9 Marks Total for (c))
    MAE101  Individual Assignment  T2, 2017
    ~  6 ~
    (d) An economist advises the Brazilian government that the tax discussed in (a) above
    will be ineffective in reducing the harvesting of mahogany if the demand for
    mahogany is very inelastic. Her advice is that a more effective way to reduce
    mahogany harvesting is to reduce demand for mahogany. Use a diagram to
    explain the logic behind this economist’s advice.
    (8 Marks)
    (27 Marks Total for Task A)
    Task B: Production Decisions
    For this task we consider some of the incentives faced by producers and their
    production decisions.
    (a) According to an OECD report (2007, p. 19-20): “Illegal wood is not burdened by
    taxes, stumpage fees and expenses for compliance with forest and environmental
    regulations. It is therefore cheaper to produce than legal wood. … illegal logging
    is substantially more profitable than the legal kind and that there is therefore a
    clear financial incentive to engage in illegal activities.”
    For questions (i) to (iii) below we will compare legal to illegal harvesting. For these
    questions assume that demand remains the same for both legal and illegal
    operators and assume that there are numerous competing firms with no barriers
    to entry or exit.
    i.  Harvesting mahogany was legal until 2001. With the aid of a diagram illustrate
    the profit maximising production decision of firms that were legally harvesting
    mahogany.
    (3 Marks)
    ii.  In 1999 the Brazilian government revoked 85% of harvesting licenses.
    However, there was little attempt to enforce the law; firms were able to sell
    mahogany in the guise of other types of timber and illegal trade was enabled
    by corrupt officials. Moreover, firms that operated illegally no longer needed
    to meet regulatory requirements and could avoid paying taxes. On the same
    diagram as (i) above, illustrate and explain the incentives and short-run profit
    maximising production decisions of firms that are illegally harvesting
    mahogany. (For this question assume that the total number of firms remains
    unchanged; firms that lose their license to operate legally are replaced by firms
    who operate illegally.)
    (5 Marks)
    MAE101  Individual Assignment  T2, 2017
    ~  7 ~
    iii.  Now consider what happens if the Brazilian government starts to enforce the
    law to prevent illegal harvesting. What happens to the operating cost
    differences between legal and illegal harvesting firms? Explain your reasoning.
    (No diagrams are required for this question.)
    (2 Marks)
    (3 + 5 + 2 = 10 Marks)
    (b) A Greenpeace report (2001, p. 8) argued that the Brazilian mahogany trade: “is
    dominated by a small élite group of sawmills and exporters controlled largely by
    two powerful players: Moisés Carvalho Pereira and Osmar Alves Ferreira.
    Between them, these two mahogany kings …. control over 80% of the total
    mahogany timber export trade from Pará.”
    i.  If Greenpeace’s depiction is correct, what does it imply about the structure of
    the mahogany market? Explain your reasoning.
    (2 Marks)
    ii.  Instead of competing against each other, Pereira and Ferreira decide to
    collude.
    1. With the aid of a diagram illustrate and explain the consequences on the
    price of mahogany and profits for the mahogany kings in the short-run.
    (5 Marks)
    2. What is the impact of collusion on the health of the mahogany tree
    population?
    (1 Mark)
    3. Is collusion between the mahogany kings a sustainable long-run strategy?
    Explain your answer.
    (3 Marks)
    (2 + 5 + 1 + 3 = 11 Marks Total for (b))
    (21 Marks Total for Task B)
    MAE101  Individual Assignment  T2, 2017
    ~  8 ~
    Task C: Impact on the Homicide Rate
    Recall from the Background section to this assignment and Figure 3 above, that the
    2001 ban on harvesting did not actually reduce harvesting. Instead, firms resorted to
    illegal harvesting, falsely classifying mahogany as other tropical timber. During this
    period, disputes erupted between rival firms that were settled outside the justice
    system, often with violence. For this next task we wish to test whether violence did
    increase as a result of the ban on mahogany harvesting.
    You will need to use the data provided in the Excel file Mahogany and Homicide in the
    Assignment 1 – Individual Assignment folder (within the Assessment Resources folder) to
    assess the impact of the banning of mahogany harvesting on homicide in Brazil. The
    data relate to the period 1995 to 2013 for 128 municipalities in the Pará province of
    Brazil; 70% of Brazilian mahogany grows in this province. The sample contains 2,432
    observations on the homicide rate in these municipalities (128 municipalities for 19
    years = 2,432 observations). This type of data is known as panel data. The homicide
    rate is calculated as the number of homicides per 100,000 inhabitants. The data come
    from: Chimeli, A. B. and Soares, R. R. The Use of Violence in Illegal Markets: Evidence
    from Mahogany Trade in the Brazilian Amazon, American Economic Journal: Applied
    Economics, forthcoming. 3 However, you do not need to read this study. Note that you
    can use Excel or any other software to construct the graph and calculate averages
    required in (a) and (b) below.
    (a) Construct a graph of the homicide rate for all Pará municipalities, for the years
    1995 to 2013. 
    (5 Marks)
    (b) Using the data provided complete Table 1 below. For this question, you need to
    calculate the average homicide rate for the four time periods listed in Column (1)
    of the table. Report the average homicide rate for all mahogany growing areas in
    Column (2), and the average homicide rate for areas without mahogany in Column
    (3). In Column (4) report the difference in the homicide rate between areas with
    mahogany and areas without mahogany. 4 (Hint: you will find these calculations
    much easier if you sort the data by mahogany growing area and by year. This can
    be done in Excel.)
    3 Web address for the article is: https://www.aeaweb.org/articles?id=10.1257/app.20160055. You can
    only access this article if you are a member of the American Economic Association. A working paper of
    an older version of this study can be found at: http://ftp.iza.org/dp5923.pdf.
    4 This type of analysis is known as a difference-in-difference analysis and is very common in the
    evaluation of various government and business policies.
    MAE101  Individual Assignment  T2, 2017
    ~  9 ~
    Table 1: Comparison of average homicide rates,
    municipalities with and without mahogany, different periods
    Period
    (1)

    经济学原理MAE101  Individual Assignment  代写
    Areas with
    mahogany
    (2)
    Areas without
    mahogany
    (3)
    Homicide rate
    difference between
    municipalities
    (4)
    Pre-1999.
    Pre major government
    intervention
    1999 to 2001.
    85% of licenses revoked
    2001-2008.
    Harvesting banned
    Post-2008.
    The law is enforced
    (10 Marks)
    (c) What conclusions can you draw from your above graph and calculations regarding
    the average homicide rate after mahogany trade became illegal?
    (2 Marks)
    (17 Marks Total for Task C)
    Task D: Lessons and Reflections
    According to Chimeli and Soares (2017), making mahogany harvesting illegal resulted
    in 5,171 additional deaths. The aim of this task is to reflect back on Brazil’s experience
    with various interventions in the mahogany market.
    (a) What lessons can be learnt by other countries from Brazil’s experience regarding
    (i) the regulation and taxation, and (ii) the abolition of undesirable economic
    activities and the unintended consequences of government intervention?
    (5 Marks)
    MAE101  Individual Assignment  T2, 2017
    ~  10 ~
    (b) One of the principles of economics is that rational self-interest can maximize social
    welfare. However, there are also legitimate concerns for the survival of mahogany
    and other species and the adverse consequences from deforestation in general.
    i.  Explain why unregulated harvesting can lead to market failure, e.g., more
    harvesting than is socially desirable.
    (5 Marks)
    ii.  In addition to the above government interventions, several market based
    solutions have been implemented or considered.
    1. One market solution is to grow mahogany in other countries. Brazil has a
    natural geographic advantage in growing mahogany. Referring to
    opportunity cost, explain what is likely to happen to the cost of growing
    mahogany now that Brazil is no longer a producer?
    (2 Marks)
    2. Discuss one other solution that the market might come up with to reduce
    the danger of species extinction? (Hint: consider factors that shift the
    demand or supply of mahogany.)
    (3 Marks)
    (15 Marks Total for Task D)
    END OF ASSIGNMENT 1 TASKS
    MAE101  Individual Assignment  T2, 2017
    ~  11 ~
    REFERENCES
    Please note that you do not need to read any of the below references. The lecture
    notes and textbook are sufficient to answer all the tasks in this assignment.
    1. Chimeli, A. B. and Soares, R. R. The Use of Violence in Illegal Markets: Evidence
    from Mahogany Trade in the Brazilian Amazon, American Economic Journal: Applied
    Economics, forthcoming.
    2. Contreras-Hermosilla, A., Doornbosch, R., and Lodge, M. 2007. The Economics of
    Illegal Logging and Associated Trade, OECD, Paris, 8-9 January 2007
    https://www.oecd.org/sd-roundtable/papersandpublications/39348796.pdf.
    Accessed July 6 th , 2017.
    3. Greenpeace. 2001. Partners in Mahogany Crime: Amazon at the mercy of ‘gentlemen’s
    agreements’.  Greenpeace  International,  Amsterdam.
    http://www.greenpeace.org/international/PageFiles/26258/Mahoganyweb.pdf.
    Accessed July 1 st , 2017.
    4. Wallace,  S.  2013.  Mahogany’s  Last  Stand.  National  Geographic.
    http://ngm.nationalgeographic.com/2013/04/mahogany/wallace-text. April 2013.
    Accessed July 1 st , 2017.
    5. World Bank. 2012. Justice for Forests Improving Criminal Justice Efforts to Combat
    Illegal  Logging.  The  World  Bank,  Washington.
    http://siteresources.worldbank.org/EXTFINANCIALSECTOR/Resources/Illegal_
    Logging.pdf. Accessed July 1 st , 2017.
    经济学原理MAE101  Individual Assignment  代写