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    (Original post by Yanick92)
    I have data for about 20 years, but I dont really get the formula. What is the relative mean of exports in each group? Is that supposed to be the mean of the export-value in each group? That is what I thought initially, but then x is already supposed to be the export value. Maybe someone has a better idea?
    The small paper with the calculations from the imf can be seen here, but I dont think its very usefull (at least to me)...
    https://www.imf.org/external/datamap...20database.pdf
    I might be missing something obvious here, but isn't it just the mean of the exports for that group (i.e. "traditional", "new" or "non-traded") divided by the mean of the exports for all (three) groups?
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    (Original post by alex_hk90)
    I might be missing something obvious here, but isn't it just the mean of the exports for that group (i.e. "traditional", "new" or "non-traded" divided by the mean of the exports for all (three) groups?
    Thanks, that might be! So (μk/μ) would be average export value of the respective group divided by the average export value of the three combined? And xwould be the export value in total? So (xi/μk) would mean: total export value of that group divided by average export value of the group?

    I also don't really get the non-traded category. Isn't that always 0 anyways?
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    (Original post by Yanick92)
    Thanks, that might be! So (μk/μ) would be average export value of the respective group divided by the average export value of the three combined? And xwould be the export value in total? So (xi/μk) would mean: total export value of that group divided by average export value of the group?

    I also don't really get the non-traded category. Isn't that always 0 anyways?
    Try it and see if it looks reasonable?

    The "non-traded" category will have zero exports, but it will have a number of products (N_k), and as such will also affect the number of "new" category products over time as products move from "non-traded" to "new".

    To be honest I hadn't come across the "Theil Index" before - did you read the paper referenced (Cadot et al. 2011)?
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    Can anybody help me with this please, thanks.
    Consumption of domestic goods: Cd = 200 + 0.5 Yd
    Disposable income: Yd = Y – T
    Taxes : T = 0.25Y
    Investment: I = 300
    Government expenditures: G = 50
    Exports : X = 50
    Imports : M = 0.1 Yd

    The equilibrium level of income is:
    A) 800
    B) 960
    C) 1100
    D) 1250
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    (Original post by Charlizabeth)
    Can anybody help me with this please, thanks.
    Consumption of domestic goods: Cd = 200 + 0.5 Yd
    Disposable income: Yd = Y – T
    Taxes : T = 0.25Y
    Investment: I = 300
    Government expenditures: G = 50
    Exports : X = 50
    Imports : M = 0.1 Yd

    The equilibrium level of income is:
    A) 800
    B) 960
    C) 1100
    D) 1250
    How far have you got? On first glance there seems to be enough information to simply plug it into a standard national income equation and solve for Y?
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    (Original post by alex_hk90)
    How far have you got? On first glance there seems to be enough information to simply plug it into a standard national income equation and solve for Y?
    I've got
    C= Cd+ M
    E=Cd+M+I+G

    So 200+0.5Yd+0.1Yd+300+50=E
    550+0.6Yd=E
    Yd=Y-T Yd=Y-0.25Y Yd=0.75Y
    550+0.45Y=E

    I thought E and Y would be the same here so
    550=0.55Y
    meaning that Y would be 1000 but that's not one of the answers so it's obviously wrong.
    I know this isn't supposed to be difficult but I'm not sure what to do, I feel like I'm going mad!

    Thanks
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    (Original post by Charlizabeth)
    I've got
    C= Cd+ M
    E=Cd+M+I+G

    So 200+0.5Yd+0.1Yd+300+50=E
    550+0.6Yd=E
    Yd=Y-T Yd=Y-0.25Y Yd=0.75Y
    550+0.45Y=E

    I thought E and Y would be the same here so
    550=0.55Y
    meaning that Y would be 1000 but that's not one of the answers so it's obviously wrong.
    I know this isn't supposed to be difficult but I'm not sure what to do, I feel like I'm going mad!

    Thanks
    If I remember correctly (this was at least 10 years ago so apologies if I don't ), the standard national income equation is:
    Y = C + I + G + (X - M)
    And you have enough information to solve out for Yd in terms of Y.
    So you should then be able to plug in all the numbers and solve for Y.

    Having said that, I had a quick go and I get an answer that is not on the list of choices, so either the information/answers are incorrect or (more likely) I'm missing or misremembering something...
    :hmm:
 
 
 
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