Global Finance & Banking MSc, PG Dip, PG Cert
King’s Business School is the new hub in London for engaging with business, finance and government; where game-changing research informs a contemporary approach to business education, creating socially responsible leaders of the future. Learn from leading academics and active senior finance professionals who will give you the right knowledge and tools to effectively tackle business challenges and support your career aspirations. There will be a strong focus on practical skills, giving you the right knowledge and tools to effectively tackle challenges in the global finance and banking sectors, and support your career aspirations. Fit your studies around your work and life commitments without taking a career break, and start to grow the essential research, analytical and critical thinking skills that you will need to succeed in your future finance career. Why study with King’s Business School? King’s College London has been ranked top in London for business & management studies (The Complete University Guide 2019). The course aims to develop practical skills and maximise employability. Course modules are led by industry leaders to ensure that there are real world applications for all of your learning. King’s Business School provides a highly stimulating intellectual environment, where students access unparalleled academic excellence and study alongside international peers from over 50 countries. Achieve a Postgraduate Certificate in as little as 8 months, a Postgraduate Diploma in 16 months and an MSc in just 2 years. Become part of a large and active community of alumni worldwide. Benefits of online learning: Access world-class teaching and excellent student support, from anywhere in the world, without leaving home. King’s online courses offer the same rigour as on-campus courses. Six intakes per year for maximum flexibility. Small class sizes allow close instructor interaction and collaboration with other professionals from across the globe.
The 100% online MSc, PG Dip & PG Cert in Global Finance & Banking from King’s Business School allows you to explore advanced financial and banking principles, such as investment analysis, analysis of financial statements, models of asset returns, optimal investment & risk and portfolio management.
How the Coronavirus Pandemic Broke the Commercial Freight Transport Sector
China is the driving force of the shipping sector, and therefore the state of this sector is closely connected to China’s plight, which is a significant trade partner of many countries, as well as the leading shipbuilder; furthermore, the world’s busiest and most important container ports are located in China. Major shipping volumes from China, which recently flooded the world, have stopped along with the idle standing of industry in China. Moreover, every country has introduced its own transport regulations. This enormous chain of logistics, which started in China in the transport sector, was cut drastically by the pandemic, causing serious and already irreversible consequences in the global shipping sector. Check out more INOMICS blog posts Due to various current restrictions, individual ports returned the freight containers to the ports of origin. As recession set in and demand and supply decreased, a response to the ongoing idle standing in the Chinese ports. Since China is also a significant importer of crude oil, nationwide downturn in economic activity had a negative effect on demand for the crude oil tankers. Overall, capacity of China in ports decreased by 20% to 50%. Lack of labour in Chinese maritime segments simultaneously affected the whole trade. Percentage drop was inevitable According to the optimistic scenario of the World Trade Organisation, in 2020, demand for container transport will decrease by 10%. According to the Baltic and International Maritime Council (BIMCO) data, global container transport decreased by 5.1% in the first quarter, and, compared to last year, these volumes dropped by 2.1 million Twenty Foot Equivalent Unit (TEU) to 38.2 million tons TEU. Export along key routes from East Asia to Europe decreased by 12.0% in the 1st quarter, to Northern America by 9.4%. The number of orders of new container ships has also decreased by 36.8% - down to 153,422 TEU compared to last year. Idle standing of fleets remains very high. Falling interest rates meant that the average container transport rate to send a container from Europe to East Asia was higher than sending freight from East Asia to Europe. Currently the freight transport sector shows another trend, namely, that demand for large-size container ships has sharply decreased, whereas demand for smaller ships remains more stable. Therefore, operators are currently more oriented to short-term contracts and shorter routes using small-size ships. Holders of large container ships, who have purchased them on credit during recent years, are currently facing a real challenge. Many large ships are usable only in the route from East Asia to Europe, and, upon decrease in demand, these ships will remain ashore. The following months will be a real test for operators, and show whether they will keep transporting half-empty ships as they have been doing so far. Each of them will try to reach a balance by keeping high freight rates on one hand and increasing capacity of use of their ships on the other. This year, the shipping sector also faces transition to fuel with lower sulphur content, which is more expensive. Thus, aforementioned regulatory costs create another additional burden for the operators. Will robotics save the sector? Of course, the sector will gradually normalize; however, it is not yet clear how long it will take for freight transport to reach that point. At the moment, it is important to renew inland consumption in the USA, whereas, in case of closing down companies and millions of lost jobs, full recovery to pre-coronavirus level will take a long time. In parallel to all the aforementioned, a totality of preventive measures is required involving professionals of the sector to stimulate recovery of the shipping sector. When rebuilding the freight transport sector, it could be stimulated with investments in various segments of robotics and freight transport technologies, which would lead to global changes across the sector. Autonomous shipping and smart technologies in freight transport companies will help the current sector optimise current operations and connect the various participants thereof – consignors, brokers and sea freight operators. However, looking ahead, every sector must have a plan “B” or so called buffer for the restructuring of the sector so it can withstand any crisis that may appear.
Coronavirus has had a broad impact on the global economy. Particularly affected were the tourism, trade and industrial sectors, including the export and import markets. Demand for and consumption of goods decreased, and so did the international freight transport sector. The COVID-19 crisis continues to severely affect the container transport market and the current economic situation gives no hope for short-term recovery.
Urban, Rural and Transportation Economics (JEL R)
High-Salary Career Options for Economists
All of that not enough to put you off? This INOMICS writer admires your determination. Despite the many pitfalls on the way to becoming rich, and despite the fact it might not be all that good when you get there, it is true that an economics degree can stand you in good stead to make some decent coin. An investigation from GoodCall found the third most likely degree millionaires have is one in economics, behind engineering and an MBA. To that end, we’ve listed some of the most remunerative jobs for economists to consider if they’re planning on making a nice (though not necessarily quick) buck. Download the INOMICS Handbook! Trading finances Perhaps not the first job economists think of when they graduate, but traders can make a hell of a lot of money if they’re particularly good at their jobs. Trading isn’t quite the same as stockbroking (as if you didn’t know): the stockbroker generally helps interested parties find, buy, and sell stock, agreeing prices between buyers and sellers, whereas the trader actually purchases and sells the stock themselves, sometimes with the help of a stockbroker. You’ll have to be on the ball for this role, monitoring the financial market and the performance of securities, and you’ll need to accurately analyse and evaluate costs, risks, and returns. How much you’ll earn doing this is highly dependent on your skills. The average salary according to Zippia.com is just $56,000, but as you might guess, some traders can earn far, far more money than this, becoming multi-millionaires - think the Wolf of Wall Street. (We here at INOMICS recommend always playing by the rule book and not engaging in any of the illicit activities Jordan Belfort did. Aside from that, Belfort was a stockbroker, not a trader, but you get the point.) Managing compensations and benefits Like the spread of germs? As a Compensations and Benefits Manager your grubby mitts will be handling money all day long. You’ll be looking after a company’s payment system and its employees’ benefits, including things like health insurance, retirement plans, dental, bonuses, that sweet company car the CMO wants, whether or not the Product Developer gets their gym membership so they can pump iron every lunchtime instead of socialise, and all the rest. It may sound a little simpler than the rest of the careers listed here, but you’ll be doing essential work in making sure the company’s workforce remains content (at least with regards to how much moolah they’re getting). You’ll have to enjoy, or at least be comfortable, working with people for this role, but you’ll be rewarded handsomely: Americans in this position earn, on average, around $115,000. Not bad. Actuarying Yes, that’s a verb. Actuaries use their monetary knowhow and economic acumen to analyse and manage risk. They’re the prophets of the modern age, using their crystal balls (read: economic expertise) to look far into the future, forecast economic difficulties, and figure out ways to minimise any potential damage. Nostradamus, eat your heart out (though hopefully you’re more accurate than he was). Normally you can get yourself partnered with a more experienced actuary at a company with just a Bachelor’s degree, but you will have to do some extra exams - always more exams! - to get certified and go it alone. So go get your tarot cards - that future risk ain’t gonna calculate itself. Actuaries in the US can earn upwards of $115,000. Managing finances Perhaps self-explanatory from the title, a finance manager manages, well, finances. You’ll be producing reports, advising and directing where investments should go, and strategizing to make sure the individual, organisation or company, long term, makes dollar. You’ll have to be pretty good at predicting the future (based on data, of course) and you’ll need to have your finger on the pulse of the market and any and all trends contained or developing therein. Data analysis is a big part of this role - but presumably all of you economists reading this article are already pretty comfortable with numbers and big data sets, so that’s no problem, am I right? The average salary in the US of A for a financial manager is around $112,000. Working for The Man Might seem like the thank-you-captain-obvious option, but becoming a straight-up, bonafide government economist with your economics degree is one of the most lucrative - and potentially rewarding - career paths you could take. Economists work for government organisations or research institutes, making reports and conducting research that influences government policy and/or the direction of businesses and funding. With climate systems breakdown currently such a big issue on the agenda, you might find yourself using your economic prowess to help mitigate environmental damage. Exciting stuff, not to mention important work. Median salaries float around the $100,000 mark for an economist working for the US regime. Teching it up According to a 2019 investigation in the Harvard Business Review, economists started playing a much bigger role in the tech sector in 2019. Tech companies, obviously including the big boys like Amazon and Google, but also smaller startups, have begun to hire groups of economics PhDs. Why? Firstly, because looking at data and solving problems of a monetary persuasion with cold-blooded rationality, which a degree in economics obviously inculcates, lends itself to big business; and secondly, because economics has something very specific to say about markets and how businesses work within those markets, particularly in the digital age. So ever wanted to work for an edgy startup? Feel like what’s really missing from your job is a ping pong table, discount on Brewdog craft ales, and a dedicated area for team members to take naps? You’re in luck if you’ve got a degree in economics. The average position at a tech company pays around $80,000 - but that’s not all you can earn. Get yourself up to the role of Finance Director at Google and you could be earning over $250,000 a year, with a bonus on top of around $350,000. (Chance would be a fine thing.) Time to make some $$ So that’s just six of the many bankable roles available for you, with your economics degree, you lucky thing. Plenty of other jobs that can pay anywhere from $50k to over $100k per year also exist, like personal financial adviser, healthcare analytics specialist, economic consultant, budget analyst, and more - the list goes on. Looks like you picked a pretty good degree to make some decent bread with, eh? Well, good for you. Remember, though, that in whatever career you do decide on, money isn’t everything. (Yes, that stands in direct contradiction to the rest of this article, but hear me out.) Money can be nice, but it certainly shouldn’t be the only factor you take into consideration. Don’t forget you also have to have a social life, hobbies, free time, and all those other things that contribute to making a well-rounded, enjoyable existence on this football we call Planet Earth. So get out there and look for a job that isn’t just going to put some paper in your pocket, but will make you happy, too.
Before you start considering what crazy lucrative job you are going to get with your economics degree, consider this fact: a lot of rich people don’t like their money. Many complain about not knowing what to do with it all, yet simultaneously having huge anxiety they’ll lose it. They moan about their friends treating them like walking bank accounts, being judged for not looking the part, and no longer being able to visit - how to put it delicately? - less refined establishments. Many work like dogs in jobs they don’t find fulfilling to top up the coffers, only to realise they never have any time to have fun with it. And all jokes aside, some studies suggest that, while earning more money than the national average does improve life satisfaction, once you get past a certain salary threshold, money stops making you any happier. (Depending on where you live, this is around $100,000.)
5 Top Tips For Students Dealing With Short Answer or Multiple Choice Exams
1. Focus on the details Unlike in essay exams - where one shouldn't stress about the details but rather focus on the big picture - short essay or multiple choice tests are all about the details. You need to be able to remember the facts which have been taught in the course over the semester, and to be able to explain these facts in a couple of sentences. For this reason, focus your revision on remembering key facts. 2. Use techniques to help you memorise information If you're having trouble memorising facts and figures, first try writing out the information by hand several times. Often you'll find that just the act of copying the information down several times will be enough to lodge it securely in your head. But if that's not working, and you have a lot of tricky information such as dates or chemical formulae to remember, try flashcards. Take a stack of postcard-sized piece of paper, and write down one fact to be remembered on each sheet. Then either use these cards to test yourself, or put them around your room, or house, so you see them regularly. Do this in the weeks leading up to your big day and remembering should not be a problem. 3. Don't overthink your answers When it comes to multiple choice exams in particular, the questions can sometimes be written tricky, vague(ish) way. Sometimes you have to select the “one correct answer” from four possible answers, all of which sound at least a little true. In this instance, it may tempting to select multiple answers, or to write information in the margins which explains your choice. Do not do this! Multiple choice tests are often marked automatically by a computer, or by someone without any experience in the area in question. So if you write extra information, it probably won't even get read, and you may even lose marks for not answering the question “correctly”. So how do you cope with an ambiguous question? The best technique to not overthink your answer. If there is one answer that seems obvious, and the other answers are arguably somewhat true, then select the obvious answer and move on. Unless the question says otherwise, always choose one and only one answer in a multiple choice test. Try to imagine what the person who wrote the question is expecting the answer to be, and give that answer. 4. Plan your time You might think multiple choice are quick to answer, and thus you don't need to plan your time in such an exam. Think again. Sure, the actual writing of the answers can be done very quickly, but you still need time to sit and think about each question before you answer it. When you first see the exam, take time to quickly skim over it. Count how many questions there are, and how much time you have. Divide your time by the number of questions to see roughly how long you should spend on each question. Also, don't forget to leave 5 to 10 minutes at the end to give your work a final check. 5. Skip over questions which are giving you problems If there's a question which you don't understand or don't know the answer too, think about skipping over it and coming back to it later. If you don't immediately know the answer, that's okay, no need to panic! Sometimes moving on to other questions will help to jog your memory, or give you context which could help you to answer the question that you were stuck on. You don't want to waste a lot of time on one question, so keep going and then come back to the questions you were struggling with at the end. Good luck with your exams!
No need to stress about your university exams – INOMICS is here to help! (Well, stress a little bit, that's healthy and can serve as motivation, but no need to freak out). Having already dispensed advice on facing down essay exams, this article turns to two other university exam formats – short answer questions and multiple choice tests. These kind of exams require a different sort of preparation from essay or oral exams, preparation that the following will take you through.
The reality Some, it seems, are without even a paddle. The UK’s Office for National Statistics (ONS) analysed COVID-19 related deaths during the virus’s peak between March and May, and found that, when adjusted for socio-economic factors and geographical location, the risk of death involving COVID-19 was twice as likely for black males than for their white counterparts, and 1.4 times greater for black females than theirs. Those of Bangladeshi, Pakistani, and Indian backgrounds, while not quite as endangered, also fared far worse than white ethnic groups, completing a picture of a distinctly unequal society. Although the US federal structure makes national data harder to compile - race or ethnicity is known for around half of all cases and 90% of deaths - the distribution of suffering falls on similar lines: communities of colour shoulder the greatest burden. The COVID Racial Tracker, a joint initiative of the Antiracist Research & Policy Center and the COVID Tracking Project, attempts to aggregate state data, detailing the extent to which this is true. Among its more shocking findings, it showed that nationally, Black Americans ‘are dying at a rate more than 1.5 times higher than their population share’, and that in four states, that rate was three or more times greater. Similar trends were found in relation to Hispanics and Latinx, who in 42 states make up a much greater share of confirmed cases than their proportion of the population. In eight of those states, it was reported four times greater. Battered by the virus, these communities have also felt the sharpest end of the financial fallout. In the UK, the IFS Deaton Review revealed that Bangladeshi, Pakistani, black African and black Caribbean men are far more likely to have endured loss of income, or redundancy. While in America, one study found that black adults, who already suffered far higher unemployment rates pre-COVID, ‘are twice as likely to have been laid off or furloughed as white adults’. As of June 2020, it calculated that a quarter of black workers had lost their job, a fifth of Latinx, and only a tenth of the white working population. The problem is structural The obvious, yet too infrequently asked, question is why? Why is race and ethnicity playing such a determining role in these nations’ COVID experience? And why is it that these self-professed world leaders, declared in 2019 by the Global Health Index as the two best prepared countries for pandemic response, have allowed an apparently indiscriminate disease to act so discriminatingly? The answer is not found in biology, despite what racist trolls may say. Rather, it has to do with entrenched racism and persistent structural inequality that pervades both societies. Although manifesting in different forms, informed by the countries’ respective histories and cultures, these interwoven forces combine to similar effect, often restricting black and ethnic minorities to poorer socio-economic groups, while depriving them social mobility. As a consequence, they are over-represented in under-served neighbourhoods, overcrowded housing, and are more likely to occupy ‘frontline’ jobs (supermarket workers, care workers, etc.), all of which, research has shown, expose them to more COVID, and make it harder, even when instructed, to socially distance. At the same time, with large numbers also working in the service sector, especially in Britain, their livelihoods have been disproportionately threatened. In addition to greater exposure, racialized poverty can also debilitate the body’s resilience. Adversely influencing the food you eat, air you breathe, and amount of exercise you do (whether for lack of time or green space), it creates the conditions in which comorbidities - such as heart disease, diabetes, or hypertension - thrive. And this has proven critical. Data from the Centre for Disease Control and Prevention (CDC), suggests that COVID-19 is 12 times more likely to kill those with underlying health problems than those without. Failure of government With such egregious racial inequalities exposed, exacerbated and entrenched, one may think it an appropriate time for governments to step in, to fulfil their role as protector-in-chief. Alas, the US and UK administrations have mirrored each other in their failure to acknowledge the racialised structures that lie behind the high death tolls of their BAME communities. Instead, they have opted to blame victims, bemoan bad personal choices, and neglect responsibility. Answering questions as to why so many African Americans had died, US health secretary, Alex Azar, told reporters that black Americans ‘in particular’ have ‘significant underlying diseases’. In doing so, he implicitly individualised responsibility, and revealed his ignorance of the more important question of why that may be. Meanwhile, the UK government’s review of the disproportionate effect COVID-19 has had on minorities, which was much anticipated among health advocacy groups, lacked any recommendations about how minorities could be protected, despite its contents consisting solely of grim statistics showing how vulnerable they are. A continuation It’s instinctive to be shocked by these flagrant injustices. And we should be. But it’s also worth contextualising, and remembering the times we live in. This is an era of Windrush, police brutality, and mass incarceration. One in which Black American men, living in the richest country in the world, have a lower life expectancy than their Palestinian counterparts. With this in mind, the racial injustices of COVID look less like an aberration, and more like a continuation, a predictable outcome of a prejudiced system - it's one we must dismantle. Image Credit: Tverdokhlib on Shutterstock (licensed image - copyright)
Dubbed ‘the great equalizer’ at its outset, COVID-19 has often been described as picking its victims at random. Blind to race, ethnicity, and gender, it sees just a human body, a host that enables it to do what all pathogens are programmed to do: spread. While this, from a biological perspective, may be true, the disease’s sweep of the globe has been anything but equalising. Data from both the US and UK - who along with Brazil compete for the honour of worst pandemic response - show that in terms of cases and deaths, minorities are hugely overrepresented. We may all be weathering the same storm, but as Dr Zubaida Haque has put it, ‘we are not in the same boat’.
Public Economics & Economic Policy (JEL H)
Once again, all courses listed here are available in English and range from beginner to advanced levels in terms of difficulty. While some are open tutorials available at any time of the year, others have opening and closing dates for participation. During these bizarre times of the coronavirus COVID-19 pandemic, these courses are a great way to stay at the top of your academic game. Check out our full range of online courses 1. Introduction to Mathematical Thinking Course provider: Coursera Duration: 40 hours Skill level: Intermediate 2. Introduction to Calculus Course provider: Coursera Duration: 51 hours Skill level: Intermediate 3. Mathematics for Data Science Specialization Course provider: Coursera Duration: 6 months, 4 hours a week Skill level: Beginner 4. Mathematics for Machine Learning Specialization Course provider: Coursera Duration: 4 months, 4 hours a week. Skill level: Beginner 5. Introduction to Discrete Mathematics for Computer Science Specialization Course provider: Coursera Duration: 6 months, 5 hours a week Skill level: Beginner 6. Intro to Statistics Course provider: Udacity Duration: 2 months Skill level: Beginner 7. Differential Equations in Action Course provider: Udacity Duration: 2 months Skill level: Intermediate 8. Intro to Descriptive Statistics Course provider: Udacity Duration: 2 months Skill level: Beginner
Given the excellent feedback we received from our audience on an earlier blog post that compiled a list of free econometrics courses online, we have now prepared for you a list of free online courses (MOOC format) that you can take in the discipline of mathematics. Like econometrics, proficiency in math is a prerequisite for performing well in economics courses at all reputable universities around the world. The knowledge required may range from high school algebra and differential equations to understanding the basics of logic and analysis of algorithms.
Econometrics, Statistics and Quantitative Methods (JEL C)
Tips for recruiting students during Covid-19
Among the most common challenges faced by Universities we find the need to deliver course curriculum adaptable for e-learning experiences; the need to provide a solution to the current dilemma of international students, start their studies online, delay the start of their studies or turn to local institutions to start their studies; the demand for hosting virtual campus tours, virtual Q&A sessions, among others. If you want to learn more about the risks and challenges for student recruitment during the 2020 pandemic, download our e-guide resource about recruitment during Covid-19. ➲ Download our e-guide "Recruitment during Covid-19" here Tips for recruiting students during Covid-19 times Covid-19 has brought changes and limitations due to mobility restrictions, a changing economic environment, and a shift of priorities among students and their families. The first step towards maintaining a healthy recruitment strategy includes revising the education offer of universities and adapting to the current needs of students. Making clear in the offer, the possibility to start the studies online and then transfer remaining classes on campus, the possibility of virtual onboarding sessions, online courses to collect degree credits, online pre-masters and pre-bachelor’s with easy-track to a on campus degree, and cultural immersion experiences to complement online classes once the pandemic ceases, can make a big difference in the attractiveness of your offer. At the end, the effort of bringing leads to your institution is reduced to 0 if the offer is unattractive to the students. Below we have listed some tips for you to shape your student recruitment strategy during Covid-19 times. Analyze and modify your goals: Key performance indicators and recruitment targets were based on a normal scenario. Now it is time to reassess those numbers and bring them back to reality. Only with realistic goals one can then map out a plan to achieve them. Revise and re-arrange your target market regions: It makes sense to decrease the marketing activities and spending in regions which are highly-affected by Covid-19. If the recovery forecast of these regions is rather pessimistic or takes longer than the average, there is very little chance that students from these countries will have mobility and study abroad as their priority or even possibility in the short-term. Adjust your marketing budget to support more online activities: With most of the study fairs, college visits and offline marketing activities being cancelled, a wise step to take is to allocate the unspent budget to online activities that can build on long-term assets for the University. Students may not be actively applying for a degree abroad, but they are using the time to explore more about Universities and their academic and extracurricular offers. Using your time to create content online, build fruitful cooperations with aggregators and bloggers and get the word about your institution out on the internet is a very good investment for the future. Additionally if the recruitment and enrollment process continues as planned for 2020 and 2021, the best channels to use in the current conjuncture are online based channels. If you are interested in more information about the activities you can implement at your University, we suggest to download our e-guide "Recruitment during Covid-19" here. Leverage virtual experiences and gatherings: Since students cannot visit your campus and engage with the student life in person, it is your responsibility to create virtual spaces that promote these experiences. Virtual campus tours, webinars, virtual student gatherings, an online tandem partner program that pairs new/prospective students with students/alumni, Facebook and Instagram Q&A live sessions, etc. will help keep the positive attitude up and display an excellent brand image amongst students and their families. Invest in technology: With the boom of e-learning and e-teaching, it is wise to invest budget in tools that will soften the transition from on-campus teaching to online classes. These tools are an investment that will benefit different areas: they will help you keep the education promise to current students, help deliver class samples to prospective students and, make video communication channels more efficient, among others. Finally, besides investing in technology tools, it is also important to invest time and effort in developing new marketing channels. The use of social media, video marketing and the application of remarketing techniques regardless of the chosen channel, in order to differentiate between students who are warm leads, students who are applicants, and students who were admitted to your University. During the upcoming months, we are releasing a series of articles on recruitment tips and advice during Covid-19. If you are interested in following this series, subscribe to our Newsletter. As a welcome gift you will receive our recruitment e-guide as well as exclusive access to special promotions for our subscribers. ➲ Get our e-guide "Recruitment during Covid-19" here If you are interested in promoting the programs, courses, scholarships, professional training on campus, online or blended offered by your institution, please contact us at info@inomics.com. We will be happy to boost and support your student recruitment strategy during these tough times, plan and optimize your recruitment strategy for 2021, or support you filling in the last seats in your 2020 programs.
With the coronavirus turning the education scene into an online-dominated service, universities and other higher education providers are starting to wonder how to adapt their recruitment strategies to the current scenario. Without a doubt, Covid-19 has transformed and will continue to transform the education scene on one hand making it more affordable for more people, but on the other hand demanding a new set of tools and delivery methods.
The INOMICS Questionnaire: Fratzscher vs Jackson
Esteemed economist, Stanford Professor, and friend of INOMICS, Matthew O. Jackson, generously took time out of his busy schedule to take part in the third INOMICS Handbook Questionnaire. Opposite him, in his customary role of quizmaster, was Professor Marcel Fratzscher, president of the DIW Berlin, and one of Germany’s leading voices in macroeconomics. Observing tradition, and as a nod to those involved, the encounter has been dubbed ‘Fratzscher v Jackson’. What took place was both in-depth and personal, the conversation ranging from Aristotle and gender bias, all the way to economic blogs and bicycles. For anyone connected to economics, especially those starting out, this one is not to be missed. Download the INOMICS Handbook! Marcel Fratzscher: What is your favourite place on earth? Matthew O. Jackson: My bicycle. I guess that is a trick answer, as it takes me to many places. It brings me out into nature and on many adventures. I see places from a very different perspective. And somehow, it is also great for ruminating and relaxing my mind. MF: Outside of economics, what occupation would you have if you could be absolutely anything? MOJ: I grew up during the Apollo missions and would have given anything to be an astronaut, but my eyesight precluded that path. Putting that aside, if I had to move outside of the social sciences now, I would become a biologist. The 21st century is poised to be the golden era of the biological sciences. Improvements in our ability to gather data and analyze it are very rapidly enabling huge advances in our understanding of everything from how the brain works to how and why genes express themselves. MF: What is the virtue you appreciate the most? MOJ: Empathy. It’s not normally thought of as a virtue, but you look at it as a modern take on Aristotle’s view of friendliness as a virtue. The ability to understand other people’s emotions and needs, and react to them, is one of the most important ingredients in making humans powerful as a social and cooperative species. MF: Your all-time favourite figure in economics? MOJ: Ken Arrow. I am very grateful that I was his colleague. Even in his late eighties and nineties, he was ever curious - asking questions about everything. His curiosity made him a joy to be around. I think that it was also a key driver of the breadth and depth of his contributions: he was always asking ‘why?’ and not limiting his attention to what he thought about. I learned from him that asking questions is like taking pictures: one gets great pictures by taking many of them, only some of which work out (sometimes unexpectedly), rather than waiting for that perfect one to come along. MF: Your # 1 economics blog? MOJ: I am a fan of Our World in Data. They provide consistently interesting and detailed looks at data that illuminate a variety of important topics. I always come away with new knowledge and ideas after visiting their site. MF: Your ideal student? MOJ: A great listener makes a great student; and ‘listener’ is meant broadly. It is someone who pays attention to comments, criticisms, and anything else that bears on their research, and then carefully filters that information and reacts to it. MF: What should be done to address a gender bias in research in economics? MOJ: I will broaden the question to discuss addressing gender and other biases in many areas. One aspect of affirmative action that is under-appreciated is that its effects are not limited to the people directly hired, admitted, or promoted because of the policy. There are numerous network effects that enhance the power of such policies: having more connections gives a group better support, information, and access to opportunities. Moreover, it not only enhances the experiences and productivity of those within the field, but also then helps attract more into the field in the future. Thus, there is a social multiplier associated with increasing a group’s membership in any endeavor. MF: What is the most misguided research agenda in economics? MOJ: I won’t take shots at any particular agenda, but instead will point out a couple of factors that can lead to misguided research. It is easy for research to become literature-driven: people identify new questions by searching for cases not handled by the previous literature, or by some deficiency in prior work, rather than thinking about the fundamental issues that we should really be illuminating. We are also tempted to judge research by how difficult, clever, or unexpected it is, rather than by the new knowledge it generates. I think this is the most common error made in refereeing, and it easily leads researchers and literatures astray and distorts our agendas. MF: What is the most promising current research field or issue in economics? MOJ: Technology is transforming both our economies and our methodology. We see the emergence of the gig and sharing economies, and a whole host of platforms and apps that are drastically changing the way that people connect and communicate with each other. We know little about how these changes are affecting productivity, innovation, and growth. And, simultaneously, these changes - and some of the technology behind them - are generating rich data and tools with which we can study human interaction on a scale not previously possible. MF: Where does economic research have the most influence on policy-making? MOJ: The resurgence of development economics has led to unprecedented input into the design and implementation of many policies, especially on a small scale. Esther Duflo’s paper ‘The Economist as a Plumber’ provides excellent reading on how economists can be best leveraged in improving policies and their implementation. MF: On what issues should policy listen more to economists? MOJ: Financial regulation. Financial markets are full of externalities and moral hazard problems at the same time as economies of scope and scale. This has led to the emergence of a variety of institutions that are too big-to-fail but have inefficient incentives, and yet are implicitly or explicitly insured by governments. Despite the importance of these markets and the lessons we have learned historically, we still sit on a roller coaster when it comes to regulation. MF: What is your career advice to a young economics researcher? MOJ: Ask lots of questions and dive deeply into the ones that intrigue you. Don’t base your research on what you think will get published, or fill a hole in some literature, but rather focus on the issues that grab you. They will take you on a more fulfilling and rewarding journey, and your instincts will generally lead you to questions that will have a bigger impact than if you get too strategic about your research.
Survey: Is "To Whom It May Concern” Acceptable on a Cover Letter?
But does it really matter how you start your cover letter? To find out, ResumeCompanion conducted a poll of over 1,000 hiring managers from across the United States to determine how they view “To Whom It May Concern” being used on an applicant’s cover letter. No big deal: 83% of hiring managers disclosed that seeing “To Whom It May Concern” on an applicant’s cover letter would have little or no impact on their hiring decision. For years, experts have insisted that when you’re formatting your cover letter, you should avoid using “To Whom It May Concern” at all costs. But countless job seekers begin their cover letters with “To Whom It May Concern” anyway — they can’t all be unemployed. So to discover the truth, ResumeCompanion conducted a survey of hiring managers from across the country. The results of this survey deal a shocking blow to the expert consensus. Over 83% of hiring managers polled revealed that seeing “To Whom It May Concern” on a candidate’s cover letter would have little or no impact on their decision to hire or interview that person. Even more fascinating, however, is how the data varied according to the age, gender, and location of each respondent. Men are three times as likely as women to reject a candidate for starting their cover letter with “To Whom It May Concern.” The majority of both men and women agreed that seeing a candidate use a generic introduction on their cover letter would have little impact on their hiring decision. However, men are clearly touchier about the subject. 6% of male hiring managers stated that they would reject a candidate outright for using “To Whom It May Concern” on their cover letter. Compare that with the 2% of female hiring managers who said the same, and there’s clearly a gender divide. If you find out a man is going to be reading your cover letter, try to address him by name to boost your chances of success. Yet if you can’t find his name, it’s still most likely fine to address your letter with “To Whom It May Concern” since neither gender seems to mind much. Even more interesting is how results differed by age: Gen Z hiring managers are the most likely to reject an applicant for addressing their cover letter with “To Whom It May Concern.” If internet memes are anything to go off of, you’d assume that the most likely person to get worked up over your cover letter introduction is older — maybe a prickly 60 year old? However, according to ResumeCompanion’s research, the reality is the opposite. According to the data, the most likely age demographic to reject a candidate outright for beginning their cover letter with “To Whom It May Concern” is Generation Z (ages 18 to 24). True to their reputation, though, older hiring managers (ages 55 to 64) are still the second most likely to reject a candidate for starting their cover letter with a generic introduction. Meanwhile, Millennial hiring managers cared the least about whether candidates use “To Whom It May Concern” on their cover letters. Also interesting are how the results vary according to geographic location: Hiring managers from the Midwest are most likely to reject an applicant for starting their cover letter with “To Whom It May Concern.” A significant 22% of hiring managers from the Midwest admitted that seeing “To Whom It May Concern” on a cover letter would make them less likely to hire that candidate. This makes the Midwest the strictest region when it comes to how you should address your cover letter. This is in stark contrast to hiring managers from the Northeastern United States, where only 10% care whether or not a candidate opens their cover letter with “To Whom It May Concern.” Takeaway: “To Whom It May Concern” isn’t the cover letter killer that experts claim it is. Here’s the bottom line: if you can’t find the hiring manager’s name, using a generic opener like “To Whom It May Concern” isn’t a big deal. However, it’s still far from the best way to introduce your cover letter. Before falling back on a generic opener like this, make sure you exhaust your options for finding the hiring manager’s name. To help you in your search, here are a few methods for finding the hiring manager’s name that you may not have thought of: Search the company website to see if they have a directory. Browse the company’s LinkedIn to find their associated employees. Google the company name and the phrase “hiring manager” or “human resources.” Call the company and ask the receptionist if there’s a name you can use on your cover letter. If all else fails, just remember that the vast majority of hiring managers don’t actually care how you address your cover letter, so long as the rest of your application demonstrates that you’re qualified.
If you’ve ever researched how to write a cover letter, you probably know that career experts from all over the internet agree you should never address your cover letter with a generic introduction like “To Whom It May Concern.”
The coefficient takes into account which percentage of total income (or wealth) in a country is owned by what share of the country’s population. A value of zero means that income is distributed equally across all members in a society. This would be the case if everyone had exactly the same income. Conversely, a Gini coefficient equal to 1 means that the nation’s income is concentrated in the hands of very few people. For example, a country with 100 people where one person possesses everything and all others had no income would have a Gini coefficient equal to 1. The Gini coefficient can be represented graphically by Lorenz curves as seen in the figure below. On the x-axis we have proportions of people ordered by their income from poorest to richest. On the y-axis, we see the cumulative share of the total income in the country. The red line corresponds to a Gini coefficient of 0, because income is distributed equally - for every 1% increase in population, there is a 1% increase in the total share of wealth. In other words, the "poorest" 10% of the population have the same income as the "richest" 10% meaning there is no poorest or richest 10% at all since everyone has the same wealth. In the figure below this corresponds to the red line labeled “perfect equality line”. A Gini coefficient of 1 would mean that the richest person (or say the richest 1%) in the country owns everything, while the remaining 99% have no income. A Gini coefficient of 0 or 1 are clearly two very extreme scenarios. For most countries the coefficient is somewhere between 0 and 1. This more moderate scenario can be represented by a curve like the one depicted by the blue line in the figure below. Figure: Lorenz curve for a Gini coefficient of 0 (red line) and a Gini coefficient between 0 and 1 (blue line) The Gini coefficient corresponding to the blue curve in our figure above can be calculated as follows: Gini Index = A / (A+B). The area A is the area between the perfect equality line and the curve, while area B is the area between the curve and the axes. The greater area B is relative to area A, the lower the Gini coefficient and hence, the lower the income inequality in the country. Now we know what the Gini coefficient measures and how to calculate it. But what’s more interesting is to compare Gini coefficients across countries and time. We can use the Gini coefficient in this way to compare inequality in different countries or regions, study how the distribution of income and wealth evolve over time, or analyze the impact of certain policies (e.g. the effect of a change in the income tax) on the distribution of incomes. Although economics often focuses on comparing allocations of resources in terms of Pareto efficiency, the distribution of income and wealth among the population (which the Gini coefficient can help to measure) is also of great importance for policy makers. Countries with an extremely unequal distribution of income or wealth may be more vulnerable to social unrest and political instability (see also Inequality), and concerns for fairness and justice influence our opinion on different political parties and policies. In the table below we see the Gini coefficient for five different countries in two years – in 2000 and 2016. Gini coefficients for various countries 2000 2016 Germany 0.29 0.32 United States 0.40 0.41 Mexico 0.53 0.46 Italy 0.35 0.35 Norway 0.27 0.29 Each of the chosen countries has a Gini coefficient somewhere between 0.27 and 0.53 for the selected years. A Gini coefficient of 0.53 is considered high and implies that income is distributed rather unequally, as is the case in Mexico. The Gini coefficient of around 0.28 for Norway implies that income is distributed more equally in this country (but of course not perfectly egalitarian). In three of the five countries (Germany, US and Norway), the Gini coefficient increased between 2000 and 2016, while it decreased in Mexico, indicating that wealth inequality increased during this time. The data used in this table was taken from the World Bank. Further Reading Among the most famous economists studying inequality are Thomas Piketty and Emmanuel Saez. In their paper “The evolution of top Incomes: A historical and international perspective” (published 2006, in the American Economic Review), they present findings on the changing levels of income and wealth in a variety of countries during the last century. One of the main challenges in comparing income inequality across countries is the lack of homogeneity in the data and the availability (or lack thereof) of long-run databases. One of Piketty and Saez’s main findings is that during the 20th century the shares of income earned by the richest people in the society decreased decisively during wartimes and the Great Depression meaning that inequality decreased during these times. Good to know While the Gini-coefficient is a useful and important measure of inequality, it is not the only one. To get a more accurate picture of (in)equality, you might want to look at other measures of inequality as well. Other commonly used measures are the Theil index, the Hoover index, and ratios of percentiles or shares of income (comparing the mean income to the median income, etc.).
The Gini coefficient is a statistical measure of inequality that describes how equal (or unequal) wealth is distributed among the population of a specified area (usually a country). It takes a value between 0 and 1, and a higher Gini coefficient is associated with higher levels of inequality. It can also be referred to as the Gini index or the Gini ratio.
Macroeconomics and Monetary Economics (JEL E)
Economic Development, Innovation and Growth (JEL O)
The Best Online Microeconomics Courses for Beginners
Our support, we promise, is, and will forever be, unfaltering - we recognise how tough things currently are. University life is in flux, campuses are mostly shut, and there’s little idea when, if ever, things will return to their pre-COVID ways - that is for those whose memories extend that far. Life is characterised by zoom calls, lagging voices and frozen faces, of cursing your internet connection and being proud that you’re yet to trash your misbehaving laptop. Stuck at home, though, it’s also the perfect time (we think at least) to get started with some microeconomics. For one positive thing the pandemic has done is fast forward us to a future where online courses are ten a penny. With so many to choose from, finding the right one isn’t easy, so to make your life easier INOMICS has compiled a list of the best beginner courses out there. Some of them don’t cost a thing! 1. Economics: Mastering Microeconomics 101 by Udemy Described as the ‘comprehensive study aid for anyone studying economics’, this course does exactly what it says on the tin, covering the key foundational concepts of microeconomics, and giving those enrolled all they need to go on and take more advanced courses. The only requirement is an understanding of straight line graphs and basic arithmetic, meaning pretty much anybody can take part. The 9 hour course can be accessed for just €12.99. 2. Microeconomics by Khan Academy The Khan Academy has long been one of the most trusted online learning institutions the internet has to offer, so quality here is pretty much guaranteed. In terms of content, this is a beginners course that will introduce you to microeconomic basics, including factor markets, market failure and the role of government, consumer theory and elasticity. And the best thing of all, it’s free. 3. Microeconomics Principles by the University of Illinois In just 23 hours of learning, the professors of the University of Illinois will teach you all you need to know about the main principles of microeconomics. At its core, the course attempts to debunk the myth that economics is only about money, and to that end, it covers areas as disparate as the environment, love, crime, business, and sport. On completion, you’ll come to realise how versatile economic methods can be, and that, with the right implementation, they can be applied to pretty much anything! The generous people at Illinois are offering the course for free, too. 4. Microeconomics: The Power of Markets by the University of Pennsylvania Also free, continuing something of a trend, this course looks specifically at microeconomics theory of markets, asking why we have them, how they work, and exactly what they accomplish. It makes a point of taking examples from everyday life, and theory is always applied to current policy debates to ensure a feeling of relevance. No previous experience is required for this 9 hour course, and it’s first come first serve. 5. The Power of Microeconomics: Economic Principles in the Real World by UCI In this course, you will learn about - surprise, surprise - all the major principles of microeconomics that are typically taught to economics undergraduates or MBA students in their first semester. Once again, there’s an emphasis on applying these principles to real world situations, not just in your professional life, but your personal life too - which adds an interesting twist. The course is approximately 20 hours long. 6. Microeconomics by MIT This beginner-level certification is designed to familiarise you with (can anyone guess?) the core fundamentals of microeconomics. Real-world models are used to identify and describe real-life behavior, and the decisions of consumers and firms. And this focus runs through the course, an attempt to make theory applicable to real life. Offered by MIT, this certification is an excellent place to take the first step in the field of microeconomics. And like all courses offered by MIT you can expect a high level of teaching. The workload is 3-4 hours per week, and the course lasts 12 weeks. 7. Strategic Business Management - Microeconomics by UCI In a slight divergence from the above, this course combines business strategy with the principles of microeconomics. Drawing on lessons from business, management, finance, operations management, marketing, statistics, and, of course, business strategy, the course is diverse, to say the least. It typically takes around 24 hours to complete, and is open to all, no matter what academic background.
Microeconomics is the study of what economic actors - be they people, firms, or whole industries - do when confronted with choice, and how this affects the distribution of resources. It’s fascinatingly revealing but can be frustratingly complex. And regardless of which direction your economics career takes, it’s likely that, at some point, it will have to be mastered. But that’s fine, INOMICS is here.
How to Choose an Online Course or Degree
What you need to consider You may be asking yourself how to decide which course will you study? Well, first off think about the subjects that you liked in school, about your hobbies, and what may help you in your career development. And remember, an online degree can not just help you brush up skills you gained in the past, but could also provide you with accreditation for what you have learnt through work experience. If you are already focused on economics, as many INOMICS users are, an online course could be an opportunity to study a complementary minor subject such as: sociology, anthropology, finance, business administration of environmental sustainability. Increasingly, higher education is becoming interdisciplinary, and online options are a great way to keep up with this trend. You could merge your economics interest with psychology, perhaps, taking you in a behavioural economics direction. The options are almost endless! Course quality online can, and often is, as good as on campus. With that said, check that the degree programme offers teaching from the same faculty staff and offers the same credentials as with a campus taught degree or course. Investigate the reputation for your prospective institutions. Read user reviews if available, and look out for accreditation for the course and institution. In the same vein, checking that employers recognise the qualification you are about to enrol upon is also a smart move. Subscribe to get updates on online learning options for economists Admission requirements and application fees/course fees/tuition fees will likely be necessary for any degree and course online. Financial aid is sometimes available too. Check these things over thoroughly before signing up. If you shop around you can even find many countries (especially in Europe) offering degrees without fees. Although it sounds simple, ensure that the schedule of the online course fits around your life. It’s pointless signing up for a course which timetables an online seminar or lecture for the time when you have a job, or other engagements planned. Workplaces may consider a small rescheduling of your working hours if you can justify the change, but don’t bank on it!. Thankfully, many courses provide the opportunity to pick from a range of class hours that fit around your daily routine. The real benefit of online learning is exactly this kind of flexibility! Also vital is that you make sure the virtual classroom tools that are used are sufficient. Universities know that students want to know what it is like to learn online and may sometimes offer taster sessions. And it makes sense:Learning is never passive, especially not in an online environment. For this reason, when you search for your course, find out what technology the institution is using, and if their online tools allow enough access to content, collaboration, engagement and real-time interaction to enhance your understanding of concepts learned. You may have to work within your own technical limitations, but some institutions offer financial aid (yes, it does exist!) for buying technology (i.e. a new laptop) to handle that weekly Zoom or Cisco call with 50 people. Try and research all possibilities to make sure the learning platforms are usable. And lastly, asking questions is paramount in any search for a degree or course, whether online or otherwise. If you need to ask for help, have any questions, or are just a bit lost - that's completely fine - lots of prospective students feel uncertain when embarking on an online course. Higher education institutions always have contact emails and numbers for student services which will help you, and it’s worth keeping an eye out for any specific online student services that may also be available. And don’t forget, you can always come to INOMICS for help, too!
INOMICS has seen a surge in demand for online courses recently, with far more students searching for higher education alternatives. With the effects of COVID-19 ongoing, and many institutions still closed, enrolling in a fully online program or online degree has clearly become the best way to continue self-improvement and career development. Institutions offer a variety of online degree programmes and massive open online courses (MOOCs), which often have less expensive tuition fees. Additionally, you will save money by not having to commute to a campus. Distance learning can improve your technical skills too, as you navigate new learning management systems. Before you choose a course, though, there are a few things you need to consider. Here INOMICS’ walks you through the basics!
Education is complicit Education is one area that could be subject to overhaul. The recent murder in America of George Floyd at the hands of Minnesotan police has sparked demonstrations across the western world, protesting not just police violence, but the system that permits such violence and ensures impunity for its perpetrators. Education, protestors claim (and this writer concurs), is a part of that system, and higher education, in particular, has drawn criticism for its failure to incorporate black and brown histories, focusing instead on white, euro-centric knowledge and methods of knowledge production. These preferences, they further assert, hide the achievements of people of colour, perpetuating hierarchies of colonialism. Ultimately, this omission, and the whitewashing of colonial violence for which it also stands accused, implicates the institution as complicit in the racism that pervades society. As such, if progress is to be made it must be ‘decolonised’. Work underway Of course, work to this end isn’t new. In the last few years, demands to decolonise education, both its curricula and campuses, have cohered into the movements ‘Rhodes Must Fall’, which has called for the removal of statues of the imperialist Cecil Rhodes from campuses, and ‘Why Is My Curriculum White?’, which, as the name suggests, has questioned the primacy of white, European thinkers in university curricula. Both have helped expand conversations about memorialisation in public space and the diversification of education, setting some important precedents. Now, however, as racism is reckoned with on both sides of the Atlantic, movements like these have been galvanised. And the momentum is only growing. <11an>limit:2;categories:jobs|courses|conferences|Professor;disciplines:Health, Education, and Welfare (JEL I)|Politics</11an> What is being asked? Although decolonising education can, and often does, mean different things, it generally refers to an interrogation of the assumptions that form the basis of the canon, and an attempt to broaden our intellectual vision to include a wider range of, in this case non-white perspectives. It questions: who’s in control of knowledge? How did they come to have this role? And what maintains their power? Indeed, in many ways its goal aligns with the professed ethics of academia itself: to enhance both our critical thinking and scepticism. Key is the recognition that colonial assumptions regarding racial hierarchy persist in academic study. SOAS University of London, for instance, an institution embracing its responsibility to modernise, has pointed to the fact that despite no longer referring to countries in the global south as ‘backward’, many theories of development rely on similarly unfavourable assumptions for their modelling - it’s these biases the decolonising process looks to address, and they’re pervasive. It also questions the relationship between the writers of knowledge, their location and identity, and the subject of their work and method of investigation. This sounds commonsensical because it is - it already takes place in many other contexts. For example, as a society we’ve grown instinctively scrutinous of male voices explaining away the female experience, and for good reason. Decolonising education asks for an extension of this same principle with respect to race. Assess the origins of source material and another problem is encountered: reading lists are composed overwhelmingly of white, male authors. This not only marginalises much excellent scholarship produced by scholars of colour, but also introduces, as academic James Muldoon has described, ‘systematic distortion to the material’. Moreover, it creates a phony impression of who constitutes intellectual authority and what works are worthy of our attention. To counter this deficit, decolonisation would diversify the sources engaged with to reflect a greater variety of perspectives . Finally, action is called upon to guarantee a university environment that addresses the attainment gap between people of colour and their white colleagues. With society wracked by structural inequalities, now compounded by COVID, it's imperative for educators to ensure students receive equal opportunity to succeed. This means defining and dealing with the racism that is woven into all aspects of university life. When students of colour report feeling alienated by certain learning materials, or dynamics in the classroom, it must be dealt with through open dialogue between students and educators, and followed by swift action. With surveys consistently showing African American undergraduates as having the lowest satisfaction rates of all students, it appears these pastoral responsibilities are currently being neglected. The pushback Despite its ethical grounding, moves to decolonise higher education have not been without controversy, attracting a sizable backlash. In the UK, for instance, Conservative politician Sam Gyimah warned that we “should be cautious of … phasing out parts of the curriculum that just happen to be unpopular or unfashionable’, his comments coming in response to English students at the University of Cambridge calling for the inclusion of more non-white writers and postcolonial thought in their syllabus. And this is a common response, calls for increased inclusivity misconstrued as moves towards eradication, of scrapping everything. In reality, no one is seeking the abolition of the canon, or the complete elimination of any white male influence from centres of learning. The game is not zero-sum. People simply want their educational systems to better reflect society, to generate more accurate portrayals of our histories, and to accept and rectify the implicit, and at times explicit, biases that as institutions they continue to perpetuate. Alas, even in this revolutionary moment, the barometer of change shows that this battle will be hard won - at the time of writing only a fifth of UK universities have formally committed to reforming their curricula to confront the harmful legacy of colonialism. Nonetheless, there is reason for optimism: pressure continues to build. The Black Lives Matter movement has proven the effectiveness of direct action and the power of mass movements. The toppling of the statue of slaver Edward Colston in Bristol has forced a review of all London street names and landmarks, in a move that will only invigorate protestors. And with higher education now in their sights, universities may be in for the shake up they so desperately need.
History, it feels, is quickening pace. Pandemics, both old and new, are rocking the world, shaking its foundations. Systemic racism, an age-old disease, continues to facilitate violence on black bodies and undermine humanity, while a novel coronavirus has killed hundreds of thousands, disproportionately affected people of colour, and compounded the often racial inequalities that characterise our societies. Protestors now fill the streets, and across much of the anglophone world a tipping point has been reached. What will emerge from this moment is hard to say. A better question may be what do we want to emerge? Either way, there can be little doubt, change is afoot - and it’s been a long time coming.
From University Campus to Remote Education: How Steep is the Learning Curve?
Distance learning is nothing new; it has existed in one form or another ever since people were first able to exchange letters and talk on the telephone. In 1858 the University of London started to offer students the opportunity to study for degrees remotely. With the invention of the record player, radio and television, the possibilities for distance learning expanded but it was not until 1969 that a national government created the first institution of Higher Education to specialise in distance learning, the Open University. With the arrival of home computing and the internet in the mid to late 1990s, online learning began to evolve as a viable means for universities to deliver their degree programmes. Yet despite the increasing ubiquity of the internet in daily life since then, enrolment in online courses has been somewhat muted. As of 2019, only 15% of registered students in the European Union were taking an online course in any subject, versus 10% of all individuals living in the EU (Figure 1). This contrasts with just under half of students who used the internet to access learning materials in 2019 (Figure 2). While the trend in online education was already positive before the coronavirus pandemic, a majority of professors and students in Europe still relied on traditional methods for their teaching and learning. As universities shut down campuses and embraced remote learning in response to the pandemic, existing technologies were quickly harnessed to shift lectures, seminars and assessment online wherever feasible. In principle, from a student perspective, there are many advantages of online learning over the traditional classroom, including increased flexibility in time management and the ability to adjust the pace to suit individual learning. However in practice, the unexpected nature of the switch to online methods has left many students dissatisfied with their instructors’ efforts and this has led to claims for refunds and reductions in tuition fees. Faced with ongoing uncertainty over the forthcoming academic year, some institutions are preparing to extend remote education across the board for the foreseeable future. It is important for institutions to organise this in ways that continue to engage students and facilitate learning. One of the strengths of a traditional on-campus education in many subjects is the ability to have students combine individual preparation for class with working in groups. Mauffette-Leenders et al. (2005) advocate a three-stage learning process in which students 1. prepare a topic individually, 2. form small study groups before 3. the whole class is brought together in a seminar for a fruitful discussion of the topic at hand. There is only so much an individual student can learn by reading alone. Feedback in a small group of fellow students can accelerate learning. Having a variety of such groups with different dynamics subsequently attend class together under the guidance of an instructor then boosts learning further. Figure 3 illustrates this simple three-stage process whereby the student effectively jumps between stages onto a steeper learning curve each time. Economists will recognise the concept of diminishing marginal returns in the graphs as the potential for additional learning at each stage lessens over time. Student learning is thus accelerated and made more efficient through the timely combination of individual and group work. The law of diminishing marginal returns is equally applicable to online learning. It is therefore useful for university administrators and course leaders to consider how learning outcomes may be reached more efficiently through different combinations of individual study formats, contact for students with their peers, as well as larger group formations, when redesigning degree programmes for remote education. Students who learn off campus have more autonomy and would also do well to bear in mind the marginal returns to time invested when structuring their study periods. Within the discipline of economics, much of the evidence on learning outcomes from remote education is based on analyses of general introductory undergraduate courses such as “Principles of Microeconomics” that are taught to some students online and to others in class. Grades of those studying online are often higher than grades of students taught in class. However selection into online variants of courses is rarely random, with students of higher ability being more likely to opt for them. Studies that control for selection bias tend to find either little difference or slightly weaker performance of students who learn online (Allgood et al., 2015). The implication of this is that stronger students who have chosen to study online may have performed better had they attended a traditional class, while weaker students who remain in class may fare worse if they switch to online learning. Government restrictions imposed to stem the coronavirus pandemic have left institutions of Higher Education with little choice but to try and teach remotely. Many lessons will have been learned from this experience. Some aspects of traditional on-campus learning may be irreplaceable, including access to physical facilities such as laboratories as well as the bonds of trust that students build with their peers and their instructors. Once universities regain control over where to locate teaching, they will in all probability move towards hybrid models that combine shorter times on campus with an increased amount of remote, online learning for students. Above all, the learning curves should be optimised and sweet spots sought where the marginal cost of learning equals the marginal value of knowledge gained. References Allgood, S., W. B. Walstad, and J. J. Siegfried (2015) Research on Teaching Economics to Undergraduates, Journal of Economic Literature 53(2), 285–325. Mauffette-Leenders, L. A., J. A. Erskine, and M. R. Leenders (2005) Learning with Cases, 3rd edition, London, ON: Richard Ivey School of Business, University of Western Ontario.
Universities around the world are currently experiencing a crash course in online education. The coronavirus pandemic has shaken the sector in a big way, leaving professors and students struggling to complete the academic year off campus and having to prepare for the next one under very uncertain circumstances. Although online learning has been around for at least two decades, adapting all courses to remote forms of education is proving a steep learning curve for most institutions. Applying a basic economic principle and considering some of the evidence on online versus traditional teaching methods can help to assess the likely effects of recent campus closures on student learning outcomes and to see how course provision and programme design may develop in the longer term.
MBA or Specialized Master’s Degree: Which One is Best for You?
There are several key differences between an MBA and M.S. degree. The one you choose depends on your career goals, experience, finances and more. Focus MBA programs are more all-encompassing. They are meant for students looking to gain functional knowledge across all aspects of business. A specialized master’s program is exactly that — it focuses on a specific area of business and provides a deep and precise knowledge of that subject. Program The programs can differ in length and requirements. MBA students often enter business school after a few years of experience in the workforce. They’re looking to take their career to the next level, and will have to spend an average of two years to earn their business degree. M.S. programs can be shorter, sometimes just one year, and usually accept students with little work experience. M.S. programs provide an accelerated way to gain the depth of knowledge required to secure a position within the specialization. Cost An MBA can cost more to attain, but it can also provide a higher ROI. Companies will pay top dollar for an experienced professional who carries a broad range of business knowledge — base salaries can be more than $60,000 higher for MBA graduates at some consulting firms, for example. While a specialized master’s program also provides great returns, it is often a more affordable route to career success. How do I decide? If your career track requires an overall business knowledge, you’ll want an MBA. If you are certain of your job interest and would like to become an expert in that particular field, a specialized degree could be your best bet. Ultimately, it’s about envisioning where you see your career path leading and which route will provide the best boost to get you there. Talk to schools, do your research, be true to yourself and know your future is full of potential either way. Admissions Tests It is likely that the programs and/or schools you are considering require an admissions test as part of your overall application. GRE® scores, or scores from other tests provide one of the only common, objective measures that admissions officers can use to compare applicants from varied educational backgrounds and confirm your readiness for graduate-level course work. As an added bonus, some schools also consider test scores when awarding scholarships and assistantships. During this uncertain time, the GRE® General Test offers another important option – you can take it from the safety and comfort of your own home. It’s the only admissions test that is the same no matter where you take it, offering the same content, format, length and on-screen experience as tests administered in a test center. And the price and score reporting options remain the same as tests taken in traditional centers. Testing at home also allows you to use the same test taker-friendly options that allow you to skip questions, go back and change answers within a section and use an on-screen calculator. Learn more about taking the GRE® General Test at home The GRE® General Test is the only admissions test that can be used to apply to a range of master’s, MBA, specialized master’s in business, J.D. and doctoral programs at top-ranked schools worldwide. So, which test to take is a clear choice. To learn more about taking the GRE® General Test at home, visit https://ets.org/gre/at-home.
When you think business school, you probably think MBA. A Master’s of Business Administration has long been a coveted — and often essential — qualification for business professionals. In recent years, however, the tide has begun to quietly shift, with more business school students than ever pursuing master’s degrees in specialized fields such as accounting, economics and business analytics.
INOMICS and our parent company 11 Academia Networks are Amazon Associates, meaning we are a part of their affiliate program. This article contains affiliate links, which means we may earn money through any qualifying purchases made after you click through. However, this is not a sponsored post. 1. The Total Money Makeover: A Proven Plan for Financial Fitness - Dave Ramsey One of the biggest names in personal finance advice, Dave Ramsey, gives tips on money management for the public in this book. With a focus on paying off debt using the “snowball method”, the advice here is suited to someone who is new to finance and trying to dig themselves out of debt. 2. The Millionaire Next Door: The Surprising Secrets of America's Wealthy - Thomas J. Stanley and William D. Danko This compilation of research into self-made millionaires in the US describes the attitudes, strategies, and habits that they have around money and finance. The authors boil down the various perspectives to a few key points, like the essential advice to spend less than you earn. This book will suit those who enjoy a dose of narrative along with their finance advice. 3. The Big Short: Inside the Doomsday Machine - Michael Lewis This work chronicles the build up to the housing crisis in the US during the 2000s, examining how the housing bubble grew and what causes it to burst. An accessible and exciting read, this book shows how topics in finance can be presented to a general audience in an engaging way, and how financial decisions can have a large impact on a society. 4. The Black Swan: The Impact of the Highly Improbable - Nassim Nicholas Taleb Covering statistics, economics, and philosophy as well as finance, this book examines how rare and unpredictable events can have an outsized effect on the way that we think and make decisions. It tackles the issue of investment and risk, looking at the difficulties inherent in trying to predict outcomes in highly complex systems. 5. I Will Teach You to be Rich - Ramit Sethi Another personal finance bible for the masses, I Will Teach You to Be Rich is based on a blog of the same name which offers straightforward, easy to follow advice on money management topics like creating a budget or cultivating multiple income streams. 6. Your Money Or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence - Joe Dominguez and Vicki Robin This book advocates a simple living approach for people struggling with debt or other money issues, encouraging them to relentlessly prune their belongings and expenditures to focus on what is vital for happiness and nothing else. 7. The Psychology of Investing - John Nofsinger Professor of finance John Nofsinger presents a smart summary on how investment decisions are made – both the financial factors which go into making a good investment, and the psychological approach which allows people to identify them. The topic means the book will be of broad interest, but it's particularly useful for those who want to start investing themselves. 8. Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and the Middle Class Do Not! - Robert T. Kiyosaki This classic tome from all the way back in 1997 teaches the basics of financial topics like investment, real estate, and owning a business, through a series of parables based on the author's life. The engaging style proved popular with a general audience and it's still on many bestsellers lists today. 9. Women & Money: Owning The Power To Control Your Destiny - Suze Orman Suze Orman presents this beginner's guide to finance, aimed at women specifically. She examines the issues that women face when it comes to finance, like managing your career and negotiating a salary, or why women don't invest to the same extent that men do and how they can start building their wealth. 10. The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money - Carl Richards A humorous and easy-to-read book which chronicles all the bad decisions which people commonly make when it comes to finance. Rather than giving specific advice, it aims to challenge the way people think about money and help them to make better choices by being aware of their biases. This article contains links to matching products on Amazon. As an Amazon Associate we earn from qualifying purchases.
Starting out in a finance degree? Stuck at home during lockdown and want to remain safe while improving your financial knowledge? Simply interested in the topic? INOMICS is here to help. If you're looking for the most-talked-about books in the field, or planning on getting some interdisciplinary knowledge, check out our list of the top books in finance.
How COVID-19 Strengthens the Case for a Green New Deal
Securing today, and tomorrow If the earth is to continue sustaining human life there is only one answer, that, to the scientists at least, is clear: a Green New Deal (GND) and the end of extractivist-based growth. Increasing numbers of economists agree, recognising that a holistic, interventionist approach - like the GND represents - is needed to reanimate economies and address inequality and unemployment, which, while pre-dating COVID-19, have been grossly exacerbated by the disease. Indeed, much that the GND promises - a basic income, job guarantee, to say nothing of climate security - has been made more pressing since the pandemic struck. The Green New Deal for Europe, has outlined its implementation as comprising a program of relief, recovery and reform. Relief in the form of a basic income and job guarantee for those out of work or adversely affected by extreme weather events; an economic recovery that swiftly transitions from fossil fuels, invests in green infrastructure, and creates jobs where they are most needed; and reform, like the introduction of a Genuine Progress Indicator, to avoid repeating the mistakes of the past and guarantee humanity’s future. In all, it’s a complete overhaul of the economy, change on a scale we've rarely, if ever, seen outside of wartime. The aims are so sweeping, leaving so little of society untouched, they can be hard to envisage - and perhaps for that reason, that at once it’s both so abstract and expensive, that it’s sometimes struggled to gain traction. Taking advantage of this, its detractors have mocked its ‘bankrupting’ expense and the ‘undue’ faith it places in government intervention. In view of recent events, however, these criticisms are beginning to look weaker. <11an>limit:2;categories:jobs|courses|conferences;countries:France|United Kingdom|Italy|Spain|Switzerland|Denmark|Ireland;disciplines:Agricultural And Environmental Economics (JEL Q)</11an> Changing perceptions ‘It costs too much’ its critics chorus. And with projected costs reaching the trillions, trepidation seems fair: it’s far from cheap. Economic research suggesting it would pay for itself - through increased tax receipts and money saved in disaster mitigation - has done little to calm nerves, and the initial down payment, the headline-grabbing trillion dollar figure, has stuck in people’s minds and undermined its viability. But that was then, pre-COVID. Things have changed. The pandemic and responses it elicited, has altered - possibly radically - how we consider government and its ability, when push comes to shove, to spend astronomical sums of money. For example, in attempting to contain the virus, the UK cities of London and Manchester ended homelessness. To keep the streets clear they provided shelter to all. A stubborn problem that had stumped policy makers suddenly disappeared overnight: the money was found, the problem was gone. Globally, billions more has been spent by governments on bailouts, furlough-schemes, and stimulus packages to prop up economies, making the price of shelter seem like pocket-change. And these outlays, numbers so large they almost lose meaning, are changing our understanding of what government can do, how transformative a force it can be. State intervention is no longer stigmatised, it’s necessary, and what was once branded unrealistic now feels attainable. Economic limitations, often declared the deciding factor in policy making, have been shown to be rather flexible, easily trumped by political will or perceived necessity. When $3 trillion has been committed to save the US economy, are people still expected to believe a GND is too expensive? What use is an economy if the world is on fire? Goodwill emerges If government action in COVID times shows a GND to be possible, the widespread solidarity that has emerged in pandemic’s wake may signal the large number who want it implemented. Like many disasters before it, and in contradiction with received wisdom, COVID-19 has revealed the better side of human beings, the side of cooperation and compassion. Under the huge pressure of social distancing, communities have rediscovered old bonds, organising efficiently online to make sure no one is left behind. In the UK, 400,000 volunteers signed up to assist its overburdened NHS in just over 24 hours. This collective feat suggests more than just a want to help one’s community, neighbours, or relatives, but a belief that everybody is entitled to a certain standard of living. It’s in these new spaces of togetherness that the case for a GND can be couched, and then demanded. It’s tapping into this inclination toward compassion that the transition away from fossil fuels should be sold, and the case made for all that the GND offers: a job for all, fresh air, universal health care, and protection of the vulnerable. It’s by making this connection that progress will be made. From the wreckage Of course, nothing can offset the tragedy of COVID-19, but we should not pass up the chance it’s offering to reconsider our current trajectory - we are unlikely to have many more. With economies yet to fully return, restrictions still in place, and the investment of huge sums now the norm, the opportunity is clear - a new and green path can be plotted. Rarely has the GND enjoyed such support, and never has it seemed so viable. Riding the wave of human togetherness that has emerged, this could be its moment - finally a solution on the scale of the problem, an escape from certain catastrophe. Will we take it?
In the midst of the destruction it’s wrought, the lives and livelihoods it’s taken, and freedom it’s limited, COVID-19 has given us one thing that may yet prove positive - the opportunity to reflect. Under lockdown, we’ve been compelled to consider our pre-COVID lives, the aspects we valued, the parts we endured, and how things could be changed. Separation from reality has renewed our perspective. And it’s come at a convenient time, for a choice hangs in the air. With swathes of the economy on life-support, and recession hitting, we have the opportunity to choose which areas we preserve, and which we let perish. Ultimately, we must decide on which values our future economies are built. As climate catastrophe looms large, the stakes could not be higher.
Agricultural and Environmental Economics (JEL Q)
Utility is an important concept in economics, because neoclassical economic theory is based on the premise that rational individuals maximize their utility. This implies that all (economic) decisions and interactions can be analyzed by studying the utility maximization problem of the people involved. This is usually described by a utility function, i.e., a mathematical function that assigns a value to the level of happiness an individual experiences when consuming a certain bundle of goods and services. This function represents the preferences of a consumer over a set of alternatives. Commonly, we assume that utility can be measured in monetary units, meaning that it is a cardinal concept for us. The total utility of consuming a good is equivalent to the amount of money that would give the consumer the same level of happiness. For example, the level of happiness or satisfaction you obtain from eating a chocolate bar can be measured by the amount of money that would give you the same level of happiness. Cardinal utility means that the number we associate with the utility of the consumption of a good has a meaning and we can use it for comparisons. For example, if the consumption of 1 chocolate bar gives me a total utility of 1 and the consumption of 1 piece of cake gives me a total utility of 2, then we can conclude that not only do I prefer cake to a chocolate bar, but I like cake twice as much as a chocolate bar. A related concept is ordinal utility- see the Further Reading section below for a description. <11an>limit:3;categories:Master's Programs;disciplines:Economics</11an> When studying economics, you cannot get around the term marginal utility, which describes the increase in happiness or well-being from consuming one additional unit. The difference between marginal and total utility is that the first term only measures the change in happiness gained from the last unit. The latter term meanwhile refers to the overall level of happiness or well-being derived from consuming a certain quantity. This means that the total utility of consuming a certain quantity is equivalent to summing up the marginal utility of all units. Marginal utility can be positive or negative depending on whether consuming one additional unit increases or decreases someone's amount of happiness. If the marginal utility of the last unit is positive, then total utility is increasing. If it's negative, total utility is decreasing. Let us look at an example to better understand the difference. In the table below we can see the total as well as the marginal utility that an individual, let us call her Anne, obtains from consuming a certain number of cups of coffee. Consuming one cup of coffee gives Anne a total utility of 5, and as this is the first cup, 5 is also the marginal utility of the first cup. So, the marginal utility of the first cup is equal to the total utility at one unit consumed. Number of cups of coffee 0 1 2 3 4 5 Total utility (measured in monetary units) 0 5 7 8 8 5 Marginal utility (of the last cup) 5 2 1 0 -3 Drinking two cups of coffee gives Anne a total utility of 7, so her marginal utility is equal to 2 (the change in total utility from the first to the second cup). In other words, the second cup of coffee still increases Anne’s happiness or well-being, although the increase is smaller than from the first cup. For the fourth cup, the marginal utility is equal to zero and so we see that the total utility from the third to the fourth cup does not change. Anne’s total utility of consuming five cups is lower than that of consuming two, three, or four cups. This means that the marginal utility of the fifth cup is negative, since Anne has had enough coffee and doesn’t want more. This can be explained in economics by the law of diminishing marginal returns. Further reading Some economists argue that (total) utility should not be interpreted as a cardinal concept, but rather on an ordinal scale. Ordinal utility means that the value associated with the utility of the consumption of a good can only be used to make comparisons telling us which consumption bundles are preferred to others, but nothing more. For example, if a chocolate bar gives you a utility of 1 while a piece of cake yields a utility of 2 then according to ordinal utility we can only infer that you prefer cake to a chocolate bar. The actual numbers cannot be interpreted, i.e., we cannot say that a piece of cake makes you twice as happy as a chocolate bar. G. Debreu, in Representation of a preference ordering by a numerical function, established the conditions under which a preference ordering can be represented by a utility function. You may already have seen ordinal utility in the form of indifference curves. All consumption bundles that are on the same indifference curve give the individual the same total utility. Consumption bundles on higher indifference curves are preferred, but the exact difference in the total level of utility is not interpretable. Good to know The consumption of a good that increases happiness has a total utility that is positive. Some goods, those that actually reduce utility or give you disutility are called "bads". For example, air pollution is clearly a bad. And here we encounter a difficulty. How can we measure the decrease in utility a person experiences from having to consume polluted air? To measure the disutility of a bad, we can ask an individual how much he or she would be willing to pay in order to not have to consume it. Alternatively, we can ask how much money we would have to give to the person consuming the bad in order to keep his or her utility unchanged. This is one way to solve the problem of externalities.<o:p></o:p>
Total utility refers to the overall level of happiness or satisfaction that a consumer experiences by consuming a certain amount of a good or service. While marginal utility measures the change in utility from consuming one additional unit, total utility measures the level of happiness associated with the consumption of a certain quantity of the good.
Many decisions that we take will not only have immediate (financial) consequences, but will also lead to future expenses or revenues. For example, if you take out a loan or a mortgage you receive a one-time payment today from your bank and in return you will have to pay back the loan plus interest in monthly installments. An insurance company will receive monthly contributions from their clients but has to pay in case of an accident. If a taxi driver buys a new car, he or she will have pay for the car today but receive a monthly income in the future by using the car to transport clients. Whenever decisions lead to future streams of payments, the NPV can be used as an instrument or measure to help decide whether or not to invest in a certain project or which of several alternatives should be chosen. That is, when the bank decides whether to grant a loan they will need to compare the value of the loan that you receive today, to the sum of monthly instalments it will receive to take this decision. To do so the bank has to determine today´s value of future payments. This is also often referred to as the time value of money. The NPV is a rather simple formula that allows us to compare future expenses or revenues to current expenses and revenues. Consequently, companies that have to choose between several projects they may invest in can use the NPV to determine if an investment is potentially profitable or not and which of several alternatives is the best one. The net present value of a stream of payments is defined as \[NPV = \sum_{t=0}^{T} \frac{R_{t}}{(1+i)^{t}},\] where \(T\) is the total number of payments, \(i\) denotes the interest rate and \(R_{t}\) is the payment at time \(t\). Let us look at an example to understand how this formula can be applied. Suppose a firm is considering to invest into a new technology which would require an initial payment \(R_{0}\) of \(30,000\). This technology is assumed to increase sales and generate a yearly extra revenue equal to \(11,000\) for the next 3 years. The interest rate on the capital market that could be earned if the money was kept in a bank account is 3 \[NPV = -30,000+\frac{11,000}{1.03}+\frac{11,000}{1.03^{2}}+\frac{11,000}{1.03^{3}}\] \[NPV = -30,000 + 31,113.7 = 1,113.7\] The net present value compares the total expenses of the project (30,000) to the sum of the future revenues (11,000 in 3 consecutive years) taking into the interest rate and thereby measuring future payments in current terms. For example, at an interest rate of 3% €11,000 in one year is equivalent to €10,680 today, because if I deposit €10,680 in a bank account today and receive 3% interest per year, I will have €11,000 in one year. The interest rate (or discount factor) helps us to compare money at different points of time, because €100 today is not the same as €100 next year. Think about lending a friend €100 today. If he or she asks you whether you would like to have your money back tomorrow or in one year, what would you answer? Most of us would clearly say that we want the money back by tomorrow. Money that you have today is worth more than money that you will obtain in the future for several reasons: First, you could invest the money and gain interest (e.g., by depositing the money in your bank account). Second, inflation decreases the value of money and the amount of goods and services that you can buy with € 100 in a year's time is not the same as the amount you can buy today. Third, uncertainty plays an important role, because within a year many things can happen. For instance, your friend may lose his or her job and be unable to pay you back. For all of these reasons you would most likely only lend a greater sum if you are compensated for the risk you are taking. That is, you would ask to be paid back with interest so that the value of 100 € in one year is at least the same as the value of € 100 today. How is the NPV used? If the NPV of an investment is positive, this means that the future streams of payments measured in today´s terms exceed the initial investment. A NPV of zero implies that by making the investment today you will neither make a profit nor a loss. Of course, a negative NPV value means that the initial payment exceeds the future income streams. Please note that while for the examples we assumed that you make an initial payment and receive a future income stream, the NPV can equally be used to measure the opposite. That is, you can also calculate the NPV of a payment that you receive today and compare it to the future expenses (e.g. paying back a loan in monthly instalments). The NPV is applied by managers or financial analysts to decide whether a firm should invest in a certain project. For the simple example given above, should the firm invest in the new technology? The answer is yes, because the NPV is positive. In general, it is recommended to invest in a project if the NPV is positive and to reject a project if the NPV is negative. Sometimes, firms do not decide between investing into a certain project or not, but they have to choose between several alternative projects. In this case the firms can compare the NPV of the different projects and choose the project(s) with the highest NPV. Further Reading The NPV of an investment crucially depends on the choice of the interest rate (or discount factor) that is used to discount or transfer future payments in their equivalent value today. In economics opportunity costs often determine the discount factor, that is, the interest rate applied in the formula is the interest that could have been earned if the money would have been invested in a different project. Depending on the type of investment decision, the interest rate may also be calculated differently. Huffman, Maurer and Mitchell (2019) analyse how differences in discounting among the elderly affect economic behaviour and decision making. They find that the stronger future payments are discounted, the lower is the wealth of the individuals and the less people invest in health and planning for end of life care. Good to know The NPV is fairly simplistic and decisions about investments are usually based on several criteria and not only the NPV of the project. For the NPV to be meaningful it is also important that the interest rate and the future payment stream can be predicted with accuracy. The interest rate often fluctuates and if the project is financed using a variable rate this will affect the NPV. Similarly, future revenues (or expenses) that determine the payments \(R_{t}\) are often characterized by uncertainty and therefore based on estimations themselves, which may make an exact prediction of the NVP of a project difficult in practice.
The net present value (NPV) is used in finance and economics to describe or measure today´s value of a stream of future payoffs or payments.
You may also have a steady partner, or are thinking about settling down in the next few years, which opens the possibility of starting a family, if you haven’t already. The game is about to change. Whether you are already working or are applying for a job, you have some new things to think about and multiple, often contradictory priorities to balance (welcome to parenthood). For the sake of simplicity, let’s break this down to: parental leave; childcare; working time; employer/employee relationship; finances; and stress-levels. Apart from the stress, the rest is to some extent directly affected by where you live and the laws/benefits available, where you work or are applying to work, and the conditions and attitude of your (future) employer. The stress, in turn, influences and is influenced by the others. Sound complicated? It is a bit, but you’ll get there. Most parents do. Here’s a rough guide. Looking for a job? Check out our job listings Parental Leave Start thinking about how long you and your partner anticipate taking off work, because your childcare plan, and following that your work/career plan, will invariably be based around this decision. You’ll need to familiarise yourselves with your rights as an employee, which vary considerably from country to country, or in the case of federations like the US from state to state. In most countries maternity leave is considerably more generous than paternity leave, but check national guidelines for where you live. Typically there is a distinction between parental leave and parental benefits. You may be entitled to take several years off, while retaining your job, but any income from the state is normally somewhat less than your normal salary, and for a limited number of months only. Most people receive their parental benefit at the same time as taking their parental leave, to cover the drop in income. But this doesn’t always have to be the case, and there can even be benefits, for example in tax savings, by decoupling the two and spreading your income over different financial years. It may sound obvious, but whether or not you consider going to work a net cost or a net benefit, there is also an inverse in the form of spending more or less time at home with a baby or small child. For some this sounds great, whereas others would be hard pressed to think of a greater torture. There is no “right” answer. Again, welcome to parenthood. The best advice is to inform yourself as much as you can to reduce the information gap about what each option really entails. With this, you can at least attempt to assign a realistic value and cost in relation to each of your options, in terms of finances, personal goals, and career goals. Read up, but most importantly talk to your partner, friends and family, and do some honest introspection to decide what is best for you, your family and your child. Childcare Having thought about how much time to take off-work, you also need to consider how much time you need to take, inversely, “off-children”. If both of you expect to work at least part time, some form of childcare will be necessary. If you anticipate using organised childcare (nannies, childminders or nursery school/kindergarten), look into that early on, especially if you expect to need it in the first two years of your child’s life. Waiting lists in some cities can be a year or more for in-demand nurseries: you really do get people reserving places for children that are not even conceived yet. That is extreme, but it is still worth finding out from friends, family, or colleagues what the situation is like where you live. And then the money. Depending on where you live, pre-school care can range in cost from almost nothing to most of your monthly salary. If you are sending your kids to nursery for the social benefit and/or because you need to return to work, maybe a high childcare cost is acceptable. Spending much or even all of your income on childcare may sound preposterous, but factor in the value of whatever you will do with your child-free time (work, meet your friends, sleep) and it begins to seem reasonable. However, if the cost is too high, it may make more financial sense to take a longer break from work, or share childcare with your partner, rather than working your socks off for a take-home monthly income that, after childcare costs are deducted, comes to a grand total of somewhere in the vicinity of zero. Finally, but importantly, do family or friends present you with options? If there are grandparents in the picture, perhaps they are up for taking the kids a few hours or days each week. Some families pool childcare responsibility with brothers, sisters, cousins or neighbours. Whatever you can organise, the time made available to you will give you precious working time, and perhaps even-more precious free time. In any case, once you have at least an approximate idea of your plans for parental leave, and a feasible plan for childcare, you can come back to the topic of that job... Working Time and Employer/Employee Relationship Many companies offer flexible working models, or offer employees reduced hours. Especially in the post-corona age, many managers will have had a positive experience with their team’s working remotely and working reduced hours. First indications are that more companies are likely to be more open to non-traditional working models than they were pre-2020. The BBC, for example, highlights some high profile examples which indicate that remote and flexible working models might be here to stay after the COVID-19 pandemic. If you already have a job, talk to others in the company to find out whether family-friendly working models are widespread, and so what kind of options might be available to you, before you approach your boss. If you are only just applying, use the application process to find out your options. Many employers have transparent policies when it comes to working conditions for parents. If not, think about if and how to raise the topic during the interview stage. Apart from your legal rights and official company policy, key to any adjustment in your working schedule is the attitude of your manager(s). A sympathetic manager may value the motivation of young parents to work hard and fulfill the responsibility they feel to provide for their children, and therefore be more understanding. Managers may also appreciate the ability of parents to focus, and use their (limited) time more effectively than they might otherwise. Many parents transfer skills they develop as parents to their work environment, for example exhibiting better organisational skills than their long-gone childless selves could ever have dreamed of. Other managers, on the other hand, may be agitated by the work-ethic of parents, noting the multiple and extended periods of leave, occasional no-shows or sudden departures from the workplace, long phone calls with anxious partners or concerned teachers, and a general feeling that work is not their employee’s top priority. If this is your manager, your decision will be between allaying this feeling, keeping your “parenting” out of the office and wearing a different hat when you enter the workplace, or looking for a new job. Working out how to balance your work with your family life, or making a decision on whether a job you are applying for is even going to fit with your current life situation, may well depend on what kind of attitude predominates at your (potential) place of work. Figure this out, and not only will your work benefit, but your family life and stress levels too. And speaking of stress... Parting Starting Advice: Manage Stress-pectations If you have children, there is going to be stress in your life. You have responsibility for another human being, financially, emotionally and physically. These things were stressful enough when it was just you. Assuming the other parent is around, they will, at times, also struggle with those worries. So on top of your own concerns at home and at work, you will probably need to support them more, too. On top of that, you will likely feel annoyed at having to do so, and at yourself for feeling annoyed. It just keeps adding up, or more accurately, multiplying. Factor in some regular work stress, or stress applying for jobs, combined with the additional stress of being tired, less effective, and sometimes less available than you normally would be for your workmates, and you will start to get the picture. If you think you can balance everything without going through a learning curve, think again. The best advice in short is to manage expectations: both your own expectations for you and your partner, and the expectations of your colleagues and managers. Expect there to be periods of high-pressure, and multiple bumps along the road in your relationship, working-effectiveness and self confidence. If you expect a rocky, winding road, you will be better able to navigate it. Work out what you can realistically manage in terms of time off work and time with children. Think about your own expectations and set some clear, realistic goals. At first this may be as simple as getting dressed and having a shower at some point during the day, or getting through a four hour working day without crying. Longer term it may be that you can take on one area of your work and fulfill it satisfactorily, or that you organise your week well enough to take part in a weekly team meeting, building up to a more regular, reliable workload. Communicate with your partner. Do you both have the same expectations of each other when it comes to looking after the kids, doing the housework, winning the bread? Most couples experience tension in the first year or two after expanding their families. That’s okay, but you can reduce the short-term stress, the pressure longer term and reduce the risk of damage if you stay more or less on the same page. Finally, make clear to your colleagues and bosses what your situation is. If you expect prolonged periods with reduced availability, then communicate it. It may seem awkward at first to reject responsibility at work, but if you try and take on everything you were doing before too soon, you will do it poorly and impress no-one. Instead, don’t over-promise: take on less, but do it well. Show that even if you are working fewer hours or sitting out on a couple of projects. you can work effectively, perhaps even more effectively than before. With a bit of patience while you navigate the inevitable bumps in the road, and perhaps a reduction in your career speed while you handle the chicane presented by your adorable but non-sleeping children, you and your partner can, if at varying times and to varying extents, position yourselves to accelerate out of the curve empowered, enlightened and with a new sense of purpose. Perhaps your definition of career success is a little different than it used to be, but whatever it means to you, having a family does not have to put it out of reach.
You are educated, qualified and consider yourself reasonably intelligent. You have handed in countless papers, proposals, and at least one thesis. You probably have some experience under your belt, maybe already landed a pretty good job with good prospects. You are confident of your ability, ready to work evenings and weekends, and keen to impress.