FRE306_ProblemSet1_2011

FRE306_ProblemSet1_2011 - FRE 306: Problem Set #1: Due...

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FRE 306: Problem Set #1: Due Tuesday Oct 11, 2011, no later than 5pm: McM 339. 1. Year Nominal Price CPI Real Price (2009 dollars) a. 1989 0.25 64.9 ANS: 0.4634 real = (nom. P x Base CPI)/nom. CPI b. 1994 0.39 82.1 ANS: 0.5715 c. 1999 0.45 100.0 ANS: 0.5414 d. 2004 0.51 107.3 ANS: 0.5718 e. 2009 0.54 120.3 ANS: 0.54 2. Price Affecting Factors: Short-Term Long-Term Government Policy Intervention Transfers to poor households - Feeding programs - Food for work programs - Expand existing cash transfer programs - Limited subsidies Public price stabilization (rice) - Lift import restrictions on food, Quotas - Draw down food stocks Transition towards market stabilization measures - Reducing red tape in transporting goods across regions - Limiting intervention using variable tariff Transfers to poor households - Develop cash transfer programs to the poor Public price stabilization (price) - Improving farm productivity - Improving village infrastructure - Improving food logistics network Transition towards market
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FRE306_ProblemSet1_2011 - FRE 306: Problem Set #1: Due...

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