The Project Proposal. Appendix 2: Guidelines for Applicants and Project Promoters of the Active Citizens Fund - Estonia Open Estonia Foundation: (signature) Mall Hellam Executive Director Project Promoter: (signature) {representative’s name} {name of project promoter}
The Project Proposal a. State-of-the-art and objectives This proposal aims at developing macroeconomic models with heterogeneity and to use these methods to understand the effects of two profound macroeconomic changes over the last 50 years, namely the rapid economic transformation of China and the rising cross-sectional inequality within developed and developing countries. The welfare effects of government redistribution policies is a recurrent theme throughout the proposal. Macroeconomics has traditionally been about business cycles and growth, focusing on outcomes such as aggregate employment and consumption. Since the rational expectation revolution in the 1970s, the main workhorse has been the representative agent model. Subsequently, there has been a growing interest in introducing heterogeneity in macroeconomics. This was driven by several factors. One was the insight that heterogeneity can play an important role for macroeconomic dynamics. Moreover, many empirical observations seem puzzling in light of the neoclassical representative agent model. Perhaps most importantly, many macro questions of great relevance simply cannot be addressed without allowing for at least some heterogeneity. For example, to study social security requires a model in which agents differ by age. One of the key macroeconomic trends of the recent past is the dramatic widening of the wage structure in many developed and developing countries, such as the widening wage gap between rural and urban workers in China. These trends and their implications for policy and welfare can only be explored within heterogeneous agent models of the macroeconomy (e.g., Xxxxxxx and Xxxxx 2006; Xxxxxxxxx et al. 2008; Xxxxxxxxx et al. 2010). More broadly, macroeconomics is expanding from the study of how average values for the inputs (capital and labor) and outputs (consumption) of production are determined in equilibrium to the study of how the entire distribution of these variables across households is determined. This expansion is crucial for policy analysis, for two reasons. First, volatility at the level of individual workers and firms is orders of magnitude larger than aggregate volatility. Thus, the welfare implications of policies that redistribute across agents are potentially much larger than the implications of policies aimed at stabilizing the aggregates. Second, the evaluation of large-scale government programs (such as e.g. social insurance and tuition subsidies) requires models that take into account bo...
The Project Proposal. 1.5. This Agreement is governed by the laws of the State of Victoria, Australia. Each Party submits to the jurisdiction of the courts and tribunals exercising jurisdiction of that State of Victoria, Australia.
The Project Proposal. Part 3. The Award Conditions Schedule part 3 Schedule part 3
The Project Proposal a. State-of-the-art and objectives
