Misery index : theory and application to Singapore.

The purpose of this paper is to develop a suitable misery index for Singapore. The index is used to capture the movements of the aggregate demand (AD) curve and prevent the government from engaging in soft-options trade-offs between inflation and unemployment. Numerous models will be discussed and t...

Full description

Saved in:
Bibliographic Details
Main Authors: Lin, Jiehui., Chew, Amelia Li Ting.
Other Authors: Chew Soon Beng
Format: Final Year Project
Language:English
Published: 2013
Subjects:
Online Access:http://hdl.handle.net/10356/52003
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
id sg-ntu-dr.10356-52003
record_format dspace
spelling sg-ntu-dr.10356-520032019-12-10T12:52:16Z Misery index : theory and application to Singapore. Lin, Jiehui. Chew, Amelia Li Ting. Chew Soon Beng School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory::Macroeconomics The purpose of this paper is to develop a suitable misery index for Singapore. The index is used to capture the movements of the aggregate demand (AD) curve and prevent the government from engaging in soft-options trade-offs between inflation and unemployment. Numerous models will be discussed and tested for their reliability using simple linear regression. Our regression results showed that the unweighted misery index is unreliable for Singapore. Other models like the Augmented and Barro misery index were found to be reliable but the values of these models might capture the movements of the aggregate supply (AS) curve as well. The misery index should only include additional variables that would depict the trade-offs from the government’s use of soft-options. We further examined the possibility of Singapore’s foreign labour policy as a soft-option but due to various limitations, we were unable to prove this hypothesis. We also examined the influence of rental income on Singaporeans’ perception on inflation. We found that a small proportion of households have rental income, which does not alter the weightage of inflation in the index. Further evaluation revealed a suitable weightage for Singapore’s misery index of at least 5:1 to unemployment and inflation respectively. Bachelor of Arts 2013-04-19T03:43:13Z 2013-04-19T03:43:13Z 2013 2013 Final Year Project (FYP) http://hdl.handle.net/10356/52003 en Nanyang Technological University 59 p. application/pdf
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences::Economic theory::Macroeconomics
spellingShingle DRNTU::Social sciences::Economic theory::Macroeconomics
Lin, Jiehui.
Chew, Amelia Li Ting.
Misery index : theory and application to Singapore.
description The purpose of this paper is to develop a suitable misery index for Singapore. The index is used to capture the movements of the aggregate demand (AD) curve and prevent the government from engaging in soft-options trade-offs between inflation and unemployment. Numerous models will be discussed and tested for their reliability using simple linear regression. Our regression results showed that the unweighted misery index is unreliable for Singapore. Other models like the Augmented and Barro misery index were found to be reliable but the values of these models might capture the movements of the aggregate supply (AS) curve as well. The misery index should only include additional variables that would depict the trade-offs from the government’s use of soft-options. We further examined the possibility of Singapore’s foreign labour policy as a soft-option but due to various limitations, we were unable to prove this hypothesis. We also examined the influence of rental income on Singaporeans’ perception on inflation. We found that a small proportion of households have rental income, which does not alter the weightage of inflation in the index. Further evaluation revealed a suitable weightage for Singapore’s misery index of at least 5:1 to unemployment and inflation respectively.
author2 Chew Soon Beng
author_facet Chew Soon Beng
Lin, Jiehui.
Chew, Amelia Li Ting.
format Final Year Project
author Lin, Jiehui.
Chew, Amelia Li Ting.
author_sort Lin, Jiehui.
title Misery index : theory and application to Singapore.
title_short Misery index : theory and application to Singapore.
title_full Misery index : theory and application to Singapore.
title_fullStr Misery index : theory and application to Singapore.
title_full_unstemmed Misery index : theory and application to Singapore.
title_sort misery index : theory and application to singapore.
publishDate 2013
url http://hdl.handle.net/10356/52003
_version_ 1681046046927486976