Dwight Steward, Ph.D. – Page 10 – Economic Thinking In Action

Discussions on low interest rates and the zero bound

From the University of Texas at Austin Economics Department:

Dr. Coibion on low interests: “One of the defining features of the current economic crisis has been the zero bound on nominal interest rates….

From the St. Louis fed:

Working Paper #2013-007C; ” Global Dynamics at the Zero Lower Bound“, by William T. Gavin, Benjamin D. Keen, Alexander Richter and Nathaniel Throckmorton

Abstract: …We also evaluate how monetary policy affects the likelihood of hitting the ZLB. A policy rule based on a dual mandate is more likely to cause ZLB events when the central bank places greater emphasis on output stabilization.

Life care expenses and the Affordable Care Act

Joshua Congdon-Hohman and Victor Matheson,”Potential Effects of the Affordable Care Act on the Award of Life Care Expenses” JFE 24(2) 2013, argue that the ACA will change the role and tasks of life care planner in injury cases. The authors argue that many of the typical expenses that occur in an injury case will be capped at $6,250 per year. They believe that the role of the life care planner will now involving determining with expenses are covered by ACA

Unemployment rates 50 years today…

Unemployment 50 years ago today was 5.5%.

Details on how unemployment rates are calculated can be found at the Fed. Reserve of St. Louis’ website. (http://research.stlouisfed.org/fred2/data/UNRATE.txt)

Source:              U.S. Department of Labor: Bureau of Labor Statistics
Release:             Employment Situation
Seasonal Adjustment: Seasonally Adjusted
Frequency:           Monthly
Units:               Percent
Date Range:          1948-01-01 to 2013-08-01
Last Updated:        2013-09-06 9:06 AM CDT
Notes:               The unemployment rate represents the number of unemployed as a
                     percentage of the labor force. Labor force data are restricted to
                     people 16 years of age and older, who currently reside in 1 of the 50
                     states or the District of Columbia, who do not reside in institutions
                     (e.g., penal and mental facilities, homes for the aged), and who are
                     not on active duty in the Armed Forces.

                     This rate is also defined as the U-3 measure of labor
                     underutilization.

Rig count down from last year

The US drilling rig count lost 13 units to 1,743 rigs working during the week ended Oct. 11, Baker Hughes Inc. reported.

http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-rigcountsoverview

U.S. T-bill yields down a little; bonds up

Rates for 1 month t-bill down 1 basis point to 0.25% in 10/10/13 trading.

Differences between W2 and last paycheck

Generally, W-2 statements reflects taxable earnings while the check stubs and last pay statements reflect total earnings.

To convert from total earnings to taxable earnings, you need to subtract the nontaxable deductions, including parking deductions, FSA deductions (medical and dental deductions, flexible spending account deductions, and dependent care deductions) and retirement deductions (403(b), 457). These deductions are typically itemized in boxes 12, 13, and 14 of the W-2.

U.S. treasury rates drop a little; remain significantly higher than last week.

1 month T-bill still over twice the rate as a week ago.

Date	1 Mo	3 Mo	6 Mo	1 Yr	2 Yr	3 Yr	5 Yr	7 Yr	10 Yr	20 Yr	30 Yr
10/01/13	0.10	0.02	0.04	0.10	0.33	0.66	1.42	2.04	2.66	3.43	3.72
10/02/13	0.08	0.02	0.05	0.11	0.31	0.62	1.38	2.01	2.63	3.41	3.70
10/03/13	0.12	0.03	0.05	0.11	0.33	0.61	1.36	1.99	2.62	3.40	3.71
10/04/13	0.11	0.03	0.04	0.11	0.33	0.66	1.41	2.05	2.66	3.43	3.73
10/07/13	0.13	0.03	0.06	0.12	0.37	0.66	1.41	2.03	2.65	3.41	3.70
10/08/13	0.27	0.05	0.09	0.15	0.40	0.70	1.43	2.05	2.66	3.41	3.70
10/09/13	0.26	0.05	0.08	0.15	0.37	0.68	1.43	2.06	2.68	3.43	3.73

Women in Philosophy

Wages and Philosophy Ph.Ds awarded to women:

http://www.apaonlinecsw.org/data-on-women-in-philosophy

U.S. Treasury rates double overnight on 1 month bill: Notes on Treasury rates from Oct.8, 2013

Really short (1 month) term T-bill rates double overnight. Rates increase 14 basis points to 0.27% for a 1 month t-bill. The increase in yield reflects lower demand (Bond prices and interest rates are inversely related.). See the article cite below for more details on the Treasury market movements.

Employee tip pooling in NJ

Baremboim v. Starbucks Corporation, 2013 NY Slip Op 04754 (June 26, 2013)

Discusses when pooling of tips by service employees is appropriate.