Appliedmaths:


It is no longer news that our development indicators (data) are skewed for what whatever reason mostly political. That's why I encourage working with primary data. When you use a skewed sat of GDP data for policy simulation, my friend you are JONZING you self and the gullible masses.

But sadly the skewed data has become widely accepted and celebrated. Data collection and analyzing technique(s) ought to be reviewed.

This brings to mind the view 'theories are twisted to suit facts and not facts to suit theory'...but this begs a question: how factual are facts and to what extent do they measure accurately observable phenomena?

In a world of color blind people black and white alone exist and if this is termed a fact then a person without this disorder (but in such a world is consider sick!) would likely theorize based on observation out of the ordinary in that world but his theory would be thrown out for explaining colors not observable to the color blind...
So in a way, sometimes, facts may be twisted to suit empirically justified theories!

...That's why we need independent data repositories...

efficiencie:
If the keynesian identity 1 holds for naija

Y=C+I+G+X-M ...1

With consumption defined in terms of income and tax

C=c(0)+c(1).(Y-T) ...2
where 0<c(1)<1

With tax partly lump sum and partly proportional

T=t(0)+t(1).Y ...3
where 0<t(1)<1

With investment defined in accordance with the MEI theory and accelerator theory

I=i(0)+i(1).r+i(2).δY ...4
Assuming that δY/Y=g suggesting a constant growth rate 'g'.
i(1)<0, 0<i(2)<1

With government being fiscally profligate such that when Y≥√(g(1)/g(2)), dG/dY≥0 and when Y<√(g(1)/g(2)), dG/dY<0 suggesting that at the threshold when Y*=√(g(1)/g(2)) government behavior changes

G=g(0)+g(1)/Y+g(2).Y
where g(1)>0, g(2)>0 and

Exports is assumed to be oil exports alone and is determined by nominal exchange rate 'e' and international oil price 'P' assuming domestic oil price to be numeraire.

X=x(0)+x(1).e+x(2).P
x(1)>0, x(2)>0

Imports is assumed to be non-oil and is determined by nominal exchange rate and income

M=m(0)+m(1).e+m(2).Y
m(1)<0, m(2)>0

Given the above information:
i. Solve the system for income Y

ii. What effect would a permanent reduction in oil price by: δP=P' have on income Y

iii. How would the consequence of a permanent oil price change of: δP=P' on income affect government spending decisions

anyone attempting this!

efficiencie:
Of what use is GROWTH to Nigeria if it is not DEVELOPING? Of what use is a 510 billion dollars GDP if it accounts for 13 percent of global maternal mortality, 10.5 percent infant mortality rate, 60 percent youth unemployment rate...to mention but a few dismal indicators...Nigerian economists need to change the way they do economics...

Op, nice thread, definitely following.


A lecturer of mine recently said ''No economy can make meaningful progress when it's citizen's consume what they not produce, while consuming what they do not produce''.


Personally, I believe that the main reason increased to the current $510b or so, was as a result of inflation.
That seems to be the only logical explanation for the overnight astrounomical increase(although our production level has increased overtime but sufficient enough).

We need to start exporting value added goods, rather than raw materials, to reduce our unemployment level, increase our income and to bring about much needed development.

@Efficiencie: am my views in line?

efficiencie:
...That's why we need independent data repositories...

NBS should probably be given some sort of autonomy.

khattab008:


Op, nice thread, definitely following.


A lecturer of mine recently said ''No economy can make meaningful progress when it's citizen's consume what they not produce, while consuming what they do not produce''.


Personally, I believe that the main reason increased to the current $510b or so, was as a result of inflation.
That seems to be the only logical explanation for the overnight astrounomical increase(although our production level has increased overtime but sufficient enough).

We need to start exporting value added goods, rather than raw materials, to reduce our unemployment level, increase our income and to bring about much needed development.

@Efficiencie: am my views in line?

My bro you are so right! I wonder why 'DEVELOPMENT' is such a dreaded term!? Our policy makers and OGAs at the top are only happy with word 'GROWTH' but they frown at 'DEVELOPMENT'.

First, our 'GROWTH' is not sustainable. Nigeria's dependence on oil is deadly. The oil sector has generated environmental concerns, held us to a 'federalism' that's not working, made Nigeria vulnerable to oil price shocks and deepened the effects of the Dutch disease in Nigeria. We cannot continue to grow like this. This kind of growth is futureless, rootless, ruthless and deadly!

It appears we have a ruling elite sponsoring and profiting from the current state of the country. I believe this elite thrives on the lack cohesion, decisiveness and tact among poor Nigerians.

It's such a pity!!!

khattab008:


NBS should probably be given some sort of autonomy.

yes sir! that's it...until the NBS breaks from stronghold of the govt our data cannot be trusted...Imagine calculating GDP growth rate (year-on-year) and getting 20% 80% or 140% is that not outrageous? if those figures were true then we would be in the security council of the UN Dont mind me!

Can you imagine the stress you go through just to get data from NBS! I suspect they collect data and keep it for policy makers and not academics or independent researchers.

We need an autonomous NBS indeed!

efficiencie:


yes sir! that's it...until the NBS breaks from stronghold of the govt our data cannot be trusted...Imagine calculating GDP growth rate (year-on-year) and getting 20% 80% or 140% is that not outrageous? if those figures were true then we would be in the security council of the UN Dont mind me!

Can you imagine the stress you go through just to get data from NBS! I suspect they collect data and keep it for policy makers and not academics or independent researchers

We need an autonomous NBS indeed!

Quite true, Data that's suppose to be easily available to the general public is been hoarded(data that's not even accurate), Primary data remains the best data source.



The GDP is the most used macroeconomics indicator by our politicians, that shows how dubious they are.

efficiencie:



My bro you are so right! I wonder why 'DEVELOPMENT' is such a dreaded term!? Our policy makers and OGAs at the top are only happy with word 'GROWTH' but they frown at 'DEVELOPMENT'.

First, our 'GROWTH' is not sustainable. Nigeria's dependence on oil is deadly. The oil sector has generated environmental concerns, held us to a 'federalism' that's not working, made Nigeria vulnerable to oil price shocks and deepened the effects of the Dutch disease in Nigeria. We cannot continue to grow like this. This kind of growth is futureless, rootless, ruthless and deadly!

It appears we have a ruling elite sponsoring and profiting from the current state of the country. I believe this elite thrives on the lack cohesion, decisiveness and tact among poor Nigerians.

It's such a pity!!!

It's a pity indeed.
They place so much emphasis on growth that's not even sustainable, some sort of illusious growth.
The Nigerian economy as it is now is performing far below it's potential, we need to diversify our economy, there's also the need to look inward in a bid to drastically reduce our imports.

Am still waiting to see what (positive)impact Madam Minister has had on our economy so.

Let's examine the Solow Model.

Given an open economy with a government with aggregate output relation:

Y=A(K^α)(L^β)(e^vt)...1

From 1

dY/Y=v+α.dK/K+β.dL/L...2

But it is assumed that labor grows at a rate 'n' and hence

dL/L=n...3

Also capital growth is given as:

I=dK+δK ...4

where 'I', 'F' and 'δ' are private investment, foreign capital and depreciation respectively.

But given the keynesian identity:

Y=C+I+G+X-M...5

Since X-M=F according to the BOP equilibrium rule then 5 becomes:

S+T=I+G+F
S+T-G=I+F
S+S*=I+F ...6
where total savings is the summation of private savings S and public savings S*=T-G

And since:

S=sY...7
S*=s*Y ...8
where 's' and 's*' are the savings ratios in the private and public sectors

Equation 6 becomes
sY+s*Y=I+F

From 4
sY+s*Y=dK+δK+F
sY/K+s*Y/K =dK/K+δ+F/K
s/σ+s*/σ=dK/K+δ+f
Where σ=K/Y and f=F/K
Hence

dK/K=s/σ+s*/σ -δ-f...8

On plugging the value of dK/K in the equations 2 and 8 into the equation 1 we have:

dY/Y=v+αs/σ+αs*/σ-αδ-αf+βn

G=v+αs/σ+αs*/σ-αδ-αf+βn ...9

The Solow model as a planning model shows that growth can be sourced from:
i. Technical progress 'v'
ii. The productivities of capital and labour 'α' and 'β' respectively
iii. The savings ratios in the private and public sectors 's' and 's*' respectively
iv. The capital output ratio 'σ'
v. The rate of depreciation 'δ'
vi. The growth rate of labour 'n' and
vii. The ratio of foreign capital to private capital 'f'

Now let's discuss the variables 'n' and 'f'

a. To what extent can growth rate in Nigeria be hinged on labor force growth.

b. We produce 'high level' manpower every year as graduates and professionals and can we say this 'high level' manpower is instrumental for growth as seen in the equation 9

c. The equation 9 shows that as the negative balance on the capital account increases in relation to private capital, indicating a rise in foreign reserves in relation to private capital, the economy's output grows. How relevant are foreign reserves in the coffers of the CBN to growth in Nigeria.

efficiencie: a. To what extent can growth rate in Nigeria be hinged on labor force growth.

considering the disconnect between new entrants into the labor market and vacancies...UNEMPLOYABILITY should come to mind!

...However, Dr Ngozi, like a serial offender, had simply
addressed the one matter on which she will be
exonerated. She had left the other charges of
incompetence, self-serving public utterances and
subordination of the national economic interest to the
political ambition of her boss. In that regard she had
done severe damage to the economy and to President
Jonathan himself. Her departure, either through
resignation or dismissal is a matter of time. And the
reasons are not hard to find.
First, she sent a budget to the National Assembly, with
$78 as benchmark, at a time when the price of crude
oil was already sliding downwards. We told her $78 was
unrealistic; she stuck to her guns. Second, when crude
came down to under $80 per barrel, she sent her
“more realistic” budget based on $73 per barrel. Again,
we cautioned that the figure is still unrealistic. As fate
would have it, the price of crude oil fell below $73 per
barrel the day after she was beating her chest about
presenting a “more realistic” budget. That second
budget is again on its way to the trash can – after
millions of naira had been spent on it. On Friday,
November 28, 2014, the price of Brent crude, Nigeria’s
light crude went below $73 and it is expected to fall
further. The consequences of the difference between
$78 and whatever will be the final destination for
Nigeria are extremely grave. Yet, the Minister of Finance
is down-playing a global, as well as, a national
catastrophe about to occur. That is the reason she
should pack up and go or be shown the way out.
Certainly, no Chief Financial Officer of First Bank, Shell
or Nestle S.A could have been wrong so often in a
matter of days and survive the embarrassment to the
company...

http://www.vanguardngr.com/2014/12/goodbye-okonjo-iweala/

Sola Shobo:

Hello everyone here, I will appreciate if we could
all for once put sentiments aside and be objective
in our opinion. If you don't have basic
understanding about how economy works, try not
put your mouth in this very matter.
For me it is appalling if an harvard trained
economics, is talking about our economy like a
kindergarten economist! And some of you see
nothing wrong in that! Few months back, she said
Nigeria is the biggest economy in Africa! And now,
naira is rocketing in fx market! Omg! You people
are the biggest joker honestly! Tell me the
importance of a big economy (gdp to NI), and all
of sudden you are saying buckle up for hosterity.
Call a spade ♠, a spade! She is leading the country
to a ditch. That was why she could be preparing a
budget on an unrealistic assumptions more than
once, yet find it amusing like a child's play. I bet
you, Nigeria deserve more. All economist knew
what was coming our way since we are dependent
on oil. I want to ask; when your biggest buyer
started sourcing her product elsewhere, what
become of you? I bet you will continue spending
large, and throw caution to the wind! Right? That's
what she did. Now all her crook friends now holds
all their liquid funds in dollars for sale at later date.
Continue to clap for them oo, when they are done,
they go back to America but you, where will you
go, Ajegunle.

Here's a response to the above comment can we please throw more light?

Upcoming Conferences

THEME: FUTURE ENERGY OPTIONS: POLICY FORMULATION,
ASSESSMENT AND IMPLEMENTATION

VENUE: INTERNATIONAL CONFERENCE CENTRE,
ICC, UNIVERSITY OF IBADAN, IBADAN, NIGERIA
DATE: APRIL 26TH-28TH, 2015.

TO VIEW THE CALL FOR PAPERS 8th NAEE/IAEE ANNUAL INTERNATIONAL CONFERENCE Go to: http://www.naee.org.ng/1/images/8th%20Call%20for%20Papers.jpg

efficiencie:
Upcoming Conferences

THEME: FUTURE ENERGY OPTIONS: POLICY FORMULATION,
ASSESSMENT AND IMPLEMENTATION

VENUE: INTERNATIONAL CONFERENCE CENTRE,
ICC, UNIVERSITY OF IBADAN, IBADAN, NIGERIA
DATE: APRIL 26TH-28TH, 2015.

TO VIEW THE CALL FOR PAPERS 8th NAEE/IAEE ANNUAL INTERNATIONAL CONFERENCE Go to: http://www.naee.org.ng/1/images/8th%20Call%20for%20Papers.jpg

Are you an energy economist

khattab008:



Are you an energy economist

oh not necessarily but i'd love to coauthor a paper with a lecturer friend of mine on issues relating to oil price shocks and its implication for monetary policy and targets.

By God's grace i'd like to delve deep into Game Theory and its applications to politics, macroeconomy and international trade and finance...

efficiencie:


oh not necessarily but i'd love to coauthor a paper with a lecturer friend of mine on issues relating to oil price shocks and its implication for monetary policy and targets.

By God's grace i'd like to delve deep into Game Theory and its applications to politics, macroeconomy and international trade and finance...

Hmmm, You have really gone far oo.

We are still new in the game.

khattab008:



Hmmm, You have really gone far oo.

We are still new in the game.

Every writer, research and analyst all started from somewhere...so start bro!

Inadequate gas supply and frequent sabotage of the
pipelines had contributed immensely to lack of
electricity supply in the country.

“We are constrained due to the gas challenges and it
has contributed to the drop of power generation to
3,500 megawatts, he said.

The senior special adviser said that available power
generation capacity currently stood at 6,000 mega
watts while system capacity stood at 5,000 mega watts.
Edozie said that the real challenge of epileptic power
supply was caused by gas inadequacy.

Presently, power generation as at today stood at 3,500
megawatts; we have not gone below that but we are
gradually beefing up the generation to hit 5,000 mega
watts as promised.

The Ministry of Power had indicated on its website that
64.01MW of electricity was stranded on account of the
weak and insufficient equipment used in distribution.

The national electricity generation has dropped to
2,954.51 Mega Watts in the latest setback for the
authorities to meet the expectations of consumers.

The ministry said 3,206.09MW was generated as at
Dec. 2 only to drop to 2,954.51 by Dec. 11, a
reduction of 251.58MW in nine days.

The Transmission Company of Nigeria (TCN) from which
the power distribution companies source electricity has
the capacity to transmit 6,000MW.

Peak energy demand forecast for the market is 12,800MW. The Federal Government planned to generate 5,000MW
in 2014. (NAN)


source: http://www.vanguardngr.com/2014/12/power-supply-drops-3500mw-due-gas-challenges-special-adviser/

efficiencie:
Inadequate gas supply and frequent sabotage of the
pipelines had contributed immensely to lack of
electricity supply in the country.

“We are constrained due to the gas challenges and it
has contributed to the drop of power generation to
3,500 megawatts, he said.

The senior special adviser said that available power
generation capacity currently stood at 6,000 mega
watts while system capacity stood at 5,000 mega watts.
Edozie said that the real challenge of epileptic power
supply was caused by gas inadequacy.

Presently, power generation as at today stood at 3,500
megawatts; we have not gone below that but we are
gradually beefing up the generation to hit 5,000 mega
watts as promised.

The Ministry of Power had indicated on its website that
64.01MW of electricity was stranded on account of the
weak and insufficient equipment used in distribution.

The national electricity generation has dropped to
2,954.51 Mega Watts in the latest setback for the
authorities to meet the expectations of consumers.

The ministry said 3,206.09MW was generated as at
Dec. 2 only to drop to 2,954.51 by Dec. 11, a
reduction of 251.58MW in nine days.

The Transmission Company of Nigeria (TCN) from which
the power distribution companies source electricity has
the capacity to transmit 6,000MW.

Peak energy demand forecast for the market is 12,800MW. The Federal Government planned to generate 5,000MW
in 2014. (NAN)


source: http://www.vanguardngr.com/2014/12/power-supply-drops-3500mw-due-gas-challenges-special-adviser/

The bolded comments raise issues to be addressed:

The problems causing power outtage are said to be:
i. Inadequate gas supply
ii. Pipeline vandalism

Yet it's agreed that we have a 'power generation capacity' of 6000 megawatts but yet we generate 3500 megawatts (58%) due to gas shortage and pipeline vandals.

With this deficit, we have a peak power demand of 12800 megawatts. Now that means that compared to the peak demand we generate about 27%.

This means that asides curbing pipeline vandalism and increasing gas supply there must be an increase in the power capacity by 97% from 6500mw to 12800mw.

This increment at the pace at which the federal government is going cannot be achieved. But if power generation is devolved, the states could handle policing better and healthy inter-state competition could be enhanced.

The following data can help:

State [%Pop] (share 97%)*
Kano [6.7%] (6.5%)
Lagos [6.4%] (6.2%)
Ondo [2.5%] (2.4%)
Osun [2.4%] (2.3%)
Nasarawa [1.3%] (1.2%)
Bayelsa [1.2%] (1.1%)

Source: http://www.nigerianmuse.com/20070820063612zg/sections/important-documents/nigeria-2006-population-census-arranged-by-state-wikipedia/

The population size is a strong spatial determinant of the demand for power and it's hence expected that power generation responsibilities should be rationed by the relative population size of states represented by percentages above.

Assuming that the required 97% increment is allowed to be supplied by the states according to the relative population size and assuming these ratios hold for 2014 then Lagos and Kano would only have to bother about increasing generation by 6%, Ondo and Osun by 2% and Nasarawa and Bayelsa by 1% with each state meeting it peculiar demand...

Why would the FG devolve this responsibility!?

efficiencie:


Every writer, research and analyst all started from somewhere...so start bro!

Thanks for the words of advice

Jonathan said he expected not to have to cut the
government’s benchmark oil price further because of
estimates that crude could stabilise at between $65 to
$70 a barrel next year.

But he warned: There is no iron-clad guarantee where
oil prices are concerned due to numerous underlying
global, geo-political factors that are outside our control
and unpredictable.

“Should prices fall below the range, the country would
have to make further adjustments.”
Brent crude slumped to a five-year low under $59 in
trading on Tuesday.

Nigeria is Africa’s largest oil producer and depends on
crude exports for 70 percent of government revenue
and some 90 percent of its foreign exchange earnings.

The downward revision of the benchmark has already
led to changes in next year’s budget forecast and
prompted the finance ministry to impose belt-tightening
measures.

Nigeria goes to the polls to elect a new president and
parliament in February next year and the funding
squeeze could force politicians to reign in spending
pledges.

Given Nigeria’s oil-dependent economy, Okonjo-Iweala
has described the fall in global oil prices as a “serious
challenge” to the country.

The ECA should have been well-funded from when
prices were higher but the government has been
repeatedly accused of raiding it to meet budget
shortfalls brought on by corruption.


source: http://www.vanguardngr.com/2014/12/oil-prices-fall-range-govt-make-adjustments-jonathan/

now GEJ knows how susceptible oil price is to a myriad of factors that are outside the scope of the control of monetary, fiscal and even foreign policies yet he encourages dependence on oil proceeds so much that 70% of govt spending and 90% of our foreign reserves are sourced from oil!

What a shame!!!

Mr KnowAll suggested the following SOLUTION TO THE PROBLEM OF CORRUPTION Read and [size=20]SUGGEST YOUR OWN SOLUTION TO CORRUPTION IN NIGERIA[/size]

KnowAll:
Final Solution
1. The Federal Government should establish a new
ministry or Agency called the Federal Vetting Agency or
Federal Asset Declaration Agency either of those names
will do.
2. The Agency should have a Chairman based in Abuja
and 36 Commissioners based on each of the states of
the federation.
3. The aim of the agency is to Vet all political office
holders from councillors to the presidency.
4. All future political office holders should declare their
assets in an asset register before they can run for an
elective post.
5. The Agency should have a web site which should be
made public, people can check what the assets of
prospective candidates running for various offices.
People who have chosen to run for public office should
be scrutinized by the public.
6. The Agency will issue each political office holder a
certificate after verification has been concluded, this
certificate should have been received 3 months to the
commencement of elections.
7. A recent case that I read on the Net about the
Governor of Ebonyi State buying 5th hand peageout
305, 11 years ago and now he is worth N80 billion will
not happen in future.
8. With this method 90% of the resources of each state
and local government will be spent in those states and
LG.
9. The EFCC should be incorporated into this new
Agency and will be the prosecution arm of the agency.
They will investigate any case of misappropriation or
allegation of fraud.
10. I think this method will eradicate 90% of fraud and
embezzlement. A man before he became a Governor has
one house and all of a sudden after he becomes a
Governor has houses in every city will be questioned on
how he came to acquire such wealth in short space of
time. If he cannot provide a good reasons how he got
the this sudden wealth, the agency will be given the
power to sell those properties and the proceeds put
back into the coffers of the state or LG, or Federal
Ministry as the case may be.

...the solution will fail ultimately due to the following reasons:

i. The solution assumes that FG is not corrupt already. FG will never create an agency to fight the elite group it belongs to if it is corrupt.

ii. The solutions assumes the agency is not corrupt and that the agency itself must not vet the assets of its own members. The agency itself will become powerful and soon become a weapon of oppression.

iii. How and who would fund and staff the agency...'whoever plays the piper dictates the tune'

Not a great solution!

efficiencie:
...the solution will fail ultimately due to the following reasons:

i. The solution assumes that FG is not corrupt already. FG will never create an agency to fight the elite group it belongs to if it is corrupt.

ii. The solutions assumes the agency is not corrupt and that the agency itself must not vet the assets of its own members. The agency itself will become powerful and soon become a weapon of oppression.

iii. How and who would fund and staff the agency...'whoever plays the piper dictates the tune'

Not a great solution!

Well, Dr Ngozi argued yesterday, on a radio program, that the gov't is pursuing serious diversification of the economy, but i guess it's not that serious.

Efficiencie pls i have question:

The value of the Naira against the Dollar is falling as a result of dwingling oil prices occasioned by a fall in the demand of Brent crude, Right?

If so, since we are an oil dependent economy, the decrease in the demand for oil also translates into a decrease in the demand for our local currency, hence the fall in it's value.
Is this(decrease in the demand for Naira) main reason why the value of naira is falling?

khattab008:


Well, Dr Ngozi argued yesterday, on a radio program, that the gov't is pursuing serious diversification of the economy, but i guess it's not that serious.

Efficiencie pls i have question:

The value of the Naira against the Dollar is falling as a result of dwingling oil prices occasioned by a fall in the demand of Brent crude, Right?

If so, since we are an oil dependent economy, the decrease in the demand for oil also translates into a decrease in the demand for our local currency, hence the fall in it's value.
Is this(decrease in the demand for Naira) main reason why the value of naira is falling?

A look at the balance of payment components will supply the answer to your question.

As far as the current account is concerned the oil price drop reduced our net export volume and this is reflected in official settlement account by a reduction in foreign reserves. The drop in net exports and hence reserves signify a drop in the supply of dollars (our reserve currency) given the demand. And since demand for dollars is ever increasing due to rising imports the excess demand for dollars (amidst dwindling reserves) will bid up the price of dollars and thus reduce the value of the naira.

On the speculative side, dwindling reserves as a result of the oil price drop may trigger a speculative attack as forex players will anticipate the rising value of dollar vis-a-vis the naira and will demand for more dollars now to sell later hoping that the oil price falls even further. This adds to the excess demand for dollars and depletes the value of the naira.

On the capital account side, investors may interprete the oil price fall as bad news and this may trigger massive capital outflow and thus diminish the value of the naira.

Hello great economists.
I wish to know to what extent has the relationship between t statistic and F statistic been exploited to advance studies, not only in economics but in all social sciences.

Do you believe that the the relationship has been exploited at all? To what extent has it been in the advancement of knowledge in the field of social sciences.

efficiencie:



A look at the balance of payment components will supply the answer to your question.

As far as the current account is concerned the oil price drop reduced our net export volume and this is reflected in official settlement account by a reduction in foreign reserves. The drop in net exports and hence reserves signify a drop in the supply of dollars (our reserve currency) given the demand. And since demand for dollars is ever increasing due to rising imports the excess demand for dollars (amidst dwindling reserves) will bid up the price of dollars and thus reduce the value of the naira.

On the speculative side, dwindling reserves as a result of the oil price drop may trigger a speculative attack as forex players will anticipate the rising value of dollar vis-a-vis the naira and will demand for more dollars now to sell later hoping that the oil price falls even further. This adds to the excess demand for dollars and depletes the value of the naira.

On the capital account side, investors may interprete the oil price fall as bad news and this may trigger massive capital outflow and thus diminish the value of the naira.

Thanks for this detailed explanation, I really appreciate.

wrong.

efficiencie:


it's a state where there's no other arrangement of resources that would result in the simultaneous and costless improvement of the utilities of the agents in that state.

technically MRS1(x,y)=MRS2(x,y)=...=MRSn(x,y) for the agents i={1,2,3,...n} and commodities (x,y)

d@s my take o! any contrary views?

Put forward a correction futurewise11, that we may learn...

Engineer96:
Hello great economists.
I wish to know to what extent has the relationship between t statistic and F statistic been exploited to advance studies, not only in economics but in all social sciences.

Do you believe that the the relationship has been exploited at all? To what extent has it been in the advancement of knowledge in the field of social sciences.

Bro shed more light on this! The relationship between the t and F stats is purely statistical and though i know that both test stats are in use in econometric models i don't see how practically relevant the nexus between the t and F stats is towards researches in social science...but on second thoughts it appears you are on to something could you please teach us the nexus between the t and F stats and how relevant they are to researches in social science!

[b] Renowned economist Henry Boyo described the eight per cent devaluation of the naira as “a big mistake ”. He said the policy shift remained a wrong concept that will persist because the CBN has learnt nothing from history. He said the devaluation will even move to 20 per cent as the black market continues to outstrip the official rate. Boyo said the prices of goods and services will gradually go up, as importers add the increase to the cost of goods and services. He equally sees the price of fuel going up, despite declining oil price. He said Nigeria has learnt nothing from what happened to the Ghanaian and Zimbabwean
currencies. “I see the naira being devalued by 20 per cent as time progresses. I have
repeatedly said that mopping up the naira to achieve exchange rate stability is wrong. The CBN substitution of the naira allocations for dollar should be stopped. Allocations should be divided based on dollar certificates. The exchange rate for the naira will continue to fall ,” he said. [/b]

Source: http://thenationonlineng.net/new/devaluation-of-naira-the-good-the-bad-the-ugly/