Intergeneration Equity and investing Rents from Exhaustible Resources

Intergeneration Equity and investing Rents from Exhaustible Resources, John Hartwick

  • Intergeneration Equity- In Intergeneration Equity and investing Rents from Exhaustible Resources, John Hartwick interrogates the fairness of investment patterns to the future generations.  While using several economic models, the author explores the behavior of consumption and output with regard to reproducible capital and profits made from exhaustible resources. In particular, Hartwick notes investing all profits on machines (reproducible capital) and consuming the remainder of the production output leads to depletion of exhaustible resources with time. Because all inputs are necessary to production, depletion of exhaustible resources indicates that such kind of investment model is unsustainable, hence unfair to the future generations.
  • Increasing reproducible capital leads to overproduction- According to Hartwick, it is necessary to adjust the current investment models to control the depletion of resources, hence uphold intergenerational equity. The assumption that current flow from machines and labor can sustain consumption for an extended duration of time is wrong. Because of depreciation, machines require constant maintenance and replacement. In this regard, making a huge investment in machines yields high costs of maintenance and replacement to support production.  While all profits are spent on machines, it is necessary to increase production to meet the rising cost of maintenance and replacement. However, high levels of production an increment of productive capital. Thus, an extended duration of investing all profits on machines demands an increasingly high amount of productive capital to support a constant per capita consumption.
  • High reproducible capital leads to a decline in per capita consumption- the ratio of consumption to production output significantly declines when all profits are converted into reproducible capital. A high number of products is required to offset the depreciation costs. Thus, when all profits are converted into reproducible capital, it is necessary to increase production or suppress consumption to accommodate a rising depreciation
  • Profits must accommodate deprecation cost- to sustain a constant consumption and production, it is necessary to ensure that profits can accommodate depreciation costs.

Brief Response

John Hartwick’s article on intergeneration equity and consumption captures the importance of the evolution of economic methods in addressing the depletion of resources. By using concepts and frameworks developed by other economists, such as Hotelling, Hartwicks reveals the need for conducting continuous research to develop effective solutions to economic solutions. In the process of solving the consumption, production and investment problem, the author uses the Cobb Douglas technology case to show the importance of having all inputs, including exhaustible resources, to generate a positive output from the produced units. Moreover, the author emphasizes the importance of research, by highlighting other economists, such as Solo and Solo and Wan, who had used the Cobb Douglas technology case in their work. However, Hartwicks challenges the Hotelling rule, which emphasizes the importance of efficient extraction of exhaustible resources. Developed by Hotelling Harold, the Hotelling Rule indicates that increasing the efficiency of production can reduce the marginal cost, hence increase the output of a product. Nevertheless, the model fails to accommodate the high cost of depreciation that emanates from converting a high amount of output into reproductive capital. In this regard, it is necessary to increase the level of production to accommodate high depreciation costs while converting a significant amount of profits into reproductive capital. Because all inputs are important to production, implementing an economic model based on the Hotelling rule, which demands an infinite supply of exhaustible resources is impossible. Thus, by highlighting this shortcoming of the Hotelling model and acknowledging other research-based milestones, Hartwicks, clearly articulates the need for conducting studies to uphold intergenerational equity.

Inferential Methods

Inferential Methods

1-What impacted the Reps’ average weekly performance to be greater than the population mean?

The data collected indicates that the method of statistics applied to both groups was different. It is simply the reason why the mean value of the two groups is higher to the population one and also different to each other. The mean value for group A is higher compared to that of group B, this shows that the random sales of cars selected for group A were higher than that of group B. It is also the reason why the average weekly sales for group A is above the range of sales.

2- Considering your hypothesis statements, provide an example of Type I and a Type II error.

Ideally, hypotheses data is a representative one and it is not a 100% correct, therefore, it consists of some errors. Such errors are the ones categorized as either type one or two. Again, under the wide subject of statistics, there is null hypotheses and an alternative one. Null hypotheses is the principle statement that ought to be proved right or wrong. In the case where it is regarded as wrong, then an alternative position is preferred. On the other hand, if it is proved right, then the alternative position is dropped.  Therefore, type one error occurs when a null hypothesis is proved to be true but it is dismissed while type two happens when the null hypothesis is proved wrong but is preferred as the true position. In our case study, when the p-value is equal to 0.3961, which is less than the standard value of 0.05, it means that the statistical nature of group A is different compared to group B which is an alternative position.  However, type 2 error would occur when the null hypotheses is held to be true and contrary to the results. In addition, when the p-value reads 0.9996, it means that null hypotheses is true.  Nevertheless, type 1 error would happen when the latter above is dismissed.

3- Considering the p-values, is a statistically significant difference between the two reps being considered for the manager’s position? Explain

The statistically significant difference between groups A & B are being considered. The average weekly sales mean for group A was much higher compared to that of B leading to the promotion of A.

4- Who would you recommend to be promoted to Sales Manager – Rep A or Rep B? Why?

I would recommend Rep A to be promoted to the position of the sales manager because of his big sales achievement at a mean of 4972 compared to 4119 that of Rep B.

5- Considering the outcome of the hypothesis test, is your new Sales Manager outperforming the sales force?

The new sales manager is well outperforming the sales force because, at 4972, his average weekly sales are way above the range between 3425 and 4509.

6- What does the following mean and what does the rest of this sentence look like? " In particular, he looks at the S statistic and the corresponding P-value." Why is this important?

Significant statistic refers to its power, that is, its ability to convince a result. The p-value, on the other hand, helps to prove the null and alternative hypotheses. Therefore, they are two key concepts in both branches of statistics.

7- Why is performing a t-test for each pair of samples would not necessarily give the same conclusion at the same confidence level?

The random sampling manner in statistics is never perfect at all. It is the main reason the results appear to be different and, therefore, varied conclusions. Likewise, this is the reason why the two Reps, A & B  ended up with a mean of 4972 and 4119 sales respectively.

8- What is the difference between a one-tailed and a two-tailed test and how do we know which one we need/want?

A one-tailed test helps to reveal if a mean is greater or smaller compared to the other. On the other hand, a two-tailed test compares a set of mean to distinguish which one is more preferable than the other. Therefore, a change from one mean to the other helps unearth the positives and negatives of each of them thereby informing the choice.

Impacts of IoT on business continuity

Impacts of IoT on business continuity

Brief Description of the Study

The study seeks to evaluate the impacts of IoT on business continuity. IoT in the workplace involves a variety of hardware and technologies such as smart devices, robots, and artificial intelligence that are designed to improve efficiency and create new business opportunities.

The objectives of the study include:

  • Assess the penetration of connected devices into companies’ IT environments.
  • Evaluate companies’ exposure to security risks as a result of increased use of connected devices.
  • Formulate an action plan for companies to adapt their business continuity planning to accommodate new categories of connected devices.

Questions

1. How many employees work at your company?

  • 0-20
  • 21-50
  • 51-100
  • 101-500
  • >501

2. Which industries do you major in (Tick as many as they apply)?

  • Smart buildings
  • Industrial
  • Healthcare
  • Media and entertainment
  • Automotive
  • Smart energy
  • Transportation
  • Smart cities
  • Agriculture
  • Others (please specify)

_______________________________________________________________________________________________________________________________________________________________________________________________________________

3. (a) How many offices are at your company’s main site?

  • 0-10
  • 11-30
  • 31-60
  • 61-100
  • >101
  • Don’t know

(b) How many people work at your company’s main site?

  • 0-10
  • 11-30
  • 31-60
  • 61-100
  • >101
  • Don’t know

4. What proportion of your company’s IT budget is spent on IoT?

  •  >80%
  • 60-79%
  • 40-59%
  • 20-39%
  • 0-19%
  • Don’t know
  • We don’t Invest in IOT

5 (a) what proportion of employees carry some type of connected wearable (like smartwatches, smart glasses, or real-time health monitors) to office?

  •  >80%
  • 60-79%
  • 40-59%
  • 20-39%
  • 0-19%
  • Don’t know

  (b) What types of connected wearable devices are commonly carried in the office?

  • Please specify

_______________________________________________________________________________________________________________________________________________________________________________________________________________

6. (a) What proportion of offices is equipped with infrastructure-related IoT devices? These include building management systems connected to the Internet for automatic monitoring and control of heating, lighting, air conditioning, doors, security, energy management, and fire alarm among other functions.

  • >80%
  • 60-79%
  • 40-59%
  • 20-39%
  • 0-19%
  • Don’t know

(b) List the types of infrastructure-related IoT device are installed in the offices?

  • Please specify

_______________________________________________________________________________________________________________________________________________________________________________________________________________

7. (a) What proportion of offices is equipped with repurposed smart home devices? These may include smart speakers, coffee machines, air quality sensors, smart meters, motion sensors, smart TVs, etc.

  • >80%
  • 60-79%
  • 40-59%
  • 20-39%
  • 0-19%
  • Don’t know

(b) List the types of repurposed smart home devices installed in the offices?

  • Please specify

_______________________________________________________________________________________________________________________________________________________________________________________________________________

8. (a) What proportion of offices is equipped with business-specific IoT solutions? These may include videoconferencing, smart desks, smart large-screen displays, Wi-Fi thermostats, robots, smart inventory management and monitoring systems, car and bicycle parking system, etc.

  • >80%
  • 60-79%
  • 40-59%
  • 20-39%
  • 0-19%
  • Don’t know

(b) List the types of business-specific IoT solutions installed in the offices?

  • Please specify

_______________________________________________________________________________________________________________________________________________________________________________________________________________

9. What mainly motivates your company to invest in IoT?

  • Improve operational efficiency
  • Improve customers’ experiences and satisfaction
  • Boost profit margins
  • Promote business agility
  • Enhance automation and control for timely and cost-effective output
  • Better decision-making and problem-solving capabilities
  • Enhance visibility into business operations and processes
  • Predictive equipment maintenance
  • We don’t invest in IOT
  • Others (please specify)

_______________________________________________________________________________________________________________________________________________________________________________________________________________

10. (a) Here is a list of security concerns. Tick on each that you know and understand its applicability on IOT.

  • DoS attacks
  • Unauthorized/illegal access
  • Data breaches
  • Malware propagation
  • Identity theft
  • Advanced persistent threats (APTs)
  • Lack of regular updates
  • Remote access
  • Poor device authentication
  • Human factors (like knowledge gaps and negligence)

Others (please specify) _______________________________________________________________________________________________________________________________________________________________________________________________________________

(b) What are the most applicable security/privacy concerns regarding IoT deployment at your company?

  • DoS attacks
  • Unauthorized/illegal access
  • Data breaches
  • Malware propagation
  • Identity theft
  • Advanced persistent threats (APTs)
  • Lack of regular updates
  • Remote access
  • Poor device authentication
  • Human factors (like knowledge gaps and negligence)
  • Others (please specify)

_______________________________________________________________________________________________________________________________________________________________________________________________________________

11. Rate the following statements depending on the situation at your company.

StatementsResponses
11.1 Our company’s IoT deployment is accompanied by a comprehensive risk assessment and management policy Deploying IoT systems without a comprehensive risk assessment and Management policy companies can immensely increase their exposure to information security risk. Identify the level of information security risk emanating from IoT systems.  Strongly AgreeAgree NeutralDisagreeStrongly Disagree
11.2 Our company prioritizes data encryption at rest and in transit as well as end-to-end encryption Identify information security strategies implemented to reduce the risk from IoT system.Strongly AgreeAgree NeutralDisagreeStrongly Disagree
11.3 Our company prioritizes strong authentication schemes across all connections made to IoT devicesStrongly AgreeAgree NeutralDisagreeStrongly Disagree
11.4 Our company runs a scalable defence in depth IoT security architecture and framework (consider aspects of hardware-driven trust, multi-layered software-based protection, hardware-enforced compartmentalization, failure reporting, etc.).Strongly AgreeAgree NeutralDisagreeStrongly Disagree
11.5 Our company has deployed proper intrusion detection systems (IDS)Strongly AgreeAgree NeutralDisagreeStrongly Disagree
11.6 There is a comprehensive information security training and awareness program at our company (Consider whether existing staff are regularly trained on IoT security and whether new staff are trained on IoT security during induction)Strongly AgreeAgree NeutralDisagreeStrongly Disagree
11.7 Employees at our company have IT security roles and responsibilities that are well-defined and backed up with appropriate competencies and signed agreementsStrongly AgreeAgree NeutralDisagreeStrongly Disagree
11.8 Our company has clearly defined and strictly enforced IT security policies, which over aspects of network security, software security, access control, security audits, incident reporting, BYOD practices, remote connections, acceptable Internet use, passwords, file sharing, and data/information classificationStrongly AgreeAgree NeutralDisagreeStrongly Disagree
11.9 Our company complies with industry standard IT security recommendations, such as UK cyber Essentials and NIST Cyber Security FrameworkStrongly AgreeAgree NeutralDisagreeStrongly Disagree

If profit maximization is rational, why is being a renting immoral?

If profit maximization is rational, why is being a renting immoral?

Introduction

Profit maximization refers to the process used to ensure that the highest amount of marginal revenue is earned from the sale of a good or service. The concept is consistent with increasing production up to a level where the marginal cost of producing an additional unit is equal to the Marginal revenue.  

Answer and Explanation

Numerous reasons make renting unethical. One of the primary reasons that make renting immoral is that it does not involve the selling of any product or service. A low income earning tenant is in an endless series of paying rents to the landlord.

Unlike in the sale of ordinary goods and services, the concept of profit maximization does not apply in renting. While the marginal cost of developing or acquiring a property is incurred once, rents keep on rising. Landlords can increase their marginal revenue as far as the market allows.

In the current age of urbanization, landlords have the upper hand. Because there is an ever-increasing pool of potential tenants created by the rural-urban migration, landlords have increased rent to unbelievable prices. Property owners have are prioritizing profits to human life.

People without an option are charged a rent that is almost equivalent to their income. Landlords are exploiting tenants by practicing profit prioritization which is immoral. Thus, renting will remain unethical until it is converted into a process of buying a property.