ASB-3316 Applied Economics Assignment 3

Question 1:

a) The technology firm Microsoft has gained success in the world of PC software, but has struggled against its rivals Apple and Google when it comes to phone operating systems. Use the theory of network good demand, and the specific characteristics of the two markets to offer an explanation
for why this might be the case. (40%)
b) It has been suggested that the homogeneity of a product supplied by alternative providers affects the probability that an individual might switch provider for that product.
i) Does existing empirical evidence support this? Provide examples from academic literature (30%)
ii) Is this consistent with the evidence presented in the dataset assignment3a.dta? In your analysis, ensure that you fully take into account other factors which might influence individuals’ switching decisions (30%)

Question 2:

a) Outline the key theoretical predictions concerning convergence in the Solow growth model and assess the strength of evidence for its existence. (40%)
b) Focussing on the notions of “conditional convergence” or “club convergence” where countries with similar characteristics exhibit evidence of convergence, source a suitable dataset and empirically test the prediction of the Solow model. (30%)
c) Offer an explanation for your results (above) with respect to the parameters of the basic Solow growth model. (30%)

All Stata work must be copied and pasted in the form of a complete DO file in an appendix at the end of the document. Failure to include a Stata appendix corresponding to your work will carry an automatic penalty of 25% of the available marks.
Word limit = 1300 words (tables, appendices, titles, and references not included in word count), work should be fully referenced in Harvard format

Feedback deadline 12pm, 29th March 2017. Individual essays submitted after this time will not be given feedback.
Strict final portfolio deadline 12pm 5th May. Late portfolio submissions will be capped at 40% if submitted within a week of the due date. Submissions after this, or failure to submit, will result in a mark of zero for the module.
Electronic submission only via TurnItIn on Blackboard