{ DP Economics How to Write an Economics IA Commentary (For Class of 2016)

  Some one has once mentioned:   "A good commentary turns non-economics into economics”. What is a good commentary?

1. 1. Choose news articles by reporters NOT by economists   Because the authors have made much analysis and evaluation on the topic already:   You will have little input in the end. When finding your article …

2. 2. Articles must have something that you can evaluate   Should a tax be placed on that good?   Should a subsidy be given for a product?   Should that monopoly be regulated?   Should the government impose a tariff?   Should the government implement a price ceiling?   Is lowering/raising interest rates a good idea?   Is this country's economic growth unstable? When finding your article … choose one that features an initial situation/problem and then a change or response to this problem

3. 3. Articles published < 1 year before commentary is written When finding your article …

  articles that just list a bunch of statistics regarding something that has happened to the economy. Do not choose …

4. 4. Only have one issue/focus for your evaluation:   The word limit does not allow enough room to evaluate multiple situations and policy choices effectively.   Choose an article that only describes/focuses one situation/policy.   If article is very lengthy, highlight the relevant part of the article that you will discuss. When finding your article …

5. 5. Choose your concept before looking for the article:   Choose concepts in the area of the syllabus that you are most confident about evaluating. When finding your article …

  Microeconomics:   Implementation of price floors and price ceilings   Indirect taxes   Externalities   Regulation of monopolies and oligopolies   Subsidies   Price discrimination Here are some examples …

  Macroeconomics:   Monetary policy decisions   Fiscal policy decisions   Economic growth implications Here are some examples …

  International Economics:   Decision to implement protectionism (such as tariffs)   Decisions to influence the exchange rate Here are some examples …

  Development economics:   Receiving aid   Growth vs development Here are some examples …

  You may simply search Google (or other search engines or the search engine of a newspaper webpage) for related articles on the topic.   Try to type in this:   Country + topic   E.g. Denmark indirect tax (obesity tax), United States tariff, Hong Kong price floor (minimum wage), etc.   The more details you input, the better chances that you come up with better results   Have some diversity with regards to which countries you discuss, i.e. don't talk about China for all of your three articles. You may use internet to find the article …

1. Background (About 50 words) 2. Definitions (80 – 100 words) 3. Application and Analysis (300 words) 4. Evaluation (200 – 250 words) 5. Conclusion (About 50 words) Suggested format for writing …

 A short paragraph to summarize one or two key issues of the article (or extract of a section of the article and focus on it). 1.Background (about 50 words)

 Identify the relevant key concepts and define terms used in the article.  Bold the key terms  If you do not define here in this paragraph and come across key term later, use parenthesis for the meaning OR integrated into your sentence. 2.Definitions (80 – 100 words)

  Don't write:   The Hong Kong government has imposed a price ceiling on rental property. A ceiling price is defined as the maximum price that can be charged on a good or service.   Instead write:   The Hong Kong government has imposed a price ceiling price, the maximum price that can be charged on a good or service, on rental property. Some tips on writing definitions …

  NO NEED to define absolutely every single economic word in your essay.   Not all economics concepts are critical to your commentary.   Identify the most relevant terms (1 st layer of definitions) to define.   Do not quote exactly a text book definition, try to use your own words to explain correctly in your analysis. Some tips on writing definitions …

  Avoid using footnotes   Footnotes are included in your word limit. Some tips on writing definitions …

 Explanation of the key economic concepts/theories in the article with use of diagrams explicitly.  You should include quotes/phases from the article.  At the end of this part, use about words to highlight implications an economic insights (e.g. any change in economic variables, any problems caused, effects/costs of the problem, possible solutions, etc.) – this helps to link to your last part of your commentary, i.e. the evaluation. 3.Application & Analysis (300 words)

  Draw diagrams to reflect the exact situation mentioned in the article; explicitly refer your explanation to the diagram, e.g. the demand curve shifts rightward from D 1 to D 2, etc.   Label your diagrams appropriately according to the situation in the article. Some tips on drawing diagrams …

 Discuss your own viewpoints on:  Effectiveness of the policy (its advantages and disadvantages)  Impact on different stakeholders (consumers, producers, government, foreign producers, workers, society, etc.)  Short run and long run implications  Priority of the arguments suggested in the article (e.g. unemployment vs inflation, arguments in favour of protectionism vs against protectionism, etc.)  See handbook for more details of what could be evaluated 4.Evaluation (200 – 250 words)

  Instead of simply writing "One important advantage is that the policy will reduce unemployment,”…,   Write "Given that the United States is likely to be experiencing a deflationary gap, an important advantage of the policy is that it will help to bring the economy closer to full employment." Qualify your writing for better result …

 A summary sentence about the theories analyzed and evaluated  A concluding sentence of your personal experience or a recommendation of policy 5. Conclusion (About 50 words)

 As IA is a formal part of your assessment, teachers are not allowed to provide much assistance as we might like to.  I will put some tools in the Wiki that may be helpful to you.  For each IA, you will get feedback on the first version and will be allowed to make changes once.  The second version you submit will be your final version. Help!

 An article on “Denmark + fat tax” Are you ready? Now let’s start our practice …