1. { DP Economics How to Write an Economics IA Commentary

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

3. 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 …

4. 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 …

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

6. 3. 3. 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 …

7. 4. 4. 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 …

8.   Microeconomics:   Implementation of price floors and ceilings   Indirect taxes   Externalities   Buffer stock schemes   Regulation of monopolies and oligopolies   Subsidies Here are some examples …

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

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

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

12.   You may simply search Google (or other search engines) 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.   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 …

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

14.  A short paragraph to summarize the key issue of the article (or extract of a section of the article and focus on it). 1.Background (80 – 100 words)

15.  Identify the relevant key concepts and define terms used in the article. 2.Definitions (80 – 100 words)

16.   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 …

17.   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 …

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

19.  Explanation of the key economic concepts/theories in the article with diagrams.  You should include quotes/phases from the article.  At the end of this part, use about 80 - 100 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)

20.   Draw diagrams to reflect the exact situation mentioned in the article.   Label your diagrams appropriately according to the situation in the article. Some tips on drawing diagrams …

21.  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.) 4.Evaluation (200 – 250 words)

22.   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 …

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