Form: Consulting Project, Presentation Format Slide Format: Picture, Few bullet points, and a chart description 15-20

Slides, focus on charts Topic: Setting: Include: Assessment of Perus economy, 1992 2011 Investment in Peruvian market or Costa Rican Market Historical trends in population Economic growth Inflation Institutional development Private consumption and Business Cycles

Structure 1. Introduction a. Country selection. Why? 2. Macro Data a. Section 1 i. Population 1. (population, total) 2. (population, change) ii. GDP 1. (GDP (constant 2000 US$)) 2. (GDP per capital (current US$)) iii. Inflation 1. (Inflation, consumer price (annual %)) iv. Institutions 1. (Governance indicators (1996-2011)) a. Use - 1 or more indicators b. Present as a i. Score (from table) or ii. Percentile rank (relative to the world) b. Section 2 i. Real GDP ii. Consumption as a share of GDP c. Section 3 i. Business cycles 1. i.e. Volatility of GDP and consumption. 2. For business cycles you have to calculate the volatility of GDP and consumption. Use the HP-filter. 3. Macro Theory a. Describe the drivers of growth 4. Conclusion

a. Your recommendation. Why? Sources For background info o http://www.economist.com/news/americas/21576116-diminishingdistance-falling-poverty-andean-connection For data o http://data.worldbank.org/data-catalog/world-developmentindicators o http://info.worldbank.org/governance/wgi/index.asp Governance Effectiveness PER, CRI, USA 1996 2011: This chart shows the percentile rank of each country on the selected governance indicator. Percentile rank indicates the percentage of countries worldwide that rate below the selected country. Higher values indicate better governance ratings. Percentile ranks have been adjusted to account for changes over time in the set of countries covered by the governance indicators. The statistically likely range of the governance indicator is shown as a thin black line. For instance, a bar of length 75% with the thin black lines extending from 60% to 85% has the following interpretation: an estimated 75% of the countries rate worse and an estimated 25% of the countries rate better than the country of choice. However, at the 90% confidence level, only 60% of the countries rate worse, while only 15% of the countries rate better.