Top new questions this week:
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I have a following function and would like to find the elasticity of substitution between pairs:
$$U = \left( x_1^\delta + x_2^\delta + x_3^\gamma + x_4^\gamma \right)^{\frac{1}{\delta + \gamma}}$$
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Whenever I see discussions of wealth taxes, inevitably one main assertion keeps being, well, asserted: "wealth tax will never work because it's too difficult to implement". Of course more ...
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How can we interpret a "prudent" agent in the static case (i.e., someone with $u'''(\cdot)>0$)?
I understand that in a dynamic setting, someone exhibiting prudence would do precautionary ...
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(the paper link: p.32, Equation (26), (27))The output process: $d\log y_t = \sigma dZ_t$. The problem is:
$$\max_{C_t, B_t} \mathbb E_0 \int_0^\infty e^{-\rho t} \left(\frac{C_t^{1-v}}{1-v} + (y_t)^{...
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I'm trying to put together a literature review of papers tackling the international spillovers of environmental policies, particularly theoretical contributions. I haven't been able to find much.
Any ...
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It is clear that the possibility to go on strike is an effective power asset for employees. However, it is also clear that every strike that is carried out is a lose-lose: the employer loses money ...
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Suppose a Solow-Swan model with $Y_t = F(K,AL)$ as the production function. Suppose the growth rate of $A$ and $L$ are $g > 0$ and $n > 0$ respectively. It is also given that $\dot{K} = sY - \...
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Greatest hits from previous weeks:
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There has been a lot of innovation in the agricultural industry. GMO, giant silos, factory farming, machinery, etc.
But if we look at actual food prices since 1960 food actually got more expensive. So ...
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I have been asked a question and believe there is a mistake in the problem.
I have been given a table of values, Quantity and corresponding Total cost. From those numbers I can easily calculate the ...
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I want to derive the Euler Equation for the following:
$$max \sum\limits_{t=0}^{T} = \beta^{t}U(C_t)$$
$$s.t. C_t+K_{t+1} \leq f(K_t) , t=0,1,2,...,T-1$$
$$-K_{T+1} \leq 0$$
I'm a bit confused ...
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"If a man has an apartment stacked to the ceiling with newspapers we
call him crazy. If a woman has a trailer house full of cats we call
her nuts. But when people pathologically hoard so much cash ...
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Inverse function of market demand for certain good is equal to $P=100-0.25Q$, inverse supply function is $P=20+0.55Q$. Calculate equilibrium price and quantity. Furthermore calculate consumer and ...
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Recently Belarus simply decided to ban inflation. the president quoted
"From today, any price increase is prohibited. Prohibited!,"
This is easy to do for a dictatorship but how economy is ...
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In my economics textbook, it states that when calculating GDP using the income approach, depreciation should be added. Specifically, GDP = Employee Compensation + Taxes less subsidies on businesses + ...
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Can you answer these questions?
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While going through the derivation of elasticity of substitution between capital and effective labour in economic materials for a Slow growth model, I found the following step there:
$\frac{\partial ...
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I am trying to understand the key ideas from the recent diff-in-diff literature and get a mixed understanding from reading this review:
https://arxiv.org/abs/2201.01194
In pages 12-14, the authors ...
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Taking a look at the literature of information economics I see three different terminologies about information that seem to have some intersection, though my understanding is not so good. These terms ...
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