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Top new questions this week:

Conventions for reading mathematically rigorous academic articles in economics

How would an informed reader typically go about reading a mathematically rigorous academic article in economics, with lots of notations, assumptions and postulations (e.g, a typical article published ...

mathematical-economics academic-graduate  
asked by elasticity6565 Score of 11
answered by Martin Georg Haas Score of 14

What does omitting capital from production function assume about capital?

We have two production functions, one $F(L)$ with labor as only factor of production, the other also includes capital $F(L,K)$. What do we assume about capital in the first case when we omit it from ...

macroeconomics production-function theory  
asked by Papayapap Score of 3
answered by Amit Score of 5

Efficiency Criteria to provide a public good?

Suppose there are two consumers in the whole economy. If the cost of a public good is 100, and the maximum willingness to pay for a public good for consumers 1 and 2 is 80 and 25, would it still be ...

microeconomics public-goods  
asked by Casio Score of 3
answered by Michael Greinecker Score of 3

Serial Correlation in Probit/Logit, Consistency?

Suppose there is a latent variable, $y^*_i$ defined by, $$y_i^* = x_i'\beta + u_i$$ Consider the probit assumption that $u_i \sim N(0,1)$ (although the question is analogous for a logistically ...

econometrics serial-correlation consistency  
asked by Michael Gmeiner Score of 2
answered by chan1142 Score of 2

Concave utility functions solution example

In the following post an example is given of the corner solution for a concave utility function. I tried solving it but got stuck. I have no idea how these types of problems are solved so if you could ...

microeconomics utility optimization lagrangian  
asked by Victor Yerz Score of 2
answered by Amit Score of 3

Why aren't stock bubble crashes just zero sum exchanges of wealth?

(I'm not an economics student or anything of the sort) Let's say the total valuation of a country's stocks rises from 1000 to 2000 during year 1, and then "crashes" from 2000 to 1000 in year ...

asked by 755 Score of 2

Why stock market not open 24/7?

As we can see all the stock market have limitedtrading day and hours why there should be off day why stock market not run 24/7

asked by Hadman Score of 2

Greatest hits from previous weeks:

If someone goes for a haircut, does it increase GDP?

If I go for a haircut, am I causing the GDP to rise because consumption is rising?

asked by ROHAN PAUL Score of 37
answered by stevec Score of 37

When do supply and demand curves shift?

Let's assume that the price of apples has risen and that the quantity of apples sold during the last couple of weeks has decreased. From that, we can infer that the supply curve must've shifted to the ...

asked by LesPaul Score of 11
answered by RegressForward Score of 8

What is the difference between the Classical and Keynesian models?

I have read something about the short and long run aggregate supplies, but I don't know what the main difference is about these two models. Does someone know the difference(s) between these two models?...

macroeconomics keynesian-economics  
asked by Adnan Score of 3
answered by Jose Score of 4

How can I tell if 2 different utility functions represent the same preferences?

I need to verify that $u(x,y)=x^{1/3}y^{1/3}$ represents the same preferences as $v(x,y)=x^3y^3$. Obviously these are completely different functions with different derivatives, so what am I comparing? ...

utility preferences  
asked by Henry Score of 4
answered by Kitsune Cavalry Score of 7

Differences between Hicksian and Slutskian approaches

When deriving the substitution effect for both Slutskian and Hicksian definitions, a 'phantom' budget line is drawn.However, for a Slutskian definition, the 'phantom' budget line is drawn parallel to ...

microeconomics consumer-theory  
asked by Kenneth .J Score of 7
answered by Catarina RP Score of 5

Difference between merchandise trade and trade in goods?

What is the difference between merchandise trade and trade in goods? Are they the same? If so, would total trade be just trade in goods + trade in services, aka merchandise trade + trade in services?

asked by Viv Score of 3
answered by emeryville Score of 3

People pathologically hoard so much cash that they impoverish the entire nation

"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 ...

macroeconomics money nonexpert poverty  
asked by Bob L. Score of 28
answered by Alecos Papadopoulos Score of 41

Can you answer these questions?

How to define the market and the clearance conditions of a general sectoral computable equilibrium model?

I am trying to implement a general multiproduct market (partial/sectoral) computable equilibrium model, where "general" refers to the fact that the relation of complementarity/...

microeconomics optimization equilibrium  
asked by Antonello Score of 1

What is the impact on US total debt interest expense if interest rates were to rise by X bps?

What is the impact on US total debt (eg. the "Total US Debt" figure here) interest expense -- ie. the combined expense for both the Federal gov as well as individuals -- going forward w/in ...

macroeconomics data-request  
asked by lampShadesDrifter Score of 1

Spectral density of a covariance stationary process

I am now learning Recursive Macroeconomics Theory by Lars Ljungqvist and Thomas J. Sargent and have a question about the spectral density of a covariance stationary process. (Section 2.4 in LS) $$x_{...

asked by Borel Score of 1
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