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0answers
6 views

How do you calculate the contribution of each factor of production to the value of the final product?

How do I determine how much value that capital, labor, and land individually contributed to the value of a firm/good? Like what % of value came from capital vs labor vs land? I heard that this is ...
1
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1answer
12 views

Is there Modern Translation Book for Wealth of Nations?

Is there a New/Modern English Translation of Adam Smith "Wealth of Nations"? I cannot locate any online, it is a great read, just trying to understand it better. The old/classical style of ...
0
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1answer
21 views

Did Adam Smith Support a Central Bank?

Does Adam Smith and Capitalism support a Central Bank/Federal Reserve? I am trying to read through the book "Wealth of Nations" to understand. Having a central/regulatory figure dictate ...
0
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0answers
8 views

Why in neoclassical growth model K* is always to the left of K gold?

In the phase diagram of the Ramsey model, the steady-state capital per capita is always to the left of the golden rule capital per capita. What does this mean? Why does this always happen?
1
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1answer
95 views

Multiple solutions to an HJB, how to pin down the optimal “viscocity” solution?

Consider the deterministic consumption-savings problem: $ V(a_t) = \underset{c}{\max} \int_{\tau =t}^{\tau = \infty} e^{-\rho (\tau - t) } u(c_{\tau}) d\tau $ w/ $u(c)=\frac{c^{1-\gamma}-1}{1-\...
0
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0answers
9 views

Understanding the formula for the remaining value of a property

The formula uses 1-ratio between the remaining years of economic value and the remaining years of technical value to multiply this with the current (resell) value of the property. This ratio is very ...
2
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1answer
25 views

Frequency and time of a time series suddenly changed, are usual methods valid

I have a time series data that used quarterly information on a variable, but has now shifted to bi-monthly releases, from September 2008 to July 2021. This is a survey based measure, released at the ...
2
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1answer
68 views

Alternative way to calculate the symmetric BNE of the game

My problem. Consider the following auction for a single object. There are $n \geq 2$ bidders. They submit their bids simultaneously. The object is allocated to the player who submits the largest bid. ...
0
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1answer
28 views

Why is the number of firms in the short run fixed?

My textbook says that in perfect competition the condition of free entry and exit only applies to the long run equilibrium. Because in the short run no new firms can enter or old ones can leave the ...
3
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0answers
19 views

Durbin Watson Test for an AR(1) process

$(1) y_t =\beta y_{t-1} +\epsilon_t$ $(2) \epsilon_t =\rho \epsilon_{t-1} +v_t$ Where $v_t$ is i.i.d white noise. I know that OLS estimates of (1) are biased. It would then follow that estimates of $...
1
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1answer
57 views

Is there research on the level of individuals regarding the origins of hyperinflation?

I am interested in inflation, specifically hyperinflation. Can anybody point me to research (papers, books) done on the individual origins and mechanisms at work at the very beginning of ...
2
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0answers
9 views

Difference between AR confidence intervals reported in weakiv versus twostepweakiv

Should the Anderson-Rubin confidence intervals reported in weakiv and twostepweakiv be equal to each other? Sun (2018) does not ...
0
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2answers
40 views

Is it always a trade off between efficiency and equity?

Is there any situations where we can achieve both equity and efficiency? I'm thinking of Covid 19 vaccine program which is run by Goverment. Although the cost for the program is paid by the money from ...
0
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0answers
20 views

Type I and Type II errors examples to clarify the definition in economics and finance [duplicate]

Type I and Type II errors' definition following this link is as below A Type I error means rejecting the null hypothesis when it’s actually true. It means concluding that results are statistically ...
0
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1answer
22 views

At what frequency does monetary inflation compound?

The M1 money supply of the U.S. dollar is released monthly. But how often does the Federal Reserve or treasury add/remove a new dollar or a new penny? By second, minute, daily?
4
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1answer
15 views

Error structure in subsampling

Subsampling is normally examined in many international studies (grouped by market developement, country governance,etc), @1muflon1 has a great explanation here in one case. In his answer, there is one ...
1
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1answer
27 views

What is social science and discussion about Type II error preference?

Today, my senior lecturer in economics and finance class teaching about laws impact companies' operation told us one sentence "Also keep in mind that in (at least social) science, we care (try to ...
-2
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0answers
24 views

Where does the money go when Musk, Branson, and Bezos spend money on a private space program? [closed]

Where does the money go when Musk, Branson, and Bezos spend money on a private space program? What countries and demographic groups have been affected positively? What countries and demographic groups ...
2
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1answer
50 views

What is an 'economic reason'? in relation to marriage?

I'm taking a economic course over the break and with no prior experience with economics, I'm struggling with coming up ideas for a prompt in relations to why people marry. I thought the idea of ...
-2
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0answers
14 views

Deriving the VECM form of a VAR(1) model [closed]

Above is a question regarding volatility models and specifically deriving the VECM form from a VAR(1) model, unfortunately my lecturer hasn't provided an example of such a question prior so would love ...
4
votes
1answer
69 views

What is the relationship between the HJB and “Hamiltonian”? Why is the Hamiltonian H(p) inside the HJB?

Deterministic Optimal Control Problem $ V(a_t) = \underset{c}{\max} \int_{\tau =t}^{\tau = \infty} e^{-\rho (\tau - t) } u(c_{\tau}) d\tau $ s.t. $ \frac{da}{d\tau} = \left( r a_{\tau} - c_{\tau} \...
-3
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0answers
16 views

Volatility Models in Applied Econometrics [closed]

Below is a practice exam question on the topic of volatility models in advanced econometrics. Any and all help would be very appreciated. Thanks.
2
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0answers
31 views

In economics, what variables do we usually assume to follow an exponential distribution?

In economics, what variables do we usually assume to follow an exponential distribution? I would like as many examples as possible, and it would be great if you have a rationale(economic reason or ...
5
votes
1answer
45 views

Doraszelski and Jaumandreu (2018) Intuition

Doraszelski and Jaumandreu (2018) estimate a CES production function with two forms of productivity shocks (1) labor augmenting and (2) Hicks neutral. They claim that the increase in labor augmenting ...
1
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1answer
24 views

Subsampling result explanation?

I want to examine whether the impact of laws on asset growth difference between developed and developing countries. One way to do so is by adding the interaction between the variable of interest and a ...
1
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0answers
18 views

Is there any macroeconomic model based on Olson's collective action theory?

I've recently learned about Olson's Collective Action Theory and I'm interested in mathematic models of economies that follow the theory's axioms. I tried finding a general equilibrium macro model ...
3
votes
2answers
201 views

What are some alternative words for “cartel”?

I am looking for some words for "cartel" in economics. I did a search and found a good word is "corporate consolidation" from this newspaper. I am wondering if there is any other ...
-1
votes
0answers
14 views

What could the government do to boost GDP if inflation rises but consumer spending falls?

I don't know economics that well, but just curious what would happen in this scenario. Let's say inflation rises but wages do not increase with inflation (due to the capitalist system). Sure the ...
2
votes
0answers
33 views

Sample size and statistical significance dicussion

As we know, sample size can play a role in reaching statistical significance, provided that splitting the quant world in what is and what is not statistically significant is probably an overestimated/...
2
votes
1answer
33 views

Goverment spending: how to calculate the discount rate for it? What is the opportunity cost of federal funds?

When discounting in order to obtain the present value, one has to determine the opportunity cost of capital. In this case, I don't want to do it for a project (or a comparison of two similar projects),...
0
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0answers
12 views

Has anyone developed a good methodology for high-frequency inflation nowcasting?

Let's say I want to know what happened to the value of the U.S. dollar between three minutes and two minutes back from ... NOW. I have given myself a two minute slack period for data collection and ...
1
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0answers
25 views

What we should do when the result is only significant to one country but the whole sample?

In a staggered Difference-in-Differences setting, Dasgupta, 2019 has a formula for such a static setting is $Y_{it}$ = $\alpha$ + $\beta$ $pt_{kt}$ + $\delta$$X_{ikt}$ + $\theta$$_t$ + $\gamma$$_i$ +$\...
1
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1answer
43 views

Has there really been a 170% increase in M1 money supply in the US in February 2021?

tradingeconomics shows an M1 money supply of the past year as follows: This suggests an unusually high increase of ~170% in February 2021. Is this increase real or somehow an artifact of the way the ...
0
votes
1answer
69 views

Shouldn't big tech want to split up?

This is a reference request. Where can I find an analysis that explains why companies like Microsoft and Amazon don't split into two. At a certain point diseconomies of scale would kick in. I would ...
2
votes
1answer
35 views

Show that the estimator of GMM weigh matrix is consistent

(Hansen Exercise 13.3) Take the model $Y = X'\beta + e$ with $\mathbb{E}[Ze] = 0 $. Let $\tilde e_i = Y_i - X_i'\tilde \beta$ where $\tilde\beta$ is consistent for $\beta$ (e.g. a GMM estimator with ...
1
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0answers
44 views

Job Market Signaling

My Solution is this Separating equilibrium High type worker chooses $e_H = e^* >0$ Low type worker chooses $e_L =0$ Firms believes that if education is $e^* >0$ then the worker is high type and ...
2
votes
1answer
39 views

How to deal with non-random measure error in dependent variable

Let's say I have a model $y_t = \alpha + \beta_1 s_t + \beta_2 p_t + \epsilon_t$ But $s_t$ depends on $p_t$ too, however, not observed. So I take it to the left-hand side. $y_t-s_t = \alpha + \beta_p ...
0
votes
0answers
13 views

What are the most lucrative crops for arid countries?

I've delved into the topic of the Aral Sea's drying. The key reason, as I discovered, was unsustainable diversions of water from the inflowing rivers for irrigation, particularly of cotton, a thirsty ...
3
votes
1answer
30 views
+50

Where can I find resources that show the median or mean effective taxation on households in the United States divided into percentiles?

I am looking for a resource similar to this website that shows the mean effective federal taxation on households in different percentiles broken down into percentiles (and even shows historical data ...
-1
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0answers
17 views

Real GDP and Nominal GDP [closed]

I know that real gdp is better than nominal GDP but can someone explain with an example why real gdp is better than nominal gdp and also please suggest book to study national income and related ...
3
votes
1answer
117 views

What is the difference between Impression Management and Signaling Theory?

I'm interested in theories on how organisations shape their stakeholders' (especially consumers' and investors') perceptions and decisions. I read about Impression Management and Signaling Theory. ...
2
votes
1answer
20 views

locating specific model from organizational economics

I am trying to find one specific model from organizational economics that I encountered in one of my past classes, but I cant remember the name of the model and google scholar search based on some of ...
0
votes
1answer
20 views

Is government/public sector percentage contribution to the GDP the same as government expenditure as percentage of the GDP?

As far as I understand, every transaction done in a country counts for GDP. So, if the government is building a road that counts for the GDP, right? So I was looking for a table which shows me the ...
-1
votes
0answers
26 views

Why does quantity supply increase with price in economics? [duplicate]

I have been trying to wrap my head around the law of supply for sometime now, but I keep stumbling because of this: Lets take the example of oil, suppose oil's price yesterday was Rs.100, and now it ...
3
votes
0answers
41 views

AR(q) Strongly Stationary

Consider an AR(q) process, $u_t$. If the roots of a characteristic polynomial are outside of the unit circle, the AR(q) process is weakly stationary. I've seen this proof that proceeds by showing the ...
1
vote
4answers
204 views

A bank approves a loan: where does the money come from?

In the naïve picture of the banking system, banks strike a balance between savings invested in them by savers and the loans requested of them by borrowers. The money loaned to borrowers is the same ...
0
votes
0answers
21 views

Difference between size of market and marginal cost

My question is based on a Cournot competition model with linear demand, $p=a-bQ$, but can also be applied to most competition models. I wanted to know whether there is some special interpretation of ...
2
votes
2answers
76 views

Is addiction a case of increasing marginal utility?

I got to know that alcohol addiction is a case of increasing marginal utility. My professor refutes me bluntly stating that once a person starts consuming he no longer remains to be a 'rational ...
0
votes
1answer
34 views

Demand as a function of supply and storage

I'm trying to model a situation where demand is a function of the supply of medical equipments. The equipment costs are already covered, hence price is not taken into consideration. The supply however ...
3
votes
0answers
25 views

Do Fed OMOs directly and immediately increase M1 or M2 if they buy treasuries from a member bank? And what proportion of OMOs does that constitute?

I commonly hear that when the Fed conducts open market operations, it is directly increasing the money supply by exchanging newly created electronic money for US treasuries. But in the case where the ...

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