# All Questions

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6 views

### Demand Curve of Foreign Exchange

My high-school Macroeconomics textbook states that 'There is an inverse relationship between the price of foreign currency, or exchange rate, and demand for foreign exchange. When the exchange rate ...
22 views

### Does the justification for taxation collapse when rates are negative?

If borrowing is profitable how could taxes even be fiscally beneficial? Even if your goal is progressive taxes, preventing the rich from lending actually makes them more profit.
8 views

### What is the math behind the coefficient of Absolute Risk aversion?

I have a good grasp of Calculus but I have never used the ratio of second and first derivatives. So, I am having a hard time understanding what it does and how?
8 views

### Comparing utility functions

I'm doing an econ course after not having any math or micro for a few years, now I'm totally missing the basics again. I'm wondering how to show that utility functions are an equivalent to each other: ...
3 views

### Find payoff matrix of B from payoff matrix of A

Here, I need to confirm that the answer of question (A) can be answer just by a(i,j) = - A(i,j) Where a(i,j) and A(i,j) are the elements of i-th row and j-th column of payoff matrix of B and A ...
4 views

### Non Linear regression to obtain diminishing marginal effect / elasticity

I am working with some real estate data on housing units. For a given market, I have data on occupied units, rents, and control variables such as population, demographics, income levels etc. I'd like ...
13 views

### Utility representation of single peaked preferences

Is it true that a single-peaked preference (with the peak at some finite point) over the set of real numbers, always has a utility representation ?? If yes, can you please hint towards the proof or ...
23 views

### Will the US economy hit 5.0%+ GDP growth by year-end 2020? [closed]

The annual rate of increase in real gross domestic product (GDP) in one or more quarters prior to or including the fourth quarter of 2020, as rounded to the nearest tenth of a percent, per the advance,...
25 views

### What if civilizational collapse occurs too rapidly? [closed]

What if the current civilizational collapse is too rapid? What are the policy implications?
21 views

### Violation of the transitivity axiom [duplicate]

I'm struggling to think of a way to violate the transitivity axiom. I was thinking about the following scenario: Let's say that you're voting on three different choices, A, B and C. If you pit A vs. B,...
20 views

### Derive Marshallian and Hicksian demand

How do I find the Marshallian and Hiksian demand functions with the utility of the following kind? Can I still use the Lagrangian? And how do I consider boundary cases?
29 views

### What are the household holdings of financial products in China?

What are the household holdings of financial products in China? It seems to be generally accepted that real estate is the most popular savings product for households in China and perhaps it is also ...
25 views

### Fast-food restaurants like McDonald’s are replacing cashiers with touch-screen ordering kiosks [closed]

Fast-food restaurants like McDonald’s are replacing cashiers with touch-screen ordering kiosks. Currently, the marginal product of another cashier is 48 customers served per hour; the marginal product ...
27 views

### Why did the pound sterling lose its reserve status to USD?

Why did the pound sterling lose it reserve status to USD? Was this due to some agreement during the Bretton Woods negotiations?
14 views

### Question on estimating elasticity and cross elasticity with log-log regression model

For a regression model: Y = B0 + B1.X + B2.X2 + U, B1 and B2 is the marginal effect on ...
94 views

### Why would taxes matter? [closed]

Anything collected in taxes would otherwise sit in a savings account and be invested in treasuries (or whatever). If rates are negative, taxes actually lose money over leaving things alone. Why would ...
41 views

### Commodity pricing in rational markets [closed]

Assume a naive market that prices oil on immediate demand. We'd expect price to increase as eroi got worse, then collapse as eroi fell below 1 and investment collapsed. Less oil supply results in ...
19 views

### Strictly increasing but not convex preferences

Is it possible to have preferences that is strictly increasing but not convex? Will perfect substitutes indifference curves show strictly increasing but not convex preferences? I am confused, as won't ...
26 views

### Binary relation on the set X = {v, w, x, y , z} that is asymmetric and transitive but not negatively transitive

So I am trying to find a binary relation on the set X = {v, w, x, y, z} that is asymmetric and transitive but not negatively transitive, and is quite tricky. Will R = (v, w) be asymmetric and ...
16 views

### Present value concept in Utility Maximization

We can use the utility function as U(Ct) = Ct since logCt is just a monotonic transformation but still, I can't get the answer.
19 views

### Books and resources on how policies/regulations are made on exchanges like NYSE, NASDAQ, LSE, etc?

Different stock exchanges (for example, NYSE vs KRX) have similar but different regulations overall. Each exchange has different concerns and each exchange has a different approach to handle problems ...
26 views

### Banks providing courier services in future [closed]

https://en.wikipedia.org/wiki/Courier https://en.wikipedia.org/wiki/India_Post https://www.indiatoday.in/information/story/how-to-send-a-courier-via-india-post-1609980-2019-10-16 Do you feel there is ...
37 views

### Are pmis increasing because of bankruptcy?

Are purchasing managers indexes from IHS and ISM increasing because bankruptcy is shifting busienss between firms, therefore inflating growth?
37 views

### Question about an interpretation of the MRS

Given the marginal rate of substitution of $x$ for $y$ : $\frac{u'(x)}{u'(y)}$ I know one can interpret this as the amount of $y$ one is willing to give up for an additional unit of $x$, or the ...
42 views

### Will banks in the US continue to offer CDs?

Earlier this year, the Fed abolished the reserve requirement. My understanding was that the motivation for banks offering CDs was because the Fed didn't impose reserve requirements on CDs, so banks ...
23 views

### What is the economic potential of Xinjiang province of China? [closed]

Xinjiang has a surface area of about 40% of Europe but instead of having a population of 200 million like 40% of Europe it has only 21 million. What kind of economic potential Xinjiang has? What kind ...
28 views

### Raise/Lower Seller Fees on Platform - Expected Seller Behaviour?

Say there is a marketplace company that facilitates buy/sell of digital content (i.e. marginal cost = 0). And that content is somewhat substitutable but not completely so. As an example, for a ...
212 views

### Willingness to accept is different from willingness to pay - is there a name for this

Given the situation below, can someone help me identify/name the logical phenomenon? So I own a laptop that I don’t use…. Someone has offered me £1000 dollars for it but I decided not to sell it. I ...
25 views

### Information Partition and Common Knowledge

Person $A$ has information partition $\{\{1,2\},\{3,4\},\{5,6\}\}$ Person $B$ has information partition $\{\{1\},\{2,3\},\{4,5\},\{6\}\}$ $w=3$ has been realized. I'm confused about what $A$ knows ...
42 views

### What are the consequences of having negative GDP growth? [closed]

Many countries are facing negative GDP growth due to coronavirus. I am curious to know what will the significant consequences of having negative economic growth?
52 views

### Returns to Scale Microeconomics

Are there any production function $f(x_1,\ldots,x_n)$ that is having decreasing returns to scale, given that the marginal product in every input $i$ in the function $f$ is constant?
21 views

### Is this a valid hubbert curve for the wolfcamp shale showing civilizational collapse before 2022? [closed]

It is indeed poorly labeled. But a glorious graph.
10 views

### Real Business Cycle problem [closed]

it is about real business cycle.. It would be appreciated highly if you could solve this.
23 views

### If $x \succsim_i x_i^*$ then $p \cdot x_i\ge w_i.$ (MWG 16.C.2)

(MWG 16.C.2) Suppose that the preference relation $\succsim_i$ is locally nonsatiated and that $x_i^*$ is maximal for $\succsim_i$ in set $\{x_i \in X_i: p \cdot x_i \le w_i\}$. Prove that the ...
35 views

### What is state space representation for DSGE modeling

I'm beginning with DSGE modeling, and a mathematical representation (perhaps trivial for most of the people that are more with this topic) is the space-state state representation of a dynamical model, ...
44 views

### Geometric intuition behind the point where the indifference curve meets the budget line

So, this isn't to solve any kind of problem, but rather about the intuition behind the concept. I was wondering if at the optimal point where the indifference curve is tangent to the budget line and ...
26 views

### South Sudan economic crisis [closed]

South Sudan economy has been surviving on oil revenue with 98% income. Despite that the fact that South Sudan is the fertile land, government and local people are regularly engaged in conflict and ...
18 views

### Is the money market equilibrium interest rate the same as the IS-LM equilibrium rate?

If IS-LM equilibrium interest rate is, let's say, 5%, does it also mean that the money demand and supply equilibrium interest rate would also be 5%?
15 views

### Compute the inverse of a conditional quantile regression output

Short Clarification : This question was asked at the Cross Validated SE (Question at CV) but one highlighted in the comments, that this might be more applicable to this SE due to its economic topic. ...
11k views

### Why do low-income earners tend to spend more?

I am reading an article in the Economist. It is discussing the China's unbalanced economy especially the lower household consumption proportion in GDP than the global average. The writer thinks the ...
62 views

### How does high U.S. federal debt affect its citizens?

My apologies if this is a silly question. My background isn't in economics, though wish I had some. During the 2008-9 financial crisis, federal debt increased significantly and there was a small talk ...
40 views

### How to estimate Italian parking data starting from German parking data?

I am currently investigating the economic impact of the parking pain in Italy. I have just found out this INRIX Research which is absolutely stunning, but it only focuses on US, UK and Germany market. ...
17 views

### What is the term for requiring taxes/regulatory changes to be above a certain threshold to overcome organisational communication barriers

Help remembering the specific term for the following would be very much appreciated! The following: When a government implements a tax/regulation that is too low in stringency, the new policy may not ...
37 views

### What are the ways to improve national income in this Covid pandemic situation? [closed]

What are the ways to improve national income in this covid pandemic period? Ps: I'm new to economics stack exchange, I don't know this question fits to the site standard or not. Thanks a lot
22 views

### Where can I find research on the impact of informal/unregulated suppliers on prices and externalities?

I am looking for research and papers on the impact of informal/unregulated suppliers on market prices and negative externalities. I am particularly interested in the manufacturing sector.
33 views

### Is land rent an easier form of control than slavery? [closed]

Assuming rents are high enough isnt it easier to make people fight over pieces of paper to pay land rent, rather than directly enslave them?
64 views

### What additional axiom to GARP do we need to generate a differentiable or smooth utility function

After researching for a while, I find this: https://www.jstor.org/stable/1913607?seq=2#metadata_info_tab_contents They come up with an axiom called SSARP that generates a preference with smooth demand ...
22 views

### What does it mean satisfy budget equality? [closed]

given a demand function x:Rn++ → R+ → Rn+ what does it mean x satisfies the budget equality? (The answer: it just means a consumer buys things until they've spent all the money that they have)