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0answers
3 views

The relationship between Account Receivable Days and Credit Policy

I am wondering if credit policy relaxation affects the account receivable days when markets becoming more competitive. Conventional wisdom suggested that the credit policy relaxation will lead to &...
0
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0answers
7 views

Merge as a solution to externality

Can anyone mathematically, with any example, say, how can merging internalize the externality?
0
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0answers
7 views

Adding scaled CRRA utility

Suppose our utility function is the usual CRRA utility with $\gamma=2$ so that: $$u(C) = \frac{C^{1-\gamma}}{1-\gamma} = -\frac{1}{C}$$ Now suppose there are 2 goods, A and B, available for ...
0
votes
1answer
16 views

Does Russia have higher inflation than US and Canada? If so, why?

My understanding is that Russian inflation in recent years is considered to be running in the 5-6 % range, while US and Canada - in the 2-3% range (as measured by price increases/CPI). But I'd expect ...
0
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0answers
11 views

Derivative of $x_1^S(p_1, p_2, \overline{x}_1, \overline{x}_2) \equiv x_1(p_1,p_2,p_1\overline{x}_1 + p_2\overline{x}_2)$ to derive Slutsky equation

Why is the partial derivative of $x_1^S(p_1, p_2, \overline{x}_1, \overline{x}_2) \equiv x_1(p_1,p_2,p_1\overline{x}_1+p_2\overline{x}_2)$ for $p_1$ $$ \frac{\partial x_1^S(p_1, p_2, \overline{x}_1, \...
0
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0answers
6 views

Is there any explanation regarding the strange movement of total asset turnover and its components?

I am doing an empirical study using a Difference-in-Difference method. After the event, the total assets turnover of the treatment country increase. In the same setting, I found all fixed asset ...
-2
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0answers
9 views

Nash Equilibrium with three players how to solve [closed]

I h Apart from pure strategy nash equilibrium, are there any mixed strategies? If so what are they? why are the no more equilibrium beyond what is found?
0
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1answer
18 views

free market equilbrium point, S=D confusion

I am confused over the concept of market equilbriums. let's say there is a firm X, who supplies 100 units in 1 week and the market demand is also 100 units, then Supply = Demand, and resources are ...
5
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1answer
88 views

Economic theory journals for a refinement theorem about utility function representation

I would like to ask which are the (mathematical) economics journals that publish papers about economic theory and that focus mainly on the mathematical aspects of it. Let me be more precise. If I have ...
0
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0answers
21 views

Unsolveable Demand/Utility Problem?

A consume has a preference relation on $\mathbb{R}^4_+$ with a utility function defined as $$ U(x_1,x_2,x_3)=(\ln(3x_1+2x_2+x_3))^3$$ Find the demand at prices $p=(1,1,1)$ and wage $4$. Attempt I ...
1
vote
1answer
25 views

Interpretation of multinominal logit regression (Stata)

I have a few questions about mlogit. I have a set of independent variables and a categorical, but ordered, dependent variable with three categories (Disagree, Neutral and Agree). The assumptions for ...
1
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0answers
21 views

Asymptotic variance vs. conditional variance in calculating regression estimator standard errors

I am given regression model $y_i=x_i^T\beta+\varepsilon_i$ with heteroscedasticity. Let $Avar(b)=E[x_ix_i^T]^{-1}E[\varepsilon_i^2x_ix_i^T]E[x_ix_i^T]^{-1}$ Hayashi's book states that regression ...
8
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6answers
526 views

Why are cost functions often assumed to be convex in microeconomics?

Why are cost functions typically assumed to be convex in producer theory of (introductory) microeconomics? For me this goes against the intuition of economies of scale. There are fixed costs (FC) ...
0
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0answers
10 views

Event Study - Definition of Estimation Window (Trading Days vs Non-Trading Days)

I am currently conducting a event study for my research project on M&A. I have all data available and want to use https://www.eventstudytools.com/. But there is one clear which is not apparent to ...
0
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0answers
29 views

Long run equilibrium price under perfect competition

I have a problem related to Ricardian rent. I have one firm, let's call it X firm, and all of the other firms in the market. All firms have to pay some transportation costs due to their land except ...
-1
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0answers
8 views

macro economics [closed]

Use the IS-LM diagram to show how income and the interest rate change when there is an increase in government spending. (b) Explain the result intuitively. (c) Use the diagram to illustrate crowding ...
1
vote
1answer
27 views

Why does a higher risk aversion leads to a lower intertemporal elasticity of substitution?

Mathematically, a higher risk aversion leads to a lower intertemporal elasticity of substitution (there is an inverse relationship). But why? If I become more risk-averse, I would like to smooth my ...
1
vote
1answer
70 views

Solving a system of equations using R

I'm trying to use R for my Macro practise and model solve for the equilibrium price where the inverse demand curve PD(q) and supply curve P. How do i do this? Thanks!
2
votes
3answers
279 views

Demand curve is same as Marginal Benefit curve?

Demand curve is same as Marginal Benefit curve [Source: Microeconomics by Pindyck & Rubinfeld, Chapter 10, Section 5 - Monopsony]. I have only seen intuitive explanations for this statement. Can ...
0
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0answers
14 views

Calculating 2 year CAGR CTG (Contribution to Growth)

DATA Year Q P Sales 2018 100 5 500 2019 125 7 875 2020 130 10 1300 2021 132 11 1452 CTG 2020-2021 YoY 2020 48.6% Q -2.5% P -34.4% YoY ...
2
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1answer
30 views

Concept of Utility in demand systems

I have seen that researchers use different utility function in demand systems estimation such as Stone Geary. What is the role of these utility functions? What are utility function other than stone ...
4
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2answers
45 views

Elasticity of Substitution of CRS Production Function

Suppose that $F(\cdot)$ has CRS in $K$ and $L$, the elasticity of Substitution is $\sigma_{K L} \equiv F_{L} F_{K} / F F_{L K}$. I once derived this equation but I remember that it takes me quite ...
1
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0answers
14 views

Suggested model for dependent variable of different groups

I want to test the impact of X on Y. The dependent variable Y is being employed. Now, I want to see if the impact of X is different for those employed in agriculture (A) and non-agriculture (N) ...
0
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0answers
12 views

How can I solve the Nigeria's industrial [closed]

The following is Nigeria’s Industrial Output Index for the years 1984 to 1997: Year Index of Output 1984 175 1985 190 1986 132 1987 96 1988 100 1989 78 1990 131 1991 135 1992 154 1993 163 1994 178 ...
1
vote
0answers
35 views

Choosing a econometric model for this situation

I want to estimate the effect of adoption of a policy (POL1) by firms on their Value (Y). The adoption of POL1 is driven by self-selection. A new law forces a subgroup of firms to adopt a policy ...
0
votes
0answers
28 views

Pure Nash equilibrium in bidding game?

According to the answer key for a problem set, there is no pure strategy Nash equilibrium in the following problem. Yet I can't see why not. Could it be an error in the answer key? Here's the problem: ...
0
votes
0answers
9 views

Credit Constrains [closed]

[![Image 1][1]][1] [![Image 2][2]][2] [![Image 3][3]][3] I need help with this microeconomic problem. My thesis advisor told me that I need to solve them for my thesis. They are vaccine allocation ...
3
votes
2answers
67 views

Why so many suppliers of inexpensive ordinary products

There are a very large number of suppliers of common, inexpensive products, and I am wondering why a few large companies don't simply provide all the supply? I am not thinking of food or clothing or ...
2
votes
1answer
58 views

A differentiation step in a economic growth model

I started studying Olivier Blanchard and Stanley Fischer's Lectures on Macroeconomics, but I couldn't follow the reasoning behind a differentiation step (at least I think it is something involving ...
0
votes
1answer
52 views

Utility function and homogenous of degree zero

I've a utility function which is given by ($x_i$-$b_i$)$^{c_i}$ $\sqrt{x_2}$ . What values of b and c can I input to ensure Homogenous of degree zero in prices and wealth? I think c will be positive....
1
vote
0answers
32 views

Detrending multiplicative model

I have a GDP quarterly series and IND.P monthly series, which I need to detrend. I am following Bernanke et al. paper from 1995 and the way they do it is: ...
0
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0answers
12 views

Are these two different cases when it comes to Forex Reserves?

In a forex reserve, what is the difference between "Buying US Dollars to pile up reserves" and "Using FPIs, remittances or exports to build up reserves" ? How differently do they ...
4
votes
1answer
100 views

Are the goods in additively separable utility functions normal goods?

Inspired by this answer. To make it a bit more precise, by normal good I mean demand is (not necessarily strictly) increasing in income, and by additively separable utility function I mean that a ...
3
votes
1answer
88 views

Expected utility theory (Lottery notation)

A wheel of fortune has outcomes $S=\left \{ 1000,100,50,20,0 \right \}$ as money prices. A consumer has the preferences $$20\sim \left ( \frac{2}{100}\cdot1000 \oplus \frac{98}{100} \cdot 0 \right )$$ ...
1
vote
1answer
51 views

Cobb Douglas relation with uncompensated law of demand

Does a Cobb Douglas or homothetic function satisfy the uncompensated law of demand?
2
votes
1answer
73 views

Why we need to control for the interation of year and industry fixed effects?

Normally, we control for firm and year fixed effects, but in some case I saw people control for the firm along with yearxindustry or firm and yearxregion fixed effects. Could you please hint me why ...
-3
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0answers
23 views

Take it or Leave it Offer [closed]

[![I am having a bad time solving second price auctions and lotteries with resale with credit constrains. Does someone know how to answer these?][1]][1] I have to solve some microeconomic bonus ...
3
votes
1answer
26 views

Derive the Demographic Structure in the Steady State

I am reading a paper with following description on the demographics in their model: "... each (representative) agent lives for $T$ periods ... We assume that each individual has $e^{f}$ children ...
1
vote
1answer
51 views

Production Set: Not satisfying Free Disposal Assumption

I saw the figure which satisfies the free disposal assumption in Mas-Colell, Whinston and Green (1995), but wondering if there is a figure that DOES NOT satisfy the free disposal assumption? Any leads ...
1
vote
0answers
28 views

Perfect information game

Assume that there are two parents A and B who are tempted to pick up their children late. We denote the set of parents $N = {A, B}$. Each parent $i \in N$ chooses from the action set $A^i = {E, L}$ ...
1
vote
1answer
52 views

Trigonometric Cost Function

I've been reading on producer theory and came up with a ridiculous question. Has anyone tried to model costs with a trigonometric function? would it work with the assumptions we need? Thanks!
1
vote
1answer
27 views

Why does HDI use log-transformed data for income index?

For calculation of HDI, the Income Index used is $\mathrm{I_{income} = \dfrac{ln(Income) - ln(min Income)}{ln(max Income) - ln(min Income)}}$. Why is the log transformed income used here? World Bank ...
0
votes
1answer
23 views

Price level and purchasing power of currency(PPP)

This could be a silly question, but I'm a bit confused with this concept. Don't we say usually the purchasing power(or value) of currency(or money) is low when the price level is high in one country(i....
2
votes
1answer
31 views

Having difficultly to understand two indices with regard to inflation

What are these terms "provisional headline inflation" and "imputed index" used to predict in terms of inflation?
1
vote
2answers
43 views

Axiom of Minimal Liberalism & Sen's Theorem of Paretial Liberal

Suppose that a person believes that all humans are guaranteed a set of rights that cannot be taken from them in any situation or circumstance (for example, the right to marry a person of your choice, ...
3
votes
1answer
154 views

Question about Social Welfare Function and Social Profile

What are the meanings of a social welfare function and social profile? How are they related?
0
votes
0answers
18 views

What theoretical effects does the minimum wage have on a perfectly competitive market's CPI? [closed]

I don't need statistics, I already have some that lean positively towards the minimum wage. However, I'm trying to find the negative theoretical effects on the CPI through unemployment and a price ...
0
votes
0answers
14 views

In the Solow growth model, assume all the standard assumptions hold, except now population is constant and depreciation rate of capital is zero [closed]

a. There are two steady states b. Capital and capital per worker grow at the same rate c. In the steady state, investment is equal to the depreciation rate d. Aggregate savings are larger than ...
0
votes
0answers
12 views

Assume the economy exists for two periods and works as in the monetary intertemporal model. Prices are fully flexible [closed]

If the intertemporal substitution of leisure were absent: a. output demand will be fully elastic b. output supply will be fully elastic c. labour supply will be fully inelastic d. output supply will ...
2
votes
1answer
51 views

Derive demand function from utility

Never encountered such a problem as I am new. $$U(x_1,x_2)=(a\ln(x_1)+b\ln(x_2))^n$$ and $a,b,n>0$ with income $w>0$ and prices $p_1,p_2>0$. Find the demand function. Attempt I am thinking ...

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