All Questions

Filter by
Sorted by
Tagged with
1
vote
0answers
12 views

What are good analogies for explaining negative externalities?

I'm making an infographic about the negative externalities of driving, and I want to explain that taxation is not "just" a tool to get a desired effect; it's a price-correcting mechanism ...
0
votes
0answers
10 views

Interest on consumption should be included or not in national income

Why interest on loan taken for consumption purpose is not included in national income why it is not considered as a service produced instead of transfer payment ?
1
vote
1answer
29 views

Total derivative evaluates to zero: problem while doing comparative statics

I am playing with a toy model version for my research and I have an implicit equation defining the equilibrium: $$\phi = \frac {S}{NF(\phi(u-\eta)+\eta - c)}$$ where $S,N,u,\eta,c$ are parameters and $...
0
votes
0answers
14 views

Lagrangians of a negative minimum function

if I rewrote min -f(x) s.t. g(x)<k as -max f(x) s.t. g(x)<k, what would my Lagrangian look like?
0
votes
0answers
16 views

minimisation problem as a maximisation problem for lagrangians?

if I have a problem min(-f) s.t. g<0, I can rewrite it as -max(f) s.t. g<0. In this case, if I take Lagrangians, would my lagrangian be L=f- lambda(g-0) or would I have to have a negative in ...
0
votes
0answers
10 views

Modeling asymmetric effects

I was at a colloquium with the BOC and the presenter was showing some IRF's of rate change effects. Intuitively people tend to borrow more when rates decrease but can't exactly change their behavior ...
0
votes
2answers
18 views

What are the consequences of an increase in interest rates for States?

As the inflation is high, central banks such as the FED and the ECB are about to raise their rates. One of the consequence is that the stock market is falling and in particular companies having a lot ...
-1
votes
1answer
38 views

Representing a Lexicographic Preference in a Natural X Natural Choice Space With Utility Function

my current thinking is i have to dis/prove two things cardinality continuity but im not sure about how it would apply since the above is a natural X natural choice space I know cardinality of ...
1
vote
0answers
20 views

Visualisation of a 3-person 3-good economy

Are there any theoretical or practical ways to visualise such an economy? I understand that a 2-person 3-good economy is visualised by a 3D Edgeworth Box (a cube), but what about a 3-person 3-good one?...
0
votes
0answers
26 views

isoquant of a leontief production function

Consider a firm that can produce q units of good G using two technologies and two production factors, $z_1$ and $z_2$. There are two ways how a firm can produce the good G: It can use 2 units of $z_1$ ...
-1
votes
0answers
6 views

Items to be included or excluded from national income

Why interest paid on consumption purpose is not included in national income ?
0
votes
1answer
56 views

Strategic game with complete informaation

Consider the following strategic game with complete information played by three players. Each player $i ∈ {1, 2, 3}$ chooses her action from $A = \{1, 2, . . . , 10\}$. Utility functions, mapping each ...
6
votes
5answers
2k views

Real Life Examples of Optimization in Economics

I am trying to find some real life ("non trivial") examples of optimization related to economics. So far, most of the examples that I come across are from introductory economics textbooks ...
1
vote
1answer
151 views

Why is N*R^2 called an "LM test"?

After OLS, one can test the null hypothesis that all coefficients are 0 by calculating $N\cdot R^2$, which is distributed $\chi^2_{k}$ where $k$ is the number of $\beta$ (excluding the constant). I ...
1
vote
2answers
45 views

Why does a company need to pay 90% of its income as dividends to qualify as a REIT?

I came across this page on Investopedia that says that according to the US tax code, to qualify as a REIT, a company must pay a minimum of 90% of taxable income in the form of shareholder dividends ...
1
vote
1answer
75 views

Did Biden's stimulus packages cause inflation in the US?

Can we state with high confidence that Biden's stimulus packages were indeed a major factor in the spiraling (or, at least, pretty high) inflation in the US? Did Biden go over the top with it after ...
0
votes
1answer
20 views

GDP: business incorporation location vs citizenship criteria [duplicate]

Suppose a US citizen resides in Germany. He is a business-owner in Germany and the business is legally incorporated in Germany. However, he is a US citizen. The value of the good produced by this ...
1
vote
1answer
30 views

How does a trade deficit affect GDP?

How would an increase in the trade deficit affect GDP? As per the majority of sources I’ve read such as Investopedia, they claim that GDP would decrease due to a decrease in the NX component of the ...
1
vote
0answers
55 views

Why Sequenial Equilibrium (SE) imposes no restrictions on the off-equilibrium beliefs in the Spence's model?

I read some lectures on the Spence's model. Some (see e.g. P31 of lecture PPT from MIT game thoery course) mention that SE imposes no restrictions on the off-equilibrium beliefs but without proof. I ...
0
votes
1answer
48 views

GDP and the case of Netflix and Uber

When a European citizen residing in Europe pays a subscription for Netflix, is this counted as an import of US goods and therefore only increases the GDP of US but not of the European country ? What ...
3
votes
1answer
88 views

Sequential Equilibrium (SE) and Perfect Bayesian Equilibrium (PBE) in signaling games

I know that in the paper "Perfect Bayesian equilibrium and sequential equilibrium", the authors proved that for signaling games (considering the simple case that there are two periods and ...
0
votes
1answer
50 views

Is there a consensus of the effects of free trade on the economic prosperity of developing countries?

In economics it is generally agreed that free trade benefits all participants. However when reading non-economic literature there are often objections regarding free trade especially for developing ...
0
votes
0answers
31 views

When a country is banned from using SWIFT, what alternative ways do banks within that country still have to transfer or receive money from abroad?

If Russia invades Ukraine one of the sanctions that the west might impose is banning the banks in Russia from the SWIFT network. I've watched a short video from a financial news channel that explains ...
0
votes
1answer
23 views

How to deal with building a linear model where I have sales data for 5 different chains and 117 weeks?

I have a sales data for brand1 (it has to be my dependent variable) and for brand2, brand3 and brand4. All of them are presented for 5 different chains. Data for every of chain is presented for each ...
0
votes
1answer
32 views

What are the necessary and sufficient assumptions for indifference curves to be convex to the origin?

I thought this required (quasi-)concavity of the utility, but can this (e.g. declining MRS) occur with fewer assumptions?
1
vote
0answers
9 views

Difference in difference papers that look at multiple cohorts at a point in time?

I'm trying to see if a CCT targeted at school age children can mitigate adverse impact of weather shocks faced in childhood on their wages in adulthood (at age 30 say) using a setting similar to Duflo,...
1
vote
1answer
39 views

Validity of Marxist critique

According to the Wikipedia page on Marxist economics, one criticism Marx had of capitalism is that the capitalist model of employment creates a difference between the value the workers create and the ...
0
votes
1answer
46 views

Discrepancies of average/median net worth versus home values in USA?

I got a semi-interesting question, I think. Why are there big discrepancies between the average vs median net worth (USA), 746,820 vs 121,760, and the average vs median home values, 453,300 vs 404,...
0
votes
0answers
28 views

Solow Model vs. Ramsey Model [closed]

I am a little confused. Our professor gave us the task of working out the similarities and differences between the Solow Model and Ramsey Model (both without technological progress) and which model ...
1
vote
0answers
24 views

Information Asymmetry in capital markets: EU ad-hoc announcements/8-K filings in other countries

In many countries, companies whose securities are traded on a stock exchange are subject to an ad-hoc disclosure requirement. This ad-hoc announcement publication duty refers to the obligation to ...
0
votes
0answers
44 views

Auction Theory and Elections

Can we (is it reasonable to) apply auction theory and the various incentive compatible mechanisms to elections and guarantee cardinal voting? I am thinking specifically of VCG auctions and ...
2
votes
1answer
99 views

What are the defining characteristics of applied microeconomics papers?

I'm in bit of a fix. I'm trying to define my research interests and am confused whether or not to include applied microeconomics as one area. The way I see it is applied microeconomics is more of an ...
4
votes
0answers
52 views
+100

Perfect Bayesian Equilibium - Application to game with inconsistent beliefs / no common prior

Does the concept of a Perfect Bayesian Equilibrium apply only to incomplete games with a common prior / consistent belief? In both Bonanno's "Game Theory" and Osborne's "A Course in ...
1
vote
2answers
56 views

Is a market price unique?

The market price is defined as the most recent value at which a commodity is traded. But for some commodities, the price might vary significantly between sellers. For example, there my local fruit ...
-1
votes
0answers
30 views

What would happen, if Revolut would trigger a bank run?

Revolut has 18 million users in Europe, whose deposits in Revolut are held in a Lithuanian Revolut Bank UAB, which is a commercial bank. This banks is insured by the Lithuanian State Company "...
1
vote
1answer
66 views

Visualizing the expenditure minimization problem

I can easily visualize the utility maximization problem ie. $$v(\mathbf{p},m^{*})= \max_{\mathbf{x}} \ u(\mathbf{x}) \ \ s.t \ \ \mathbf{px}\leq m$$ Since it is pretty easy to graph the indifference ...
3
votes
0answers
82 views
+50

Are these two definitions of Bayesian Nash Equilibrium equivalent?

Consider a standard game $\Gamma$ with incomplete information. There are $n$ players indexed by $i=1,...,n$. $S_i\equiv \{s_{i1},...,s_{iJ}\}$ is the set of actions of player $i$. $S\equiv \times_{i=1}...
2
votes
1answer
49 views

Is the following claim written with the right way?

I have a simple question though confusio for me. In game theory we usully write thet a strategy is a mapping from the set of types $T$ to the simplex set of actions (refering to mixed mixed strategies)...
1
vote
2answers
82 views

What are the most used econometric methods in economics?

As the title says, I would like to know what methods are most often used in empirical economics. For example, are IVs used more than DiD? I would prefer to see some survey of different methods that ...
2
votes
4answers
2k views

Is the market price objective?

Is the market price objective, does it exist independently of human consciousness, how do we treat the market price in economics and the philosophy of economics? The market price is the current price ...
3
votes
0answers
35 views

Extension of Harsanyi Transform for Two-sided Incomplete Information Games to Beliefs with Zero Probability

In the textbook I'm reading "Game Theory - Giacomo Bonanno", one requirement to applying the Harsanyi transform to convert a two-sided incomplete information game to an imperfect information ...
0
votes
0answers
31 views

Growth Premium and Debt consolidation

I'm interested in country cases (e.g., Argentina or another EME) where there have been periods of high economic growth but worsening (or at least not improving) fiscal balances. This could be either ...
-3
votes
0answers
22 views

What is the impact of falling inflation on the UK Economy ? URGENT [closed]

What is the impact of falling inflation on the UK Economy ? URGENT What is the impact of falling inflation on the UK Economy ? URGENT What is the impact of falling inflation on the UK Economy ? URGENT ...
2
votes
2answers
41 views

What is the purpose of a congestion tax with refund?

A common argument in the economics of transportation is that publicly provided roads free of charge will result in congestion. Users only internalize the average costs of using the road instead of the ...
2
votes
0answers
28 views

Solving Cost Minimization with CES Production Function and Two Types of Input

A CES aggregator: $y=\left(\int_{0}^{1} y(i)^{\frac{\eta-1}{\eta}} d i\right)^{\frac{\eta}{\eta-1}}$, where $i \in[0,1]$. For each intermediate good: $y(i)=\ell_{r}(i)+\ell_{c}(i) / a(i)$, where $a(i)$...
1
vote
0answers
39 views

Correct procedure for Inference from the Lasso

Firstly, I'm from the more ML-y side of town so apologies for the naive questions. I have a situation with a treatment variable $D\in \{0,1\}$, covariates $X\in \mathbb{R}^p$ and a response variable $...
0
votes
0answers
60 views

How is North Korea paying for all its imports?

As far back as the 1980s it seems that North Korea has imported more than it exported. Given that they weren’t exactly a wealthy country back then, and as most countries stopped debt financing ...
1
vote
1answer
83 views

Why does the belief over information sets with probability zero matter in Perfect Bayesian Equilibrium?

I'm struggling to understand why the notion of "belief revision" is an important concept. In particular, why does the belief over information sets with probability zero matter? When ...
2
votes
1answer
24 views

Derive Value Functions in Job Search Model

I am reading a paper using the common job search framework, which has functions $\begin{aligned} &V_{r}\left(e_{r}\right)=w_{r}-e_{r}+\beta\left(q V_{u}+(1-q) V_{r}\left(e_{r}\right)\right) \\ &...
1
vote
1answer
30 views

Different ways of writing CIES/CARA utility

I frequently encounter the following two versions of writing CIES or CRRA preferences: $$u(c_t) = \frac{c_t^{1-\theta}-1}{1 - \theta}$$ ...and... $$u(c_t) = \frac{c_t^{1-\theta}}{1 - \theta}$$ The ...

15 30 50 per page
1
2 3 4 5
256