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8 views

Are CPI stats weighed based on population size

Generally inflation and CPI are reported on a national level. If a country for example has 10 cities, after surveying prices in each individual city, how is the total CPI number determined for the ...
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0answers
13 views

Correlation between perfect strategy and market

What is the correlation between a perfect market-timing strategy (it always goes short/long one unit the day before the market goes down/up) and the market itself, assuming the market has a symmetric ...
0
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0answers
6 views

Data Set Request Wage and Factors Effecting Wage ( Education, Disability e.tc.)

I am looking to an Econometrics study. Where can I get wage data and factors affecting wage for the United States state by state?
-1
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0answers
9 views

New equilibrium when ad-valorem tax is imposed on supplier

In a question in a past final from my intro Microeconomics courses we're given the following demand and supply equations: $P_s=50-\frac Q2$ $P_d=\frac Q2$ Which give an initial equilibrium quantity ...
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1answer
10 views

How to calculate Real GDP from quarterly change

How do I calcualte a countries Real GDP from QoQ changes? Example - Australia 2018 - Real GDP was 1432195178668.32 $Billion 2019 Q1 was 0.5% 2019 Q2 was 0.6% 2019 Q3 was 0.4% How do I calculate ...
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2answers
26 views

What is wrong with the idea that resource depletion causes recessions? [closed]

How can you refute this theory, such that it never comes up again.
0
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1answer
25 views

Intertemporal budget constraint notion

Let $W$ denote the investor's wealth $B$ is the the investment in the risk free asset (suppose that the risk free rate is taken to be zero) and $X$ is the investment on the risky security which has ...
0
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0answers
6 views

Comparable data on second-hand market?

I see neither the WB nor the OECD collect data on second hand markets. However, estimates for fashion, for example, suggests this are quite significant (US here: https://luxiders.com/second-hand-...
1
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2answers
27 views

What is the implicaiton of agent risk neutrality in moral hazard?

I heard that risk-neutrality of agent in moral hazard imply that the action associated with first-best and the one associated with second-best will be the same. Is it true and why is it so? Are there ...
-1
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1answer
16 views

Does demand side economics only apply to manufacturing

For example, if investment falls then manufacturing falls. but there is no investment in secondary markets. Wouldn't recessions cause factories to collapse but why would they affect realtors, used ...
0
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1answer
18 views

consequences of an inheritance tax on family owned businesses

Whenever I see the pros and cons of an inheritance tax discusses one common argument against it is as follows: If an inheritance tax is imposed on transferring a family owned business, then this tax ...
-1
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1answer
10 views

Canonical RBC model and technology shock

Could you help me with these questions? I have to explain "why" this statement is True/False/Uncertain, but lost "In the Canonical RBC model, more persistent technology shocks help to match the level ...
0
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1answer
17 views

Question regarding couple economic terms and concepts

I am trying to read some economic articles for future use. However, as a statistics major student, I am quite unfamiliar with couple of economic vocabs and concepts. Followings are the very vocabs. -...
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1answer
12 views

Does GDP Income Approach hold?

Let me introduce my question with an example. There is a company producing cars. 20 cars are produced, with a value market of 20000u. GDP = 20*20000u = 400000u. Assume that the company doesn't ...
0
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0answers
15 views

What does “steep incentive contract” mean in the context of adverse selection?

This term was mentioned in a slide and when I looked online, the only thing which I could find talking about this is this paper. For example,in the cost-plus-incentive contract $$x(T, c) = a(T) - a'...
1
vote
1answer
26 views

Dimensional analysis of GDP

The GDP is sometimes given by $$ GDP=P\cdot h\cdot e \cdot F $$ Where $P$ is the Productivity, $h$ is the number of hours worked, $e$ is the employment rate and $F$ is the size of the labor force. ...
-2
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0answers
11 views

The weekly demand for Kelewele among the 2019 cohort of BSc Admin students at the UGBS is 𝑄𝑑𝑥 = 500 − 5𝑃𝑥 + 0.5𝐼 + 10𝑃𝑦 − 2𝑃 𝑧

The weekly demand for Kelewele among the 2019 cohort of BSc Admin students at the UGBS is 𝑄𝑑𝑥 = 500 − 5𝑃𝑥 + 0.5𝐼 + 10𝑃𝑦 − 2𝑃 𝑧
3
votes
1answer
34 views

Interpretation of $\frac{\partial }{\partial p_1}Q_1(p_1, p_2)/\frac{\partial}{\partial p_2} Q_1(p_1, p_2)$

I am interested in an economic interpretation for the ratio of partial derivatives of a demand function $Q_1(p_1, p_2)$, which is \begin{equation} t=\frac{\frac{\partial}{\partial p_1}Q_1(p_1, p_2)}{\...
0
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0answers
19 views

Intuition for factor price insensitivity in Heckscher-Ohlin

I'm trying to develop some intuition for why factor prices are independent of factor endowments in a small open economy (in a standard Heckscher-Ohlin 2x2x2 setting with diversification and no factor ...
0
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2answers
13 views

What are macro-economics simulations horizons and limits possible with exascale computing?

What are typical examples in literature of large scale simulations of macro-economies of our time as of 2019 and what will change with the introduction of exascale computing? In terms, are there ...
-2
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0answers
15 views

Deadweight loss from a linear demand function [closed]

If I have a linear demand function: x = a - bp How do the values of a and b affect the deadweight loss of a commodity tax?
2
votes
1answer
63 views

Finding Bayesian Nash Equilibrium

I'm recently new to Game Theory and I've recently started teaching myself about Bayesian Nash Equilibirum. I've stumbled across a problem set that I can't seem to wrap my head around concerning ...
1
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1answer
22 views

How to calculate the degree of risk aversion of a consumer in a lottery?

To give an example, say we start with 100 dollars and we enter a lottery. With probability $\pi$, this 100 dollars is reduced by 2 dollars. Otherwise our endowed 100 dollars does not change. Let's say ...
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0answers
5 views

What was the difference between the UK government’s special liquidity scheme and quantitative easing?

How exactly were the two schemes related and was the lending of treasury bills the same as electronically creating money to buy bonds?
1
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1answer
30 views

How exactly did Venezuela's economy fail?

Venezuela has unfortunately become the example of a first-world, wealthy democracy failing, and I'd like to make sure I understand why. My understanding comes down to a few major steps, namely: ...
2
votes
1answer
155 views

Why is the risk premium always positive for risk averse individuals?

I think this has to do with the definition of concavity and the fact that a risk averse person has a concave utility function, but I'm not sure how that helps.
0
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1answer
16 views

How do I run a regression with the restriction that one set of parameters are proportional to another?

I'm running a regression with a set of 3 dummy variables (for four categories of a variable) and these 3 dummies interacted with a continuous variable. I want to impose the restriction that the vector ...
0
votes
2answers
29 views

Are businesses and individuals buying clean / green / renewable energy contribute to slowing down the climate change?

I'm not sure if an individual choosing a "green energy supplier" is making any difference. My (potentially naive, uneducated) logic is as follows: ...
2
votes
0answers
32 views

Why is there a big change in the money supply at the beginning of each month?

I was watching Argentina's daily change in monetary base for a selected period and there is a clear spike at the beginning on each month. Then during the month it slowly goes down until reaching ...
3
votes
1answer
53 views

Will the monopolist inevitably increase the price if demand grows?

Supposing that demand for a product in a monopolised market has grown, is it possible that equilibrium price will go down? In most cases we simply draw curves D, MR, MC and make conclusions. I ...
0
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0answers
25 views

Combine Gini index with GNI/capita (PPP) to produce an indicator which gives the same weight to low percentile incomes as to high percentile incomes

Consider the attached charts, which show that Country B has a higher average income, but Country A has a higher average log income. The difference in average log income is more important to me than ...
1
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1answer
24 views

How would a 2D model of Hotelling's law outweigh the benefits of a 1D model?

I'm not sure if this goes here, or on a math exchange. I could move it if you guys want... Let's examine Hotelling's law on a 1D plain with two shops. Both shops would do society a favour if placed ...
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0answers
37 views

Do Cuban state workers really earn 24 times less than privately employed workers? [migrated]

Excuse the provocative question in the title, it's not meant to be read literally. A recent video by the Guardian looks at the difference between public sector workers and the privately employed in ...
-1
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1answer
37 views

u(x1, x2) = √ x1 + x2. m = £100 and that p2 = £10, p1 = £1 find the optimal bundle for the consumer [closed]

u(x1, x2) = √ x1 + x2. Suppose that m = £100 and that p2 = £10. Find the optimal bundle for the consumer. In other words, find the combination of x1 and x2 that maximizes the consumer’s utility when ...
1
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0answers
53 views

Writing constraint

A firm accumulates useful knowledge $k$ by investing in R&D activities. Specifically, if the firm invests $r > 0$ dollars into R&D, the stock of useful knowledge grows by about $2\sqrt{r}$ ...
-1
votes
1answer
30 views

Quasi linear function how to rule out corner solution

I'm dealing with a quasi-linear utility function which is $u(x,y)=x+2\sqrt{y}$ There is not income effect so the Walrasian demand obtained by the procedure: $MRS=Px/Py=\left(2\sqrt{y}\right)'$ and ...
2
votes
0answers
30 views

Why don't more people use adblockers?

Economists are fond of posing "puzzles", for example the "annuity puzzle" (why don't more people buy annuities). I wonder if any economists (or other social scientists) have, in similar spirit, ...
0
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0answers
14 views

Stock price and exchange rate is correlation, but VAR model order is zero

It is well known that Japanese stock price and exchange rate(USD/JPY) is correlation, So I built a VAR model in python about stock data(Tokyo stock price index) and exchange rate(USD/JPY) and I fitted ...
3
votes
1answer
86 views

Confusion about the convexity of the best response correspondence

I am recently reading the proof of the existence of the Nash Equilibrium. As a math student, I do understand the use of Berge's maximum theorem and Kakutani's fixed point theorem, but I am not sure ...
1
vote
1answer
17 views

Economic Profit and the Return on Invested Capital

In my finance classes, I always learned that the a firm earning an "economic profit" is one for which its return on invested capital (ROIC) is greater than it's opportunity cost of capital (usually ...
1
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0answers
31 views

Intertemporal choice with possibility of death

Here is the setup: Suppose that there is an individual who lives up to two periods. He lives with absolute certainty during period $1$, and during this period his sub-utility function is given by: $$...
0
votes
1answer
22 views

What's the econ word for “Savings and efficiencies gained via consolidation”?

For example, say you had 5 kitchens making cookies in 5 parts of the city. But, then you bought 1 big kitchen, and moved all of your 5 kitchens to this 1 big location. Due to mass production, we ...
3
votes
1answer
30 views

What does commitment in adverse selection mean?

In this slide deck, p15. it says "The revelation principle requires that the principal can fully commit to the terms of the contract. If this is not the case, an indirect mechanism, which allows for ...
0
votes
1answer
16 views

What is “indirect mechanism” in the context of adverse selectoin?

On this slide deck, page 12, it says "then this direct mechanism implements exactly the same allocation as the indirect mechanism we started". What is indirect mechanism in this context and in ...
-1
votes
1answer
28 views

Is Buy Nothing Day a classist protest of Black Friday?

I hope this isn't off topic, it seems specifically economic to me even though it probably intersects with other fields of study. Black Friday is seen as an iconic hallmark of consumerism, and Buy ...
-3
votes
1answer
37 views

consumer preference [closed]

let $u(x_1,x_2)=x_2 + a\ln x_1$ subject to $m=p_1x_1+ p_2x_2$ when I try to derive the Marshallian demand for $x_1$ and $x_2$ I cannot find the Marshallian demand for $x_1$ since the marginal utility ...
1
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0answers
24 views

(Universal) Basic Income as a type of insurance

I was thinking about UBI a lot and I can see that it has many up and down sides. What I would like to know is if there is a concept like UBI, which is not paid by the government through taxes, but ...
-3
votes
1answer
31 views

how can i solve the missing values in the substitution matrix if i have a 3 by 3 matrix and the value of p1,p2 and p3 are given [closed]

i get a challenge of solving the missing values in the 3 by 3 substitution matrix. the only given values are p1,p2 and p3 and only 3 values in the matrix the rest of the values in the matrix are ...
-2
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0answers
26 views

Filling the inventory section in a business plan [closed]

How the inventory section in the below business plan got filled? https://www.bplans.com/massage_products_business_plan/appendix_fc.php It seems that the related formulas do not work. Thanks BTW: I ...
4
votes
1answer
278 views

How to borrow at risk free rate

When learning about derivatives, we learnt about risk-free hedges and portfolios. However, one of the concepts was about borrowing and lending at the risk free rate. Now, for lending it's as simple as ...

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