All Questions

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 ...

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 ...

I am looking to an Econometrics study. Where can I get wage data and factors affecting wage for the United States state by state?

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 ...

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 ...

How can you refute this theory, such that it never comes up again.

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 ...

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-...

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 ...

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 ...

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 ...

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 ...

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. -...

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 ...

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'...

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. ...

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

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)}{\...

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 ...

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 ...

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?

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 ...

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 ...

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

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: ...

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.

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 ...

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

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 $2\sqrt{r}$ ...

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 ...

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, ...

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 ...

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 ...

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 ...

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: $$...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...