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0answers
2 views

What is liquidity overhang?

I read in an economics article the following: RBI Governor has decided to keep the unwinding of monetary policy gradual, calibrated, and non-disruptive while remaining supportive of the economic ...
0
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1answer
14 views

Can economic models predict China overtaking the United States?

I recently read an article about China's economic progress: Chinese economy to overtake US 'by 2028' due to Covid Can models and simulations based on economic data predict when China's economy will ...
3
votes
1answer
17 views

Expected payoff calculation difficulty in the Bayesian environment of Bergemman and Morris

Suppose that we have two states of the world equally likely to occur, and say $\psi$ is the common prior of the state $\theta\in\Theta=\{G,B\}$. The types of the players are given by the following ...
0
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0answers
7 views

An updated version of oxfam top 1% wealth share evolution to 2021

In January 2015 oxfam allegedly published this graph: Q: I'd like to see how that projection held up, by getting the updated data with a comparable methodology.
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0answers
12 views

Government spending multiplier in stochasic/deterministic economy [closed]

max $log c_1 +\beta log c_2$ s.t $c_1+g_1+s=y_1$ and $c_2+g_2=y_2+s$. Suppose that $g_1=G$ , $g_2=\rho G$. What is the value of $\frac{ds}{dG}$ when $y_2$ is deterministic?
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0answers
18 views

What does no anticipation following Athey, 2021?

From a paper of Athey, 2021, Journal of Econometrics, I saw the assumption of no anticipation effect is Assumption 2: For all units i, all time periods t , and for all adoption dates $\alpha$ , such ...
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0answers
3 views

Converting from Quarterly to Monthly Data for Output Gap

I am currently working on the quarterly output gap data on FRED. However, I would like to convert the data series into a monthly one. Would an appropriate methodology be to divide the dataset by 3 ...
1
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0answers
8 views

What is the difference between testing anticipation effect and parallel trend assumption in Diff-in-Diff?

In general, two most important assumptions that all Difference-in-Differences must satisfy are "no anticipation effects" and "parallel trend". The parallel trend is tested by ...
1
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0answers
12 views

Should we test anticipation effect for Diff-in-Diff in natural event?

Normally, anticipation effect is tested as an assumption for Diff-in-Diff. However, it seems that it is necessarily for examining the impact of laws on firms' behaviour or else. For example, we want ...
0
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0answers
16 views

Social planner's problem

Consider an environment where there is an infinitely-lived representative household endowed with $K_0>0$ units of productive capital and a total of $T_0>0$ units of time. The household has ...
0
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0answers
13 views

How to prove Slutsky matrix's symmetry for L=2

I don't understand how to prove slutsky matrix is symmetric for L=2 $$\frac{\partial x_1}{\partial p_2}+\frac{\partial x_1}{\partial w}\cdot x_2= \frac{\partial x_2}{\partial p_1}+\frac{\partial x_2}{\...
0
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1answer
19 views

Can anyone please interpret this sentence on employment?

If the increase in labour force has been higher than the rate of population growth, it means that the population is becoming younger requiring the creation of new job opportunities at an increasing ...
-1
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0answers
40 views

𝕼𝖚𝖆𝖓𝖙𝖎𝖙𝖞 𝖉𝖊𝖒𝖆𝖓𝖉𝖊𝖉 𝖔𝖗 𝕹𝖚𝖒𝖇𝖊𝖗 𝖉𝖊𝖒𝖆𝖓𝖉𝖊𝖉?

ℑ𝔫 𝔒𝔠𝔬𝔫𝔬π”ͺ𝔦𝔠𝔰, π” π”žπ”« 𝔢𝔬𝔲 π”°π”žπ”Ά "𝔫𝔲π”ͺπ”Ÿπ”’π”― 𝔬𝔣 𝔒π”ͺ𝔭𝔩𝔬𝔢𝔒𝔒𝔰/𝔴𝔬𝔯𝔨𝔒𝔯𝔰/𝔭𝔯𝔬𝔑𝔲𝔠𝔱𝔰 𝔑𝔒π”ͺπ”žπ”«π”‘π”’π”‘", 𝔬𝔯 𝔑𝔬 𝔢𝔬𝔲 π”₯π”žπ”³π”’ 𝔱𝔬 𝔰𝔱𝔯𝔦𝔠𝔱𝔩𝔢 π”°π”žπ”Ά &...
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0answers
8 views

Exchange rate determinatiom

Scenario Suppose the following initial scenario: β€’ The current exchange rate between the New Zealand dollar and the U.S. dollar is E = 0.70, using the NZD/USD quotation standard, and that the market ...
2
votes
1answer
59 views

Negative Definite vs Semi-definite Hessian - Sufficient vs Necessary conditions?

When a Hessian matrix is negative definite at a critical point then that critical point is a local maximum (Sufficient Condition). As per the calculus wiki: Link, when the Hessian is negative semi-...
0
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1answer
9 views

How to deflate data from PPI

I have producer price index data. I have 4 products almond walnut pecan and peanuts, two of them start from 1991 almond and walnut (base year) another two from 1982 pecan and peanut. Does anyone know ...
1
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1answer
30 views

What are the major flaws of the RBC model and how does the New Keynesian model address them?

Looking for a generic answer to this question and potentially literature etc. that will help me study this question. Thanks in advance.
1
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0answers
36 views

Lagrangian in Ramsey model

I struggle to write and solve Lagrangian in the Ramsey model. I have the following individual preferences with a budget constraint: and an additional constraint that is a no-ponzi condition: How to ...
0
votes
1answer
21 views

Why do the PV and FV formulas (in Excel, at least) use slightly different geometric series?

With geometric series, I understand that, broadly, you can sum from $1$ to $n$, or from $0$ to $n-1$. Let $r=0.03, p=\\\$10, n = 10$. $\sum_{j=s}^{j=s+n-1}{pa^j}=\frac{p\left(a^{n}-1\right)a^s}{a-1}$ ...
1
vote
2answers
78 views

Is Hal Varian's intermediate microeconomic externality graph wrong?

Here is the capture from Hal Varian's Intermediate Microeconomics chapter Externality. I remember clearly my lecturer said this graph is wrong several years ago, but I cannot remember the argument ...
1
vote
1answer
39 views

Opportunities for Computer Science Graduates in the Field of Economics

I know this question has been asked quite a few times already but I have several other different questions to ask too. So, I am asking all of them here. Let me give you a quick summary of my ...
-1
votes
1answer
39 views

Post-Keynesian theory and households?

"money must be introduced as part of the production process. Such a process is inherently dynamic, as entrepreneurs in each period must produce a new flow of commodities.” and households have no ...
0
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0answers
16 views

Price levels falling due to decrease in aggregate demand

I know that a shift rightwards in aggregate demand would cause an inflationary gap according to the New Classical model. It would cause price levels to rise and prices of factors of production to ...
0
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0answers
20 views

Say's law of markets: theory and empirics

Good morning everyone, since I've just finished to read the book "A Treatise on Political Economy" by the french economist J.B. Say and since I've read about his famous "law of markets&...
2
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0answers
11 views

Why does a buyer-employment contract dominate a spot contract in this example (Bolton & Dewatripont 11.1.2.5, p497)

I'm working through Bolton and Dewatripont, Section 11.1.2, and have some questions about material in 11.2.5 on the bottom of page 497. I've tried to abbreviate the setup below, followed by my ...
0
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0answers
14 views

Alternative theories of money and financial markets? [closed]

what is the difference between post-keynesian and marxist theories? and why the alternative theories of money and financial markets exist?
0
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1answer
34 views

Arrow's Theorem

Say there's a poll where there are 3 players and the voters pick their favourite. The poll will suppose Player x is weakly socially preferred to player y if and only if player x was awarded at least ...
2
votes
1answer
92 views

Can I assume utility functions strictly increasing?

I am required to show that if: $f:R^L \rightarrow R$ is a strictly monotonic function and $u:R^L \rightarrow R$ is a utility function representing a preference relation $\succsim$, then the function $...
0
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1answer
15 views

Approximation around steady state calculation

Define $\ln\frac{c_t}{c}=\hat{c_t}$ which means % deviation from steady state. Then $\frac{1}{c_t +\alpha g_t}=\lambda_t$ is equivalent as $\frac{1}{c e^{\hat{c_t}} + \alpha g e^{\hat{g_t}}}=\lambda e^...
0
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0answers
12 views

Harrington Emerson and his 12 principles of labor productivity

Are these principles currently relevant? Which principles would you add or, on the contrary, exclude? Which principles are observed today, and which are not? Why? Which of the principles would you ...
0
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0answers
3 views

STATA date conversion for calculation

I have two data sets, where in data set 2 the date is in following form "Friday, 10th January 2019". In data set 1 the date is given in the form "10 Aug 2019". I want to append ...
0
votes
1answer
15 views

What is Ξ± in a Cobb-Douglas utility function?

Sorry if this is not the place to ask, I'm new here. I'm studying economy but I'm struggling to understand the Cobb-Douglas utility function. If we've one such that xt is consumption in period t, and ...
0
votes
1answer
18 views

Macroeconomics Question - GDP & GNP

If I, a citizen from South Korea, borrow $100000 from a Japanese bank to fund my purchase of a new Mercedes in the US, I'll be contributing to the GDP of US. However, will I be contributing to the GNP ...
1
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1answer
34 views

Simple taylor approximation in macroeconomic model

Define $\hat{y}=\log\frac{y_t}{y}$ which means percentage deviation from steady state. Then $\hat{y}=s_c \hat{c}+s_i \hat{i} + s_g \hat{g}$ where $s_c +s_i +s_g =1$. I can't derive that result. Is ...
0
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0answers
15 views

Market clearing price for a single good with two consumers with different utilities

Say I have a single indivisible good that is randomly allocated to one of two consumers. The first consumer's utility for the good is \$5 and the second consumer's utility for it is $10. If the good ...
0
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0answers
6 views

Foreign direct investment data

Does anyone know where to get free cross country, country to country foreign direct investment and production chains data for a cross section analysis? I ve looked at the world Bank database, couldn'...
-2
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0answers
17 views

Elasticity of a function of two input variables

Could you please help me with a hint how to solve the following problem? I have to be able to explain it to a student, who studies economics in a university. Thank you.
0
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0answers
30 views

Lagrangian with no-ponzi condition [closed]

I struggle to write and solve Lagrangian in the Ramsey model. I have the following individual preferences with a budget constraint: and an additional constraint that is a no-ponzi condition: How to ...
0
votes
0answers
12 views

The relationship between the average revenue product of capital and productivity

I've been reading a paper in the capital misallocation literature (david and venkateswaran, 2019) which talks about the correlation between arpk and productivity. I can't figure out how these are ...
0
votes
0answers
12 views

Stata-Confidence interval for the difference between two coefficients from a regression

I have a question about creating confidence interval for difference between two coefficients from a regression. Is there any specific command in Stata to do that? After I run the regression, I use t-...
1
vote
0answers
10 views

Price rigidity and demand-constrained economies

In this note, http://web.mit.edu/krugman/www/MINIMAC.html, Krugman develops a simple model to introduce the idea that whenever an economy experiences price rigidity then this economy is demand-...
0
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0answers
8 views

Keynesian-classical synthesis

The trouble with classical interest theory, said keynes was that it assumed the fixity of the key economic variable the level of employment was assumed fixed at full employment.. How this assumption ...
0
votes
1answer
28 views

What does "inter alia" in "difference-indifference" testing?

today my paper get rejected due to this reason when I used the Difference-in-Difference as my methodology In addition, it would need to address concerns about causal estimates as there are a number ...
2
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0answers
20 views

Closed form solution to consumption-saving model in discrete time

Consider the simplest consumption-savings model of the following form: $$ \max_{\{c_t,a_{t+1}\}_t}\mathbb{E_0}\sum_{t\geq 0} \beta^tu(c_t) \\ a_{t+1} + c_t = (1+r)a_t + y_t \\ y_t \mid y_{t-1} \sim F $...
-2
votes
1answer
42 views

MMT and government deficit [closed]

How is MMT a viable strategy for making a more buoyant economy in times of slow growth and high unemployment with regard to Government spending? My question: MMT is talked about (Mosler and Kelton etc)...
0
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0answers
11 views

What is the impact on nominal wages and return on capital in two sectors? [closed]

A country would like to reduce their oil production. Consider a specific-factors model for that country, with two sectors: oil (O) and non-oil (N), and two factors: labor (L) and capital (C). Consider ...
0
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0answers
23 views

Why are you not adding C on the other side as well [closed]

Why are you not adding C on the other side as well? Then it will look like this: (ln(P)+C) = 𝛼 (ln(L)+C)
-1
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0answers
24 views

Bond price and interest rate [closed]

I'm much confused about the inverse relationship between the bond price and interest rate.. Please explain how it works And also explain this quotation: it it more accurate to say that a fall in bond ...
0
votes
1answer
33 views

Why there is only one value of confidence interval?

As we know, we can calculate the confidence interval relating to standard errors and coefficients by that to get the high CIs and low CIs at 95% confidence interval Confident interval +/- standard ...
0
votes
1answer
37 views

Why are high denominations of money tend to be paper notes?

Low denomination money tend to be coins because low denominations are exchanged more often therefore a low denomination paper money would wear out quickly. But doesn't this argument transfer to higher ...

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