All Questions

0
votes
0answers
8 views

How to follow policy of financial management? [on hold]

After viewing some paper, I found I was interested in policy effect But I don't know the reaso of setting up this policy and its background, so How can a researcher follow the policy trend?
1
vote
0answers
16 views

Positive effects of a Tunisia-EU free trade agreement?

Tunisia might be signing a free trade agreement with the EU very soon. It's called ALECA or DCFTA. Many activists and labor unions are opposing such an agreement because it would result in losing ...
-1
votes
0answers
33 views

Pareto set and Edgeworth box

General equilibrium framework; two individuals, two goods represented in an Edgeworth box. Is it true that if the preference are both strongly monotonic the Pareto set will go from the origin of an ...
0
votes
0answers
19 views

What are some examples of blocked mergers in the US?

Chapter 4 of Radical Markets talks about how US law blocked mergers and acquisitions: Section 7 has been used to block numerous mergers and other asset acquisitions over the years. It has not been ...
1
vote
0answers
20 views

What are the difference and relation between the concepts of business process and business strategy? [on hold]

What are the difference and relation between the concepts of business process and business strategy? For example, the process of strategy planning consists of the following steps: formulate missions ...
0
votes
0answers
12 views

How to calculate Walrasian prices for a given model

I'm trying to understand how to calculate Walrasian prices for a model given as an example at https://arxiv.org/abs/1804.09672 (page 11). I understand pretty well how did the authors get the item ...
1
vote
1answer
19 views

HHI and concentration

I calculated the HHI index for Chile exports and got values ranging from 0.09 and 0.13. We know that Chilean exports are very concentrated (around 40% of the exports are copper related goods) and the ...
4
votes
1answer
32 views

Economic interpretation of the concavity of the expenditure function

What is the interpretation of the expenditure function's being concave?
0
votes
0answers
5 views

Do free-trade agreements typically include clauses relating to services?

Do free-trade agreements typically include clauses relating to services? For example, reciprocal recognition of professional qualifications.
-2
votes
0answers
23 views

Optimization of budget constraint and utility [on hold]

Alice cares about two things: how much leisure time she has ($x_1$) and what mark she gets on tomorrow’s Micro exam ($x_2$). Her preferences between these goods can be represented by the utility ...
1
vote
0answers
28 views

Why do higher real interest rates increase land value?

I'm using this equation to calculate market value of land based on the levied land value tax: y = market land value x = land value tax r = real interest rate a = real time-independent land value i = ...
3
votes
2answers
24 views

Is firing employees to raise stock prices a good strategy for a company?

The last case is GM in the USA. I fail to understand why does this happen. I understand that laying off jobs means higher dividend for the share holder and thus higher stock prices but in the long run ...
-2
votes
0answers
23 views

Prove mathematically [on hold]

True or False? A firm’s production technology can exhibit globally (i.e., for all levels of input) increasing returns to scale (IRS) even though it exhibits diminishing marginal product (MP) for ...
1
vote
1answer
25 views

Do the three ways of measuring producer’s surplus give the same result?

In the Firm supply chapter of the microeconomics Varian's book, they show "three equivalent ways to measure producer’s surplus" using marginal cost, average cost and the average variable cost curves. ...
0
votes
0answers
21 views

how can concepts of supply and demand guide our society [on hold]

How can the concepts of supply and demand guide the society in making economic decision that can improve the people's quality of life
1
vote
1answer
37 views

In law of DMU statement what is meant by “keeping other commodities”?

Law of Diminishing Marginal Utility states that marginal utility from consuming each additional unit of a commodity declines as its consumption increases, while keeping consumption of other ...
3
votes
1answer
22 views

Effect on revenue of changing price of unitary demand elastic product

In my introductory microeconomics class, a problem set had the following question: If the price elasticity of demand for Snickers bars is 1, what will a 1% increase in its price do to the total ...
0
votes
0answers
6 views

Does Actuarial Interest Method refer to a loan being Precomputed, a.k.a Rule of 78s?

Performing data analysis on collateralized debt. Typically, loans state whether they are simple interest or pre-computed. In this instance, the interest method states "Actuarial". According to this ...
2
votes
0answers
17 views

Did the robbers from *Money Heist* real steal noone's money?

Money Heist (original Spanish title: La Casa de papel) is a Spanish TV show about a bank heist. From Wikipedia (bolding mine), In Money Heist, a mysterious man, known as "The Professor", is ...
1
vote
0answers
10 views

China approval for US company acquisition

Why does China has to give approval to two US companies merging together? There have been quite a few examples in the last time, as UTC & Rockwell Collins as well as Qualcomm acquiring NXP ...
0
votes
0answers
19 views

Testing for the significance of an event

I would like to conduct a similar t-test to the one done in the following paper Ranaldo and Rossi (2007) see Table 4.1. However I only have daily data not intraday data. I have daily data for the ...
-1
votes
0answers
21 views

Does the efficient market hypothesis create the following paradox?

The efficient market hypothesis states that it's impossible to beat the market because the market is most likely more rational, and more knowledgeable, than you are. This creates a problem for someone ...
0
votes
1answer
25 views

Would this hypothetical firm exit in the long run?

I'm trying to work out the following problem for my microeconomics course, using the standard method we have been taught. Problem: Output is a function of inputs $x_1$ and $x_2$, $y=x_1^{1/2}x_2$. ...
0
votes
0answers
9 views

Is there any relationship between Balance of Payments and GDP growth?

Consider a nation fuelling its GDP growth by catering to the domestic demand of some "new" goods and services which weren't being imported anyway. Clearly this will lead to growth in its GDP. However ...
0
votes
0answers
22 views

Bias in an Autoregressive Model

In Stock and Watson 3E.Updated, they posit in chapter 14 that if we estimate an Autoregressive equation using an AR(1) $$ y_t = \beta_0 + \beta_1 y_{t-1} + \varepsilon_t $$ where in fact the true ...
1
vote
0answers
31 views

reference request: models of how racism or sexism affects decision making

My background is more in statistics and applied math, so I am not familiar with the breadth of decision making models from economics. However, I am working on a project that involves decision making ...
1
vote
0answers
13 views

Equilibria in non regular economies

We know that in regular economies general equilibrium theory predicts a finite and odd number of equilibria, using the properties of the excess demand function and the index theorem. How about the ...
1
vote
3answers
54 views

Logically inconsistent optimality condition

I'm reading a book on monetary policy, and it defines the representative household's consumption as $$C_t = \int_0^1 C_t(i) di$$ so, basically a sum over the consumption of good $i$. Then later on, ...
1
vote
1answer
16 views

What is the “bequest condition” in a finite-horizon discrete optimization problem?

For a finite-horizon discrete time optimization problem, my textbook provides a condition called the "bequest condition", which I'm not familiar with. Specifically, where the state at time $t$ is ...
0
votes
0answers
18 views

What will be effects of normal inferior and giffen goods on consumer equilibrium? [on hold]

What will be effects of normal inferior and giffen goods on consumer equilibriums? Tell me in detail.
1
vote
0answers
9 views

Reference recommendation on the causal relationship between family size and children's educational attainment, or the quantity-quality trade-off

I am currently reading both Poor Economics and Factfulness, and two seemingly contradictory statements jump out at me. From Factfulness, and I am kind of taking this statement out of context, but it ...
-1
votes
0answers
6 views

What would be the value of weaponising emotional contagion as a form of crowd control in the digital public sphere - for example, Facebook? [on hold]

A few years ago an almighty fuss was kicked up by the revelation that Facebook had deliberately experimented with emotional contagion. Facebook apologised an nothing more was said about it. Still, ...
-2
votes
1answer
23 views

why indifference curve is a negative slope? [on hold]

I asked about indiference curve always from down slope.why indifference curve is a negative slope? Tell me in detail.
1
vote
0answers
9 views

To the following data, what kind of econometric analysis can be conducted/ or what type of relationship can be established? [on hold]

I have data for sale in petroleum products across different states in India of both public sector and private sector companies for past 10 years. No. of years - 2008 to 2018 monthly data for 10 years ...
1
vote
0answers
12 views

Has Facebook considered a system of micro payments to pay users for the work they do in improving their Facebook?

Facebook, notoriously, crowd-sources through the internet to improve their product - Facebook. This without any payment. Given the vast computing power that is now available and the kind of personal ...
0
votes
1answer
21 views

Is Facebooks business model a form of neo-feudalism? [on hold]

In feudalism peasants, who were either villeins or serfs, were obliged to live on their Lords land and were to offer nobles labour, homage and a share of their produce in exchange for military ...
-4
votes
1answer
40 views

Advance Microeconomics [on hold]

Show that u=a+bM-yM^2 represents a risk averter's utility function who is interested only in the mean and the variance of the state distribution of Income M. Can anybody send me the full solution. ...
-2
votes
1answer
23 views

A question about a derivation in Gali's Monetary Policy book [on hold]

In Chapter 3 of Gali's famous Monetary Policy book, he measures the effects of a monetary policy shock. The interest rate rule is: Then a shock $v_t > 0$ occurs. He proceeds to measure how this ...
0
votes
0answers
9 views

what is the author trying to say here about differences in borrowing patterns between countries

I don't quite understand what the author is saying. Specifically what theory is meant in the phrase "But one clear observable implication, which is required in order for all that theory to fit ...
-2
votes
0answers
9 views

Marginal cost and Average cost calculation [on hold]

How do you calculate MC and AC from a given fixed cost, variable cost per unit, and a level of production at some point?
1
vote
0answers
13 views

Interest rate problem

I am supposed to solve this problem: mexican interest rate is 28%, interest rate in the US is 7% and exchange rate is 7.5 Mexican pesos for 1 US dollar. If interest rate parity applies and we don't ...
1
vote
1answer
8 views

Bond prices and Trade deficit

Why does the narrowing of trade deficit cause an increase in bond prices? I do understand that narrowing of trade deficit leads to narrowing of capital account surplus. Also, investor confidence ...
1
vote
0answers
16 views

Monetary economics: What is the causality between nominal and real interest rates?

I am very much confused about the causality between real and nominal interest rates, in monetary policy. So we know the Fisher equation: $$i_t = r_t + E \pi_{t+1}$$ Now imagine that the central bank ...
0
votes
0answers
4 views

What is the financial contribution to the USA economy by illegal immigration - decade by decade - since slavery was abolished?

The following question was closed down by the 'community' policing 'algorithm' after two down-votes, so I'm asking it again with a bit more detail: After the end of slavery in the USA - paid for by ...
1
vote
0answers
10 views

Controlling for a variable in OLS - Stratification and Reaggregation. Simple Example

In his engrossing book "Naked Statistics" Charles Wheelan begins to explain how controlling for variables works by stratifying the sample. However, he stops short of explaining the reaggregation, ...
1
vote
0answers
6 views

derivation of pigou taxes in multiple polluter case

I can`t quite wrap my head around one step in deriving the pigou tax in a multiple polluter case. There are j firms, which produce joint product in amount of $k_j$. Joint product can be abated, ...
0
votes
1answer
19 views

What data/factors/attributes do the professionals monitor in a top-down analysis on the macroeconomics?

I am learning to do top-down analysis on a number of sectors in the US equity markets. I have never done it before and I would appreciate it if some professionals can share their experiences with me. ...
-2
votes
0answers
17 views

Nash equilibrium problem, inf players [on hold]

Im trying to solve the problem above and I have 0 experience with game-theory problems. I set up an equation for profit of a chosen player. $$ P_i(x) = [100 - \sum^\inf_{i=1}(x_in_i)] -x_in_i $$ ...
1
vote
1answer
15 views

Deaton's AIDS/QAIDS model

Im new to economics and want to understand the AIDS/QAIDs model of Angus Deaton. Can anyone suggest possible readings for the same as a background knowledge??
3
votes
1answer
79 views

Are direct mechanisms always truthful?

I am very new to mechanism design so I am a bit lost among the concepts, even the most basic ones. One thing that is not clear to me is the concept of direct mechanism and its relationship with the ...

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