All Questions

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 ...

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 ?

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 $...

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?

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 ...

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 ...

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 ...

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 ...

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?...

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 $z_1$ ...

Why interest paid on consumption purpose is not included in national income ?

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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

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,...

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 ...

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,...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 "...

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 ...

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}...

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)...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 $a(i)$...

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 $...

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 ...

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 ...

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) \\ &...

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 ...