# All Questions

7,607 questions
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### Consumption behaviour and welfare [on hold]

The government of Poortopia is concerned about the impact of pervasive poverty on the health of its citizens. It is particularly concerned about the rates of malnutrition and starvation being ...
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### Indifference curves

Im currently studying economics and I'm having some trouble with a question for an assignment. Assumed that two people have their indifference curve/s for two products uncovered. If these two people ...
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### Did/does a decline in crime rates encourage materialistic values?

Robert Shiller writes (2000 Irrational Exuberance, 2015 3rd edition): A decline in crime rates also, on the flip side, encouraged materialistic values by making people feel more secure, less ...
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### How to efficiently study and learn Economics?

I read there are a couple of questions asked in this regard, but I am not quite satisfied with the provided answers. I am currently doing my master's degree (expecting to pursue a PhD) in Economics, ...
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### Market demand curve and industry supply curve

Assume that there are many firms that sell mobile phones, and assume that the products are perfect substitutes so that the supply of mobile phones can be characterized as perfect competition. ...
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### Probability of the event knowing that I received no informations

First I want to thank you if you pay attention to my post. I apologize if it seems elementary to you, note that I searched a lot an answer before posting. I have a particular informational framework ...
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a country has decided that it wants to increase its free trade with trading partners. which measure would help achieve this objective a)a higher quota on imported cars b)subsidy to domestic car ...
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### Different explanation for economic growth, depending on the length of the period considered

I'm being introduced to macroeconomics, and a colleague asked why do we say that in the short term the productivity of a country is determined by the "demand side" (IS/LM model) while in the long run ...
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### Is deprecation included in the value added approach?

I have been asked this question: "Folt Industries in 2017: It sold 1000 in sweaters, it imported 200 in wool from abroad, and purchased 200 in wool from domestic suppliers, it purchased a sewing ...
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### Lower monthly inflation at the beginning of the year

Good afternoon, I just looked at several EU HICP time series, and what struck me was the fact that quite often the monthly inflation rate was way lower (even negative) in January/February, at least in ...
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### The value of money in a model economy. Has this been addressed?

Consider the following question: "Given a simplified economy which produce and trade some products A,B,C etc... with N agents and a total money supply of M. What will be the price of A, B, C as ...
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### Is there really an “efficient equilibrium *price*” with externalities?

In the "Intro to Micro" approach to externalities, I've always felt uneasy as a teacher with the idea that there is something like an "efficient equilibrium" with a single "efficient price". To keep ...
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### Is it possible to give , in economics, an example of a relation ( set of ordered pairs) that is not a function?

In mathematics, some relations ( sets of ordered pairs) are not functions. I know economists make use of functions. But do they also consider relations that are not functions. In which branch of ...
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### Calculating pareto efficient solution

I am having difficulty solving this problem. Please help! A researcher has $100$ hours of work which have to be allocated between two research assistants, $A$ and $B$. If $A$ is allocated $x$ hours ...
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### Why do low labour and wage flexibility forestall a single currency?

The European Union: Politics and Policies (2017 6 edn). p. 77 Middle. Please see the red line beneath. Doesn't low labour and wage flexibility befit a single currency? If labour and wage fluctuate, ...
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### Does anybody know what this guy is talking about in this consumer/producer model?

Does anybody know what this guy below is talking about? I get what's going on until he decuces a price $p = 1/g'(0.2)$. Where does that come from? _
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### What does it mean when R&D is “3% of GDP”?

When we talk about R&D, does it mean that the final goods of R&D amount to 3% of GDP? Or does it mean that a specific nation is spending an amount of money on R&D that is equivalent to 3% ...
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### Financial crisis references

I would like to have references on financial crisis in general and the ones produced by firms not being capable of pay bank debt. Be this books, papers, surveys, etc.
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### How to derive expenditure function from quasi-linear preferences?

Suppose there is an agente with demand function: $(X_{1}(P,W);X_{2}(P,W)) = (P_{2}/P_{1};((W-P_{2})/P_{2}))$ Trivially, first equation derived from $X_{1}$ is not a problem but i can´t derive the ...
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### Financial market Goods market

I'm a first year in economics. I really am getting confused with the financial market and money market and goods market. In terms of what they do, the financial market finds the real interest rate in ...
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### Can consumer surplus be negative if a consumer is forced to make a purchase?

Assume there is a good that a producer sells for $100$. A consumer's willingness to pay for that good is $50$. However a government program forces consumers to purchase the good irrespective of their ...
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### Questions about the gold standard and exchange rates

So I'm a total economics noob and I'm trying to understand some of the consequences of using vs. not using a gold standard listed on Brad DeLong's blog here: https://www.bradford-delong.com/why-not-...
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### What will be the Marginal Product of Labor and Marginal Product of Capital? [on hold]

I didn't understand that if the change in output was zero, why wasn't the Marginal Product of Capital and Marginal Product of Labour zero? So how could they predict that the MPL and MPK were varying?
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### Walrasian Equilibrium intuition given prices and some initial allocation

Suppose we have two agents who are each assigned some initial allocation of two different goods, where the prices of each good are given. Also, suppose the utility functions for each agent are weakly ...
27 views

### Keynesian-cross analysis [on hold]

I have a question from my textbook which is: Using the Keynesian-cross analysis, assume that the consumption function is given by C = 100 + 0.6(Y – T). If planned investment is 100 and T is 100, then ...
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### VAR model OLS line by line

I am estimating a VAR model line by line. Lets say the conditional variances are correlated. We would expect size distortion. So we would use another method, perhaps a HAC standard error to account ...
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### How did the Exchange Rate Mechanism work?

The Exchange Rate Mechanism was introduced by the European Economic Community in 1979. It fixes the Exchange rates between currencies to a specific margin. But how does it do this?
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### Isn't it pointless to care about GDP?

If I pick up a stone there and sell it to you for 1 million dollars, 1 million dollars added value is created and added to GDP. If you sell it to me for the same price, virtually nothing has happened ...
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### Cournot's game profit maximisation first order condition question

My question is about the last part (I attached the rest for context). I don't understand the final line at all. I thought the first order condition would just be to set the derivative = 0. Very ...
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### Where can I find a complete list of goods affected by NAFTA?

I am looking for the list of goods that NAFTA, preferably in the format of what is subject to tariff reduction. I have found a few potential leads, but none seem to be exhaustive: https://www....
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Suppose that $q$ is a k-tuple vector of prices for the k assets whose quantities are given by the k-tuple $\theta$. I have just read that in the Radner Sequential Trade Equilibrium (not sure if this ...
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### Constant Returns to Scale and Positive Marginal Products

In a simplified model in the search theory of unemployment, let $M=\mu{m(u,v)}$ be the matching function where $u$ and $v$ is unemployment and vacancies respectively. Given $m(u,v)$ has constant ...
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### Can a complex interaction term mean more than what it's composed of?

I'm cross-posting this question on both Economics and Cross Validated to get answers from a different perspective on each field. It is generally accepted to cross-post if the question is tailored to ...
25 views

### How to derive aggregate demand and supply from IS-LM with sticky prices? [on hold]

I was wondering if my thinking is correct on these questions. For part 1, I just put the two equal to eachother after solving for 1000r, and I ended up with Y = 500/P + 200 for the aggregate demand. ...
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### Can inflation occur in a positive-sum game currency system such as the Stack Exchange reputation system?

As most active users of this site know, the way the reputation system works is that everyone starts out with 1 reputation and a user can earn more reputation by asking good questions and writing ...
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### What determines the income eligibility levels for Medicare? Is it the Affordable Care Act? [on hold]

Does the ACA establish the income levels for paying for Medicare part B based on income?
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### How would tax incentives influence the connections between the public and market squares, and the taxpayer-political enterprise relations?

I'm supposed to read a book written by Wagner, Richard E., Fiscal Sociology and the Theory of Public Finance, Cheltenham: Edward Elgar, 2007. To answer the question: How would tax incentives ...
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### What would tax incentives imply for public goods provision and redistribution compared with a fiscally neutral investment credit?

I'm supposed to read a book written by Jasay, Anthony de, Justice and Its Surroundings, Indianapolis: Liberty Fund, 2002. To answer the question: What would tax incentives imply for public goods ...
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### I bought a house on a mortgage. If its price changes later, how will it affect the ease of repaying the loan? [duplicate]

I had some difficulty in understanding this paragraph in an article explaining the movie, 'The Big Short': Most of us when buying a house take out a loan (mortgage) and pay back the purchase ...
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### Have any economics papers used unified cure models?

Does anyone know if there are unified cure models (aka split population models) in time-until-employment studies that combine the mixture cure approach with the promotion time approach as described in ...
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### Definition of Bayesian Nash equilibrium

I have a basic doubt on the definition of Bayesian Nash equilibrium. Consider the following game: 1) $N$ players. 2) Each player $i$ has a type, assigned by nature and denoted by $\epsilon_i$. ...
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### Interpreting coefficients with Delta ln as independant and dependent variables

Imagine we have a DGP such that $$\Delta \ln y_{it}=\beta\times\Delta\ln x_{it}$$ How do you interpret the $\beta$ coefficient, since it is expressed in an approximation of a growth rate? Thanks ...
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### Data Set for Mankiw, Romer, and Weil 1992

I am trying to replicate the results of Mankiw, Romer and Weil 1992, and cannot seem to find the original data.
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### Equity and increase in sales

I am reading this book shoe dog by phil knight. There is mention of equity in one of the pages where the banker says *Your rate of growth is too fast for your equity * It is very confusing. From ...
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### Importance of savings rate in the Harrod Domar and Solow models

The standard equation associated with the Harrod-Domar model is: $$\frac s{\theta} = g^* + n + \delta$$ where, s = savings rate, $\theta$ = the Output-capital ratio, $g^*$is the growth in ...