All Questions

-3
votes
0answers
8 views

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 ...
-2
votes
0answers
10 views

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 ...
3
votes
0answers
13 views

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 ...
1
vote
1answer
28 views

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, ...
-1
votes
0answers
11 views

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. ...
0
votes
0answers
13 views

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 ...
-3
votes
0answers
8 views

MCQ question about trade restrictions

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 ...
0
votes
0answers
10 views

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 ...
0
votes
0answers
5 views

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 ...
0
votes
0answers
2 views

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 ...
0
votes
1answer
19 views

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 ...
2
votes
3answers
42 views

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 ...
1
vote
2answers
183 views

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 ...
-3
votes
0answers
15 views

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 ...
1
vote
1answer
11 views

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, ...
-3
votes
0answers
20 views

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? _
2
votes
1answer
18 views

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% ...
0
votes
1answer
22 views

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.
0
votes
1answer
22 views

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 ...
-1
votes
0answers
14 views

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 ...
0
votes
0answers
11 views

Pareto efficiency (optimality conditions) in simple New Keynesian model

I am looking for the pareto-optimal equilibrium for a central planner's problem in a simple New Keynesian model. The planner's problem is to choose $\{ C_{t}, H_{t}, Y_{t}, \pi_{t}, \{h_{t}(j)_{j=0}^{\...
1
vote
1answer
42 views

Utility maximization in a 2-good scenario with an option to buy a combo of the two

I am solving the following question: Suppose that we live in a two good world, books (x) and movies (y), with utility function given by $u(x,y)=min(x+2y,2x+y)$. Prices of books and movies are 25 and ...
0
votes
1answer
23 views

Neoclassical model with proportional taxes

In a certain economy, time is discrete with periods $t=0,1,2,...$. The economy is populated by many households and identical firms. The utility of a household is: $\displaystyle\sum^{\infty}_{t=0}\...
1
vote
1answer
35 views

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 ...
1
vote
1answer
25 views

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-...
-1
votes
0answers
9 views

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?
0
votes
1answer
17 views

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 ...
-1
votes
1answer
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 ...
0
votes
0answers
19 views

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 ...
1
vote
1answer
22 views

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?
2
votes
2answers
81 views

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 ...
1
vote
1answer
31 views

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 ...
0
votes
1answer
18 views

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....
1
vote
1answer
17 views

Budget constraint in Radner Sequential Trade Equilibria

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 ...
0
votes
0answers
8 views

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 ...
0
votes
1answer
39 views

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 ...
-2
votes
1answer
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. ...
17
votes
5answers
4k views

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 ...
0
votes
0answers
21 views

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?
0
votes
0answers
9 views

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 ...
0
votes
0answers
16 views

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 ...
1
vote
2answers
42 views

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 ...
1
vote
0answers
10 views

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 ...
3
votes
1answer
74 views

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 $\epsilon_i$. ...
0
votes
1answer
19 views

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 ...
3
votes
1answer
26 views

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.
1
vote
1answer
34 views

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 ...
0
votes
0answers
12 views

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 ...
0
votes
0answers
49 views

Bond spreads - SQASW [closed]

I am going for a graduate role & the recruiter has given me a list of technical questions that I may be asked. Once is on bond pricing. I have attached a photo of a list of bond issuance's in ...
-1
votes
1answer
21 views

An example of preferences over a countable set that cannot be represented by a utility function

Give an example of preferences over a countable set in which the preferences cannot be represented by a utility function that returns only integers as values. I know a utility function exist that ...

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