All Questions

Filter by
Sorted by
Tagged with
0 votes
0 answers
9 views

Market for capital goods of housing: Name of the model

I am searching for a model of the market for capital goods applied on purchase prices, rents, and supply of new housing. The model, operating in continuous time, considers prices as a function of ...
Athaeneus's user avatar
  • 796
1 vote
1 answer
96 views

Intuition of two Measure theory statements

I'm struggling in getting the intuition of two statements about measure theory: Given a measure space $(X,F,\mu)$, $f \in M^+ $, where $M^+ = M^+(F) $ is the set of non negative F-measurable functions ...
Calogero Sortino's user avatar
0 votes
0 answers
19 views

Does anybody have any multiple choice questions for any of these topics

I have an exam next week and just trying to find some MCQ to do but cannot find any. These are the topics: Week 1 The Consumption-based CAPM Week 2 Risk-Sharing, Portfolio Choice, SDF generalised, ...
john's user avatar
  • 1
0 votes
0 answers
22 views

By how much does debt exceed credit in major currencies?

Fiat currency is created by issuing loans. Assume 100 crowns (a non-specific currency) existed before the crown became a fiat currency. Every time a new 100 crown loan is made, 100 crowns of credit ...
fadedbee's user avatar
  • 101
0 votes
0 answers
6 views

RDD regression discontinuity

I have a tiny dataset for several countries: Year (2010-2022) , GDP per capita, Subsidy amount - in the second column (fossilf), and a few other variables. The subsidy amount is 0 for several years. ...
Jey's user avatar
  • 1
1 vote
0 answers
90 views

Interpretation of conditional convergence results

I am trying to replicate the methods of (Mankiw et.al, 1992) and (Islam, 1995) in the countries of the European Union. What I am wondering is, how the estimated speed of convergence is interpreted. In ...
kostas2323's user avatar
1 vote
0 answers
4 views

FMA European conference vs. EFMA annual conference

There are two large financial economics conferences in Southern Europe this June: FMA European conference (June 12-14 in Turin) EFMA annual conference (June 26-29 in Lisbon) I would like to go to ...
Richard Hardy's user avatar
0 votes
1 answer
14 views

Methods of calculating 12 month Inflation rates

I was trying to understand inflation calculations when i came across this Scenario, they are trying to calculating the 12 month inflation rate , but the weighted figures given(essentially percentage ...
user42141's user avatar
0 votes
1 answer
34 views

Proof of existence and uniqueness

Please help me out with the conditions for existence of a pure strategy Nash equilibrium. The game is one of two players with symmetric strategies. After that, please help me out with the conditions ...
user46371's user avatar
0 votes
1 answer
20 views

Labor in a monopsony

I understand that workers in a competitive labor market will take the market rate as given. Firms can hire as many workers as they want at the market rate. Why doesn't this apply to monopsonies? If ...
asdf's user avatar
  • 13
4 votes
1 answer
64 views

Prove: The law of demand holds if WA, Walras' law, homogeneity of degree 0, and homogeneity of degree 1 in wealth hold for Walrasian demand functions

Problem I am asked to prove the following result (MWG Exercise 2.F.5): The law of demand always holds if the walrasian demand function $x(\mathbf{p},w)$ satisfies the weak axiom of revealed ...
Beerus's user avatar
  • 325
0 votes
0 answers
9 views

partial equilibrium firm investment model with collateral constraints

I am trying to solve the partial equilibrium firm investment model with collateral constraint. My state variables are firm productivity, capital and debt. While I know how to iterate the value ...
Ганна's user avatar
2 votes
0 answers
48 views

Simple backward induction problem

The utility function is $\log(c_t)+\log⁡(m_t)$. First order conditions: (a) $\frac{1}{R_t}=β E_t \left[\frac{1}{\pi_{t+1}} \right]$ and (b) $m_t = c \left[ \frac{R_t}{R_t - 1} \right]$. Where $R_t$ is ...
guest's user avatar
  • 310
0 votes
0 answers
19 views

Varian Analysis Non satiation question

Consider preferences defined over the nonnegative orthant by (xl,x2)> (yl,y2) if X1 + X2 < y1+ y2. Do these preferences exhibit local nonsatiation? If these are the only two consumption goods ...
Chavi Dusad's user avatar
0 votes
0 answers
20 views

What should I do before an OLS regression and Johansen cointegration test with time series data?

I have to make a regression with real exports as the dependent and then an aggregated GDP income variable and the real effective exchange rate as independent variables. My variables are time series (...
ORESTIS TZIAMALIS's user avatar
-1 votes
0 answers
14 views

International Economics questions [closed]

Give sound economic reasoning for each of your answers. Be succinct. Answer in short: a. Why do we get incomplete specialization in the H-O-S model? b. Does the market demand have a role to play in ...
Aryan Mishra's user avatar
2 votes
1 answer
79 views

CES function: Lagrangian or Kuhn-Tucker

Let's have the following problem: $$U(\boldsymbol{x}) = \left(x_1^\rho + x_2^\rho \right)^{\frac{1}{\rho}} \qquad s.t. \qquad P_1 x_1 + P_2 x_2 \leq M$$ Is it optimal to solve this problem via pure ...
Athaeneus's user avatar
  • 796
0 votes
1 answer
31 views

Questions about demand curve as marginal benefit curve

I understand that the demand curve can be viewed as a marginal benefit curve in that, for a given quantity, the price needed for that quantity to be demanded will be equal to the marginal benefit of ...
firstnamelastname45341's user avatar
2 votes
1 answer
46 views

Proof for Marshallian Demand function

If you have a Marshallian demand function that is strictly convex, then it satisfies WARP. How to prove this?
babededeeptido's user avatar
1 vote
0 answers
40 views

Applying linearization formula to Leeper(1991) model

I am trying to derive equation (3.1) and (3.2) from Leeper(1991). (3.1) $E_t \tilde{π}_{t+1} = αβ\tilde{\pi}_t + βθ_t$ (3.2) $φ_1 \tilde{π}_t + \tilde{b}_t + φ_2 \tilde{π}_{t−1} - (β^{−1} − γ)\tilde{b}...
guest's user avatar
  • 310
2 votes
1 answer
67 views

Can GDP ever be negative?

Imagine that in an economy we only produced a toy and that cost us 10 dollars. We don’t sell this toy in year 1. Then this goes under Investment as +10 and GDP is +10. But say the only thing we do in ...
Darby Bond's user avatar
1 vote
0 answers
22 views

Help solve a problem about the leisure demand/labor supply mode. Halfway solved but fear my solution can't be right?

I've attached the question along with my current (incomplete) solution, but am unsure if my solution to part b makes sense given the question in part c. No substitution effect if demand for leisure is ...
Lily Rademacher's user avatar
1 vote
0 answers
7 views

Help solve a problem about the leisure demand/labor supply mode. Halfway solved but fear my solution can't be right?

I've attached the question along with my current (incomplete) solution, but am unsure if my solution to part b makes sense given the question in part c. No substitution effect if demand for leisure is ...
Lily Rademacher's user avatar
0 votes
1 answer
44 views

Have governments ever defaulted on its public domestic debt or treasury bonds?

Recently, some countries have experienced hyperinflation such as Lebanon, Zimbabwe, and Venezuela. Has there ever been a time when a government defaulted on its treasure bond payments due to a country'...
Jude Zambarakji's user avatar
1 vote
0 answers
36 views

Why did Bergemann and Morris chose a different setting with respect to Kamenica and Gentzkow only to reach to the same results?

Why did Bergemann and Morris choose a different setting with respect to Kamenica and Gentzkow only to reach to the same results? However none of both approaches seem to present the problem in a ...
Oliver Queen's user avatar
1 vote
1 answer
79 views

Utility functions that exhibit nonconstant elasticity of marginal utility

Consider there is a single good in the economy. The class of utility functions for which the elasticity of marginal utility $\eta$ is constant is given by $$U(C)=\frac{C^{1-\eta}}{1-\eta}$$ for $\eta&...
kenji's user avatar
  • 63
1 vote
1 answer
43 views

Cobb-Douglas utility function

Why in Cobb-Douglas utility function, the exponents have to sum to one? Can they not be equal to 1 and why?
Huy Lê Thanh's user avatar
1 vote
1 answer
33 views

Convex preference and convex utility

What are the differences between convex preferences and covex utility function? Why are convexity preferences usually represented by the quasi-concave function and not the convex function?
Huy Lê Thanh's user avatar
1 vote
1 answer
30 views

Introducing productive sector into an exchange economy where only one agent is endowed with input

I'm trying to find a competitive equilibrium for an economy with consumers and some outside productive sector. Consider an economy with two consumption goods $x_1, x_2$ and two individuals $A,B$ . ...
RobinsonWM's user avatar
0 votes
0 answers
6 views

Seeking Insights on Cross-Country Savings Behavior Analysis: Addressing Income Distribution and Purchasing Power Parity Challenges

I possess data from various countries, including a diverse mix such as the USA, Slovenia, and Chile, covering a wide range of GDP per capita levels. This data encompasses individual and household ...
Jack's user avatar
  • 101
2 votes
1 answer
66 views

Suppose $A$ is a $2x2$ matrix and ${\bf x}=(x_1, x_2)$. What does "$f(Ax)$ is supermodular" mean?

Suppose $A$ is a $2x2$ matrix, e.g., $A=\begin{vmatrix} a_{11} & a_{12} \\ a_{21} & a_{22} \\ \end{vmatrix}$, and ${\bf x}=(x_1, x_2)$. Suppose $f()$ is continuous and twice differentiable. ...
opre's user avatar
  • 23
2 votes
1 answer
49 views

How price is determined in the following monopoly model question?

I am studying microeconomics, and got stuck on the following question, specifically, part (b) and part (c): A monopoly-owned retail store is located next to a monopoly-owned parking lot. (The store ...
Grand Minister's user avatar
1 vote
1 answer
36 views

Fixed Effect Vs Random Effect in Mixed Logit Model

How do you decided whether to use a variable as fixed effect or random effect in mixed logit model? Here, I am trying to estimate mixed logit model for discrete Choice data. X1 x2 and x3 are same for ...
Dr. Banjadebaje's user avatar
0 votes
1 answer
64 views

Why is the supply curve monotonically increasing?

Context I am a beginner in microeconomics. I am trying to understand the demand-supply model. In my previous question (Supply curve of what?) I understood that supply curves exist for each product. ...
Dinosaur's user avatar
0 votes
2 answers
83 views

Why does Thomas Sowell say that "teacher's unions keep schools lousy"?

In this video interview, Thomas Sowell compares the performance of charter schools and public schools, and claims that "teacher's unions keep schools lousy". He seems to infer this from the ...
hkBst's user avatar
  • 101
0 votes
1 answer
46 views

Supply curve of what?

I am a beginner in microeconomics. I do not understand the supply curve at all. Supply curve of what? Is there a supply curve for each product? For example, is there the supply curve of "iPhone ...
Dinosaur's user avatar
1 vote
2 answers
35 views

Deriving FOC with non-substitable goods

I'm trying to derive the first-order condition of cost minimization when inputs are non-substitutable. The question is based on the problem raised by Rubens (AER 2021). Suppose firms $f$ produce $Q_{f}...
nini's user avatar
  • 13
5 votes
1 answer
75 views

Question on Isolating The Wealth Effect in Analysis of Changes in Price-Wealth Combinations - MWG Exercise 2.F.3 Parts (e) and (f)

I am doing exercises in Chapter 2 of MWG. I feel I got completely lost in exercise 2.F.3 parts (e) and (f). $\textbf{Exercise}$ Here is the question: I have solved parts (a) to (d). In particular, I ...
Shenron's user avatar
  • 103
0 votes
0 answers
17 views

Multicollinearity with interaction term and fixed effects

I have the following regression including an interaction term and fixed effects ...
metricshelpr's user avatar
0 votes
1 answer
28 views

What are driving factors behind the recent slew of layoffs in the US tech industry (to the extent we understand them)?

Is this phenomenon something that economists think they have an understanding of? As an outsider, I'm very confused. The tech industry seems to be making a lot of money right now. Why is all of this ...
Rando McRandom's user avatar
0 votes
1 answer
46 views

How to Compute the ln of the GDP with only the growth rates

I have an exercise where I was only given the growth rates of an economy for every year, starting in 1985 and ending in 2023. Using only this data, I was asked to compute the ln of the GDP for 1984. ...
Econ_Student_98765's user avatar
5 votes
2 answers
47 views

Continuous logit framework

I am reading Dupuy & Galichon (2014), which extend the estimation of matching model in Choo & Siow (2006) to continuous types. The way they build the continuous logit model is based on the ...
Alalalalaki's user avatar
  • 2,419
2 votes
1 answer
39 views

elasticity of labor supply

Labor supply is $ L(s,H) = \frac{f(\theta)}{s + f(\theta)} H $ Now the elasticity wrt to tightness $\theta$ is supposed to be $\epsilon_L= \epsilon_f - \frac{f(\theta)}{s + f(\theta)} \epsilon_f$ ...
Papayapap's user avatar
  • 1,833
0 votes
1 answer
29 views

Logic behind uncovered interest rate parity?

So I am having trouble understanding the UIP equilibrium condition. Namely, according to UIP, when the home country has a higher interest rate than the foreign country, its currency will depreciate ...
Nixy 124's user avatar
0 votes
0 answers
15 views

Why did Newton choose to devalue silve with respect to gold and (effectively) create the gold standard?

This is a question of economic history, specifically about one specific event that caused the British to adopt the gold standard. Reading about the gold standard one often encounters statements like ...
Alexandar Ruño's user avatar
2 votes
1 answer
32 views

Example of a utility function with cross-price effects in demand functions

I am looking for examples of utility functions where the demand function for a good does not depend solely on its own price, but on the price of the other good(s) as well. For instance, Cobb-Douglas ...
Anthony's user avatar
  • 215
1 vote
2 answers
54 views

Taxation shifting the supply curve left, the demand left curve, why not both?

When we model supply and demand, I can understand why when we introduce the conception of taxation, we can model it as a shift to the left of the supply curve, this is because the marginal cost of ...
Sam Connell's user avatar
3 votes
1 answer
127 views

Is this proof correct (measure theory)?

I'm trying to prove the following statement: I did the following proof but i donno if it makes sense: Proof of $(\Rightarrow)$ direction: Assume $\mathcal{F}$ is a $\sigma$-algebra. Assume also $\{...
Calogero Sortino's user avatar
1 vote
0 answers
35 views

Textbook for dynamic commodity market modelling in continuous time

I am seeking textbook recommendations for dynamic commodity market modelling in economics (including or excluding finance). It should focus on continuous models rather than discrete ones, thus based ...
Nicola Gambaro's user avatar
0 votes
0 answers
16 views

Does money illusion suggest Hicksian demand curves are more accurate?

I interpret "money illusion" to mean that consumers tend to falsely equate their nominal income or wealth to their objective utility level. If that is the correct interpretation, it seems to ...
UtilityMaximiser's user avatar

15 30 50 per page
1
2 3 4 5
315