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6 views

Demand Curve of Foreign Exchange

My high-school Macroeconomics textbook states that 'There is an inverse relationship between the price of foreign currency, or exchange rate, and demand for foreign exchange. When the exchange rate ...
-3
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2answers
22 views

Does the justification for taxation collapse when rates are negative?

If borrowing is profitable how could taxes even be fiscally beneficial? Even if your goal is progressive taxes, preventing the rich from lending actually makes them more profit.
0
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0answers
8 views

What is the math behind the coefficient of Absolute Risk aversion?

I have a good grasp of Calculus but I have never used the ratio of second and first derivatives. So, I am having a hard time understanding what it does and how?
-1
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0answers
8 views

Comparing utility functions

I'm doing an econ course after not having any math or micro for a few years, now I'm totally missing the basics again. I'm wondering how to show that utility functions are an equivalent to each other: ...
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0answers
3 views

Find payoff matrix of B from payoff matrix of A

Here, I need to confirm that the answer of question (A) can be answer just by a(i,j) = - A(i,j) Where a(i,j) and A(i,j) are the elements of i-th row and j-th column of payoff matrix of B and A ...
0
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0answers
4 views

Non Linear regression to obtain diminishing marginal effect / elasticity

I am working with some real estate data on housing units. For a given market, I have data on occupied units, rents, and control variables such as population, demographics, income levels etc. I'd like ...
2
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0answers
13 views

Utility representation of single peaked preferences

Is it true that a single-peaked preference (with the peak at some finite point) over the set of real numbers, always has a utility representation ?? If yes, can you please hint towards the proof or ...
-1
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0answers
23 views

Will the US economy hit 5.0%+ GDP growth by year-end 2020? [closed]

The annual rate of increase in real gross domestic product (GDP) in one or more quarters prior to or including the fourth quarter of 2020, as rounded to the nearest tenth of a percent, per the advance,...
-3
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0answers
25 views

What if civilizational collapse occurs too rapidly? [closed]

What if the current civilizational collapse is too rapid? What are the policy implications?
0
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0answers
21 views

Violation of the transitivity axiom [duplicate]

I'm struggling to think of a way to violate the transitivity axiom. I was thinking about the following scenario: Let's say that you're voting on three different choices, A, B and C. If you pit A vs. B,...
-2
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0answers
20 views

Derive Marshallian and Hicksian demand

How do I find the Marshallian and Hiksian demand functions with the utility of the following kind? Can I still use the Lagrangian? And how do I consider boundary cases?
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1answer
29 views

What are the household holdings of financial products in China?

What are the household holdings of financial products in China? It seems to be generally accepted that real estate is the most popular savings product for households in China and perhaps it is also ...
-4
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0answers
25 views

Fast-food restaurants like McDonald’s are replacing cashiers with touch-screen ordering kiosks [closed]

Fast-food restaurants like McDonald’s are replacing cashiers with touch-screen ordering kiosks. Currently, the marginal product of another cashier is 48 customers served per hour; the marginal product ...
1
vote
1answer
27 views

Why did the pound sterling lose its reserve status to USD?

Why did the pound sterling lose it reserve status to USD? Was this due to some agreement during the Bretton Woods negotiations?
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0answers
14 views

Question on estimating elasticity and cross elasticity with log-log regression model

For a regression model: Y = B0 + B1.X + B2.X2 + U, B1 and B2 is the marginal effect on ...
-3
votes
4answers
94 views

Why would taxes matter? [closed]

Anything collected in taxes would otherwise sit in a savings account and be invested in treasuries (or whatever). If rates are negative, taxes actually lose money over leaving things alone. Why would ...
-2
votes
1answer
41 views

Commodity pricing in rational markets [closed]

Assume a naive market that prices oil on immediate demand. We'd expect price to increase as eroi got worse, then collapse as eroi fell below 1 and investment collapsed. Less oil supply results in ...
1
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1answer
19 views

Strictly increasing but not convex preferences

Is it possible to have preferences that is strictly increasing but not convex? Will perfect substitutes indifference curves show strictly increasing but not convex preferences? I am confused, as won't ...
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0answers
26 views

Binary relation on the set X = {v, w, x, y , z} that is asymmetric and transitive but not negatively transitive

So I am trying to find a binary relation on the set X = {v, w, x, y, z} that is asymmetric and transitive but not negatively transitive, and is quite tricky. Will R = (v, w) be asymmetric and ...
-2
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0answers
16 views

Present value concept in Utility Maximization

We can use the utility function as U(Ct) = Ct since logCt is just a monotonic transformation but still, I can't get the answer.
0
votes
1answer
19 views

Books and resources on how policies/regulations are made on exchanges like NYSE, NASDAQ, LSE, etc?

Different stock exchanges (for example, NYSE vs KRX) have similar but different regulations overall. Each exchange has different concerns and each exchange has a different approach to handle problems ...
-4
votes
1answer
26 views

Banks providing courier services in future [closed]

https://en.wikipedia.org/wiki/Courier https://en.wikipedia.org/wiki/India_Post https://www.indiatoday.in/information/story/how-to-send-a-courier-via-india-post-1609980-2019-10-16 Do you feel there is ...
-2
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2answers
37 views

Are pmis increasing because of bankruptcy?

Are purchasing managers indexes from IHS and ISM increasing because bankruptcy is shifting busienss between firms, therefore inflating growth?
2
votes
1answer
37 views

Question about an interpretation of the MRS

Given the marginal rate of substitution of $x$ for $y$ : $\frac{u'(x)}{u'(y)} $ I know one can interpret this as the amount of $y$ one is willing to give up for an additional unit of $x$, or the ...
0
votes
2answers
42 views

Will banks in the US continue to offer CDs?

Earlier this year, the Fed abolished the reserve requirement. My understanding was that the motivation for banks offering CDs was because the Fed didn't impose reserve requirements on CDs, so banks ...
-1
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0answers
23 views

What is the economic potential of Xinjiang province of China? [closed]

Xinjiang has a surface area of about 40% of Europe but instead of having a population of 200 million like 40% of Europe it has only 21 million. What kind of economic potential Xinjiang has? What kind ...
0
votes
1answer
28 views

Raise/Lower Seller Fees on Platform - Expected Seller Behaviour?

Say there is a marketplace company that facilitates buy/sell of digital content (i.e. marginal cost = 0). And that content is somewhat substitutable but not completely so. As an example, for a ...
3
votes
2answers
212 views

Willingness to accept is different from willingness to pay - is there a name for this

Given the situation below, can someone help me identify/name the logical phenomenon? So I own a laptop that I don’t use…. Someone has offered me £1000 dollars for it but I decided not to sell it. I ...
0
votes
1answer
25 views

Information Partition and Common Knowledge

Person $A$ has information partition $\{\{1,2\},\{3,4\},\{5,6\}\}$ Person $B$ has information partition $\{\{1\},\{2,3\},\{4,5\},\{6\}\}$ $w=3$ has been realized. I'm confused about what $A$ knows ...
-1
votes
1answer
42 views

What are the consequences of having negative GDP growth? [closed]

Many countries are facing negative GDP growth due to coronavirus. I am curious to know what will the significant consequences of having negative economic growth?
1
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2answers
52 views

Returns to Scale Microeconomics

Are there any production function $f(x_1,\ldots,x_n)$ that is having decreasing returns to scale, given that the marginal product in every input $i$ in the function $f$ is constant?
-2
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0answers
21 views
-2
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0answers
10 views

Real Business Cycle problem [closed]

it is about real business cycle.. It would be appreciated highly if you could solve this.
2
votes
1answer
23 views

If $x \succsim_i x_i^*$ then $p \cdot x_i\ge w_i.$ (MWG 16.C.2)

(MWG 16.C.2) Suppose that the preference relation $\succsim_i$ is locally nonsatiated and that $x_i^*$ is maximal for $\succsim_i$ in set $\{x_i \in X_i: p \cdot x_i \le w_i\}$. Prove that the ...
0
votes
1answer
35 views

What is state space representation for DSGE modeling

I'm beginning with DSGE modeling, and a mathematical representation (perhaps trivial for most of the people that are more with this topic) is the space-state state representation of a dynamical model, ...
1
vote
2answers
44 views

Geometric intuition behind the point where the indifference curve meets the budget line

So, this isn't to solve any kind of problem, but rather about the intuition behind the concept. I was wondering if at the optimal point where the indifference curve is tangent to the budget line and ...
-3
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0answers
26 views

South Sudan economic crisis [closed]

South Sudan economy has been surviving on oil revenue with 98% income. Despite that the fact that South Sudan is the fertile land, government and local people are regularly engaged in conflict and ...
0
votes
1answer
18 views

Is the money market equilibrium interest rate the same as the IS-LM equilibrium rate?

If IS-LM equilibrium interest rate is, let's say, 5%, does it also mean that the money demand and supply equilibrium interest rate would also be 5%?
2
votes
0answers
15 views

Compute the inverse of a conditional quantile regression output

Short Clarification : This question was asked at the Cross Validated SE (Question at CV) but one highlighted in the comments, that this might be more applicable to this SE due to its economic topic. ...
21
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7answers
11k views

Why do low-income earners tend to spend more?

I am reading an article in the Economist. It is discussing the China's unbalanced economy especially the lower household consumption proportion in GDP than the global average. The writer thinks the ...
-1
votes
2answers
62 views

How does high U.S. federal debt affect its citizens?

My apologies if this is a silly question. My background isn't in economics, though wish I had some. During the 2008-9 financial crisis, federal debt increased significantly and there was a small talk ...
0
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2answers
40 views

How to estimate Italian parking data starting from German parking data?

I am currently investigating the economic impact of the parking pain in Italy. I have just found out this INRIX Research which is absolutely stunning, but it only focuses on US, UK and Germany market. ...
1
vote
0answers
17 views

What is the term for requiring taxes/regulatory changes to be above a certain threshold to overcome organisational communication barriers

Help remembering the specific term for the following would be very much appreciated! The following: When a government implements a tax/regulation that is too low in stringency, the new policy may not ...
-2
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0answers
37 views

What are the ways to improve national income in this Covid pandemic situation? [closed]

What are the ways to improve national income in this covid pandemic period? Ps: I'm new to economics stack exchange, I don't know this question fits to the site standard or not. Thanks a lot
1
vote
1answer
22 views

Where can I find research on the impact of informal/unregulated suppliers on prices and externalities?

I am looking for research and papers on the impact of informal/unregulated suppliers on market prices and negative externalities. I am particularly interested in the manufacturing sector.
-6
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0answers
33 views

Is land rent an easier form of control than slavery? [closed]

Assuming rents are high enough isnt it easier to make people fight over pieces of paper to pay land rent, rather than directly enslave them?
1
vote
1answer
64 views

What additional axiom to GARP do we need to generate a differentiable or smooth utility function

After researching for a while, I find this: https://www.jstor.org/stable/1913607?seq=2#metadata_info_tab_contents They come up with an axiom called SSARP that generates a preference with smooth demand ...
-4
votes
0answers
22 views

What does it mean satisfy budget equality? [closed]

given a demand function x:Rn++ → R+ → Rn+ what does it mean x satisfies the budget equality? (The answer: it just means a consumer buys things until they've spent all the money that they have)
4
votes
6answers
325 views

What determines whether slavery is economically efficient in industrialized/modern era economies?

Various forms of slavery were nearly universal before the industrial revolution. After industrialization, it would naively seem forced labor would continue to be widespread, as there is no way to ...
0
votes
1answer
29 views

Can demand side restrictions explain the productivity paradox (Solow paradox)?

Productivity paradox https://en.wikipedia.org/wiki/Productivity_paradox is the name for the slow productivity growth (i.e. slow GDP growth) of the developed economies despite the robotics, AI, ...

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