# All Questions

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3 views

### recreating PWT8.1

I recently tried to recreate figure 2 shown in the The Next Generation of the Penn World Table by Feenstra et al. (page 3174/ in R). Unfortunately, I really got severe problems! Maybe someone knows ...
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### Notation? Inverse of demand function

I'm looking through The Investment Decisions of Firms by S.J. Nickell, and I've come across some notation that I don't quite understand. Any clarification would be very welcome. Nickell first assumes ...
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### Fairness of U.S. Foreign Trade with China and Japan

I I have a debate coming up this week over the question: Is the U.S. being "robbed blind" through unfair foreign trade practices by China and Japan? The stance I am assigned to is that the current ...
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### How would increase labor productivity lead to improved living standards of people in an economy?

I would like to know more about the mechanisms through which higher labor productivity would translate into higher living standards for a population in a given economy.
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### Welfare Effects of Sophistication vs Naiveté on Present Bias

In lecture, we said that naive agents are better off than sophisticated agents in situations with current costs and future benefits, such as quitting smoking, while sophisticated agents are better off ...
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### Supply and Demand plotted on a three dimensional Cartesian coordinate system

Is it possible ? if it's possible can someone give me a reference ? Thanks !
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### On monopolies - profit maximisation

The answer is D. Can someone help me ?
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### Is there an index, parameter, ecuation, or anything to compare the tax pressure exercised by a country in relation to others countries?

In my country we are told often that the tax pressure over the companies and people is huge, making it unbearable and being a reason bankrupting the Economy, and one of the largests in the world. We ...
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### Why is macroeconomics about general equilibrium?

In a fairly popular paper published a couple of years ago ("On the future of macroeconomic models"), Blanchard (2018) makes the following statement, among other "widely believed propositions": (i) ...
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### What is the economic meaning of multiple internal rates of return?

Recall that the internal rate of return (IRR) is the discount rate such that the net present value (NPV) of a project is 0. One interesting complexity of the internal rate of return (IRR) is that it ...
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### Outputing regression coefficients with confidence interval instead of standard errors in python [closed]

I want to output regression results with confidence interval below coefficients in python.
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### How does one deal with trending variables in Linear Regression?

I have a linear regression model with two independent variables that takes the form: $$y_{it} = \beta_{0} + \beta_{1}x_{it} + \beta_{2}z_{it} + u_{it}$$ where $u_{it}$ is the error structure. I want ...
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### Why actual government deficits may be a poor measure of fiscal stance? [closed]

Why actual government deficits may be a poor measure of fiscal stance? How could this problem be overcome?
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### What is the difference between Q4/Q4 and Y/Y GDP growth?

Per US media, the US economy grew 3.1% in 2018 Q4/Q4 and 2.9% in 2018 Y/Y. 2.9% seems the reference number in various databases (World Bank, Reuters, Bloomberg, etc) but what exactly does Q4/Q4 mean ...
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### Real GDP per capita data

Can anyone share where i can find data related to the real GDP per capita of a country ? Is it available ? My second question is which variable should i use for economic growth i mean which one is ...
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### Do local taxes help in paying back foreign debts?

I always wonder if increasing local taxes could help countries in paying off the foreign debts? I think taxes generate income in local currency. While foreign debts (from IMF, World Bank etc.) are to ...
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### Maths in central banking [closed]

I am a maths graduate and recently appeared in interview of central bank of India. I was asked relevance of abstract algebra, calculus , probability etc in central banking and I could not give precise ...
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### Refinements in signaling games with three sender types

What are the pros and cons of the Intuitive Criterion and the Criterion of Divinity in signaling games with three types? I find that separating equilibria often survive the intuitive criterion, ...
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### Externalities, Pigouvian Taxes and Wikipedia

It states on Wikipedia: A Pigovian tax (also called Pigouvian tax, after economist Arthur C. Pigou) is a tax imposed that is equal in value to the negative externality. The result is that the ...
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### Could a global supply decline lead to higher profits?

Imagine the following scenario: There is a market with some good. The demand curve stays the same over the whole scenario. Due to an unfortunate event (e.g., bad weather), the production lowers. All ...
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### Micro and macro readings [closed]

Can you give me good readings for micro and macro theory for undergraduates? I would like ones that would cover a lot of math.
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### Auction theory reference request

I am interested in finding the literature or at least some references (books, journal papers etc.) for the following problem: Suppose there is an auction with one seller and one buyer. The seller ...
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### If a new company arrives into market with great idea and achieves sales, is it away from other companies sales?

If a company arrives into world markets (let's say world markets has total of 100M€) with a new innovation and achieves sales of 10M€, is the money achieved away from the sales of other sellers on ...
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### Utility theory and portfolio optimization: utility of what exactly?

In finance, a common problem is selection of an optimal portfolio given some constraints (e.g. budget constraint and perhaps nonnegative allocation constraint). One can define the optimization problem ...
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### Cointegration but no Granger causality

Suppose I have two variables - $y_t$ and $x_t$ - which are cointegrated. I believe that (i) $y_t$ responds to deviations from the long-run equilibrium, (ii) the long-run elasticity of $y_t$ with ...
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### Regarding the source of an economics lecture material

Economics lecture material from California State University The above link is to an Economics lecture material from California State University. The material is really good. I couldn't find the ...
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### production functions and theory of firm [closed]

Consider a consumer whose preference can be described by the following utility function: ​ a) Derive the optimal demand for x1 and x2 as a function of prices and income. b) Assume the price of good 1 ...
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### Inforamtion asymmetry modeling

Is there any cook book, in finance, for models in information asymmetry, so as to make some practice?
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### What problems arise when the minimum wage is directly linked to the inflation rate?

For example if the minimum wage is 10, and the inflation for the year is 3%, then next year the minimum wage is 10*1.03 =10.30. the next year, inflation is 5%, so the minimum wage becomes 10.82. The ...
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### Why did foreigners keep buying Swiss francs at -41% (not a typo) interest rate in the 1970s?

A Bloomberg (opinion) piece notes In January 1975, the Swiss government held an emergency meeting and then took the extraordinary step of slapping a 41% annual penalty on foreign deposits. But even ...
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### GDP(Expenditure view of GDP): /Why aren't investments categorized as non-final goods?

My understanding is that consumption = consumption of final goods = whatever consumers buy from companies (with an adjustment for export-import-process + maybe housing is slightly different (not ...
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### How would M2 and Velocity of M2 be affected if balance sheet expansion continues long-term?

Let’s assume that the Federal Reserve does NOT discontinue injecting liquidity into the Repo market but, instead, continues a long-term policy of continuous and regular liquidity injections. Let’s ...
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### What limits central banks from setting highly negative interest rates?

What limits central banks from setting highly negative interest rates if needed? Is it only that people can take out a lot of cash and put it in a vault, or are there other reasons? If we had removed ...
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### Can minimum or subsidies or tax cuts really work? Or will resultant inflation always counterbalance such initiatives? [duplicate]

I was born at the tail end of Eisenhower era and what is clear is that the dollar does not buy what it used to and this inflation has been more or less the trend for many decades. I have yet to hear ...
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### France place in the eurozone in terms of prudence

When I think about the eurozone countires in terms of governments economical prudence I, as many, divide them into the northern prudent(Nordic+ Germany) and the less prudent southern(Grecce, Italy, ...
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### Are interest rates low because of low aggregate demand? If so, what are the reasons for low AD?

Interest rates seem quite low in most of the western world and it looks like the market thinks this will last for a long time. 10-year government bonds in US, Canada, Australia, France, Japan, ...
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### PPP and real exchange rate [closed]

Can someone help me with this question. It shoul be easy but i am not able to solve any of them. Thanks
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### What happens to interest rates when they are already at (near) zero and the stock market crashes?

Let's say the global stock market crashes in the coming months (it's currently at an all time high in the western world). What happens to interest rates? "Usually", as I understand from my absolute ...
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### Why would overemployment mean that labor is used inefficiently?

If labor is being used efficiently, there is no excess unemployment or over employment. This phrase from Khan Academy struck me as quite strange. Why on Earth would over employment mean that labor ...
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### MWG Proposition 2.F.1

Is homogeneity of degree zero necessary in proposition 2.F.1? It seems like the proof does not assume homogeneity of degree zero to establish the proposition. If this is true, it seems that ...
107 views

### Business climate data collection experiments

Hernando de Soto in his book "The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else" describes a series of experiments in different countries, illustrating economic ...
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### Sources to know about latest research

I wanted to keep myself aware of the latest research news and trends etc. in economics. What are some good sources (newsletters, magazines, websites etc.) for that? I did find one from Nature. How ...
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### Why does a firm in a perfectly competitive market not need to cover fixed costs in the short run?

While studying, I came across the solution that in some cases only the produces surplus, PS, needs to be positive, however not the profit, $\pi$. That means that if $PS \geq 0; p \geq AVC$, whereas, e....
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### Independent sort: Fama-French 2015

While replicating the FF-2015 Size-BE/ME-OP 32 test portfolios I notice missing values in the combination Big,BE/ME 4th quartile, OP 4th quartile. I am a bit puzzled, FF say they independently sort ...
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### What is the purpose of multiple regression?

For instance, consider the following regression equation $College Score=\beta_0+\beta_1HighSchool GPA+u$. We interpret this $\beta_1$as the effect of a higher High School GPA holding all other ...
How can I find the elasticity of substitution (I know the definition) if I know the utility function $u(x,y)$? I know its increasing in $x$ and $y$, etcetera, and has everything else you want from a ...