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2 views

What is liquidity overhang?

I read in an economics article the following: RBI Governor has decided to keep the unwinding of monetary policy gradual, calibrated, and non-disruptive while remaining supportive of the economic ...
14 views

Can economic models predict China overtaking the United States?

I recently read an article about China's economic progress: Chinese economy to overtake US 'by 2028' due to Covid Can models and simulations based on economic data predict when China's economy will ...
17 views

Expected payoff calculation difficulty in the Bayesian environment of Bergemman and Morris

Suppose that we have two states of the world equally likely to occur, and say $\psi$ is the common prior of the state $\theta\in\Theta=\{G,B\}$. The types of the players are given by the following ...
7 views

An updated version of oxfam top 1% wealth share evolution to 2021

In January 2015 oxfam allegedly published this graph: Q: I'd like to see how that projection held up, by getting the updated data with a comparable methodology.
12 views

Government spending multiplier in stochasic/deterministic economy [closed]

max $log c_1 +\beta log c_2$ s.t $c_1+g_1+s=y_1$ and $c_2+g_2=y_2+s$. Suppose that $g_1=G$ , $g_2=\rho G$. What is the value of $\frac{ds}{dG}$ when $y_2$ is deterministic?
18 views

What does no anticipation following Athey, 2021?

From a paper of Athey, 2021, Journal of Econometrics, I saw the assumption of no anticipation effect is Assumption 2: For all units i, all time periods t , and for all adoption dates $\alpha$ , such ...
3 views

Converting from Quarterly to Monthly Data for Output Gap

I am currently working on the quarterly output gap data on FRED. However, I would like to convert the data series into a monthly one. Would an appropriate methodology be to divide the dataset by 3 ...
8 views

What is the difference between testing anticipation effect and parallel trend assumption in Diff-in-Diff?

In general, two most important assumptions that all Difference-in-Differences must satisfy are "no anticipation effects" and "parallel trend". The parallel trend is tested by ...
12 views

Should we test anticipation effect for Diff-in-Diff in natural event?

Normally, anticipation effect is tested as an assumption for Diff-in-Diff. However, it seems that it is necessarily for examining the impact of laws on firms' behaviour or else. For example, we want ...
16 views

Social planner's problem

Consider an environment where there is an infinitely-lived representative household endowed with $K_0>0$ units of productive capital and a total of $T_0>0$ units of time. The household has ...
13 views

42 views

MMT and government deficit [closed]

How is MMT a viable strategy for making a more buoyant economy in times of slow growth and high unemployment with regard to Government spending? My question: MMT is talked about (Mosler and Kelton etc)...
11 views

What is the impact on nominal wages and return on capital in two sectors? [closed]

A country would like to reduce their oil production. Consider a specific-factors model for that country, with two sectors: oil (O) and non-oil (N), and two factors: labor (L) and capital (C). Consider ...
23 views

Why are you not adding C on the other side as well [closed]

Why are you not adding C on the other side as well? Then it will look like this: (ln(P)+C) = 𝛼 (ln(L)+C)
24 views

Bond price and interest rate [closed]

I'm much confused about the inverse relationship between the bond price and interest rate.. Please explain how it works And also explain this quotation: it it more accurate to say that a fall in bond ...