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Can a dominance solvable game have mixed strategies?

I was told that there is at least one mixed strategy for the following game, which is dominance solvable and has a pure strategy NE in DA I thought dominated strategies will not be played, so how can ...
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5 views

Is it possible to find missing indices using just a given indices data of some year? The question seem confusing. Try this!

I have been grappling with this question, and I think there is some missing parameter, I would deeply appreciate it if just anyone can wrap their heads around this. Thanks in advance. Index numbers ...
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How can you simulate price/exchange for an economy according to supply and demand on a computer? Have there been any research papers or code doing so?

Essentially, I am asking if there have been any attempts at actually simulating how economic agents act in an economic environment and how prices are determined. To get a better feeling of what I mean,...
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25 views

Why in the input requirement set the x is written with a minus sign?

My question comes from the textbook "Microeconomic analysis" by Varian, 1992. The textbook defines the set of all technologically feasible production plans as $Y\in \mathbb{R}^n$. It is said ...
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In the Ramsey-Cass-Koopmans model what is the equation for the stable arm?

I’m wondering what is the equation of consumption per effective labour that depends on capital per effective labor, which describes the stable arm of the graph in the Ramsey-Cass-Koopmans model.
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15 views

How do public debt and inflation correlate?

From my naive viewpoint, I would argue that public debt correlates positively with inflation. One cause could be that states with high public debts often use "their" reserve bank (e.g. the ...
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1 answer
172 views

Why should time-subscript notation be avoided in Bellman equations?

when I learned Bellman equations for macro, my lecturers were pretty loose about notation and switched between recursive and time-series notation. However, Prof Ben Moll says in his slides on Slide 15 ...
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1 answer
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What does sustained growth mean?

In the Overlapping Generations model, it’s stated that sustained growth is not possible in a absence of technical progress.
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21 views

Opportunities for Graduate Economics Students

What internship opportunities, Fellowships, External Research Grants (Preferably Paid) are specifically catered towards PhD students in Economics? To name a few I know of Amazon, Microsoft, Uber, and ...
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1 answer
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How central banks can lend money and always expect more money

for making this question clear let's create a simplified world when there are only 3 private banks (bank A, bank B, bank C) in the world, and 1 central bank. let's also assume that all the citizen in ...
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1 vote
1 answer
34 views

If the income increases by $\$d$, will it mean the utility at the optimal point increases by $\lambda d$?

I read that if the income increases by $\\\$d$, then the utility at the optimal point will increase by $\lambda d$. How do I get a sense of this, both mathematically and intuitively? Can we write that ...
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Impact of current account on FX performance

I was wondering if someone can explain why countries running current account surpluses should expect their currency to appreciate while countries running current account deficits to depreciate?(...
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What is the average global income in 2022?

2021 is also fine but I could only find old data. Median income may also be of value but I do not really believe in this metric.
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Synthetix' assets failure scenarios

Synthetix project provides the system where different assets like USD, BTC, stocks are emulated by minting tokens representing them (sUSD, sBTC) collateralised by SNX token. Prices are defined via ...
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1 vote
2 answers
159 views

Is P > AC under monopoly?

I would like to know why price is greater than average total cost under monopoly. In textbooks, average cost is drawn under monopoly price. However, if the fixed cost is so large, can monopoly get ...
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25 views

Effect of a higher relative price of computers on wage/rental

Can someone explain to me in a very simplified way what is happening on this graph? I do not understand why the Ls/Ks and also the Lc/Ks both shift to the right.. I understood it this far: Due to ...
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2 votes
1 answer
42 views

Effect of an increase/decrease of ρ or θ on consumption per effective labour and on capital per effective labour? And on their steady-state values?

In a Ramsey-Cass-Koopmans framework, having defined ρ as the rate of time preference, I was wondering what is the effect of a variation in the two parameters on consumption per effective labour and on ...
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1 answer
18 views

Multiregression analysis with fixed effect

I have a question about fixed effect I want to do a multivariate regression and I want to incorporate fixed effects by year and by company here is my equation: 𝐶𝐴𝑅=𝛽 +𝛽𝑀𝐴𝑆𝐶+𝛽𝑃𝑂𝑊𝐸𝑅+𝛽𝐼𝑁...
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3 votes
1 answer
44 views

Does culture effect micro economics?

In different parts of the world, we have different attitudes to money , spending and value different things importantly. Does this mean that we require different micro Economic theories which are ...
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1 vote
0 answers
14 views

Help with Macroeconomics Question: IS-LM Model [closed]

I know this is supposed to be a simple question, but I need to check the answers for it and as it was a past exam question I do not have the results for it.If anyone can help out, that would be ...
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0 answers
22 views

Is "base yield royalty" a financial term?

Could you help me understand the title (Growing Base Yield Royalties) in the following excerpt? Is base yield or base yield royalties a financial term here? "Growing Base Yield Royalties Over a ...
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9 views

Where to find historical price data for biotechnology feedstocks?

Bioproduction has traditionally relied on sugars (especially glucose) as a source of carbon for the production of value-added products [1]. To gauge the industrial potential of different carbon ...
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11 views

Average emissions reduction corresponding to not buying an economy class plane ticket

In the book Doing Good Better, William Macaskill writes: Economists have studied this issue and worked out how, on average, a consumer affects the number of animal products supplied by declining to ...
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10 votes
1 answer
2k views

Is Basic Economics by Thomas Sowell a good book for a layperson who isn't interested in pursuing economics?

I heard that Basic Economics by Thomas Sowell is a good book for a layperson to get a feel for how the economy works. I have also heard some criticisms but they seem to be based on Thomas Sowell's ...
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3 votes
1 answer
38 views

Econometrics - Kernel Bandwidth Formula

When using a Gaussian kernel to estimate the distribution of a Gaussian-distributed $x$, the bandwidth that minimizes the mean integrated squared error is: $$h=\left(\frac{4 \hat{\sigma}^5}{3n}\right)^...
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2 votes
1 answer
48 views

One shot deviation principle in games with many players

This question is motivated by an example in Section 4.7.3. Open-Loop and Closed-Loop Equilibria in Games with many players in Game Theory by Fudenberg and Tirole. The definitions of closed-loop and ...
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1 vote
1 answer
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What incentives do private banks have not to lend money

It is generally accepted that banks can create money by lending. If sb. wants to take a loan the bank simply extend the balance sheet by creating that loan. The bank has to adhere to reserve and ...
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  • 221
1 vote
2 answers
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Intermediate Consumption vs Savings-Investment in National Income/Expenditure Accounting

I am trying to fully understand the savings-investment identity; both the Y=C+I+G=C+S+T and inventory accumulation perspectives make sense to me, but I came up with two examples that are a bit ...
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0 answers
22 views

Data - Top 100 global economic entities

Around 2016-2017 there was a dataset put together by NGO Global Justice Now listing the top 100 economic entities (including privately owned corporations as well as sovereign countries in the same ...
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1 vote
1 answer
63 views

How to define treatment & control groups properly?

I’m working on a project examining the effect of a 2016 cash transfer on fertility. Who is eligible for the cash? All families with: 2+ children, or 1 low-income or disabled child. The data doesn’t ...
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1 vote
2 answers
24 views

Comparing incomes across regions within a country

When looking at spatial disparities across regions within a country the standard approach that I have seen is to look at differences in incomes across regions. However, this doesn’t control for the ...
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  • 181
2 votes
0 answers
41 views

Experimenting with Mean Variance Analysis

here with a question about mean-variance analysis and utility theory hope you can help me. First point My main objetive is to maximize the expected utility from portfolios given by $\sigma_p^2=\frac{C}...
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2 votes
1 answer
29 views

Difference-in-difference robust to heterogeneous treatment effect - Gendron-Carrier et al. specification

I am trying to extend the results of Gendron-Carrier et al. (2022) article published in the American Economic Journal : Applied Economics which is about the effect of subway opening on pollution. I ...
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1 vote
2 answers
47 views

Does Varian define the MRS differently/ as negative?

Varian defines the MRS as the slope of the indifference curve. However, Snyder/Nicholson (and apparently Wikipedia) define the MRS as the negative of the slope. Does Varian use a different definition, ...
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1 answer
17 views

Should asset prices be always normalized by M2

When economists look at the financial asset prices, do they adjust them by something like M2 in order to judge how valued something is compared to the previous historic periods? It seems like ...
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2 votes
0 answers
29 views

Are standard discrete choice models based on ordinal utility or cardinal utility?

Suppose we model consumer's choice between three brands Honda(choice 1), Toyota(choice 2) and BMW(choice 3) using a standard discrete choice model, with the utility of choice $j\in\{1,2,3\}$ being ...
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-2 votes
1 answer
57 views

Tax and welfare in Australia

In the following diagram the blue line represents the net income versus gross income, assuming the Australian progressive income tax, plus the Jobseeker welfare payments for a single person with no ...
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2 votes
1 answer
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Who is Hayek referring to in this statement about taxonomy in economics?

In Hayek's essay, 'The Facts of the Social Sciences,' he mentioned "that one of the best-known modern critics of the discipline has described [economics] as a purely taxonomic science." Who ...
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1 answer
22 views

Recycling tax revenues

I read a recent policy paper (bottom of page 4, KfW being the German development bank) that asserted that the German government’s spend on subsiding energy efficiency schemes in homes was revenue ...
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  • 181
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1 answer
30 views

Income and substitution effects

I’m currently reading the core economics textbook, and I’m confused by the description of income and substitution effects. The income effect is defined as the effect on the point where marginal rate ...
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  • 181
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0 answers
11 views

Short marketing book for intermediate

I read a short introduction to marketing (50 pages) through one of those X-day-MBA. Now I would like to take marketing a step further. I had a brief look at Principles of Marketing (Kotler, Armstrong),...
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3 votes
0 answers
41 views

Reference request: a book on numerically solving DSGE models with code

I am new to the area of DSGE modelling, and programming DSGE models. I was hoping that someone could recommend a book on DSGE modelling, that presents the different model components as well as code ...
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How Did The Coronavirus Market Crash Cause Excessive Price Rises Of Luxury Goods?

The COVID-19 pandemic had caused the unemployment rate to rise quite significantly in many countries. Furthering this, most countries are facing economic crises, most notably, the United States with ...
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2 votes
1 answer
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Proof of the tangency condition in UMP

When an indifference curve is tangent to the budget line such that the preferences are convex and monotone, why is the point of tangency an optimal for an UMP? Given the budget line $p_1 x + p_2 y = I$...
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1 answer
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Net Surplus and first party products calculation on digital platform

I was reading the book "The Economics of Platforms: Concepts and Strategy" by Paul Belleflamme and I was confused about the solution of the seller and buyer surplus equation on page 132. The ...
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0 votes
0 answers
6 views

How to keep a currency stable with mass and sudden increase in population [closed]

My question is not with reference of a state bound currency, but like lets say the population on earth just increased by a significant amount in very short time period. Like an increase of 7 billion ...
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1 vote
0 answers
22 views

Problem 11.15 in Romer in Advanced Macroeconomics 4 edition

I'm a little bit confused about the answers proposed in the solutions manual to the problem 11.15: In the model of delegation analyzed in Section 11.7, suppose that the policymaker’s preferences are ...
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2 answers
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Technology as an endogenous economic variable

Most of the economic literature on technical progress either treats it as an exogenous variable, often as a stochastic shocks or without specifying the origin of technological progress. On the other ...
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  • 150
1 vote
1 answer
70 views

A derivative with respect to Euclidean distance?

I have a utility function $u(x,z)$ from $\mathbb{R}_+$ to $\mathbb{R_+}$, where $x,z \in \mathbb{R}_+$. I would like to turn the following statement into math: "the utility function $u$ is ...
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  • 291
2 votes
1 answer
62 views

What's the difference between economies of scale and increasing returns to scale?

Can anyone tell me the difference between economies of scale and increasing returns to scale. It seems to me that observationally they would be equivalent.
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