# All Questions

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### The role of reinforcement learning in Economics

While working on different research projects I got fascinated by RL which got applied to many fields that are focused on agent based modeling. Though it is a field in Machine Learning what interests ...
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### Why are mathematical methods not used in calculating human performance prospects in real life to allow for the wiser usage of government funding

For example, if it is known that there is a greater chance of a person living in a given area achieving success, why not focus the resources on these areas? Tools for this seem to exist (SABRmetrics ...
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### Show that if there exists an unemployment equilibrium, then money wage rigidity must exist in the complete Keynesian model [closed]

Show that if there exists an unemployment equilibrium, then money wage rigidity must exist in the complete Keynesian model. The following data is given for an economy- Y = 250 – 250r (IS curve) M0/P = ...
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### Stationarity vs weakly dependence

I am doing an undergraduate course in econometrics where we are using the text Introduction to Econometrics by Dougherty. While going through time series, it was mentioned that one of the necessary ...
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### PPC's real output value

Does every point on the PPC have the same real output value? If not, then what point on the PPC does the long-run aggregate supply represent? Every article I've read so far only says that it ...
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### Can one do post identification in SVAR models?

Let say you have price and quantity data ($P, Q$) and you want to examine how Q responds to a shock to P. If you are certain Q is either demand or supply, you can impose some sign restrictions. But if ...
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### Epstein zin and resolution of uncertainty

I'm reading Simon Gilchrist's notes here. I understood everything until and including page 14, where it reads $$\frac{W_h^{1-\rho} + W_l^{1-\rho}}{2} \geq \frac{c_h^{1-\rho} + c_l^{1-\rho}}{2}$$ and ...
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### Is it customary for sellers to pay the commission in brokered transactions?

This question focuses on brokered transactions where 1) the intermediaries act as brokers (agents), not dealers, and 2) where both sides have an agent. In the U.S., in buying/selling houses, it is ...
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### How can the Fed enforce exit criteria if they begin yield curve control?

Over the past year, the notion yield curve control has resurfaced and appeared on FOMC minutes, decades after its last implementation. According to the Fed's introduction page: As the U.S. continued ...
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### Would be there redistribution of wealth from actors with sticky prices to actors with more flexible prices under stagflation?

Suppose there is inflation in our country, but we take a short term, thus some prices are sticky and there is non-positive "growth" of the real GDP. In other words, we experience stagflation....
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### Why does some government tax non-economic activities such as estates tax? [closed]

Examples of taxes on non-economic activities (i.e. neither on production nor consumption) include estates tax, capital gain tax, stamps tax. These are from transfer of ownership. The presence of all ...
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### Solow Growth Model and Steady States

$Y^A_t = AK^\alpha_t L_t^{1-\alpha}$ $Y^B_t = BK^\alpha_t L_t^{1-\alpha}-bL_t$ where B > A and b is a fixed cost (per unit of labor used). I found the steady state of $Y^A_t$, but I couldn't find ...
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### Greater the price elasticity of demand, greater is the gains from trade” [closed]

Is this statement True or False for a country that imports the commodity from abroad? Justify and logically analyze your argument.
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### Second Order Derivatives in Becker's Crime and Punishment

I'm trying to understand Becker's seminal paper Crime and Punishment (1968) particularly the parameter of cost of apprehension and conviction and their second order partial derivatives. The paper ...
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### Microeconomics (signaling) [closed]

Suppose there are 10 individuals in a society, 5 of whom are of high ability, and 5 of low ability. Individuals know their own abilities. Suppose that each individual lives for two periods and is ...
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### Why invest in index funds? [migrated]

I want to start investing in the stock market (I am 26) and I am a bit confused about the advantages of index funds (I am sorry if my questions are very basics, but I just started learning about this)....
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### Seemingly contradictory relationship between bond yields and economic growth?

I have a few seemingly contradictory ways of viewing the relationship between economic growth and bond yields: Reductions in FFR are largely induced by IOER. Since IOER and bonds are competing ...
739 views

### How is money destroyed when banks issue debt?

Bank of England (2014): Money can also be destroyed through the issuance of long-term debt and equity instruments by banks. How is money destroyed when banks issue debt? Say Bank X issues a £100 10-...
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### Why does anyone prepare their own food?

I'm not an econ person, so this is a super naive question, but here goes: why, given the comparative advantage that specialization produces, does anyone prepare their own food rather than buying from ...
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### What happened to the dollar in Nov 1978?

Arthur Burns (1979): "Benign neglect" of the external value of the dollar came to an end dramatically, and I would hope irrevocably, in November 1978. What event(s) of Nov 1978 is Arthur ...
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### Do applied papers introduce new notation for every regression?

I am currently writing an empirical paper which reports on the results from estimating a number of regression models. Question: is it standard to introduce new notation for each of these models, or ...
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### Why would foreign asset purchases by PBOC temper yuan appreciation?

Suppose the PBOC buys a bunch of dollar-denominated bonds, using its dollar reserves. All else equal, what effect should this have on the yuan-USD exchange rate? And why? It amounts to trading non-...
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### Rationalizable strategies and Weak Dominance

Can I find the rationalizable strategies for a game where none of the players has strict dominance but only weak dominance?
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### Remove seasonality in R

I have data of total exports of fish from my country in the time period 2010-2020. Since our currency (NOK) has gotten weaker to the currencies we are trading with, we have gotten a lot more value ...