All Questions

How do I determine how much value that capital, labor, and land individually contributed to the value of a firm/good? Like what % of value came from capital vs labor vs land? I heard that this is ...

Is there a New/Modern English Translation of Adam Smith "Wealth of Nations"? I cannot locate any online, it is a great read, just trying to understand it better. The old/classical style of ...

Does Adam Smith and Capitalism support a Central Bank/Federal Reserve? I am trying to read through the book "Wealth of Nations" to understand. Having a central/regulatory figure dictate ...

In the phase diagram of the Ramsey model, the steady-state capital per capita is always to the left of the golden rule capital per capita. What does this mean? Why does this always happen?

Consider the deterministic consumption-savings problem: $ V(a_t) = \underset{c}{\max} \int_{\tau =t}^{\tau = \infty} e^{-\rho (\tau - t) } u(c_{\tau}) d\tau $ w/ $u(c)=\frac{c^{1-\gamma}-1}{1-\...

The formula uses 1-ratio between the remaining years of economic value and the remaining years of technical value to multiply this with the current (resell) value of the property. This ratio is very ...

I have a time series data that used quarterly information on a variable, but has now shifted to bi-monthly releases, from September 2008 to July 2021. This is a survey based measure, released at the ...

My problem. Consider the following auction for a single object. There are $n \geq 2$ bidders. They submit their bids simultaneously. The object is allocated to the player who submits the largest bid. ...

My textbook says that in perfect competition the condition of free entry and exit only applies to the long run equilibrium. Because in the short run no new firms can enter or old ones can leave the ...

$(1) y_t =\beta y_{t-1} +\epsilon_t$ $(2) \epsilon_t =\rho \epsilon_{t-1} +v_t$ Where $v_t$ is i.i.d white noise. I know that OLS estimates of (1) are biased. It would then follow that estimates of $...

I am interested in inflation, specifically hyperinflation. Can anybody point me to research (papers, books) done on the individual origins and mechanisms at work at the very beginning of ...

Should the Anderson-Rubin confidence intervals reported in weakiv and twostepweakiv be equal to each other? Sun (2018) does not ...

Is there any situations where we can achieve both equity and efficiency? I'm thinking of Covid 19 vaccine program which is run by Goverment. Although the cost for the program is paid by the money from ...

Type I and Type II errors' definition following this link is as below A Type I error means rejecting the null hypothesis when it’s actually true. It means concluding that results are statistically ...

The M1 money supply of the U.S. dollar is released monthly. But how often does the Federal Reserve or treasury add/remove a new dollar or a new penny? By second, minute, daily?

Subsampling is normally examined in many international studies (grouped by market developement, country governance,etc), @1muflon1 has a great explanation here in one case. In his answer, there is one ...

Today, my senior lecturer in economics and finance class teaching about laws impact companies' operation told us one sentence "Also keep in mind that in (at least social) science, we care (try to ...

Where does the money go when Musk, Branson, and Bezos spend money on a private space program? What countries and demographic groups have been affected positively? What countries and demographic groups ...

I'm taking a economic course over the break and with no prior experience with economics, I'm struggling with coming up ideas for a prompt in relations to why people marry. I thought the idea of ...

Above is a question regarding volatility models and specifically deriving the VECM form from a VAR(1) model, unfortunately my lecturer hasn't provided an example of such a question prior so would love ...

Deterministic Optimal Control Problem $ V(a_t) = \underset{c}{\max} \int_{\tau =t}^{\tau = \infty} e^{-\rho (\tau - t) } u(c_{\tau}) d\tau $ s.t. $ \frac{da}{d\tau} = \left( r a_{\tau} - c_{\tau} \...

Below is a practice exam question on the topic of volatility models in advanced econometrics. Any and all help would be very appreciated. Thanks.

In economics, what variables do we usually assume to follow an exponential distribution? I would like as many examples as possible, and it would be great if you have a rationale(economic reason or ...

Doraszelski and Jaumandreu (2018) estimate a CES production function with two forms of productivity shocks (1) labor augmenting and (2) Hicks neutral. They claim that the increase in labor augmenting ...

I want to examine whether the impact of laws on asset growth difference between developed and developing countries. One way to do so is by adding the interaction between the variable of interest and a ...

I've recently learned about Olson's Collective Action Theory and I'm interested in mathematic models of economies that follow the theory's axioms. I tried finding a general equilibrium macro model ...

I am looking for some words for "cartel" in economics. I did a search and found a good word is "corporate consolidation" from this newspaper. I am wondering if there is any other ...

I don't know economics that well, but just curious what would happen in this scenario. Let's say inflation rises but wages do not increase with inflation (due to the capitalist system). Sure the ...

As we know, sample size can play a role in reaching statistical significance, provided that splitting the quant world in what is and what is not statistically significant is probably an overestimated/...

When discounting in order to obtain the present value, one has to determine the opportunity cost of capital. In this case, I don't want to do it for a project (or a comparison of two similar projects),...

Let's say I want to know what happened to the value of the U.S. dollar between three minutes and two minutes back from ... NOW. I have given myself a two minute slack period for data collection and ...

In a staggered Difference-in-Differences setting, Dasgupta, 2019 has a formula for such a static setting is $Y_{it}$ = $\alpha$ + $\beta$ $pt_{kt}$ + $\delta$$X_{ikt}$ + $\theta$$_t$ + $\gamma$$_i$ +$\...

tradingeconomics shows an M1 money supply of the past year as follows: This suggests an unusually high increase of ~170% in February 2021. Is this increase real or somehow an artifact of the way the ...

This is a reference request. Where can I find an analysis that explains why companies like Microsoft and Amazon don't split into two. At a certain point diseconomies of scale would kick in. I would ...

(Hansen Exercise 13.3) Take the model $Y = X'\beta + e$ with $\mathbb{E}[Ze] = 0 $. Let $\tilde e_i = Y_i - X_i'\tilde \beta$ where $\tilde\beta$ is consistent for $\beta$ (e.g. a GMM estimator with ...

My Solution is this Separating equilibrium High type worker chooses $e_H = e^* >0$ Low type worker chooses $e_L =0$ Firms believes that if education is $e^* >0$ then the worker is high type and ...

Let's say I have a model $y_t = \alpha + \beta_1 s_t + \beta_2 p_t + \epsilon_t$ But $s_t$ depends on $p_t$ too, however, not observed. So I take it to the left-hand side. $y_t-s_t = \alpha + \beta_p ...

I've delved into the topic of the Aral Sea's drying. The key reason, as I discovered, was unsustainable diversions of water from the inflowing rivers for irrigation, particularly of cotton, a thirsty ...

I am looking for a resource similar to this website that shows the mean effective federal taxation on households in different percentiles broken down into percentiles (and even shows historical data ...

I know that real gdp is better than nominal GDP but can someone explain with an example why real gdp is better than nominal gdp and also please suggest book to study national income and related ...

I'm interested in theories on how organisations shape their stakeholders' (especially consumers' and investors') perceptions and decisions. I read about Impression Management and Signaling Theory. ...

I am trying to find one specific model from organizational economics that I encountered in one of my past classes, but I cant remember the name of the model and google scholar search based on some of ...

As far as I understand, every transaction done in a country counts for GDP. So, if the government is building a road that counts for the GDP, right? So I was looking for a table which shows me the ...

I have been trying to wrap my head around the law of supply for sometime now, but I keep stumbling because of this: Lets take the example of oil, suppose oil's price yesterday was Rs.100, and now it ...

Consider an AR(q) process, $u_t$. If the roots of a characteristic polynomial are outside of the unit circle, the AR(q) process is weakly stationary. I've seen this proof that proceeds by showing the ...

In the naïve picture of the banking system, banks strike a balance between savings invested in them by savers and the loans requested of them by borrowers. The money loaned to borrowers is the same ...

My question is based on a Cournot competition model with linear demand, $p=a-bQ$, but can also be applied to most competition models. I wanted to know whether there is some special interpretation of ...

I got to know that alcohol addiction is a case of increasing marginal utility. My professor refutes me bluntly stating that once a person starts consuming he no longer remains to be a 'rational ...

I'm trying to model a situation where demand is a function of the supply of medical equipments. The equipment costs are already covered, hence price is not taken into consideration. The supply however ...

I commonly hear that when the Fed conducts open market operations, it is directly increasing the money supply by exchanging newly created electronic money for US treasuries. But in the case where the ...