All Questions

Consider the simplest version of the Spence signalling model. There are two types of worker, with either productivity $\theta_H$ or instead productivity $\theta_H < \theta_L$. The proportions of ...

I read on cnbc.com (mirror): Tenev also advocated for real-time settlement instead of two-day settlement in order to help combat some of the chaos that occurred during the GameStop saga. Why would ...

Also, do the opposite that is lowering tax rate controls deflation?

What does the term 'business cycle frequency' mean? Annual, quarterly, or monthly frequency? Thanks. I have yet found a definition on google.

This is something I've been long wondering about. Let's say that I have statistics showing the daily closing Bitcoin price in USD since early 2009. Great. Now, if I wanted to get the daily closing ...

In my course notes, it says that "when net exports is negative it means that the country is borrowing from other countries" but I do not get it if net exports is negative that only means ...

The production function is $F(K_t,N_t)=AK_t^\alpha N_t^{1-\alpha}$ and depreciation $(\delta)$ is equal to 1. The given preferences are as follows: $$U(c_1,l_1,c_2,l_2)=\gamma log(c_1)+(1-\gamma)log(...

i try to understand the concept of sunk cost and how we compute sunk costs when there is a difference between book and market value. For example, if the book value of assets is ...

For the following social planner's problem $$ \max \mathbb{E_{0}}\sum_{s=0}^{\infty}\beta_{1}^{s}(\alpha U(C_{s}^{1}))+\beta_{2}^{s}((1-\alpha)U(C_{s}^{2})) $$ $$ s.t.\ \text{some constraints ...

I am currently working on a project where I want to explore how changes in a couple of currencies affects the income for my countrys exported fish. My country (Norway) sells it fish in 4 different ...

The FRED website has Currency Component of M1 (CURRENCY) Currency in Circulation (CURRCIR) Monetary Base; Currency in Circulation (MBCURRCIR) Monetary Base; Total (BOGMBASE) M1 Money Stock (M1) ...

I am wondering why everybody uses Cobb-Douglas production functions? Nowadays they are so standard that they are just written down without further discussion. Does anybody know more about this and can ...

When COVID started, many countries started printing loads of money and handing it out to their people. Here are some examples US is printing money to help save the economy from the COVID-19 crisis We’...

Let's assume that new bank is incorporated and it issued 100 000 shares with nominal value odf $100. Let's also assume that all shares are sold for the same price, so bank now has 10 million dollars. ...

Suppose the allocation of an auction (or a market) is defined by the solution of a linear program. Then it is known that the associated clearing price is given by the dual variable associated to the ...

So as a Georgist (follower of Henry George), I believe most form of taxation is immoral and economically inefficient except the land value tax (not to be confused with property taxes) and other ...

Mark and Zuck share an apartment. They have different views on cleanliness and, hence, on whether or not they would be willing to put in the hours of work necessary to clean the apartment. Suppose ...

Cochrane "Asset Pricing" Chapter 1 p. 6 says We model investors by a utility function defined over current and future values of consumption, $$ U(c_t,c_{t+1}) = u(c_t) + \beta \mathbb{E_t}[...

I'm not sure to fully get the meaning of prices. If I understand well, there are two drivers of it : The theory of demand and supply and thus prices are driven partly by the utility that agents get ...

https://www.bankofengland.co.uk/working-paper/2020/does-quantitative-easing-boost-bank-lending-to-the-real-economy Staff Working Paper No. 883 Published on 14 August 2020 From the conclusion: If the ...

Curently I am biit confused in this topic but this practice question must be send in a few hours, if somebody whould briefly help. Thank you in advance

I have heard it claimed that amazon's retail business is actually not very profitable (it's claimed that most of their profit comes from their web services). A rebuttal to this claim I have heard is ...

I'm not sure about this, can I ask you if I'm wrong? Thanks. Data: $$Q_{s}=P/2$$ $$Q_{d}=P-42$$ Questions: a) How many units will be traded at 35 dollars? At $14 dollars? b) What quantity at what ...

http://www.its.caltech.edu/~mshum/gradio/blp.pdf I need a stata file for this problem set. Please share with me if you have it.

I would like to know where I am wrong (if I am) and why I am wrong here please: If a consumer has an income of 600 euros to spend for good x (Px = 10 euros) and good y (Py = 5 euros). What is the ...

I wondered if anyone could throw some intuition on Blackwell's sufficiency conditions: (1) Monotononicty; (2) Discounting; Would be genuinely appreciated to hear both terms expressed in plain English.

i need to answer to this question but i'm wonder if i need to use the short-run cost function (C = wL * rK) of not. Can you help me ? This is the statement : A small business owner employs 5 workers. ...

do you know where can I find data about the R&D expenditure of china from 1976 until 2020?

While making readings on economics I came across a sentence: ..large valuation gap that has opened up between US equities and the rest of the world. This could help bid up non-US equity valuations and ...

Let's say we know that our customers can't make sense of a raise in 5% of the price. It's too little for them to notice. However, an increase above 10% is easily noticed. If this is true, different ...

I was trying to calculate how much the price of a product impacts some company I'm analysing. At college, we learn that the price elasticity of demand is the percentage change in demand divided by the ...

Judging by previous posts in the site, the inflation target is set annually to 2% by the Federal Reserve. Regardless of the reasons behind this choice, I am curious to understand how precisely can the ...

I'm looking for an example of a family of production functions indexed by, say, rho, where the inputs become closer and closer to perfect substitutes as rho approaches 1, and yet, the marginal product ...

I am starting to learn microeconomics from a book named Intermediate Microeconomics by Hal R. Varian. The first chapter is on market. I was attempting to solve the end text problems but was stuck. ...

According to advocates of MMT, the primary risk once the economy reaches full employment is inflation, which can be addressed by gathering taxes to reduce the spending capacity of the private sector. ...

So, I understand that a utility function of the form $U(x,y)=x^{0,5}+y$ is linear in $y$ and so there is no income effect on $x$. But what about the function of the form $U(x,y)=x^{0,5}+\frac{y^{2}}{2}...

I know that QE involves the purchasing of government bonds by the central bank "printing money" but I am curious about what the typical time to maturity of those bonds are. I.e. the typical ...

I am a total beginner to this, but from the few online videos about how (practical) trading works, I understand that when buyers dominate the market the prices go up and when sellers dominate the ...

I often see people who ask how much inflation is a good amount of inflation, or why deflation is bad. My understanding of the systemic role of inflation (and please correct me...), is to neutralise ...

Definitions across various resources state that GDP is the market vaue of all goods 'produced' in a certain time period. But while calculating GDP by expenditure method, consumers' spending is one of ...

As now many people are talking about the inflation of US dollar on the account of the COVID-19 pandemic and the printing of trillions of US dollar bills, the price of decentralized cryptocurrencies ...

I recently encountered the application of intertemporal choice decision in page 201, can anyone describe the math involved behind the scholarship savings topic ?

It is argued that in optimization the first part of the second-order condition appears opposite to their interpretation

I am wondering how to get the steady-state for the following Euler equation. I know that we can get rid of time in subscripts. However, here I have a constant (a) to the power of $t$. Does anyone know ...

My understanding is that price and yields are determined via supply and demand. How are the interest rates determined when the bonds are auctioned off?

This is currently, a gedanken experiment, but may well form the basis of a whitepaper - or better still, an actual project. I am trying to come up with a practical way of creating a "currency ...

If I want to run a 2 stage least squares (2SLS) regression with: Relationship of interest: $Y = \alpha + \beta X + \varepsilon $, where $X$ is the endogenous explanatory variable of interest. If I ...

I have to maximize the following function - $\max_{x \in (0,1)} (((p_1x)^{2r} + (p_2(1-x))^{2r})/2)^{1/r}$ where, $p_1$ and $p_2$ are drawn from uniform distribution [0,1] and are considered to be ...

My understanding is when the fed buys a bond from a bank they use bank reserves (bank reserves are swapped for a bond). How does the transaction differ when a non bank (ex hedge fund) is involved?

In the Sidrausk model, money is in the long run super neutral. Does this result only apply to the case where money and consumption are separable in the utility function, or also to the case where they ...