All Questions
Tagged with macroeconomics microeconomics
243 questions
3
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0
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29
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Economic trade-offs of rooftop solar
It’s a well known problem that rooftop solar drives up electricity prices for non-rooftop solar consumers. This has resulted in some advocates favoring utility scale solar.
Just today the Washington ...
- 131
2
votes
1
answer
67
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What is the "Arrow's generalized impossibility theorem" noted by Robert Wilson?
I recently read a note on "Arrow's generalized impossibility theorem", claiming that we don't need the pareto principle.
https://www.sciencedirect.com/science/article/pii/0022053172900518
I ...
- 2,084
0
votes
0
answers
10
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Work Vouchers, Mutual Credit: What's prefered, how could they mix?
In mutualism/marxism where maximising equity by preventing accumulation is the goal, what's the current prefered system? I can imagine a labor voucher being exchanged for credit in a person's mutual ...
user50291
1
vote
1
answer
97
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Take intermed or advanced series for phd application
I am an undergrad majoring in Math and want to apply for a PhD in Economics (maybe in theory and Econometrics). I have taken the intro series (intro micro and macro) already. Since I am about to ...
- 11
0
votes
1
answer
93
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Economics Textbooks
What are some good textbooks for learning
Microeconomic Theory
Macroeconomics
Econometrics
Are there any textbooks that are particularly popular for post-grad courses?
- 45
7
votes
1
answer
107
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Aggregation and Labor Shares in a Static Model
I'm studying a recent article published by Autor et al. (QJE, 2024). The model is presented in Appendix, Section J. I'm working on solving the model, but I'm stuck at the final step, particularly with ...
- 430
0
votes
0
answers
14
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Calculate CPI of multiple price indexes
I need to calculate the composite CPI of a basket of products. Each product is measured as its own standalone price index.
Note how 2016 = 100
...
- 113
4
votes
1
answer
123
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Comparative Statics in Acemoglu's Article
I'm struggling to derive equation 8 from the paper by Acemoglu and Restrepo (AEA Papers and Proceedings, 2018).
Consider an economy where aggregate output is produced in perfect competition according ...
- 430
3
votes
1
answer
59
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Comparative Statics - Capital Augmenting Technological Change
I am reading the article by Acemoglu and Restrepo (AEA Papers and Proceedings, 2018) and have encountered some difficulties deriving equation (1). I hope you can help me work through it.
The aggregate ...
- 319
2
votes
1
answer
635
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- Economics 101
Is it possible to learn economics while studying math? If possible what books do you recommend? I'm looking for books that teach the fundamentals and explain them without any use of mathematics.
- 21
1
vote
1
answer
58
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Questions about output, quantity, level of output and quantity of output, investment level
Hope your week went well.
These may be basic facts known to many but I am afraid that I have misunderstood the terms.
Does quantity of a good mean the amount demanded or supplied?
Does output refer ...
- 21
9
votes
1
answer
338
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Challenging question on mathematical economics
I'm going through the paper of Acemoglu and Autor (2011, Handbook of Labor Economics)
Consider the following system of two equations:
\begin{equation}
\frac{A_M \alpha_M (I_H) M}{I_H - I_L} = \frac{...
- 430
2
votes
1
answer
139
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Properties of Multivariate Frechet Distributions
I was reading an answer from another Economics Stack Exchange post and I had further questions.
The highest up-voted answer here utilized two properties of multivariate Frechet distributions, but the ...
- 23
1
vote
1
answer
68
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Derivation of the Ideal Price Index
I'm studying Chapter 15 of Acemoglu's growth book, which is about skill-biased technological change.
The unique final good is produced in perfect competition by combining the output of the two ...
- 430
0
votes
0
answers
33
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Derivation of Euler Equation in presence of the Dixit-Stiglitz Aggregator
I reading the working paper of Sebastian Banz (2012). I have an issue with the derivation of the Euler equation.
The author models the demand side of the economy as follows
The representative consumer ...
- 430
1
vote
0
answers
55
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Background courses for MSc in Finance
I'm a Mathematics bachelor student and next year I am going to pursue a 2-year MSc in Finance.
In this question, as a total beginner in Finance and more generally in Economics, I'd like to get ...
- 111
5
votes
3
answers
2k
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Economists Working At the Intersection of Pure Math and Economics
As a math student interested in economics I was recently reading some of the papers by Graciela Chichilnisky on social choice theory and some of her papers applying topology to other areas of ...
-3
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1
answer
126
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Economics as non zero sum game [closed]
If economics is not a zero sum game then why its difficult to earn money.I mean just increase the size of the cake and distribute it.
- 137
4
votes
2
answers
212
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Definition of economics
What is the accepted definition of economics?
I've read basically two versions, one that defines it as the study of scarcity and the other as the study of how to coordinate human desires given ...
- 51
2
votes
1
answer
123
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What is the frisch elasticity and its meaning?
I understand that Frisch elasticity is the "elasticity of hours worked to the wage rate".
I wonder why then we use this specific naming only for this?
Is this to make it clear what this ...
- 21
-3
votes
1
answer
142
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Why economics does not believe in data/empirical evidence?
There are influential ‘theories’ that are in plain contrast to experimental evidence, including the capital asset pricing model, the efficient market hypothesis, or the Markowitz portfolio theory. ...
- 137
1
vote
0
answers
93
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What is a very very famous example of structural estimation?
I took a behavioral econ class and learnt the "structural estimation" of risk-aversion parameter.
Later some friends told me that what I learnt is too simple when I was bragging about my ...
- 329
0
votes
1
answer
82
views
Ramsey model problem
Explain the no-Ponzi game condition throughout the function.
Does the constrain function: also reflect include the No-Ponzi condition?
- 131
1
vote
1
answer
148
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Deriving Unit cost function
Unit cost function is the minimum cost to produce one unit of output.
The solution to the above problem is:
where ai(w,r) is the amount of labour needed to produce 1 unit of good i at factor prices (...
- 41
0
votes
1
answer
83
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Cost Minimization
Guys in the following optimisation problem why are we not considering the partial derivate of K and L in the Lagrangian in the first two equations
- 41
0
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1
answer
702
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Increasing Returns to Scale and Perfect Competition
Increasing returns to scale due to internal economies are incompatible with perfect competition BUT increasing returns to scale due to external economies are compatible with perfect competition
SOURCE:...
- 41
2
votes
1
answer
84
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what to learn to write a comprehensive strong paper?
to write an excellent comprehensive paper, what topics and techniques must an economist learn? One of my former professors wrote a paper I read, there are theories, calculations, and empirical tests. ...
- 23
1
vote
0
answers
17
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Why do shareholders allow CEOs and other executives to have extraordinarily high salaries compared to regular managers and non-managerial employees?
The wage gap between CEOs and employees varies from country to country. A 2021 article from CNBC discussed how CEOs in the US on average earned 351 times more than the average US employee. The ...
- 131
1
vote
1
answer
54
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Solow Model in disrectly and continuously
what is the differences between solow model in disrectly time and continuously time?
Why in disrectly time function use the equation: k(t+1)=(1-δ)k(t) + sf(k(t)) and in continuously time function use: ...
- 131
2
votes
2
answers
474
views
CRS assumption in Solow model
Can you explain why does Solow growth model assume "constant returns to scale"?
- 131
0
votes
2
answers
33
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Specific term for disincentivized "doing something first"
Of course we can use "moral hazard" but we can use "moral hazard" for many things. Tragedy of the commons is a moral hazard (maximize your utility before the rest of the public ...
- 1,101
2
votes
1
answer
153
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Frameworks and models in economics
A framework is not a model of a specific system,
but a way of formulating and studying a
variety of systems. Classical mechanics,
quantum mechanics and statistical mechanics are all really frameworks. ...
- 137
0
votes
2
answers
70
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What would be a truly universal currency?
I have no clue where to ask this, so here it goes... With the advent of LK99 and its potential uses in recent solutions for modified Alcubierre drive fields, it pushes me to wonder: What if humanity ...
- 1
2
votes
1
answer
298
views
Reductionism vs emergentism in economics
Is economics reductionism or emergentism ?Reductionism is the idea that knowledge at a higher level can be deduced from the entities and their interaction at a lower level.Emergentism rejects ...
- 137
2
votes
1
answer
118
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Present Value of flow of profits with constant interest rate
I'm studying Schumpeterian Models of Quality Ladders from the Barro's book (Ch.7).
I have problems in getting the derivation of equation $(7.13)$ as follows
The basic idea of those models is: when an ...
- 430
1
vote
0
answers
24
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The correct classification of system costs: maintenance, excess consumption, necessary consumption, development?
Yesterday I saw in one of the videos on YouTube a classification of the expenses of the system consisting of:
maintaining the system
necessary consumption
excess consumption
development
Please tell ...
- 11
1
vote
0
answers
34
views
Why do I keep hearing that Americans are running down their pandemic savings but the data doesn't show that?
I keep hearing on the news etc. that Americans are running down their savings, even from well known figures like the head of Blackrock etc. Granted I have not been looking at economists specifically. ...
- 111
0
votes
1
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78
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Economics book which study video game economies
I saw this very interesting Ted Talk which discusses the Economics of a popular game called Tf2. This piqued my curiosity, but I couldn't find much more of this content on youtube. Searching for the ...
- 467
2
votes
1
answer
103
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Subjective discounting factor in the utility function
Consider the following utility function in an infinite time-horizon set up:
\begin{equation}
U= \int_{0}^{\infty} e^{-(\rho-n)t}u(c(t)) dt
\end{equation}
Why we assume that $\rho >n$, where $\rho $ ...
- 319
3
votes
2
answers
201
views
Utility maximization for a household consisting of a woman and a man, with gender discrimination
Consider a household consisting of a woman and a man, with preferences over leisure and consumption given by:
$U(\overrightarrow{c},\overrightarrow{l}) = \ln{c} + \ln{l^F} + \ln{l^M}$
where $\...
- 2,351
2
votes
0
answers
275
views
Solow Model - speed of convergence
This is a question also for those with a good expertise in micro. For micro guys who wanna go streight to the question, just jump to equation $(1)$
I'm studying the Solow growth model.
Let's write the ...
- 277
1
vote
1
answer
79
views
Inflation adjustment: CPI less than one
I need help on how to adjust my figures by inflation.
I have two pieces of data. The first one is a company's nominal expenditures during the 2015-2020 period:
...
- 113
1
vote
1
answer
40
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Modelling the inefficiency of redistribution in case of proportional taxation and lump-sum subsidy
I would like to model the following situation in the simplest possible way.
First, a government imposes a proportional tax on the whole population, say, x% of income for each household.
But then, it ...
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0
votes
1
answer
86
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How does a lack of incentive to purchase new stuff affect economics?
How does a lack of incentive to purchase new stuff affect economics?
I've perceived as if a lot of economics is rooted in the idea of continued innovation and consumption, but then I've realized that ...
- 305
2
votes
2
answers
144
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Maximization of CD production function
I was reading the paper "Optimal Investment Under Uncertainty" (Abel, 1982). At one point the author addresses the following problem:
$$\max_{L_{t}}\left\{ p_{t}L_{t}^{\alpha}K_{t}^{1-\alpha}...
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0
votes
0
answers
129
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Suppliers holding back production in expectation of better price in future
Anthony’s Ephemera Emporium sells signed photos of cryptids like Bigfoot, chupacabra, and other mythical creatures. These photos are substitutes in production.
If Anthony expects the price of signed ...
- 225
1
vote
1
answer
68
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Looking for open learning material
in the next semester I am going to start studying some economics subjects at uni.
Since I have a little bit of time, I would like to start now already.
Does anyone know where I can find learning ...
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4
votes
1
answer
174
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What is the economic intuition of prudence in the static case?
How can we interpret a "prudent" agent in the static case (i.e., someone with $u'''(\cdot)>0$)?
I understand that in a dynamic setting, someone exhibiting prudence would do precautionary ...
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1
vote
0
answers
19
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Estimating Share Coefficients of Utility Function for a Calibrated CGE
Been reading The Textbook of Computable General Equilibrium (CGE) by Hosoe et al as a bit of side interest later in life.
Much of the book (and the CGE set-up generally) obviously follows naturally ...
- 597
1
vote
2
answers
26
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If I were to talk about the unemployment rate of a county in a country, is it microeconomy or macroeconomy?
I have a project to do for school at macroeconomy and I want to know if it's correct to talk about the unemployment rate of a county(if this is micro or macro economy).
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