All Questions
Tagged with macro or macroeconomics
3,003 questions
8
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How does a reduction in consumer spending in favour of consumer saving, affect economic activity?
Let's say our government runs an advertising campaign, encouraging its citizens to reduce spending money on consumer items, and instead save more money.
Let's say the campaign is successful, and ...
CommunityBot
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0
votes
1
answer
6k
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What are the alternative uses of unlimited wants and scarce resource? [closed]
Actually I want to know what does it mean by alternative uses of this two terms of economy.
- 217
6
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1
answer
154
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Is there any article or paper that describes what Thomas Sargent thinks of New Keynesian economics/models?
Is there any article or paper that describes what Thomas Sargent thinks of New Keynesian economics/models?
I am asking this question, because we all know what Thomas Sargent thinks of Old Keynesian ...
4
votes
3
answers
587
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Literature Recommendation: Advanced Undergraduate Economics
I come from a strong quantitative background and am going to law school in the fall. I'm interested in financial product regulation and competition law. I have taken an introductory course in ...
- 17k
10
votes
2
answers
1k
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Simulating Real Business Cycle
Basically I need to replicate Hartley's 'A User's Guide to Solving Real Business Cycle Models' (http://www.econ.ucdavis.edu/faculty/kdsalyer/LECTURES/Ecn235a/Linearization/ugfinal.pdf). Specifically, ...
2
votes
2
answers
606
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Why does entitlements leads to lower US productivity? [closed]
In a recent Bloomberg interview, Alan Greenspan suggested that entitlements leads to lower productivity, can you please explain it?
What does 'capital stocks' mean?
Does he means that because we ...
- 3,487
3
votes
2
answers
329
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Economic Impact of A Student Loan Bubble Popping?
A few pundits have been stating that we have a student loan bubble, and this bubble will pop, similar to housing.
I'm struggling to imagine the economic impact of what this would look like if these ...
- 6,394
2
votes
0
answers
71
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Decreasing consumption prices and increasing housing prices
It's election time in my country. The government boasts a decrease of 5% in consumption prices thanks to removing regulations, while the opposition blames the government for an increase of 5% in ...
- 3,115
4
votes
3
answers
277
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Scaling Adjustment Costs
Take a cont. diff, convex and increasing cost function $c(X)$. Say you start with a stock $K$, and want to (dis)invest $I$. Many adjustment cost functions (for example, the first example on page 2 ...
3
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2
answers
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Deriving the golden-rule savings rate in a Solow Model
Consider an economy described by the per worker production function function:
$$y = f(k) = 2k^\frac{1}{2}$$ and a depreciation rate $δ$ of $.05, 5%$.
Considering what we know to be true of the ...
1
vote
1
answer
966
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What happens to effective consumption and capital in the Ramsey/Cass-Koopmans(RCK) model when technological growth decreases?
Is the conclusion that both decline correct? Both long and short run.
Let $g_x$ denote growth rate of $x$, $g_c$ the growth rate of $\hat c$. In the model there is no depreciation so,
$$ g_c = \frac ...
1
vote
1
answer
68
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State Level Unemployment Data
I thought that the St Louis FED was the ultimative resource for macro data, but even they don't appear to have a time series of state level unemployment numbers for the United States.
Who does?
- 3,555
3
votes
1
answer
292
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Does the amount of inward investments affect inflation?
I understand that inflation has an impact on the foreign direct investment. But can the opposite be true? The amount of foreign direct investment has an impact on the inflation of the country that ...
- 3,555
5
votes
2
answers
713
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Understanding subscripts in first order conditions of dynamic optimization problems
Suppose we have a simple maximization problem as described in Equation 1.1 here or here. This leads us to the Lagrangian Equation 1.3: $$\begin{align*}\mathcal{L} &= \sum_{t=1}^\infty \beta^{t-1}\...
2
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1
answer
3k
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What is considered a "final product" for gross domestic product?
Given a territory and a time range, the gross domestic product is the sum of all the values added. The term “value added” is open to interpretation. Since the value added of a product or service is ...
- 6,394
3
votes
2
answers
337
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Does risk aversion of utility function cause the existence of positive interest rate?
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest ...
- 9,385
3
votes
1
answer
499
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Why does nation's total debt matter and not NIIP?
Most people in the media talk about how the total debt level of a nation relative to its GDP is a measure of how "screwed" the country is. For example, see this: http://www.zerohedge.com/news/goldmans-...
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5
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1
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72
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Is Firing Costly in the US?
I suppose that it doesn't cost most firms much to get rid of cheap labor, and that high wage workers typically have contracts that imply high compensations in case of firing.
But what about the ...
3
votes
1
answer
201
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Abenomics and the Japanese VAT tax hike
Abenomics seems to me like a straightforward and modern plan of economic reflation through monetary easing and some attempt at structural reform.
While it's still early, it looks like many of the ...
7
votes
2
answers
224
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What is the usefulness of approximating an optimal decision rule that close enough to steadystate in RBC model?
I'm reading understanding real business cycle by Plosser.
Here's my crude understanding: For a RBC model, the FOCs of lagrangian together with transversality condition usually forms a nonlinear ...
- 326
4
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1
answer
135
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What can we know for sure among ambiguous impulse responses in RBC?
I'm trying to understand the section on responses to productivity disturbances in Understanding Real Business Cycles by Plossor.
It seems to me ambiguity of representative agent's response in ...
CommunityBot
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4
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2
answers
195
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What would be the defining characteristic of New-Keynsian thought?
If you had to summarize New-Keynsian thought into one paragraph, or a set of equations, what would it be?
- 502
0
votes
2
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61
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Do capital goods have to be valued so that (discounted) real expected return on capital goods equal current present value of capital goods?
Let $P_k$ be the value of 1 quantity of a capital good. If one does not sell the capital good and keep it, the good provides interests.
In such a case, does standard macro say that all expected ...
- 10.8k
11
votes
2
answers
1k
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Inflation and economic growth
Noticeable works about the impact of inflation on economic growth are dated back to the 90s.
For example, Barro (1995):
the impact effects from an increase in average inflation by 10 percentage ...
- 1,607
3
votes
1
answer
82
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When estimating a basic macroeconomics model, why is goodness of fit with labor data not often dealt with?
So when dealing with not-too-complex RBC models or New Keynesian models, we often arrive with a few final reduced-form equations, and as far as I know, we use these equations to estimate the model. ...
CommunityBot
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9
votes
3
answers
2k
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In log-linearized New Keynesian model, what do $Y$, $Y_t$, $y_t$ actually mean?
This may be a weird question, but I am unfortunately confused by terms. Let us suppose log-linearized New Keynesian model as suggested by Gali here: http://crei.cat/people/gali/pdf_files/monograph/...
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3
votes
1
answer
104
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How to intuit a necessary optimality conidtion involving growth rate of Lagrange multiplier in Ramsey growth model?
I encountered a necessary optimality conidtion involving growth rate of Lagrange multiplier in this note on Ramsey model
$$\frac{\dot \lambda}{\lambda} = \mathcal {v} - (f^\prime(k)-\delta-\xi)$$
in ...
- 1,096
3
votes
0
answers
61
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Help finding information for research [closed]
My partner and I are both undergrads. trying to complete an extracurricular research project and need to update parameters for our model. Our advisor is out of country and we have minimal/spotty ...
- 2,911
1
vote
0
answers
44
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Evidence of firm borrowing and loans
I'm absolutely not from firm financing and look to read up on the subject, but mostly onto empirical stuff.
Standard questions would be:
What is the ratio of firms that finance themselves with bank ...
- 10.8k
2
votes
2
answers
206
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Does price affect quantity or vice versa?
On nearly all graphs found within economics textbooks, quantity is label on the x-axis and price on the y-axis, implying that the quantity supplied affects the price. Is this really so? Intuition ...
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6
votes
6
answers
2k
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Does the money's "Store of value" function actually exists?
I'm aware of the following four functions of money:
Medium of exchange.
Measure of value (in dollars, pounds, etc.)
Standard for exchanging goods (guaranteed by the Fed)
A Store of value (as an asset)...
- 17k
2
votes
1
answer
288
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What impact did major fiscal policy actions taken during the Great Recession (2007-09) have on U.S. economic performance?
What impact did fiscal policy actions taken during the Great Recession (2007-09) have on U.S. economic performance?
Bush passed the Economic Stimulus Act of 2008 and also the Emergency Economic ...
- 16.4k
4
votes
0
answers
192
views
Kolmogorov-Forward-Equation with Entry and Exit
I'll try to ask this question in the most simplistic environment possible, so lets think about a household that can consume and save. After some cumbersome work, we have solved for the optimal savings ...
- 10.8k
2
votes
0
answers
89
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Cyclicality of Markups
I'm looking for scholarly articles or summaries on the subject of markups. More importantly, for empirical evidence whether they're pro- or counter cyclical, and on theoretical papers on their ...
- 16.4k
5
votes
1
answer
593
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Are profits procyclical?
This is somewhat related, but distinct from Cyclicality of Markups
Basically, I'm looking for papers on whether firms profits are (on average) procyclical or not, and I appreciate theoretical, but ...
CommunityBot
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3
votes
1
answer
76
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Timeline of comprehensive NIPA revisions
I have been fruitlessly searching for a list of dates of comprehensive National Income and Product Account revisions. Clues I have found so far: The Bureau of Economic Analysis website says the 1999 ...
- 16.4k
3
votes
0
answers
41
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Real time data map about the amount of a currency that are held in the world ?
Where can I see in real time data about the amount of a currency that is held in central banks (and maybe other significant places) ? A map would be great.
I would like to know if there is an ...
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0
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1
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82
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What would be the economic effects of a reduction in the general level of protectionism on the Australian economy?
Protectionism methods including: tariffs, subsidies, quotas, local contents rules and export incentives
Would would be the effects of a reduction of these methods, not complete free trade.
- 349
5
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1
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94
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What impact did monetary policy actions taken during the Great Recession (2007-09) have on U.S. economic performance?
What impact did monetary policy actions taken during the Great Recession (2007-09) have on U.S. economic performance?
Quantitative easing and unconventional policy actions such as asset purchases and ...
- 211
5
votes
2
answers
3k
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Relationship between the Lagrangian and consumption euler equation?
I think that the best way for me to ask my question would be to start with an example.
Suppose that consumers have a two-period horizon and their instantaneous utility is:
$\:$
$U(C_{t})=ln \: C_{t}...
- 171
3
votes
1
answer
2k
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Basic microeconomics: supply, demand and substitutes in production
The question is: explain the change in the market for skim milk, if demand for ice cream rises.
I'd say these two are unrelated in consumption (saying they're substitutes is kind of stretching it), ...
- 9,385
2
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1
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62
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Which macroeconomic issues can be considered "curable" and which can't?
I like the comparison between economics and medicine. Both study complex phenomena and both are limited in ways to run experiments (though medicine has much more freedom here).
We all know medicine ...
- 16.4k
2
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0
answers
277
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What major fiscal policy actions were taken during the Great Recession (2007-09)?
What major fiscal policy actions were taken during the Great Recession (2007-2009)?
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3
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1
answer
154
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How can I solve for total money spent if I use a non-constant MPC?
Background
Today in my macroeconomics class my teacher taught us three concepts.
The first is very simple: consumption $c$ is a linear function of national income $y$. Mathematically, $$c = My + b$$...
- 16.4k
2
votes
0
answers
1k
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Impact of Fiscal and Monetary Policy during Great Recession on U.S. Economic Performance
What major fiscal and monetary policy actions were taken during the Great Recession (2007-2009)? What impact did they have on U.S. economic performance?
I understand how how the recession occurred in ...
- 171
3
votes
0
answers
43
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Research on the link of QE and increased economic activity
Im looking for good literature of quantitative easing and the effects on economic actitivty.
from a modelling perspective
Any empirical research?
What I am thinking of, is how much of an effect ...
- 835
6
votes
1
answer
349
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Present value of a payment
Suppose I've just won 1'000'000 dollars in a game show. At the end of the program they tell me that they will pay me the prize as following: they will deposit in my bank 50'000 dollars every year for ...
- 16.4k
2
votes
1
answer
949
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What is Production Possibility Frontier (PPF) diagram drawn on consumption-leisure?
When explaining basic macroeconomics model involving consumption-leisure tradeoff, often diagram showing production possbility frontier (PPF) is drawn with leisure on x-axis and consumption on y-axis. ...
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3
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1
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48
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Macroeconomic formulas for global limited raw material economy exist?
Macroeconomics basic formulas are referring to a model in which the raw material are unlimited.
Also the efficiency of production is a consequence of the pressure done by consumers (that buy the most ...
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16
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3
answers
91k
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What is the difference between intensive margin and extensive margin in labor economics?
What is the difference between intensive margin and extensive margin in labor economics, or general RBC model, where we talk about labor-hours supplied changing with extensive margin or intensive ...
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