All Questions
Tagged with macroeconomics microeconomics
243 questions
-2
votes
1
answer
96
views
CALCULATING REVENUES OF EACH PRODUCT IN RSTUDIO [closed]
Hello everyone,
I need to work with the data presented above. This question involves a little bit of knowledge of Rstudio, but I assume some of us work with this programming language throughout our ...
1
vote
0
answers
26
views
The dependent variable of one equation could be a regressor in another
I am estimating two different regression equations with two separate dependent variables. Each dependent variable has its own unique control variables, but they also share a similar regressor Ht.
...
0
votes
1
answer
59
views
IS-LM model question [closed]
If the firm reduces the wage-spending, so the point of the IS curve will move downward?
Is that correct?
- 25
0
votes
1
answer
77
views
How Demand of a product affects the currency
Question : Iron ore is Australia's largest export. Suppose that there was an unexpected increase in demand for Australia's iron ore exports globally. Explain what this would do to Australian Dollar ...
- 21
1
vote
1
answer
46
views
Who controls banks in Diamond's model?
In Diamond's model banks are delegated to monitor borrowers for the investors, in this case, who monitors the banks?
- 113
1
vote
0
answers
143
views
Total factor productivity (TFP) estimation in R via estprod package
good morning
I am trying to calculate the total factor productivity (TFP) for companies in the manufacturing industry through the Levinsohn-Petrin model. To do so, I use the prodest package in R. ...
5
votes
2
answers
141
views
What was the original paper that showed that estimates of risk aversion from micro and macro are inconsistent?
One of the well known paradoxes in macroeconomics is that estimates of risk aversion from experimental micro data do not match the ones estimated from macro data.
I know there was an important paper ...
- 2,819
1
vote
2
answers
355
views
What is opportunity cost really?
It seems to me there that the most common definition of opportunity cost in economics is that opportunity cost is the net benefit of the next best alternative forgone. (See this question: What is ...
- 119
0
votes
2
answers
246
views
Can we find the best combination of production by just using the PPF curve?
I have this doubt that when we have a concave PPF like the one below is it possible for us to determine the best allocation using just the PPF alone ?
I understand that any point in the ppf curve is ...
- 21
3
votes
0
answers
209
views
Unit cost function for CES
You do not need to make computations, you can just tell me how to make the following derivation:
I'm studying a paper where the unique final good of the economy is produced according to the following ...
- 277
0
votes
1
answer
387
views
Isoelastic demands and constant markup
Why if the monopolists face isoelastic demands, profit maximization(for monopolists) implies that each of them sets a constant markup over the marginal cost?
ADD DETAILS:
This is a common situation ...
- 277
1
vote
1
answer
871
views
Isoelastic Demands
I have a very simple question:
I'm studying Acemoglu's book the horizontal innovation paradigm of endogenous growth.
Here, the conditional demand function for the machine variety $\upsilon$, i.e., $x(\...
- 277
3
votes
1
answer
125
views
What does the idea of a price chosen as numeraire entail (both economically and mathematically)? A dumb down explanation would be appreciated
I would love to have a clear-cut explanation or reference about the usefulness of a price chosen as a "numeraire" in the general equilibrium framework.
- 33
-3
votes
1
answer
109
views
Why is a contractor's profit considered a producer surplus instead of being complementary with marginal utility? [closed]
Do economists currently not view contractors as labor?
I suggest producer surplus be exclusively exclusive material (for otherwise even mining and logging would not need withstand fixed-startup costs ...
0
votes
0
answers
25
views
the future effects of Covid 19 pandemics on GINI (income inequality)
I would like to analyze the future effect of Covid 19 pandemics on the Gini index (income inequality).
Which dependent variables should I use in order to see the effect of the pandemics?
For example, ...
- 192
1
vote
0
answers
31
views
Right-to-manage wage bargaining (simple algebraic steps)
I am following (and trying to understand) a paper where the wage of unskilled workers is determined as the outcome of wage bargaining between a single union and a single firm in a right-to-manage ...
- 175
0
votes
1
answer
185
views
Macroeconomics and microeconomics
Can we say macroeconomics is top down approach and microeconomics is bottom up approach .Is there any relation/connection between macroeconomics and microeconomics.
- 137
1
vote
0
answers
64
views
Fundamental knowledge about invest, stock and economics for self learning [closed]
I am not expertised in the field of economics and stock so I do not know anything about invest. Would anyone please recommend any book/textbook for the initial leaner to get understanding of all these ...
- 11
2
votes
1
answer
177
views
How will world economy run when we run out of oil reserves?
Oil is a significant component of world's economy. Various wars have been allegedly fought over oil. But, it is a limited natural resource. Our standards of living have gone up, thanks to ...
- 131
0
votes
1
answer
57
views
Calculating profit from price and cost
For a given item, if we know that the equilibrium price is 400 and the cost of manufacturing quantity $x$ of the item is $2x^3+900$, then how can I find the profit?
My initial thoughts are that this ...
- 105
3
votes
1
answer
94
views
Solow residual with cost minimization, calculus (Roeger, 1995)
I am trying to get a good understanding of the steps involved in solving the dual of a maximization problem, namely cost minimization. At some point (last two steps), the author ends up with the ...
- 175
4
votes
2
answers
189
views
Journal that sum up a research area
I would like to know if you know any scientific journal of economics that publishes meta-analysis, or that publish articles summary of a research area. For example I have seen in the past articles ...
- 457
0
votes
1
answer
23
views
Opportunity cost for a real estate company
I've just started working at a real estate company. Some of our customers make a small down payment to reserve a unit and occasionally take a long time (~2-3 months) until they bring the rest of the ...
- 31
1
vote
0
answers
28
views
Can a market capitalization of a derivative asset ever be worth more than the underlying instrument?
Is there an example (in history or present-day) of the total market capitalization of a derivative asset being worth more than the market capitalization of the underlying instrument? And would this ...
- 111
0
votes
0
answers
468
views
PhD Micro and Macro Comprehensive Exams
I am interested in seeing some old examples of PhD comprehensive exams in both Micro and Macro. I have seen that previous posts (like this one) had some suggestions given, but some of the links (such ...
- 189
16
votes
4
answers
2k
views
Most notable papers in Economics in 2021
This question is based on this one in Math Overflow
I understand that I can't simply 'translate' the question into the area of economics. Thus, I'm open to improvements on the question framework.
Here'...
- 5,121
1
vote
1
answer
33
views
Profit share determination in PKE
To my understanding, post-keynesian economics generally see price as a product of profits, wage expenses, interest payments, and inventory costs. To express it mathematically:
\begin{gather*}
p\ =\ \...
2
votes
1
answer
438
views
How would a perfectly competitive industry respond to a macroeconomic demand shock in the long run?
In microeconomics, we are taught that in a perfectly competitive industry, the long-run industry supply curve is horizontal. This is because new firms would enter or exit until the profit is driven to ...
- 480
0
votes
1
answer
60
views
Adjusting for inflation (is it possible that real $ exceed nominal terms)
I have adjusted the following data to inflation, and I am confused as my real figures are higher than my nominal terms, but I always assumed that adjusted for inflation figures would be lower (i.e. ...
- 23
0
votes
2
answers
55
views
Help with a (simple) log-linearisation
As a solution to an economic model, I end up with the following equation:
$$L=\frac{\alpha f^{\epsilon}s\left [ 1-Ak(1-\alpha+\alpha f^{\epsilon}s)^{\frac{1}{\epsilon}} f^{-1} s^\frac {-1}{\epsilon}\...
- 175
1
vote
1
answer
75
views
Help to understand a Log-linearization and subsequent Differentiation with respect to time
I was reading the following paper:
https://www.jstor.org/stable/2999442?seq=1#metadata_info_tab_contents
At one point there are a couple of simple passages that however I did not fully understand.
In ...
- 175
0
votes
1
answer
87
views
How to deflate data from PPI
I have producer price index data. I have 4 products almond walnut pecan and peanuts, two of them start from 1991 almond and walnut (base year) another two from 1982 pecan and peanut. Does anyone know ...
- 1
1
vote
0
answers
193
views
Lagrangian in Ramsey model
I struggle to write and solve Lagrangian in the Ramsey model.
I have the following individual preferences with a budget constraint:
and an additional constraint that is a no-ponzi condition:
How to ...
- 11
1
vote
1
answer
351
views
Why does a higher risk aversion leads to a lower intertemporal elasticity of substitution?
Mathematically, a higher risk aversion leads to a lower intertemporal elasticity of substitution (there is an inverse relationship). But why?
If I become more risk-averse, I would like to smooth my ...
- 659
0
votes
1
answer
91
views
Why do most function images take the form of a curve? [closed]
I always see curves (such as in dark blue below) and not any other type of (function) image. May I get a reason for why it is always like that?
This figure is only for representation.
- 244
2
votes
1
answer
95
views
How to define the natural rate output
I'm following Woodford's Interest & Prices to derive the microfundations for a New Keynesian model with staggereed prices.
I defined the utility function and disutility function (1.1 at page 144) ...
0
votes
1
answer
58
views
Labor demand and supply curves in terms of elasticities
I would like to ask for your help to derive some expressions. Let the labor demand curve be described by:
$N^D = N^D(W/P, \bar{K}), \quad N^D_{W/P}= \frac{1}{F_{NN}}< 0, \quad N^D_K = -\frac{F_{NK}}...
- 343
1
vote
0
answers
50
views
Imputing # of unemployed from Labor Force Survey
I am working on state-level data, where one state has recently stopped publishing the absolute figures for the number of the unemployed. Instead, it currently only releases U and LFP rates.
...
- 121
0
votes
1
answer
112
views
A world only with two contries (net exporter)
We assume that we have two and only two contries: Albania and Bulgaria. There is complete free trade between the two countries.
The aggregate investments in Albania are given by:
$$I^A=A-ar$$
where $A,...
- 175
2
votes
1
answer
98
views
How to interpret risk premium
I do not understand the notion risk premium. Let us suppose that John goes to the city by car, but he is thinking about not paying for the parking. If he is caught in the act he must pay the fine. How ...
- 131
1
vote
1
answer
36
views
Formalizing unorganized Sector
This is a fairly basic question. What are the real benefits of formalizing the unorganized sector? What does integrating these into the organized sector achieve other than maybe increased tax revenue ...
- 13
0
votes
1
answer
60
views
Accounting profit in macroeconomics as compared to microeconomics
In Macroeconomics (2019) on p.103, it is argued that the reason there exists profit in an economy is that most firms own rather than rent capital. Thus:
But, Microeconomics assumes a different ...
- 11
0
votes
3
answers
1k
views
Is inequality a micro or macro economics issue?
In a clear and comprehensive blog post, Tejvan Pettinger describes economics problems. He starts by making brief considerations on scarcity, enumerates the fundamental economic problems (what/how much ...
0
votes
1
answer
9k
views
Calculate supply function based on production or cost function
Q1: A company has the following production function:
$$f(x_1,x_2) = 2x_1 + x_2$$.
The factor prices are $w_1=4$ and $w_2=3$. Calculate the company's supply function.
Q2: A company's cost function is
$$...
- 13
10
votes
2
answers
1k
views
What makes a company too big to fail?
I have read the too big to fail Wikipedia and as far as I understand, a company is too big to fail (and thus will receive government bail-outs) if it's failure has a significant impact on an important ...
- 201
2
votes
1
answer
316
views
Quadratic utility: monotonicity and risk aversion
I am taking macro class this fall. One of the problems asks whether decreasing absolute risk-aversion and ever-increasing consumption are two unattractive implications of the quadractic utility ...
- 95
0
votes
1
answer
302
views
What is the long run equilibrium in layman's terms?
My textbook states
An economy's long-run equilibrium is the position it would eventually reach if no new economic shocks occurred during the adjustment to full employment. You can think of long- run ...
- 193
8
votes
4
answers
28k
views
Why does increasing the money supply decrease the interest rate in layman's terms?
If money supply increases, then I will have more money in my pocket to spend more. I imagine that prices will also increase over time to adjust to there being more money in circulation. Is it because ...
- 193
0
votes
1
answer
2k
views
Economic and Statistical Significance Of Coefficient
I want to know If I am comprehending these terms correctly
Summarizing the difference between economic and statistical significance of coefficients (Describing the terms, process of assessing each ...
- 3
1
vote
2
answers
146
views
Question about the Law of Supply
I have a contention with the Law of Supply's dictum "if the price of a good falls, then the quantity supplied of that good falls, ceteris paribus."
Imagine a market for widgets produced by ...
- 111