All Questions
Tagged with macroeconomics microeconomics
243 questions
2
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0
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53
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Micro foundations of the Phillips Curve
In a typical NKPC:
$Inflation_t = \alpha_1 Inflation_{t-1} + (1-\alpha_1) \mathbb{E}_tInflation_{t+1} + \alpha_2 RealMarginalCost + \epsilon_t$
From a micro-foundations perspective, does the ...
- 63
2
votes
0
answers
257
views
Lagrangian multiplier
Consumer's problem
\begin{equation}
\max \sum_{t}\beta^{t}[c_{t}-1/2(1-x_{t})^{2}],
\end{equation}
\begin{equation}
\ s.t. c_{t}+q_{t}b_{t+1} \leq (1-\tau_{t})(1-x_{t})+b_{t},
\end{equation}
where c=...
- 21
2
votes
0
answers
16
views
Resources for periodical economics feed [duplicate]
I'm learning economics and I want to read/hear the world through the lenses of any economist.
What are the best periodical economics news feeds?
It could
Magazines such as theeconomist.com
Podcast ...
- 21
2
votes
0
answers
87
views
Does a social welfare gain cause economic growth? [closed]
For example, if the consumption of goods with negative externalities of consumption were reduced to the socially optimum amount, thus eliminating the social welfare loss, would that directly cause ...
- 21
2
votes
0
answers
62
views
Is America economy, Connecitcut's economy, and the global in general recovering and better than the year 2008?
Please answer all three if you can. I live in Connecticut, America, and of course global trade and economies matter as we are becoming more global from technology.
December 2007 the markets ...
- 1,353
2
votes
0
answers
32
views
Import Substitution Industrialization [closed]
What are the advantages of Import Substitution Industrialization?
I had been researching and cant find answers.
- 21
1
vote
3
answers
448
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Why would microeconomics be considered more "objective" than macroeconomics?
I can imagine the following reasons for this:
conflation of positive vs normative economics in macro
micro phenomenon is less complex (or smaller): thus easier to create reliable models for
Thanks
user24655
1
vote
1
answer
352
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
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
1
vote
1
answer
2k
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What are some applications of Real Analysis in Graduate Economics?
I am interested as to what areas of masters/PhD coursework that learning the fundamentals of Real Analysis would be beneficial for?
I am aware of its applications in Econometrics proofs and analysis, ...
- 620
1
vote
1
answer
41
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What is the difference between knowledge-based and R&D?
So far, I always thought that knowledge-based companies and R&D companies were the same. But recently our TA mentioned that they are different, I've searched a lot to find the differences between ...
- 113
1
vote
1
answer
732
views
How do interest rates affect the distribution of wealth? [closed]
How do interest rates, on local and global scales of an economy, affect the distribution of wealth?
- 475
1
vote
1
answer
177
views
Concept of absolute advantage
Can someone please explain the concept of absolute advantage with an example? I know it has to do with the fact that a nation should produce a commodity that is cheap relative to other commodities but ...
- 233
1
vote
1
answer
68
views
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
1
vote
1
answer
54
views
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
1
vote
2
answers
83
views
How does fed cutting federal fund rate affect student loan
If fed cuts rate, it means it's cutting federal fund rate right? then why do loans like credit card and stuend loan? those aren't like Mortgage rate which the fed cuts its rate by buying MBS
- 21
1
vote
1
answer
497
views
How to check whether the production function below is neoclassical or not
Say I'm given the production function of the form
\begin{equation*}
Y= F(K,L,A) = (\alpha K^{\epsilon} + (1 - \alpha)Y^{\epsilon})^{\frac{1}{\epsilon}}
\end{equation*}
Where $\epsilon, \alpha \in (0,...
- 281
1
vote
1
answer
68
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Can we add well-being into macro model as an endogenous variable?
People talk a lot about well-being as an objective of macro policy (together with gdp growth). So if well-being is an objective, i'm wondering if we can add well-being into macro model as an ...
- 131
1
vote
2
answers
4k
views
What is the difference between 'actual' and 'potential' interaction between buyers and sellers?
In the book "Microeconomics" by Pyndyck and others, the author(s) define a 'market' as a collection of buyers and sellers, who by the actual or potential interaction with each other determine the ...
- 780
1
vote
1
answer
97
views
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
1
vote
1
answer
872
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
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
1
vote
1
answer
69
views
Capital/Income Ratio in Pikketty's Capital
In Capital by Thomas Pikketty, https://www.robertdkirkby.com/blog/2015/summary-of-piketty-i/, he states that World War I and World War II were the main reasons why the Capital Income to Labour Income ...
- 649
1
vote
4
answers
715
views
Discount & Interest rates
Small question, is discount rates and interest rates the same/similar thing in economics? A bit confused regarding this.
- 23
1
vote
1
answer
322
views
How would increase labor productivity lead to improved living standards of people in an economy?
I would like to know more about the mechanisms through which higher labor productivity would translate into higher living standards for a population in a given economy.
- 583
1
vote
3
answers
571
views
The law of supply and demand - How does it work?
I've learned what the principle of supply and demand says, and would paraphrase it like this:
The price of a good is at equilibrium when supply and demand are
equal.
Or with other words:
The price ...
1
vote
4
answers
205
views
Do consumers also invest?
Definition of Investment that I have found:
Investment is the expenditure incurred on the procurement of such capital assets that would help in further production .
According to this, it means that ...
- 101
1
vote
1
answer
118
views
Cash Flow and present value Question [closed]
First: for year 0, I do not know why the cash flow = $- 1000 / ( 1 + 0.10)^0 = 909.01$
Second: for year 1, if cash flow = $30,000-5000/(1+0.10)^1 = 25 454 $
How is "Cash Flow" column useful in ...
1
vote
2
answers
291
views
What does my lecturer mean by "economic calculation"?
We got this essay question
"It is argued that economic calculation should exclusively be based on individual utility maximization but include an altruistic concern for the common good and for other ...
- 257
1
vote
2
answers
6k
views
What textbook can I use to really understand microeconomics, macroeconomics and mathematical economics [closed]
What textbook can I use to really understand microeconomics, macroeconomics and mathematical economics. It can be different textbooks. I'm in first year college taking introductory courses in ...
- 233
1
vote
1
answer
149
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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
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
68
views
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 ...
- 113
1
vote
2
answers
26
views
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).
- 11
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
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\ =\ \...
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
1
vote
1
answer
171
views
When to use a lagrange multiplier?
I have a question in regards to the use of Lagrange multipliers in macro models.
I have seen that when writing a Lagrange there are two ways to write the Lagrange multiplier: 1) Indexed or 2) ...
- 343
1
vote
1
answer
164
views
Job search theory in discrete time
Let us assume that there is a labor who lives in discrete time universe and discounts future payoffs with the discount factor $b\in (0,1)$.
And we assume that this labor is at period $t=0$ at first. ...
- 192
1
vote
3
answers
135
views
How to engineer the economic system, so that an individuals self interest leads to fulfilling collective interest
So it is said that Adam Smith said that self interest leads to collective interest.
This is obviously not the case. We do not have a society that maximises the collective good*.
My question is, Is ...
- 113
1
vote
1
answer
479
views
Clearly explaining the concept of "normalizing" price and relative prices to undergraduate
I am trying to clearly explain to the concept of "normalization" or relative prices. Because students are so used to just think of prices in absolute terms, it is initially tough to make the leap to ...
- 1,241
1
vote
1
answer
74
views
Economic Effects of Presidential Candidate Proposal: Pay the same % in taxes no matter what you gain
There's a presidential candidate in USA that promises to change IRS laws in order that everybody pays the same % in taxes, i.e., the rich will pay the same percentage as the poor. This would seem to ...
- 5,121
1
vote
1
answer
103
views
Computational Bayesian Statistics and Economics
What is there that links computational Bayesian statistics and Economics(preferably macro)?
I'm looking for a primer or gentle introduction on the matter. It doesn't need to go into much detail.
Any ...
- 5,121
1
vote
1
answer
664
views
Shifts in demand curves
When plotting a demand curve for a good, lets say carrots with price on the y-axis and quantity demanded on the x-axis. A shift any determinant of demand other than price of carrots results in a shift ...
- 55
1
vote
1
answer
59
views
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
1
vote
0
answers
55
views
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
1
vote
0
answers
93
views
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
1
vote
0
answers
17
views
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
0
answers
24
views
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