All Questions
Tagged with macroeconomics microeconomics
243 questions
1
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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 ...
- 13
1
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0
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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
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0
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26
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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.
...
1
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1
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46
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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
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0
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143
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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. ...
1
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0
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31
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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
1
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0
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64
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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
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0
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28
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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
1
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0
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193
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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
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0
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50
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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
1
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0
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623
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how to calculate Leontief demand functions from first order conditions of a CES function when sigma tends to 0?
This question is NOT about how to approximate a CES function to a leontief function.
Knowing that:
$i= good (\begin{array}{*{20}{c}}
{1}&{or}&{2}
\end{array})$
$j= firm (\begin{array}{*{20}{c}}...
- 11
1
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0
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398
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How to calculate the maximum willingness to pay? (Reservation price)
I have to solve the following exercise. I cant figure out what I have to do know. I hope i can get some help.
Suppose you have the following utility: $U (x_1, x_2) = 4x_1 ^ .5+2x_2 ^ .5$ and you have ...
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1
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0
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55
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Numerical Solution Using Excel about optimal consumption of households
I'm not sure how to solve this problem. I'm given the discount factor, interest rate, probability of high income shock, and various income shock sizes that I need to use to compute optimal consumption....
- 11
1
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0
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325
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What is Application of Vector Algebra in Economics?
I through one tutors heard that vector is used in economics .
But on searching about it on internet could not find anything
Recently I studied about Vectors in Mathematics
So I was wondering how ...
- 247
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0
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23
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Is the definition of Investment variable in Economics?
I studied that Investment is the expenditure incurred on the procurement of such goods that would help us in production of goods and services.
And mainly consists of Fixed and Inventory Investment
...
- 247
1
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0
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247
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Most important but untested theories in economics? [closed]
In the opinion of the economists here, what are some of the more important theories in economics that remain untested? By untested I mean theories that, though perhaps evaluated using empirical data, ...
- 2,911
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0
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87
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How can I model immigration and xenophobia economically using these equations?
I'm trying to put together a toy model for immigration ($I$), labor prices ($w$), and a measure of xenophobic/nationalistic sentiment ($A$). What I've come up with so far is the following:
$$\frac{dI}...
- 11
1
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0
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54
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Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?
I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this ...
- 73
1
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0
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38
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Where to start, to know the cost, in hours of work, necessary to produce one more car (or any other good)?
Let's say I want to buy a car. It costs that, so I can know that, for example, I have to work 3 months to pay for it. But does the car really needs three months of human work to be build?
What is the ...
- 111
1
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1
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6k
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The period of the business cycle in which the real GDP is increasing is called the?
The period of the business cycle in which the real GDP is increasing is called the?
And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going ...
- 233
1
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0
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86
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how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth
how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth.
I was reading through a textbook and saw that the devaluation of a nation's ...
- 233
1
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1
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58
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Economic Overview of Pacific Island Nations
What are the key drivers of growth for these small pacific island nations? I would expect tourism and natural resources to be pretty central to these economies. Is there anything else? What are the ...
- 3,771
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1
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269
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Why does profit maximization implies that both of the following are equal? [closed]
Why Profit maximization implies that rate of return to capital equals the net marginal product of capital. Prove and give intuition why both are equal.
I also wonder that why it doesn't implies rate ...
- 743
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1
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91
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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
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2
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57
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Does treasury pay interest+ face value to the fed?
heard all the profit that the fed makes goes into treasury.. does that mean the treasury department can make unlimited money buy selling bonds to the fed? like if they issue bond to people, and the ...
- 21
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4
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147
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What is the difference between microeconomics money and macroeconomics money?
In microeconomics, \$USD are a store of value. I can sell a candy bar for \$1, and I can hang onto that \$1 for a year and then buy the same candy bar for that same \$1. If I print \$1 (and get away ...
- 187
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3
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79
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Why is that when one person or group gets a good or service, someone else will have to live without it?
!
There's this statement in my Applied Economics book that I don't understand. Why is that when one person or group gets a good or service, someone else will have to live without it? I hope you ...
0
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1
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968
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discount factor, function, and rate
Consider an exponential discount factor $\delta\in(0,1)$.
Similarly, consider an exponential discount $\textit{function}$: $g(t)=\delta^t$.
Then, is defining the discount $\textit{rate}$ as below a ...
- 1,241
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2
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96
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Books on Technological Progress and Growth
I've done some google search for good, reader friendly albeit technical, books on technological progress/change and economic growth. However, I've not found what I want. If you are using or have heard ...
- 2,020
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1
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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
0
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1
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112
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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
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1
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302
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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
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1
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64
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How does one asses the impact of a proposed policy?
My State government is considering a new regulatory policy at the moment. We need to put together an assessment of the (likely) economic impacts of the policy. How do we do that?
I don't work for ...
- 101
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2
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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
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2
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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
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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
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2
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246
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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
0
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1
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388
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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
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1
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185
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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
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1
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23
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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 ...
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0
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2
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55
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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
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3
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1k
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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 ...
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1
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243
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Increased production costs associated with increased output produced? Why do firms have prices increase with the SRAS or Supply Curve?
In my textbook, it said (this is for SRAS and AD, but I'm also going to apply this a bit fo microeconomics.. sorry for mixing, but my question applies in both ways, I believe) "The average price ...
user27846
0
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2
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216
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SMD and Lucas critique
One of the consequences of Lucas' critique is that models must be microfounded. On the other side, Sonnenschein-Mantel-Debreu (SMD) theorem claims that microfoundation doesn't have any repercussion on ...
- 41
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1
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74
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Has any person ever actually planned his or her consumption according to Modigliani’s LCH?
https://en.wikipedia.org/wiki/Life-cycle_hypothesis?wprov=sfti1
It seems self-evident to me that nobody on Earth actually does this. Real people are short-sighted, undisciplined, and lack the ...
- 345
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1
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82
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Ramsey model problem
Explain the no-Ponzi game condition throughout the function.
Does the constrain function: also reflect include the No-Ponzi condition?
- 131
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1
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84
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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
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1
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57
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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
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1
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60
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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
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1
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58
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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}}...
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