All Questions
Tagged with macroeconomics microeconomics
243 questions
5
votes
3
answers
180
views
Which think-tanks on economics do you use to keep up with the news?
Whenever I have spare time, I like to go to Bruegel site and check their section on publications in macroeconomics. Here I usually find small publications of 20 something pages. The size is just about ...
- 5,121
4
votes
2
answers
1k
views
Math basics for Macro&Micro economics and econometrics
I have just been admitted to a graduate school for studies in economics and I major in public administration during my undergraduate time. I have learnt linear algebra, single variable calculus, ...
- 163
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
3
votes
1
answer
590
views
Return on Assets vs Return on Investment [closed]
1) Is Return on Investment same as Return on Assets?
There are so many different definition in books so I am now confused...
2) Is ROA = Profit before taxes/Total Assets or Profit after taxes/Total ...
- 153
6
votes
1
answer
1k
views
Where do computational economists work
Does anybody know what kind of work or where computational economists end up working? It seems most end up in research...
- 117
5
votes
1
answer
518
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Economics: inductive or deductive? Verificationism or falsificationism?
Question 1: Are economic theories and models developed using induction or deduction?
My view: If we gather historical evidence and figure "so, people tend to be like this and that so let's call this ...
- 51
5
votes
2
answers
966
views
Does a Robinson Crusoe economy have a substitution effect and an income effect?
Consider a Robinson Crusoe economy. Let $c$ be consumption and let $l$ be leisure. Our utility function is defined as
$$U(c,l)$$
Geometrically, I think we can say his indifference curve should be ...
- 3,494
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
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
-3
votes
2
answers
160
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Effects of giving everyone in the US \$4.33 million dollars each? [closed]
This image has been doing the rounds on facebook:
Funny arithmetic error aside, what would be some of the effects of giving everyone in the United States \$4.33 million dollars each?
- 11
1
vote
2
answers
4k
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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
2
votes
1
answer
26
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What are the Impacts on an economy when a large mining venture begins to reduce production and lay off workers in a remote region?
I am currently unsure about how such a question above should be answered. To clarify , I am confused as of which topics relating to the question i should discussion in order to answer it. (For ...
- 21
2
votes
1
answer
419
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Tax wedge in labour market
I'm reading a book ( Macroeconomics - Institutions, Instability and the Financial System ) and on page 62, the authors define tax wedge as the "difference between the real consumption wage and the ...
- 5,121
3
votes
3
answers
381
views
Why are there estate taxes after the owner passes away?
Isn't it unfair for estates to be taxed after death? The person who bequeathed the estate probably purchased it with after tax money, so wouldn't it then be taxed twice? What is the purpose of the tax ...
- 31
2
votes
1
answer
213
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What are alternatives to lottery that would create same economic impact?
Lotteries can be detrimental to a subset of society since people who often play dont understand stats and that for most part lottery is negative expected value. However, taxes (and portion of ticket ...
1
vote
2
answers
6k
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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
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
1
answer
6k
views
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
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
0
answers
86
views
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
12
votes
2
answers
312
views
Why use empirical macroeconomic models when they are not policy invariant (Lucas Critique)?
With high probability this question is duplicate, and I tried to find one already in the community, but I was unsuccessful.
According to the Lucas Critique, in its more general terms, the problem ...
- 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
0
votes
1
answer
1k
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Real world example of using difference quotient vs. derivative
When would you use the difference quotient in an economic model rather than the derivative to assess the change in some endogenous variable? Real world examples seem to be lacking in textbooks on ...
- 502
4
votes
1
answer
4k
views
Best resources to self-educate myself in economics
I want to learn Economics by myself and I'm looking to build a path with people who're in this field to how and in what order should I learn Economics, I did some research and I've found many ...
- 41
1
vote
1
answer
58
views
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
2
votes
1
answer
86
views
Indirect Impacts Of The Netherlands Cutting Greenhouse Emissions?
On 24 June 2015, the Dutch District Court in The Hague ruled that the government must put policies in place to deliver, by 2020, cuts in the country's greenhouse gas emissions of at least 25%, ...
- 163
0
votes
1
answer
269
views
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
2
votes
1
answer
123
views
RBC model and indivisible labour
First of all, I would like to apologise for the fact that I will include a link in my question rather than a direct question, however, I have no idea how to do it in a different way.
I have been ...
- 155
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
51
votes
10
answers
4k
views
Seminal papers that later were proven to contain errors
I was reading on institutions, and I came across Acemoglu, Johnson and Robinson (AJR) paper on The Colonial Origins of comparative development: An Empirical Investigation, and this paper seemed so '...
- 5,121
7
votes
2
answers
791
views
on economic growth and Second Welfare theorem
While I was studying eighth edition of Mankiw's Macroeconomics, in chapter 9 on Economic Growth(pg. 245), the author mentions :
"Some economists have proposed increasing the incentive to save by ...
- 459
2
votes
1
answer
91
views
How to determine the worth of a good
I've searched around the web for awhile now and I'm beginning to think this might be an unanswerable question. I want to know if there is a theoretical way to determine the worth of a particular good, ...
- 23
10
votes
7
answers
7k
views
Mathematical Micro/Macro Economics Textbook Recommendation
I was formerly an economics major and now also majoring in mathematics.
I want a textbook that is rigorously based on mathematics; not just using mathematics whenever the author wants, but in a more ...
- 203
4
votes
3
answers
587
views
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 ...
- 41
0
votes
2
answers
61
views
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 ...
- 3
3
votes
1
answer
2k
views
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), ...
- 31
4
votes
4
answers
3k
views
Books for microeconomics and macroeconomics for selected topics
I am a mathematics undergraduate trying to self-learn some economics. I have no background in economics. I wish to know from which chapters of Hal Varian's "Intermediate Microeconomics" (7th edition) ...
- 248
2
votes
2
answers
206
views
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 ...
- 125
10
votes
5
answers
3k
views
The Sonnenschein-Mantel-Debreu results, what are the implications for macroeconomics?
I have always wondered why such a negative result such as Sonnenschein–Mantel–Debreu theorem (SMD) theorem is usually ignored or disregarded by practitioners, specially in macro.
The result roughly ...
- 1,463
6
votes
1
answer
320
views
How is labor disutility modeled in Arrow-Debreu model?
In DSGE models, utility function contains labor disutility components. But I cannot not see how labor disutility is incorporated in Arrow-Debreu-Mackenzie model.
- 63
3
votes
1
answer
184
views
Is special case of utility function in "Intertemporal Substitution in Macroeconomics" also a special case of a Ramsey growth model utility function?
So in RBC and Ramsey-derived utility function, the following is usually the form of utility:
$$u(c,l) = c^{1-\sigma}(1 + \omega(l))$$
where $\omega(l)$ is arbitrary function of $l$, labor, that ...
- 31
5
votes
1
answer
2k
views
why is real wage divided by marginal product of labor often called real marginal cost?
As said in the title, why is real wage divided by marginal product of labor often called real marginal cost?
In mathematical formula, $mc_t = (W_t/P_t)/MPN_t$ where $MPN_t$ refers to marginal product ...
- 51
75
votes
13
answers
26k
views
Fundamental equations in economics
For the other sciences it´s easy to point to the most important equations that ground the discipline. If I want to explain Economics to a physicist say, what are considered to be the most important ...
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