Questions tagged [macroeconomics]
Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.
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From mathematics to economical interpretation
I'm having trouble getting some intuition beneath the sheer maths of the following toy model:
\begin{align*}
(IS) : y_t &= -\eta r_t^e\\
(B) : r_t^e &= -\delta y_t + r_t
\end{align*}
Where $...
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what are the categorization by industry in economics?
I wanted to know what industries are there from an economics point of view, and how each industry branches into different parts. Just categories and names will do , or if you can point to a resource ...
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Questions about Paul Krugman's 1998 Japan Analysis
I'm reading some of Paul Krugman's writing on Japan and the liquidity trap; specifically this article: Japan's Trap. However, I'm not an economist (just an enthusiast) so I have some basic questions.
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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 ...
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Why is price a long run concept and interest rate a short run one? [closed]
Aggregate demand is used to show the long run effects of price on equilibrium, but how is price a long run concept and interest a short run one ?. I see price fluctuating on a daily basis, interest ...
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Real Business Cycle
Could someone give me some suggestions or some possible papers to look at in order to improve upon RBC theory to explain the recent 2008 financial crisis?
Thanks!
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Consequences of a positive uncovered interest rate parity (UIP) spread for an emerging market economy
Empirically we observe that the uncovered interest rate parity (UIP) does not hold; in fact the exchange rate adjusted return on an emerging market bond is higher than the return on US bonds; I know ...
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«Behavioural economics is also useful in macroeconomics»
In this VOXEU article, the authors talk about a model in which behaviour economics is applied to macroeconomics.
I'm trying to understand fig.1, and the following sentence: «This means that if the ...
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How do domestic stimulus packages affect other nations?
Suppose a country decided to implement a new stimulus package as a way to energize the economy. Wikipedia defines two types of stimulus:
Fiscal stimulus refers to increasing government consumption ...
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How does Limited Friction affect a two-period model? Does the Ricardian Equivalence hold?
Consider a two period model with limited commitment involved.
Each consumer
has a component of wealth which has value $pH$ in the future period, cannot be sold in the
current period, and can be ...
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How does the Fed predict Economic Growth?
Which factors or formulas are used by the Fed to predict Economic Growth?
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Historical GDP of world economies back to 1945: What are the most complete and reliable data sets?
I need the historical GDP of all modern countries (or at least the vast majority) from 1945 to now. It seems the world bank data only starts in 1960 or later. I found Angus Maddison's data, but I don'...
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What is a number estimated as a Tornqvist Index?
In the Solow growth model, to compute economic output $Y$, you need variable $A$ being total factor productivity. I found some data about my country's TFP but it's estimated as a Tornqvist Index. What ...
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Where does India fall in Peter Theil's matrix? [closed]
In his book "Zero to one" Peter Theil describes a 2 X 2 matrix on how societies think about future. Definite optimism (e.g. 1950s US), Definite Pessimism (Present day China), Indefinite ...
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The role of relative prices in markets on the allocation of resources and the effect on living standards [closed]
How do the role of relative prices affect how resources are allocated? And as a result, how does this effect living standards?
Would it be something along the lines of how changes of relative prices ...
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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, ...
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Comparing GDP contractions between Russia and US
I was reading Rogoff's piece on the Russia's economic outlook, and in a paragraph, he states
The shock to the real economy has been severe, with Russia suffering a decline in output in 2015 and ...
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Why does everything get more expensive as cities grow in density/size?
I have long wondered why groceries, rent, and especially cially taxes increase as cities get larger since the cost per capita goes down, at least according to everything I've read including a summary ...
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How would one model wage suppression from non-poaching agreements?
Motivating example: Google, Apple, Microsoft et al were recently fined $430 million for wage collusion and anti-trust violations regarding hiring of employees. Their employees were involved in a class ...
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Why is there a structural deficit/surplus?
I'm going through Fiscal Policy and I'm reading about Structural Budget and Cyclical Budget. To my understanding, Cyclical Budget is what occurs when automatic fiscal policy is in use. So G and T are ...
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if the richest 85 people give away all their money?
I once heard a fact that the richest 85 people are as wealthy as half the world's population put together. My question is, what does that mean?
Does it mean that there is some feasible method in ...
user13456
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How to estimate a constant elasticity of substitution for a country in a solow model including human capital and scarce resources
For my thesis I was looking for some help due to the facts of my little knowledge of econometrics. I appreciate any help whether its directly dealing with my question or literature advice.
Basically ...
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How can I model immigration and xenophobia economically using these equations?
I'm trying to put together a toy model for immigration ($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}...
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Can a weaker currency be used to offset lower productivity of labour in an economy?
Can a weaker currency be used to offset supply-side (specifically low productivity of labour) problems of an economy to restore international competitiveness?
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Is the American economy on the same path when it had a massive crash in 2007? Is there another bubble coming
I guess I should not be asking for technical answers, because I've learned economists are not to predict things like this. Yet from current data, and this article that reviewed said data: http://www....
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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 ...
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How do We Determine the Start or End of Investment Phase for the Oil Industry
I am trying to do an analysis of the oil industry, and while doing research I came across the following chart that has one of the factors I want to include: Investment Phase vs Exploitation Phase
The ...
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Is it possible to proxy producers' capital with corporate bond in a macro model?
I'm trying to reproduce Gertler-Karádi (2013) model. How far-fetched is the thought to use the amount of corporate bond as an input of production?
Thank you in advance.
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How much does one percent of unemployment 'cost'? (Unemployment elasticity)
There is always debate that increasing minimum salary will pour in more money into the budget as those who get minimum salary will spend them immediately.
The counter argument is that increasing ...
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Why does the US have such low price flexibility?
I am speaking only from an observational point of view and don't have any experimental data to back-up my observations so feel free to correct me.
Why does the US appear to have a market that does ...
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"Social Credit" and "Positive Money" schemes: what are the economic critiques?
Starting with reading Robert Heinlein's Beyond This Horizon many years ago, I've run across the "social credit" schemes. Most recently, it appears to hve shown up again in the ideas on http://...
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Micro/Macro estimates on Price rigidity(calvo parameter)
I'm looking for current references on the estimates of price rigidity, and the dichotomy that seems to exist between the micro and macro estimates.
For example, for labour supply elasticities there's ...
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Technological shocks and Labour supply in RBC and NK models
In the class notes of Eric Sims on RBC and New Keynesian models, in his site, we get to see several graphs with the impulse response functions (IRF) of real variables such as output, labour hours, ...
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What are the most used functional forms for utility in RBC literature, and why?
In the RBC/NK literature one has to define a functional form for the utility function of the representative household. What are the most used forms, and why are they used?
Any help would be ...
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What's an RBC BGP's feasibility?
I'm reading some note of Eric Sims on extensions to RBCs and he writes «In any balanced growth path, feasibility requires that hours do not grow». The author then explains that this is so, because if ...
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Can a MS-VAR(1) be discretized to a Markov-chain the same way a VAR(1) has a discrete approximation?
It is well known via Tauchen (1986) that a VAR(1) process can be approximately fairly well (in the absence of persistence) by a discrete Markov-chain if the innovation is distributed standard normal.
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Which model of trade is this?
In a recent article, Paul Krugman showed these equations:
Which model is this? What do the symbols denote? Is the first symbol a v or nu?
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How to solve model with a final good (in a perfect competition), and intermediate goods (monopolistic competition)?
Let's imagine there's only one final good produced by one firm, in a perfect competition market. In the intermediate market, we have $N$ goods which are produced and used as factor inputs for the ...
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Economic Effects of BIM [closed]
The Boston Consulting Group has suggested BIM will save the Construction Industry $1.7 trillion /pa and increasing by 2025.
What effect will this have, if any, on social issues such as poverty, on ...
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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 ...
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Cannot reproduce paper result on Boston Housing
I have been trying to reproduce the results for "Hedonic Housing Prices and the Demand for Clean Air" but to no avail thus far. In table 7 there are three regressions mentioned using the Boston data ...
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How to compute standard errors for Blanchard-Quah-restricted SVAR?
People tell me that the way of bootstrapping standard errors in the original paper is incorrect, but then how should I do it?
Is there a convention of how to compute standard errors for Blanchard-...
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How to solve a variation of Merton's optimal portfolio problem?
Does anyone know how to solve the following problem?
I have tried to solve this but I'm lost since I have never dealt with a Stochastic Dynamic Programming problem with many variables.
$max_{c_{t},\...
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How do the wages affect the employment
If we have a condition where employment is lead by the wages does it mean that a wage reduction will cause unemployment?
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What's the ECB share of euro area gov debt?
Where can I see an evolution of the ECB's share in the market for Euro area governmental debt?
I would like to know if there's something similar happening in Euro area as is happening with Fed's ...
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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 ...
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Macro Economic Factors that Effect the Revenue for General Mills [closed]
I was having a conversation with a friend about politics, and that eventually led to economics. I know... We're a little on the wild side. He made a comment that he thinks that a company like General ...
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Why do the economic system freeze when the growth is null
When there is no growth, economy goes bad, unemployement increases, consumption decreases, even in a situation where population is not growing. Why ? We could imagine that without growth, the country ...
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How to Show That, on a Balanced Growth Path, Two Variables Grow at the Same Rate
If we are given that a variable is on a balanced growth path (for sake of argument we shall assume consumption), how do we show that another variable related to consumption (like capital or wealth) ...
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Building a (relatively simple) Model which indicates macroeconomic movements
Suppose you have a particular view on the state of an economy, let's say for sake of argument, that China is slowing down.
My question here is: Using aggregate levels of macroeconomic data (this ...
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