Questions tagged [model]

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What economic theory models describe a financial regulator's decision to monitor a company?

Let's consider an example (that may not describe how these entities actually work, but humor me): You are the Financial Stability Board (FSB), you need to designate systemically important financial ...
cgmil's user avatar
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Parameter in calibration are not sufficient for pruposed Model. Where is the lacking data coming from?

The paper „social security reforms, capital accumulation and welfare: A notional defined contribution system vs a modified payg system“ by Lin, li Presents a model for analyzing the impact of ...
Felix Neuwirth's user avatar
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Bond syndicates and systemic risk

I'm looking at both bond syndicates (groups of banks underwriting bond issuance), and also the holders of those bonds (groups of investors that hold those bonds for some time, potentially selling them ...
apg's user avatar
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Dealing with integrals in econ models

I am currently studying econ models, and trying to calculate the FOC for different kind of models. I use J.Gali "Monetary Policy, Inflation and the Business Cycle - An Introduction to the New ...
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Ordered Logit Model: Marginal Effects Signs Opposite

I'm deeply stuck in an issue in my research paper's methodology. I'm getting the following disparate results for my marginal effects. In my Ordered Logit model, I have Y = Trust in banks (4-Max trust,...
Fasih's user avatar
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Water Economic Metaphor - Evaporation / Condensation

I was considering economics, and how a lot of economics tends to use a water metaphor as a descriptive mechanism. Ex: market liquidity, "investment evaporated", "market flows around ...
G. Putnam's user avatar
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How do I find the best response for a Stackberg duopoly with price leadership, specifically for the question below

Consider a market served by two firms, firm $1$ and firm $2$. Suppose that the (inverse) demands for the two firms are given by $P_1=1-q_1-aq_2$ $P_2=1-q_2-aq_1$ with $a$ belongs to $(0,1)$. In ...
Aarav's user avatar
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1 answer
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PER CAPITA SPENDING - IS THERE A MODEL?

In 1975 the world population reached 4 billion people. In 2023 it reached 8 billion In 1975 the US population was 211 million. Today it is 340 million. Considering that: 1- we now have more people, ...
Denis Pageau-Sociétalogue's user avatar
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optimal delegation model extension

for my seminar paper I need to extend the model of optimal delegation, I have no idea how I can evaluate my ideas (because my professor keeps ignoring me) , can someone say if the idea of the ...
user848273982398's user avatar
2 votes
1 answer
127 views

Frameworks and models in economics

A framework is not a model of a specific system, but a way of formulating and studying a variety of systems. Classical mechanics, quantum mechanics and statistical mechanics are all really frameworks. ...
quanity's user avatar
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Is there a labor vs leisure model with work experience?

I find the labor-leisure model with utility functions interesting, but I find it lacks the factor of work experience, which is very important in the real life labor market. This is a reason people why ...
Nicolas Torres's user avatar
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Monopoly Board Game Situation Modeled With Game Theory

Three players are playing the board game Monopoly. All properties are acquired, and only Player A has completed a color group. This also leaves Player A with very little cash. Player B and Player C ...
user10478's user avatar
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1 answer
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Why do we omit the integral when deriving the f.o.c.’s in long-run growth models such as Romer (1990)?

For example when solving Romer’s model (1990) in continuous time, for the firm producing final goods, its production function is: $ Y(t) = \int_{0}^{M(t)} (A(t) L_Y)^{1-\alpha} {x(i,t)}^{\alpha} di$, ...
Nicolas Torres's user avatar
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Infer collective prices based on individual prices

Given a neighborhood with $m$ trash removal companies currently serving $n$ neighbors, each paying $p_m$ for the service, how would an economist calculate an expected price, $p_e$, in the event that ...
user121330's user avatar
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2 answers
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Revisiting development of Solow Model with no population growth and no technical progress

Consider an economy descried by the production function: 𝑌 = 𝐹(𝐾, 𝐿) = 𝐾0.3𝐿0.7. a) Derive the per-worker production function. b)Assuming no population growth or technological progress, find the ...
Gibson Kashindwa's user avatar
1 vote
1 answer
226 views

Habit forming Model & State Variables

Taking the habit formation model of consumption, as a standard dynamic programming problem. Bellman Value Function for Habit Model Max$\sum_{t=1}^Tβ^tu(c_t - γc_{t-1})$ $\qquad \qquad (1)$ s.t. $w_{t+...
CormJack's user avatar
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3 votes
1 answer
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Simulation of a dynamic search and matching model

I want to simulate a search and matching model very close to the canonical model developed by Pissarides. I am interested in representing the trajectory of the unemployment rate when the unemployment ...
mayo's user avatar
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1 vote
1 answer
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Lagrangian for the utility-mazimization of a household in a Menu Cost model, first order condition to Ci?

I need to solve the partial derivative to C_i of the integral provided below. I'd be more than happy for some help. Based on the book's answer, we get: Can someone explain how do we get there? And ...
Delia's user avatar
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4 votes
1 answer
250 views

How to use Leibniz Rule of integration to find interest rate in Expanding Variety model

I'm studying growth theory from Barro/Sala-i-Martin and I stumbled upon a problem where some more advanced level of calculus is required in chapter 6 (Models with Expanding Variety: p. 294 eq. 6.18). ...
Dario's user avatar
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2 answers
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Decoding Endogenous vs Exogenous - Parameter vs Decision Variable - and Independent vs Dependent

this is a topic that i feel is very implicit in a lot of economics, but is some times brushed over in interest of getting strait to the model or the maths. But often i realise i don't actually know ...
CormJack's user avatar
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3 votes
2 answers
243 views

How to handle multiple lagrange multipliers in a maximization problem?

Let's assume a standard household maximization problem of the form: \begin{align} \underset{C_t}{max} \sum_{t=0}^{\infty} \beta^t U(C_t) \end{align} subject to a standard Budget constraint: \begin{...
mindandfields's user avatar
1 vote
0 answers
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Help me understand the shock process in this DSGE model

I'm looking at the model proposed in Hansen2020. The not linearized model features a shock equation looking like this: $A_t = \bar{A}*e^{\epsilon_t}$ , where $\bar{A}$ is the steady state of $A_t$ and ...
mindandfields's user avatar
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1 answer
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2 intercepts in a probit model about WTO/GATT concessions?

I am currently reading a research paper(Developing Countries and General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement by Marc L. BUSCH and Eric REINHARDT) and in the part ...
viktor nikiforov's user avatar
1 vote
1 answer
46 views

How do we know Solow has DRS and Harrod-Domar has CRS from the definitions of the models?

This may be a stupid questions as I am just studying undergrad economics honours but how do we know that the solow model has diminishing returns to its input and harrod-domar has constant returns to ...
viktor nikiforov's user avatar
0 votes
1 answer
15 views

Model for how the shifting of industries affect job creation

I am working on my Master's thesis (International Relations) and I want to argue, backed with data, that when an industry gets bigger in terms of production, efficiency, in detriment of another ...
Sebastian Morin's user avatar
1 vote
0 answers
40 views

Help with Macroeconomics Question: IS-LM Model [closed]

I know this is supposed to be a simple question, but I need to check the answers for it and as it was a past exam question I do not have the results for it.If anyone can help out, that would be ...
Antony Mark's user avatar