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Questions tagged [nonexpert]

For questions that are not about formal economic or econometric models and techniques, their implementations using programs and languages or do not include references to, are not about data standards, or are not based on academic sources.

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Possibility of recession with high interest rates

From this plot, it seems that every time there is a recession, the Federal Reserve Bank cuts interest rates. This is because money circulation slowing down will lead to a downward spiral and lower ...
Max's user avatar
  • 113
1 vote
2 answers
247 views

Does emerge of cryptocurrency cause inflation?

I'm very newbie at economics, so the question may does not sound a good question. I define value, any type of goods and services I can acquire in an economic deal. If I assume whole amount of value ...
Amir reza Riahi's user avatar
2 votes
2 answers
275 views

Are there any economists in history that contributed to the language of mathematics?

As it is known that math as a branch that is disputed whether it is a science or a language, I am just curious whether there is an economist that contributed to mathematics as a branch (I am not ...
Tunay Sabri Yüksel's user avatar
1 vote
1 answer
125 views

How 19th century luddites differ from today's political luddism that tries to bound AI?

There are ongoing preparations for the AI regulation summits https://www.politico.eu/article/eu-us-uk-china-artificial-intelligence-control/ that are planned to be held by G7 AI control group and ...
TomR's user avatar
  • 435
3 votes
1 answer
53 views

Will Biden's junk fee bill ultimately decrease or increase the cost to consumers?

Currently, the bill is set to target four fees: Event/entertainment fees, airline fees, early termination fees for tv/phone/internet services, and surprise resort/destination fees. However, I have ...
Sonny Trinh's user avatar
1 vote
1 answer
74 views

Why isn't this state a price equilibrium with transfer?

This is probably a silly question, but I am misunderstanding something about the definition of a price equilibrium with transfers. Consider an Edgeworth Box (2 goods, 2 agents) consumer economy with ...
user43029's user avatar
0 votes
1 answer
62 views

What is the refutation of this article about the FED being privately owned

What is the refutation of this article about the FED being privately owned I find this article and I would like to know what is the refutation. Please proper academic arguments.
user avatar
0 votes
1 answer
45 views

India buying Russian Oil at discounted rate but why price hike?

I am hearing that the Indian government is buying Russian oil at an all time high on discounted rate . Technically, the price of petrol diesel should go down in India . However ,I've heard that price ...
CREATIVITY Unleashed's user avatar
0 votes
0 answers
32 views

How would a country successfully implement UBI?

Universal basic income is the principal that each citizen in a country gets a fixed amount of money from the government which should suffice for an individual to pay for at least his basic needs each ...
O'Niel's user avatar
  • 165
2 votes
1 answer
74 views

Why does Putin want to be paid in rubles?

Putin demands other countries to pay Russia for its gas in rubles. He does this supposedly to strengthen the ruble. I don't fully understand why this is important for Russia. Imagine they pay him in ...
ThaNoob's user avatar
  • 123
0 votes
1 answer
58 views

Price increase at stores

I got an economics question. Electrical Engineer here, who is just trying to understand economics, demand, inflation etc. I was at a store the other day and noticed that the Taco sauce I buy always is ...
Mars Sojourner's user avatar
1 vote
1 answer
156 views

Mathematical explanation of transformations of Marginal Revenue

MR = d(Total revenue)/dQuantity = d (Price * Quantity)/dQuanitity This is the same as this : MR = P(Q) + dP/dQ I did it with an example and it amazed me how both are equal but I still dont get how. ...
Teko JR's user avatar
  • 11
0 votes
0 answers
17 views

When a global digital services company withdrows from the market of a specific country, does it affects the local tax income?

So, here are the conditions: We have a country X We have a company "Example Inc.", which provides some digital service in X. Let's say "Example Inc." is a game development company....
Danilа Maslennikov's user avatar
1 vote
1 answer
217 views

simplification of FOC

This is the first-order condition of a dynamic programming problem where I am trying to get the Euler equation from a sequential problem. (1) $$\frac{\partial V(d_2)}{\partial d_3} = \frac{-1}{d_2-d_3}...
econ_confused's user avatar
0 votes
1 answer
68 views

Who pays the current price of oil?

(Please let me know if this question belongs somewhere else.) I understand the price of crude oil is set by a multitude of factors so this question should be very simple, I just can't find it anywhere....
John's user avatar
  • 111
2 votes
1 answer
46 views

What is federal reserve interest rate?

This is part of an article: the causes are not the same and the Federal Reserve Bank may not achieve the desired results by increasing interest rates, What does it mean? What interest rates can ...
Amir reza Riahi's user avatar
2 votes
1 answer
649 views

How does marginal utility and marginal product differ?

The marginal utility is, in plain English, the additional benefit (utility) that an individual gets by consuming an additional unit of a good or service. According to the Law of Diminishing Marginal ...
Humberto Fioravante Ferro's user avatar
-2 votes
1 answer
296 views

Why did Allied countries not freeze German and Japanese central bank assets in WWII?

Supposedly such an action would cause massive turmoil in their domestic markets, cause exchange rates to rise, inflation to rise, and thus prevent them from engaging in meaningful trade. Why did ...
Daycent's user avatar
  • 260
0 votes
1 answer
24 views

Question About The Optimal Quantity of Production I Don't Get

So there's this question to do with microeconomics where we have a particular store selling sandwiches at $3/unit with the following production costs: I know that a business should produce sandwiches ...
fellowstudent's user avatar
0 votes
1 answer
73 views

What is the purpose of central bank selling government bonds besides reducing money supply e.g. to let the public earns more during recession?

I have learnt that such tool is usually to reduce money supply so as to close the inflationary gap. However, from my daily observation, central banks sometimes also sell bonds during recession. Is ...
Lam Kakei's user avatar
3 votes
1 answer
265 views

Do property prices drive rent increases or do high rents attract buy-to-let investment?

It is not uncommon to hear someone complaint about the impact of buy-to-let investment on the costs of living. It is alleged to affect not only house prices themselves, but also prices at which these ...
kamilk's user avatar
  • 133
0 votes
1 answer
46 views

Does problem solving drive economic value?

I have been taught by peers that the bigger problems you solve the more you will be economically valued. But my experience so far seems to say something opposite. Why can a random vtuber just with a ...
CopilotSimp's user avatar
2 votes
1 answer
586 views

Demand vs. demand schedule vs. quantity demanded

What is the difference between the concepts of demand, demand schedule and quantity demanded? Can these be used interchangeably, and do any of them have multiple meanings in economics? Also, is there ...
Giskard's user avatar
  • 29.3k
1 vote
0 answers
8 views

Reference for the sensitivity of consumers to firms' credit policy between developed and developing countries?

I am finding references for the one of these three ideas here: Consumers in developing countries are more sensitive to credit policy of firms in developed countries. Or how prudent or relax that ...
Phil Nguyen's user avatar
  • 1,160
0 votes
1 answer
202 views

What value does a worker whose job could be automated provide to society?

Has anyone calculated the global benefit of non-workers on government assistance and found their contribution to be less than the assistance they were provided? I'm looking for scientific studies ...
David Whittaker's user avatar
0 votes
1 answer
25 views

Difference between two different ways of adjusting for inflation daily given annual rate

This is a follow up question to this I found two different ways to "adjust for inflation" on a daily basis given an annual rate (without doing daily compounding). Both yield the same result ...
Ezequiel Castaño's user avatar
1 vote
1 answer
56 views

Inflation adjustment different than halving

I am developing a "inflation adjustment" web app where an initial capital is adjusted based on some optimistic, realistic and pesimistic estimates using Monte Carlo Simulation. The code is ...
Ezequiel Castaño's user avatar
1 vote
1 answer
38 views

Asking for citation of abnormal distribution of asset return in Markowitz (1952)

Markowits (1952) assumes that asset returns will follow a normal distribution. However, in reality, it has been criticized that asset returns often do not follow a normal distribution, as it often ...
Phil Nguyen's user avatar
  • 1,160
2 votes
1 answer
792 views

On what basis do countries repay international loans?

Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
Nagendra's user avatar
1 vote
1 answer
85 views

The impact of finance in the basic macroeconomic model

As I understand, in the very basic macroeconomic model we have that $Y = C+S = C+I$ where $Y$, $C$, $S$ and $I$ are real goods measured in monetary terms. Assume a steady state economy that produces $\...
LudwigNagasena's user avatar
1 vote
1 answer
98 views

Is there sound economic reasoning behind the assertion that automation will not lead to mass unemployment?

Many people are optimistic that for every job eliminated by automation, new jobs will be created so that people will always find work that pays them a reasonable wage. Is there sound economic ...
Garincha's user avatar
0 votes
2 answers
51 views

Are retirement funds part of the capital market?

I was reading an article, which mentioned the withdrawal of high sums (billions) from retirement funds to ease the crisis caused by the covid-19. It also said that the capital market will become ...
user avatar
0 votes
2 answers
129 views

Why do oil-rich countries need expats?

In particular, why did/do the smaller states in the GCC need expats in their country? Ignoring the history of the country prior to oil discovery (which can be approximated for many of the smaller GCC ...
FL44ME's user avatar
  • 1
1 vote
2 answers
109 views

Would it even be possible for m2 to remain stable under positive interest rates?

Let's say bank A has 1 of assets and 10% reserve requirements. It lends to bank B 9 Then they lend back and forth so they both have 50 of assets and liabilities (or whatever they can). Then those ...
user avatar
1 vote
2 answers
1k views

marginal utility and Marginal rate of substitution

While studying for my microeconomics class, I realized that I could not fully understand the meanings of Marginal utilities and marginal rate of substitution. Can anyone explain to me the difference ...
burak sariaslan's user avatar
1 vote
0 answers
32 views

Can the Law of supply and demand be derived from the Subjective Theory of Value using Agent-based modeling? [closed]

I was tinking about the Law of Supply and Demand and Subjective Theory of Value and I have the intuition that the first can be derived from the second using agent-based modeling. Is this true? Also I ...
Ludwig's user avatar
  • 11
1 vote
0 answers
419 views

What is the difference between "cluster analysis" and "discriminant analysis"

From reading paper of Clark-Murphy, 2010, I saw the authors used two methods: "cluster analysis"(CA) and "discriminant analysis" (DA) I found a great source of explanation here. ...
Phil Nguyen's user avatar
  • 1,160
3 votes
1 answer
86 views

Why would a country ever want high interest rates?

The way I understand it, the government of a country can do a lot to change the interest rate in their country. Low interest rates encourage taking out loans and spending, thus boosting the economy, ...
Magmatic's user avatar
  • 131
0 votes
1 answer
94 views

Why we say "active investing puzzle" while we already know the reason?

Han,2021 describe active investing puzzle as: Notably, individual investors trade actively and have invested in active investment funds for decades, and they thereby have on average underperformed ...
Phil Nguyen's user avatar
  • 1,160
0 votes
2 answers
99 views

Why is nominal GDP deflated to get real GDP?

I am confused at the explanation below which explains why nominal GDP must be deflated to get real GDP. I thought the GDP deflator would decrease if prices are declining, so how does this result in ...
tarren's user avatar
  • 1
0 votes
1 answer
119 views

How does foreign aid money help another country develop?

How does fiat currency help a country's economic growth? For example, if a certain country such as the U.S or Brazil gives 1billion dollars to a developing country like Angola or Congo, how does that ...
Meraki's user avatar
  • 9
0 votes
0 answers
140 views

Debt cycle theory of Ray Dalio

I recently started reading Ray Dalio's book regarding BIG DEBT CRISES. He compared there, economy to the monopoly board game. There is something I don't quite follow in this analogy. If you ...
Maciej Wakowski's user avatar
-1 votes
1 answer
51 views

Can economic models predict China overtaking the United States?

I recently read an article about China's economic progress: Chinese economy to overtake US 'by 2028' due to Covid Can models and simulations based on economic data predict when China's economy will ...
IvettsRonco's user avatar
1 vote
3 answers
444 views

When do the sign and magnitude of coefficient of variable of interest matter if it is insignificant?

I am wondering when the sign and magnitude of coefficients of a variable of interest matter if it is statistically insignificant. Normally, I am concerning a coefficient of variable if it is ...
Nguyen Lis's user avatar
0 votes
0 answers
33 views

Can an increase in demand indirectly lead to a decrease in average price due to economies of scale?

Let's say firm A produces a very niche product, that requires them to handcraft each product, and because of extremely expensive and skilled labor the production costs are extremely high. Firm A has a ...
fish_42069's user avatar
2 votes
1 answer
37 views

the share of the labor force in GDP, including wages and transfers to social protection, %

Why is this indicator (the share of the labor force in GDP, including wages and transfers to social protection, %) used as an indicator that indicates the level of inequality in society?
Mari's user avatar
  • 21
0 votes
1 answer
50 views

The Amsterdam stock exchange market

The Dutch East India Company (founded in 1602) was the first joint-stock company to get a fixed capital stock and as a result, continuous trade in company stock occurred on the Amsterdam Exchange. I ...
unmarriedinquirer's user avatar
0 votes
2 answers
94 views

Do students for economics study theory about no-money-economies and about no-interest-economies (ancient or futuristic)?

Do students for economics study theory about no-money-economies and about no-interest-economies (interest-free-economies), may these be ancient or futuristic? Are these terms are even being introduced ...
JeromeDavis's user avatar
0 votes
1 answer
361 views

System of differential equations in economics and areas of interest

More than a question, I'm looking for suggestions of models of system of differential equations applied in economics or maybe in another area of interes. I have a research homework and I have to make ...
Pech's user avatar
  • 11
3 votes
2 answers
530 views

Is Fiat Money Ultimately Tax Based?

First, I am not an economist, so seeking general "good enough" answers. Since Nixon went off the gold standard the U.S. dollar has been a fiat currency backed by federal debt. While I ...
Nelson Alexander's user avatar

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