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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What does "data trail for transactions" mean? [closed]

Today when reading a working paper of Auer 2021 about CBDC (Central Bank Digital Currency), I found a sentence: Conversely, central banks in jurisdictions with a large informal (“shadow”) economy may ...
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Asking for sources of country-level data regarding technology literacy, cashless level, financial moneytary policy, and financial stability levels

I am looking for the sources for these variables (country-level), as many countries as possible about: the technology literacy levels, cashless level, financial monetary policy, and financial ...
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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 ...
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1 answer
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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 ...
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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 ...
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1 vote
1 answer
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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. ...
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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....
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1 vote
1 answer
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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}...
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1 answer
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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....
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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 ...
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2 votes
1 answer
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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 ...
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-2 votes
1 answer
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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 ...
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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 ...
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1 answer
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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 ...
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3 votes
1 answer
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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 ...
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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 ...
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Shift in demand vs increase in demand [duplicate]

What is the difference between the concepts of shift in demand and increase in demand? Can these be used interchangeably, and do any of them have multiple meanings in economics?
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2 votes
1 answer
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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 ...
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1 vote
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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 ...
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1 answer
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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 ...
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1 answer
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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 ...
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1 vote
1 answer
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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 ...
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1 vote
1 answer
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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 ...
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2 votes
1 answer
745 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 ...
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1 vote
1 answer
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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 $\...
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1 vote
1 answer
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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 ...
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2 answers
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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 ...
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0 votes
2 answers
117 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 ...
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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 ...
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1 vote
2 answers
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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 ...
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1 vote
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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 ...
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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. ...
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What are "low predictability" and "poor feedback" properties of stock investment?

Wood, 2010 meantioned that Investing in stocks is a difficult task, with low predictability and poor feedback It seems that investing in stocks is a difficult task because of "low ...
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3 votes
1 answer
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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, ...
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How to clarify "Predatory trading" process?

Brunnermeier, 2005 studied the "predatory trading" This paper studies predatory trading, trading that induces and/or exploits the need of other investors to reduce their positions. We show ...
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0 votes
1 answer
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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 ...
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Asking for "impersonal market" definition

By reading a paper of Han,2021, they wrote In most investment models, the influence of individual choices on others is mediated by price or by quantities traded in impersonal markets I do not fully ...
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0 votes
2 answers
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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 ...
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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 ...
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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 ...
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-1 votes
1 answer
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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 ...
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1 vote
3 answers
95 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 ...
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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 ...
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Dinamic economics, differential equiations [duplicate]

I'm investing for models of system of differential equations, that can be applied in economics. I have to make an analysis of the model, for an exposition. Now I'm trying to choose a model to present, ...
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Model economics with diffential equations [duplicate]

I'm looking for suggestions of models of system of differential equations applied in economics or maybe in another area of interes. I have to make an analysis of a model, now I'm in the process of ...
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0 votes
0 answers
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What is the compositional effect in panel data?

The definition of compositional effect is The term “compositional effects” is used here to refer to a range of observations about how using group averages can paint a misleading picture about how ...
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1 vote
1 answer
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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?
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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 ...
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2 answers
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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 ...
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1 answer
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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 ...
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