# Questions tagged [self-study]

Questions about self-studying economics, including curriculum design, study strategies, resources, etc.

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### What are some database like websites about lower levels of economics (micro/macro) for a research project?

I'm looking for some websites; books or videos on the beginning levels of economics like micro and macro economics to do a research project projects on. I found some course videos but they were a bit ...
4k views

### Homogenous of degree one in utility function.

Question My solution is as follows. Please check my solution. If I make a mistake, please tell. I am really not sure about my solution. Thank you U(x) is homogenous of degree one i.e. u(...
4k views

### Deriving long-run cost function

I'm a bit unsure about how to derive a long-run cost function. Suppose my production function was $X(L, K)=L^a K^b$, where $a+b>1$. I'm thinking about doing the following, but I'm not sure it's ...
60 views

### How to enhance one's comprehension of the descriptive meaning of formal economic statements?

I found that, though most of the time the math technical parts of economics is not a problem for me, I am somehow troubled with extracting the descriptive meaning of formally stated economic ...
2k views

### Profit maximization with Cobb-Douglas function

I'm trying to maximize a firm's profit given the production function $F(L,K)=L^\alpha K^\beta$ (where $L$ is labor and $K$ is capital) and that $\alpha + \beta \neq 1$. So, I know that this ...
114 views

### Leontief utility with producer goods

This question may require some explanation. Also, I'm way out of my depths so please let me know if this question is misguided. The standard Leontief utility seems to assume the goods are consumed in ...
36 views

### Type of good that can be owned but not consumed when used

I'm an econ noob so apologizes if this is a dumb question. I'm trying to find if there is categorization of a good that can be owned but is not consumed when used. Tools are an example of this. A ...
59 views

### When first differences contradict a regular regression regarding Investment vs Output relationship

Im doing some research with some panel data I have on firm output and investment. I ran two equations. $$y=\beta_0+\beta_1x+\beta_2x^2+\mu$$ $$\Delta y=\alpha_0+\Delta\alpha_1x+\epsilon$$ in R ...
252 views

### Resources to improve my economic intuition

I am trying to improve my economic logic skills and ability to think about day-to-day issues in the systematic way economics and decisions science approaches scarcity or optimization. A simple ...
586 views

### How to self-study graduate level macroeconomics? Is there even a point?

As I had hoped to learn enough macroeconomic theory to get some research ideas, my goal at the beginning of this summer was to read through and complete the problems in an introductory advanced ...
86 views

### What gives value to precious, luxury things?

What makes things precious? For example Gold, Silver, Diamonds, etc. Once they were unknown to human being. And now they are the more pricey things. I guess its just the way these things were ...
822 views

### Log relative price index - calculation question

I have US CPI prices & Canada CPI prices (where US is my base). I am trying to calculate the 'log relative price index'. Do I log the individual CPI prices first then calculate log Canada CPI/log ...
983 views

### price elasticity: Linear regression low r square

I faced an interview question for a job where interviewer asked me suppose your r square is very low (between 5 to 10%) for a price elasticity model. How would you solve this question? Anything that ...
40 views

### Revealed preferance: elementary question

When the market prices are Rs 5 per apple and Rs 6 per orange a person buys 16 apples and 28 oranges. When the prices are Rs 4.4 per apple and Rs 6.4 per orange ,the person buys 20 apples and 25 ...
77 views

### Increased inflation rate on borrowers and lenders

I'm trying to understand a concept in microeconomics. So if inflation increases while nominal interest rate stays the same, what are the substitution effects and income effects on borrowers and ...
6k views

### Homogeneity of degree zero and normalization

One of the first assumption is that the demand function is homogeneous of degree zero. The reason and the proof is easy. It should also be easy why this implies we can normalize the price of one ...
423 views

### Interest rate rule in monetary DSGE model

I am studying DSGE models and try to solve exercise 2.2 from Gali's (2008) book. In short, consider the simple classical economy where the following approximate equilibrium conditions must be ...
972 views

### Best micro/macroeconomics books [duplicate]

Does anyone of you could recommend me some good Macroeconomics and Microeconomics books based on your personal experience. I am an engineer and I do not have a background in Economics. I am planning ...
125 views

### Consumer's maximization problem

I am an undergrad trying to learn the basics of NK models (on my own) and I am having some difficulties understanding the derivation of certain equations. So we have the representative household ...
47k views

### Determining optimal consumption bundle [closed]

The utility function of the consumer is $5x^{0.5}y^{0.5}$ The income of the consumer is $5000$ The price of good $x$ is $1,000$ and the price of good $y$ is $500$. Determine the optimal ...
301 views

### What are the prerequisites to study Mathematical Economics?

I am a high school student with keen interest in mathematics and economics. I wish to study mathematical economics, but most of the books I have encountered begin with quite advanced mathematics. In ...
7k views

### How to derive an aggregate demand function (and optimal uniform price) from two demand functions?

If I have two demand functions $P_1=100-10X_1$ and $P_2=50-10X_2$ and $X_1=40$ and $X_2=60$ with $MC=10$ We have two consumer groups: 1 and 2, where 1 has a higher willingness to pay, and we have ...
207 views

### Does economic growth always implies investments in infrastructure?

For my course I'm analysing the problem of empty retail stores. I need to analyse how my alternatives to solve the problem would change the important factors about the problem in uncertain scenarios. ...
33 views

### Marginal productivity of aggregate labor relation to wage

I know that $f'(l)=w$. But if i have that the aggregate production is $Y=AL^{1-α}$ with $L=N*l$ (The number of workers, $N$, multiplied by the labor force). So basically I want to find an expression ...
75 views

### What addition study subjects are required in the investment field [closed]

Being a CFA student, for example, I feel I need an additional course in statistics and math, but I've never worked in the field. And maybe, as a specialist working in the profession for some time you ...
683 views

### Market Equilibrium

Can help me with part b of this problem? The demand for wine is given by the equation $QD = 500 – 20P$, where $P$ is the price of wine per litre and $QD$ is the quantity of wine demanded in litres. ...
22 views

### Contribution Margin [closed]

W LTD wishes to attain a before tax-net profit equal to $20\%$ of sales revenue. Variable costs are $60\%$ of sales and fixed costs are $360,000$. Calculate the dollar amount of sales necessary for ...
13 views

### How the long lives of oil platforms can account for the volatility in oil prices?

I have a question that asks me to explain how the fact that oil rigs/platforms last for a very long time increases the volatility in oil prices. To me this does not make sense (I just can't ...
7k views

### How to find corner Pareto efficient allocations

I have some troubles in understanding how to find Pareto efficient allocation that are on the frontier of the Edgeworth box. I mean, the interior ones, can be found using the equality $MRS_A = MRS_B$, ...
262 views

### Robinson Crusoe economy with saving and borrowing

I am working with a Robinson Crusoe economy, i.e. an economy in which there is no production and only consumption is possible: there are only two goods, $x_1$ and $x_2$. There is just one individual ...
1k views

### Does learning economics lead to richness? [closed]

I have started to learn economics from Adam Smith's "Wealth of nations" because I think that learning economics (or narrow fields of it) will allow me to become rich. Does knowing economics allow me ...
182 views

### ln(log) of energy consumption in a econometric analysis

i'm applying a panel data analysis. I have four variables; real GDP, trade openness, energy price and energy consumption. I took ln (log)of trade openness,real GDP and energy price. but i cannot ...
1k views

### Self-teaching 1st year PhD Microeconomic Theory

How should one proceed if he wanted to master the microecon theory course typically taught in the 1st year of a PhD program on his own? Which text(s) and/or online course(s) should he follow? Suppose ...
12k views

### How to show that a homothetic utility function has demand functions which are linear in income

A homothetic utility function is one which is a monotonic transformation of a homogeneous utility function. I am asked to show that if a utility function is homothetic then the associated demand ...
157 views

### Financialization of the economy

What is the financialization process of wealth in the economy? What are the determining factors? What are its consequences? What is the role of financialization in the economic crisis of 2008? ...
186 views

### Beginner level books on market economics

Which books can be recommended for a beginner with a strong math background, who wishes to learn how markets work, what is a stock, what is a bond, how to trade e.t.c. and has a minimal knowledge of ...
498 views

### Question on real exchange rate

If the Phillipine peso falls in value against the USD by 5% in a year, but the domestic inflation rate in the Phillipines is 10%, compared to 2% in the USA, the nominal exchange rate has fallen (by 5%)...
2k views

### Marginal Utility with Supply and Demand Curves

Can someone explain how the equilibrium points in the image below (source: The Foundations of Econometric Analysis) represent marginal utilities. I have read about the relationship between the ...
2k views

### the slope of the LM curve [duplicate]

I'm confused because my textbook says the higher interest elasticity of money demand is , the flatter slope of the LM curve is. If the interest changes, then isn't it the movement along the curve in ...
133 views

### Questions regarding foreign exchange online trading

I am currently studying economics in college and taking course Macroeconomics and International Finance which covers foreign exchange market topic. The class is very crowded since there are more than ...
2k views

### Real world application of IS-LM model

I learnt IS-LM model but I got curious whether it is applicable to the real world. I mean it's just an model, so I doubt that the realtionship between Y and r actually exists. Are there any real life ...
2k views

### How can I draw an edgeworth box with 3 different goods?

If there are 3 types of goods(x,y,z) and 2 consumers (a,b) how can I draw the Edgeworth box? It must be 3 dimensional, right? Is there a software or online tool that I can use to draw a 3D Edgeworth ...
1k views

### How can I learn about economics? [closed]

I'm a civil engineering student and I'm interested in economics and I would like to learn everything about it. I would like to learn everything from banks to the stock markets and everything there is ...
97 views

### How to find the long-run relationship using this regression (3rd time posted)

This is an old exam question I can't figure out. I thought to find the relationship you would sum the coefficients on the Ys, so it would be 0.80 + 0.70 - 0.10, giving you C = 1.4Y, but this isn't ...