All Questions

1
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0answers
17 views

Best Response Functions for Cournot

For a Cournot Duopoly game with Linear Demand functions, we need to find the optimal quantity of each firm such that profit is maximised. Given the linearity of the Demand curves, we will obtain a ...
0
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0answers
16 views

In a Neoclassical model, if $w$ is the wage rate and $L$ is total hours, $w \times L$ is the wage bill. Is this correct?

Also, from the production point of view, we call $w \times L$ the wage bill, which is the total labor income from the consumption side point of view. Correct?
-1
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0answers
13 views

Solving Cobb-Douglas Production Function Estimation in LibreOffice Calc

I am in an Economics class where our tutor is using Excel to estimate a Cobb-Douglas production function using regression. I use Ubuntu and would like to be able to do the same using LibreOffice (my ...
0
votes
1answer
32 views

Government deficit

When the economy of a government is facing a deficit, why can't the government just increase the taxes to pay for its expenses? I've read that it should rather borrow money, because increasing the ...
1
vote
0answers
20 views

Why is a call option called 'call', and put option called 'put'? [on hold]

I'm asking about etymology, and not what these options are. The answers beneath don't feel convincing; can't 'call' and 'put' be interchanged in them? I'll abbreviate Call Option to CO, and Put Option ...
0
votes
1answer
24 views

Consumer behaviour

If the last dollar spent on commodity X gives him less marginal utility, he will withdraw this amount from X and spend it on Y if it gives him higher marginal utility. Here consumer how can consumer ...
0
votes
1answer
29 views

How has my profit margin risen?

I quote the first few paras. of this Reddit comment: [1.] Imagine you had a business selling lollipops at school. Since you can buy a bag of 100 for \$10, you can sell them for 25¢ a piece for a ...
-1
votes
1answer
24 views

What is the relation between the trade deficit and the outsourcing of jobs?

To make it easier, let's imagine USA exports nothing and imports nothing (or the exports have the same value with the imports = 0 trade deficit = the country exports the same amount of jobs as it is ...
-1
votes
0answers
13 views

demand driven electricity Feed-in tariffs in Germany

Depending on the daytime, month etc. the demanded electrical power in the grid is varying a lot. https://www.energy-charts.de/price.htm Due to that, the price per Kwh is varying as well. Now the ...
2
votes
0answers
39 views

Is Universal Basic Income compatible with free international trade?

If one country introduces UBI, what prevents other countries from taking advantage of that and supplying cheaper (no need to finance a UBI scheme!) goods to the original country and outcompeting the ...
-1
votes
0answers
12 views

Energy in production

Economists use labour and capital as the primary factors of production in income approach to output calcluation. Both labour and capital are reproducible factors. I can compute labour and capital cost ...
1
vote
0answers
45 views

Real world examples of supply curve shapes

I get the basic intuition that at higher prices, produces would be willing to produce more, but I feel like theory can only take my understanding so far. I want to know what are the real world ...
0
votes
1answer
30 views

Elasticity of substitution between leisure in two periods

This is a basic question, but I am new to macro models. The question is from Romer's text. Assume a household only has one member and has no initial wealth, and the household lives for two periods. ...
1
vote
0answers
13 views

matching methods from multiple entities

Say I would like to investigate whether a particular product feature affects its sales. We would like to match products based on feature vs non-feature. But the sales also depends on the retailers who ...
1
vote
0answers
24 views

Bellman and Lagrange equation used at the same time

I just encounter a strange maximization problem in Sargent's Recursive Macroeconomic Theory book, when they have Bellman equation and Lagrange equation at the same time. Specifically: $P(v) = \max_{...
2
votes
1answer
42 views

How to calculate the intercept of an indifference curve in an Edgeworth box?

Consider an exchange economy with two goods (Good 1 and 2) and two individuals ($A$ and $B$): $A$'s utility function is $u_A(x_{A_1}, x_{A_2}) = 2x_{A_1} + 5x_{A_2}$ $B$'s utility function is $u_B(...
-1
votes
0answers
21 views

Consumer's satisfaction level

If we increase quantity of a commodity or a good will consumer's satisfaction level increase? Here the quantity is NOT CONSUMED by consumer but if he purchase a good more and more of a same commodity ...
0
votes
1answer
12 views

is there a way in NIPA accounts to see a measure of size/change in private debt stock?

is there a way in NIPA accounts to see a measure of size/change in private debt stock , and how is it measured? if not then how is it measured?
1
vote
1answer
15 views

How can I re-base monthly financial time series

I have a monthly time series with 2015=100. I want it to be in 2010=100. How could I do so? It is from 195901 to 201407.
-2
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0answers
21 views

Maximum utility of 3 commodities using Lagrange Multiplier?

Given a consumer utility function consuming commodity x, y, and z as U(x,y,z) = √x + √y + √z and the price of x, y and z are $2, $3 , & $4 respectively. What should be the consumer's purchase of ...
0
votes
1answer
17 views

Can central bank interest rate hikes lead to a price gain in equities?

I ran an empirical analysis on recent interest rate changes of European central banks on Swiss equity prices and found statistically significant results. A 1 percentage point increase in interest ...
-1
votes
0answers
6 views

where can i find monthly industrial production time series for china?

I'm looking for monthly Industrial production index for China. I can't find it anywhere. does anybody have a solution for this problem? It seems that IFS, world bank and china's statistics do not ...
0
votes
1answer
24 views

Monthly price elasticity and possibility of using daily values

I am calculating the price elasticity as a starting point to find a theoretical optimal price that would maximize our revenue. I am looking at 2 years data and to use the price elasticity formula, I ...
0
votes
0answers
14 views

Myopic and perfect foresight in an OLG model

How can we show that the dynamics in a 2-period OLG model can be non-monotonic when forecasts are myopic? And, under which conditions, do myopic and perfect foresight coincide?
0
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1answer
19 views

Imperfect substitute

Perfect substitute- Pepsi and Coca-Cola and Imperfect substitute- Tea and Coffee . Here why tea and coffee considered imperfect substitute?
0
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0answers
11 views

Terminology for allocation of marginal inputs

Suppose there are four modalities 1, 2, 3, and 4, for moving goods between two particular destinations, with associated capacity $\mathscr{C}_i$ and cost $c_i$ for $i\in \{1,2,3,4\}$ and also that $...
1
vote
1answer
22 views

Non Collusive Cournot Duopoly model with two firms, zero costs and linear demand curve

I am reading Modern Microeconomics by Koutsoyiannis. In a Non Collusive Cournot Duopoly model with two firms, zero costs and linear demand curve. Firm A produces half the total market demand to ...
-1
votes
0answers
24 views

Chap 20 Sargent book (Limited Commitment model)

I am reading Chapter 20 (Insurance vs Incentive) in Sargent's Recursive Macroeconomics Theory. I don't understand this part on his book (on page 809, 3rd version). Why we know that the optimal ...
-1
votes
0answers
22 views

Has anyone argued for distinction between immaterial and material in terms of valuation?

Has anyone argued for distinction between immaterial and material in terms of valuation? Such as that immaterial and material are incompatible in "value" and thus they cannot be e.g. measured in a ...
0
votes
2answers
62 views

feature of indifference curve

The characteristic feature of indifference curve is that it will not touch the X axis or Y axis. But as a special case it will touch the Y axis if the combination is between Money and Commodity. "If ...
-1
votes
0answers
23 views

Indifference curve for one commodity? [on hold]

"If money is taken on Y-axis, then IC curve can touch oy-axis" here we have taken 'money' on Y-axis and 'commodity' on X-axis. Here my doubt is could we use indifference curve for one commodity? If so ...
0
votes
1answer
38 views

what are Investments (as defined in macroeconomics) that Households make?

i guess a) NEW house b) buying shares in a domestic company in an IPO c) investment in a personal business , eg taxi driver buying a NEW taxi, shop owner buying his shop or renovating it what about ...
0
votes
1answer
23 views

How to find data about earning per share of S&P 500

I am working on a small project regarding PE ratio of SP500,for which I need historic earning per share data of SP500. I searched finance yahoo, but it has only prices data. Could anyone tell me the ...
2
votes
1answer
35 views

Short-run and Long-run cost against the price of the variable input

This is an image of page 133 of Microeconomics; Gravell and Rees.In the fourth line there is a statement about the slope of those curves. Can anyone please explain me the reason??
2
votes
1answer
25 views

Definition of “simple situation” is ambiguous

"Simple” situations (where it is easy to predict which strategies will be chosen by the different agents): Each participant has a strategy that outperforms all others regardless of the ...
0
votes
1answer
43 views

What is the economic impact of the Green New Deal to the US and then World?

Under the proposed "Green New Deal" there are several aspects of revolutionizing and changing the US economy. To paraphrase some of the proposed changes: 100% of US power to be renewable. Refit the ...
1
vote
0answers
18 views

Efficient Scale is necessarily equal to zero if $MgC(q=0) >$ Fixed Cost?

Assume the marginal cost is strictly increasing and always larger than the fixed cost - in particular, at $q=0$ (no production). Does it imply that the efficient scale is equal to zero? (Define ...
0
votes
1answer
35 views

Differences between Slope of budget line and MRS?

Slope of budget line= change in y/ change in x and also Marginal rate of substitution= change in y/ change in x. If the definitions are same of both then what is the difference between the two? I ...
-3
votes
0answers
34 views

Economic Questions [closed]

Drinking one more cup of coffee this afternoon will give me that jittery feeling, but it will keep me awake for four more hours to work on my assignment. The principle underlying this is: (a) none of ...
-1
votes
0answers
17 views

What affects the percent of working women within the country

I am making a multidimensional regression model. The independent variables that I have chosen are : 1)GDP per capita 2)life expectancy 3)average birth per woman 4)female unemployment 5)feminine ...
0
votes
1answer
13 views

exchange rate calculation

Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. Which of the following expressions represents the amount of U.K. pounds you will receive in one year ...
4
votes
1answer
46 views

Probability of history occurring at time $t$

I am reading LS book "Recursive Macroeconomics Theory". In this book, as well as in some online lecture notes on the Internet. They often denote, for example, $\pi_t(s^t)$ for probability that ...
0
votes
1answer
21 views

LS book (Recursive Macro Theory). Chapter8: Complete Market

I am reading LS book, on Chapter 8 - Complete Markets (3rd version). There is an example on page 264 that I am quite confused. I attach the picture of the example here under. I don't understand why ...
2
votes
1answer
28 views

Elasticity of Supply for a Monopolist

Is the supply of output for a monopolist less elastic than that of a perfectly competitive firm with the same production function? On one hand, it seems impossible to calculate the elasticity of ...
2
votes
1answer
50 views

Central bank loss function

$$ L_t = \gamma(\pi_t - \pi_t^\otimes)^2 + \hat{Y}_t^2 $$ Central banks loss function is given by the equation above. This loss is increasing and convex in the distance from the inflation target, i.e....
1
vote
0answers
15 views

What does it mean when a discount lender “rediscount[s] reserves”?

I was reading a wikipedia article about the evolution of global financial system: https://en.wikipedia.org/wiki/Global_financial_system#Interwar_period:_1915%E2%80%931944. In the passage about the ...
1
vote
1answer
33 views

Implication of the concavity of u

Suppose that we have the following inequality: $u( y- d) - u(y-d') \ge u(y' - d) - u( y' -d')$. The concavity of $u$ together with $y\le y'$ then implies that $d \le d'$. I sometimes come ...
-1
votes
0answers
10 views

Fox and Tversky experiment, but reformulated for losses

Consider this example 1 from Fox and Tversky Can it be it reformulated as a bet involving losses, where participants are asked how much they are willing to pay to avoid playing the game? Or is it not ...
2
votes
1answer
53 views

Confusion over homoskedacity assumption

In my introductory econometrics course, we have been discussing the GM-assumptions and homoskedasticity. Unfortunately, I have some confusions and interlinked questions, so I am wondering if somebody ...
3
votes
2answers
38 views

Statistical distribution of wages and wealth

How are wages distributed globally? Wages do not follow a normal distribution, do they? Is wealth distributed in the same way or differently?

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