# All Questions

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### Big research goals in economics?

Are there any big, overarching research goals in economics? Examples from other fields that come to my mind: Mathematics: Millenium problems, Hilbert's problems, Collatz conjecture, ... Computer ...
I am thinking about a comparison between a pure OLS estimate of a multiple variable regression of $y$ and a 2SLS one, which is run with an exogenous instrument $z$ for one of the regression variables $... 0answers 24 views ### For how long can a country not be in recession, when equities are decreasing in value? I'm thinking more precisely in the current situation of USA. I don't have the data at hand right now, but the Stock market in the USA has grown in the past decade faster than any other country in the ... 1answer 41 views ### Does the Italian national debt really go all the way back to Mussolini's excessive prewar spending? The WWI & WWII debt is quite well defined in the UK for example and quite shocking how many years it took to pay off. Somebody told me that the Italian debt crisis really goes all the way back ... 0answers 7 views ### Find Bloomberg data for FTSE100 and SX5P I need to compute the relative quoted spread, the daily average of the 5 min RQS and the book depth of FTSE100 and SX5P from January 2008 to November 2018. Could someone explain me the steps I need ... 1answer 59 views ### Reference Request - Dynamic Optimization with More Than One State Variable I would like to understand how to solve dynamic optimization problems involving more than one state variable and state equation (to apply to long-term economic models with more than one capital good). ... 1answer 29 views ### Exchange rate volatility Colleagues, I have started an analysis on spatial econometrics models, and looking for data to compute an exchange rate volatility. My variables to construct the weight matrices are all bilateral ... 0answers 15 views ### Exposure of two companies in a transaction involving an FX option An American company$A$has sold a manufactured product to a German company$B$, and they agree for the payment of 100,000 EUR in 1 year. What type of exposure does$B$have? What type of exposure ... 1answer 33 views ### Is this market monopoly or duopoly? Could you help me to identify monopoly, because I got confused. There is a company with market share of 54 %. The second one has market share of 21 %. Can this market be characterized as monopoly or ... 0answers 16 views ### Medium run , Short run differences in IS LM PC I was wondering if someone could tell me the main differences between the Medium and Short run of the IS LM PC model? What are the main characteristic differences in term of inflation between the two?... 1answer 42 views ### How can a company run out of cash when its stock prices is dropping? For instance, in 2008, the Royal Bank of Scotland saw its stock price drop by ~30% in a day, and it was apparently impossible for the bank to make it till the end of the day because it would run out ... 0answers 21 views ### Textbooks addressing MDP's in microeconomics/game theory/decision theory? I have learned about the MDP formalism in the context of machine learning. I know that micro theorists also study MDP's, and agent behaviour in this context (both single and multi-agent I think). I ... 0answers 20 views ### Inflation and ppp How to calculate inflation rate between two dates (e.g. 2010-2017) using the worldbank series? Not CPI. Should I calculate the mean value between the dates? How to convert different currencies into ... 0answers 17 views ### How to match a DSGE in a State-Space representation to observed data? Let us consider a RBC model like the one in Ireland's A Method For Taking Models To The Data. We've taken the data$Y_t$(it's a vector. I'll be using a different and more simplified notation), and ... 0answers 32 views ### Which utility function yields following demand$\alpha p^{\epsilon}$[duplicate] I am looking for a utility function that will lead to the following demand $$\alpha p^{\epsilon}$$. I know it is most likely a CES utility since the elasticity of demand is constant and this is ... 1answer 23 views ### Is it possible for shareholders to get a companies assets in place of currency? To my knowledge being a shareholder is owning a portion of a company. Then by that logic shouldn't a shareholder be able to request a companies assets instead of money? As an example, if I own 100 ... 1answer 38 views ### Rigorous solution of Stackelberg leader-follower game with N-players? In the classical two-player Stackelberg game (sequential Cournot) we have a linear demand function$P = 1 - Q$where$Q = \sum_0^2 q_i $, and we assume homogenous production cost$c$. By starting from ... 0answers 17 views ### Can a national currency be pegged to a consumer price index? Has there ever been a national currency that was pegged to the consumer price index of the nation in question's economy or the economy of another country? And how would a consumer price index be ... 1answer 28 views ### Isn’t a zero-coupon perpetual bond not worthless if the relevant government has some probability of buying them back? A government issues perpetual bonds with no interest payments, no coupons: Most economists that are not hyper-dovish would argue such a bond is intrinsically worthless. However, if a government were ... 1answer 19 views ### Are there more historical examples of big change in prices thanks to demand/supply changes like the tulip mania? I'm currently searching for historical changes in prices as a result of a big/sudden change in demand/supply, like the tulip mania in Holland. Are there any notable examples? 0answers 19 views ### Quantity Demanded = Utility maximization? When asked to find quantity demanded given a utility function and the budget constraint, would the quantity be wherever the individual maximizes his/her utility? 1answer 20 views ### Coefficients of Cubic Total Cost Function Given a Total Cost equation$TC(Q) = a + bQ + cQ^2 + dQ^3$what do the coefficients mean? For example$a$is fixed costs, what are$b,c,d$and how are they calculated? 1answer 33 views ### Consumption smoothing in RBC Model I have the following inter temporal utility function:$U(t)=(\frac{s(t)}{1-\sigma})(c_t/c_{t-1}^\gamma)^{(1-\sigma)} - \chi*h(t)$where$h(t)$is the hours worked. I know that gamma is responsible ... 2answers 24 views ### log returns in fianance Why are log returns used in finance? For example to calculate a stocks performance. There are a lot of articles on that topic yet I don't find them very helpful. Could somebody please explain step by ... 0answers 14 views ### Output gap and potential growth that are less subject to revisions Output gap and potential output are important concepts in the economic literature. However, most estimates of these quantities are subject to heavy revisions as new data becomes available. For example,... 0answers 22 views ### Expected exchange rate and interest rate If say the markets expect the home country's currency to appreciate, how will that affect equilibrium output and interest rate? What I think: If they expect home country's currency to appreciate, ... 1answer 31 views ### Multiple Forgone Job Opportunities and Economic Profit I'm told that forgone job opportunities are implicit costs, to be included in calculating economic profit, but I can't seem to see how I could list and consider many different forgone opportunities. ... 3answers 37 views ### Is the mode of wage distribution a meaningful economic indicator? The Central Statistical Office of Poland publishes a report every two years, in which it diagnoses the labor market. Among other indicators, they publish the mode of the distribution of wages, in ... 0answers 45 views ### Elasticity of substitution of a general PF Following the famous work of Bentolila and Saint Paul (2003) where they explain movements in the Labor Share (Full text available here! I got stuck trying to derive the elasticity of substitution (pag.... 0answers 21 views ### What does the economic collapse of a country mean and what are its consequences? I live in Iran, a country which has always been under sanctions since 1979. After the US sanctions on Iranian oil, everything got worse and the price of everything increased four times in just three ... 1answer 27 views ### Treasury Bond Default I was listening to a podcast featuring Michael Lewis (author of Flashboys / Moneyball), who mentioned a Blackswan scenario where the administration would threaten to selectively not pay its Treasury ... 2answers 49 views ### Where do Montenegro and Kosovo get their euros from? Both Montenegro and Kosovo have unilaterally (?) decided to use euros as their official currencies. I think that most of their capital exists only as records in bank registers, so there is not much ... 1answer 37 views ### Justification for my Random Effects estimation I need to defend my use of the Random Effects (RE) estimator in my economics project. I've been told in cross validated that the proper place for the question is here. The causal effect of the ... 0answers 9 views ### Which model is best suited to show the relationship between macroeconomical factors and the returns of hotels? I am a graduate student and I want to show the effects of including a hotel in a mixed real estate portfolio. As Hotels are different from normal real estate, I want to show how the returns of ... 0answers 24 views ### Positive effects of a Tunisia-EU free trade agreement? Tunisia might be signing a free trade agreement with the EU very soon. It's called ALECA or DCFTA. Many activists and labor unions are opposing such an agreement because it would result in losing ... 1answer 76 views ### Pareto set and Edgeworth box General equilibrium framework; two individuals, two goods represented in an Edgeworth box. Is it true that if the preference are both strongly monotonic the Pareto set will go from the origin of an ... 0answers 21 views ### What are some examples of blocked mergers in the US? Chapter 4 of Radical Markets talks about how US law blocked mergers and acquisitions: Section 7 has been used to block numerous mergers and other asset acquisitions over the years. It has not been ... 0answers 23 views ### What are the difference and relation between the concepts of business process and business strategy? [closed] What are the difference and relation between the concepts of business process and business strategy? For example, the process of strategy planning consists of the following steps: formulate missions ... 1answer 31 views ### HHI and concentration [closed] I calculated the HHI index for Chile exports and got values ranging from 0.09 and 0.13. We know that Chilean exports are very concentrated (around 40% of the exports are copper related goods) and the ... 1answer 70 views ### Economic interpretation of the concavity of the expenditure function What is the interpretation of the expenditure function's being concave? 2answers 19 views ### Do free-trade agreements typically include clauses relating to services? Do free-trade agreements typically include clauses relating to services? For example, reciprocal recognition of professional qualifications. 0answers 54 views ### Why do higher real interest rates increase land value? I'm using this equation to calculate market value of land based on the levied land value tax: y = market land value x = land value tax r = real interest rate a = real time-independent land value i = ... 2answers 42 views ### Why does firing employees appear to increase the share price of a company? The last case is GM in the USA. I fail to understand why does this happen. I understand that laying off jobs means higher dividend for the share holder and thus higher stock prices but in the long run ... 1answer 39 views ### Do the three ways of measuring producer’s surplus give the same result? In the Firm supply chapter of the microeconomics Varian's book, they show "three equivalent ways to measure producer’s surplus" using marginal cost, average cost and the average variable cost curves. ... 1answer 43 views ### In law of DMU statement what is meant by “keeping other commodities”? Law of Diminishing Marginal Utility states that marginal utility from consuming each additional unit of a commodity declines as its consumption increases, while keeping consumption of other ... 1answer 33 views ### Effect on revenue of changing price of unitary demand elastic product In my introductory microeconomics class, a problem set had the following question: If the price elasticity of demand for Snickers bars is 1, what will a 1% increase in its price do to the total ... 0answers 38 views ### Did the robbers from *Money Heist* real steal noone's money? Money Heist (original Spanish title: La Casa de papel) is a Spanish TV show about a bank heist. From Wikipedia (bolding mine), In Money Heist, a mysterious man, known as "The Professor", is ... 0answers 10 views ### China approval for US company acquisition Why does China has to give approval to two US companies merging together? There have been quite a few examples in the last time, as UTC & Rockwell Collins as well as Qualcomm acquiring NXP ... 1answer 30 views ### Would this hypothetical firm exit in the long run? I'm trying to work out the following problem for my microeconomics course, using the standard method we have been taught. Problem: Output is a function of inputs$x_1$and$x_2$,$y=x_1^{1/2}x_2\$. ...
In Stock and Watson 3E.Updated, they posit in chapter 14 that if we estimate an Autoregressive equation using an AR(1) $$y_t = \beta_0 + \beta_1 y_{t-1} + \varepsilon_t$$ where in fact the true ...