# All Questions

7,442 questions
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### Fixed Effects: Identifying coefficient for interaction term with a constant

Suppose I have a regression of the form: $$Y_{it}=\beta X_{it}+\beta_{2}X_{it}\times D_{i}+\alpha_{i}+\epsilon_{it}$$ In the above, we have information by country-year on $Y_{it}$ and two ...
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### World Inequality Database: Top 10% Income Share U.S. vs. Top 10% Average Income

I want to use the U.S. data from the World Inequality Database for a VAR analysis. However, I am confused as to why the series for the top 10% income share only runs back to 1962, while the series for ...
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### Balance of payments and the free floating exchange rate system

I am a beginner economics student and recently, I have been learning about how balance of payments surpluses are important for a country to control the value of its currency using its accumulated ...
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### Implications of homogeneity of degree zero in the Walrasian demand function

Mas Colell, Winston and Green's Microeconomic Theory (3rd edition) has the following proposition (2.E.1): What is its proof? Definition of homogeneity of degree zero: Notation: $D$: Derivative ...
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### Multiple regulatory changes at the cutoff

Consider a running variable $a$, and a cutoff $a_0$. There are two regulatory variables, $x$ and $z$. Both variables jump around $a_0$, in the sense of fuzzy regression discontinuity design (RDD) ...
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### How does one deflate weekly price data?

It seems the highest-frequency consumer price index (CPI) data available is monthly. How does one convert weekly or daily price data into real prices?
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### Chicago Price Theory Book Recomendation: Becker vs Friedman

Friedman's Price Theory Becker's Economic Theory I've heard good things about both these books. I wanted to get a good introduction to a distinctively "Chicago" styled price theory book. I can't ...
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### When and why did governments impose restrictions on money creation

In many countries governments have made laws that bar themselves from creating money directly. Instead they have to go via a circuitous route involving the creation of bonds. This means that the ...
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### In the context of banking, how (if at all) do the terms 'capital', 'net worth', and 'equity' differ?

In banking, are the three terms capital, net worth, and equity simply identical and exact synonyms? If not, how do they differ? (Aside: And what about in other contexts? For example, does the same ...
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### Does brain drain really affect a nation's growth trajectory?

Take India as an example. India has been losing most of its bright minds to the west. India also ranks low in development. I would like to get a definitive answer to this cause-effect type question. ...
58 views

### Quasi-Linear Functions

I understand that quasi-linear functions have a general form $U(x_1,x_2,...,x_n,y) = f(x_1,x_2,...,x_n) + y$ and that for a quasi-linear function, the income effect with respect to the other ...
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### How will the UK's economy be affected, if it will be a hard Brexit?

Will the outcome of Brexit have any positive impact on the UK market? Are there any available studies on this topic?
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### Is there book or research on economically sustainable design of town or village?

I'm looking for a book which may help to design a self-sustainable small settlement, which can maintain its own economy with limited connections to the outside world. Prefereably it should answer ...
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### 3rd Degree Price Discrimination

I came across a True/False question in my economics problem set: Is the following statement true or false? "A monopolist can practice third-degree price discrimination in the two markets it ...
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### Can structural unemployment be shown in a labour market diagram?

Structural unemployment is a part of natural unemployment, so I know it can't be shown in an AD/AS diagram. But does that mean it also can't be shown in a labour market diagram?
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### How to find the optimal consumption basket? [closed]

A consumer has the following utility function and income. 𝑈(𝑥, 𝑦) =1/2 * ln 𝑥 + 1/2 * ln y Price of 𝑥 = Price of 𝑦 = 100. Income = 1000 Suppose that the consumer gets 2 redeemable coupons for ...
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### Data source for the relative frequency of different kinds of expiration date by retailers? (use by, sell by, best by)

I'm not sure if this is the correct Stackexchange site for this question, but I am interested in the economic and environmental effects of food waste reduction. A common policy proposal to reduce food ...
33 views

### Stock return predictability. Why do papers continue to use Granger Causality tests

There is a long literature on stock return predicabtility. When I read papers I see lots of authors still using granger causality tests. It is still prominently taught in undergrad and grad classess....
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### Elasticity of employment in respect of reduction of working time

If elasticity of employment in respect to working hours is positive then work time reduction decreases employment and the opposite is true if elasticity is negative? I mean if I want to see how ...
106 views

### Book recommendations: Introduction to economics

I recently made my first trip to a foreign country. I'm quite amazed by how things work. Why are things priced differently at different places? Is the bed-sheet that I bought from that country worth ...
50 views

### Disagreement in Strategic Bargaining

Construct a pair of startegies for the ultimatum game ($T=1$ bargaining game), that constitutes a Nash Equilibrium and together support the outcome that there is no agreement reached by the two ...
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### When a central bank buys government securities, is this exactly equivalent to printing money?

When a country's central bank buys that same country's government securities, is this exactly equivalent to printing money? There seems to be no agreement on this. Federal Reserve FAQ: Is the ...
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### Consequences of a US sovereign default

The US Treasury website states: Failing to increase the debt limit would have catastrophic economic consequences. It would cause the government to default on its legal obligations – an ...
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### What are the impacts of a small increase of the wages on consumption, labor supply and production?

We have given the utility function $\displaystyle U(v(c)-k(l))$ where $\displaystyle u$ and $\displaystyle v$ are increasing and concave functions and $\displaystyle k$ is increasing and convex. ...
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### Calculating Demand curve function from Elasticity of demand, price per quantity and quantity purchased?

For an assignment I have to model the demand function and find consumer surplus based upon elasticity of demand, price per quantity and quantity purchased. Ill copy and paste the assignment below and ...
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### Can the same recession be both inflationary and deflationary?

Suppose there’s a recession caused by a bubble bursting in a particular industry. Maybe a great number of houses has been built but there’s hardly any demand, it turns out. Or some important crops are ...
33 views

### Supermarkets industry market structure

If the industry is dominated by a few major large retailers like Walmart and target with thousands of many other small supermarkets around the country, what is the market structure of the industry? is ...