All Questions

2
votes
1answer
51 views

Policy to maintain cleanliness

In countries where littering is a problem and the regulations and rules alone cannot give the desired effect due to vary high population,large surface area,etc.. ,will it be effective if the ...
1
vote
2answers
50 views

The TYPICAL law of motion of capital

Consider a typical macro firm set-up where the capital can be produced from output goods using a linear technology. It costs some X units of output good to make a unit of the capital, and the capital ...
1
vote
1answer
21 views

Estimated betas and optimal portfolio

I ran a regression on 20 assets to estimate their beta with different methods. I would like to see the differences of these estimation differences in terms of mean-variance optimal portfolio. How can ...
1
vote
2answers
27 views

Is there a pull of skilled workforce from rural to urban areas?

Is there a pull of skilled workforce from rural to urban areas, i.e. is this scientifically described? Especially in the European Union.
0
votes
0answers
23 views

Why can we collect more Ricardian Rent than the land has to offer?

1MM, ideal tax-independent property value = $P_p$ 1% tax rate, x, on market tax-dependent property value, $P_t$ $0.01 * P_t = tax revenue = T_r$ $T_r$ over real interest rate, $R_r = M_p$, market ...
-1
votes
4answers
41 views

why is it always said that a CAD must be financed by borrowing from foreign countries

a current account deficit (CAD) means you have money leaking out of your country and going to ROW (rest of world). i see here (https://www.imf.org/external/region/tlm/rr/pdf/fpp5.pdf) that it can be '...
0
votes
1answer
24 views

Interpeting equivalent annual cash flows

So i have this question: RainMan Inc. is in the business of producing rain upon request. They must decide between two investment projects; a new airplane for seeding rain clouds or a new weather ...
-2
votes
1answer
21 views

How can i determine the homogeneity degree of Stone Gaery function? [closed]

I dont know how to demonstrate homogeneity degree of this function $(X-\alpha)^{\beta}(Y)^{1-\beta}$ Any idea? Thanks.
4
votes
3answers
214 views
+100

The economics of a “no deal” Brexit

A "no deal" Brexit is presented in negative terms. In such a scenario the UK would set tariff schedules in line with trade strategy and protect domestic industry/agriculture with tariff rate quotas. ...
0
votes
1answer
63 views

Regarding some econometric problems

How do I know the specification in (3.2) is a chi-square distribution with df k-1? and why is it the case that the asymptotic variance of $\hat{\beta}_{FD}- \hat{\beta}_{OLS}$ is simply the ...
0
votes
1answer
51 views

Chinese tarriffs (pre-tradewar)

I am trying to understand to what degree tariffs (or other restrictions like quotas) were the cause of the trade imbalances between the US and China. One might imagine that it was simply a matter of ...
1
vote
0answers
24 views

Rotation of Quasilinear Utility

Let $u(x,y)=f(x)+y$ be a quasilinear utility. Now we rotate it by 45 degrees, (such that the $x-$axis becomes the direction of $(1,1)$) $v(x,y)=f(x-y)+x+y$. Is $v$ also a quasilinear utility? What is ...
0
votes
0answers
4 views

Calculation of Inflation and purchasing power

kindly I'm stuck in this problem instead of many attempts through net present value and other discounted cash flow methods, some one could give me a detailed information and answers on this problem : (...
-1
votes
0answers
13 views

What is the price of this perfectly competitive market in long run equilibrium?

question is as follows: the average cost of a firm in a perfectly competitive industry is given by 5q2-2q for all values of q greater than zero. In long run equilibrium, the price will be a) 100 or ...
2
votes
0answers
25 views

Economics of Education

I would like to ask two questions. What are decent schools to study Economics of Education for a PhD? My second question is if there is anybody who could recommend me a good book or research papers ...
0
votes
1answer
34 views

Is it possible to sell a rival and non-excludable product?

The context pertaining to which I have asked this question is same as that of the question linked below Rival and non excludable products In the linked question, a few examples of rival and non-...
1
vote
2answers
39 views

Rival and non excludable products

I learnt that if the service provided is of non-rival and non-excludable in nature, the problem of free riding occurs and the provider may not get a profit. I can understand how non-excludability ...
0
votes
0answers
19 views

What are the hot topics (sub-fields) in the International-trade to pursue for the research work?

I am interested in trade economics. Suggest me some hot topics and authors in the field. Different dimensions of trade economics. Use of game theory, networks etc.
2
votes
1answer
75 views

Remittance: Migrant workers sending money to their families

I wonder about the role of migrant workers in a general economic context. Migrant working appears all over the world and on many time and space scales: around cities (e.g. commuters) inside ...
0
votes
1answer
16 views

How to calculate the after tax WACC

So i have this question: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) =$300 million; rD = 6%; rE = 12%; and TC = 30%. Calculate the after-tax weighted average ...
0
votes
0answers
10 views

Tariff impact measurement

As I understand it, tariffs are used to generate revenue for governments and also punish suppliers or influence their respective governments. Usually the end user pays the tariff. Is there a metric ...
0
votes
1answer
15 views

Can a monopoly supply negative units to one of it's two markets?

A question I have seen in my microeconomics textbook is as follows: Consider a monopoly supply to both a domestic and foreign market, where the market demands are: Yd(pd) = 20 - 2pd, hence pd(yd) = ...
0
votes
0answers
6 views

Difference between corresponding and secondary tax adjustments in transfer pricing

What is the exact difference between a secondary tax adjustment and a corresponding tax adjustment? Are these two adjustment not the same? Does a secondary tax adjustment only happen with regard to ...
2
votes
3answers
64 views

What are the economics behind web spam?

In this question, I'm referring to "web spam" on search engines (not email spam), such as placing misleading keywords on one's web page so that a pornographic site, for example, would get a lot of ...
1
vote
2answers
44 views

what are some unique features of heterodox economics?

I've been reading up a bit on heterodox economics as well as watched some of the lectures online and quite frankly, I'm having a hard time figuring out whats are the unique features of this school of ...
1
vote
1answer
21 views

Is it better for low-income people to live in the countryside where it's cheap or in the city where there are more services?

Supposing someone is struggling to pay the rent in an urban area, and they don't have anything tying them down to any one place, would it make sense to move to a rural area where the rent is much ...
1
vote
0answers
23 views

log linearization around steady state (price dynamics)

I'm stuck with a derivation from Gali's book. In the version 2008, I can't get eq. (7) from chapter 3. All is ok until the following: $$ (1-\epsilon)\log\pi_{t}=\log(\theta+(1-\theta)\exp[(1-\...
2
votes
0answers
43 views

Are there any studies, academic papers or articles that defy “common” knowledge", i.e that patents give an incentive for R&D to private business?

In Economic Growth and particularly dynamic optimization. My professor taught us that an intertemporal allocation is a dynamic optimum(Pareto Optimum) only if(necessary condition) at any given ...
-2
votes
1answer
76 views

Why incomes should decline in equilibrium state

According to Keynes, the prosperity of a population is measured by the aggregated income of each individual. Spending this income keeps the economy away from a depression. If there is too much ...
1
vote
0answers
15 views

Do you know any paper that discuss the effect of the deterrence of fines of individuals' behaviours? What is the difference between a fine a fee?

According to Gneezy and Rustichini the presence of an extrinsic reward in activities with a level of intrinsic motivation (e.g. volunteering) reduces intrinsic motivation, thus it may determine ...
0
votes
3answers
117 views

Is charging of interest inherently rent seeking?

Is the real interest rate component of interest (excluding default risk premium, etc) inherently rent seeking? The real interest rate is typically considered to repay the opportunity cost of lending ...
1
vote
0answers
26 views

What does the Bank of England do with the interest it receives?

Seeing as the Bank of England is free to create money, is the interest it receives meaningful? What does the bank do with it?
2
votes
0answers
24 views

How to know when survivorship bias is a problem

I have panel data where firms disappear from failure and mergers. Conditional on existing as a stand alone firm, I observe all firms. However, I am differencing two periods (Late - Early), and the ...
-3
votes
1answer
36 views

NASH equilibrium [closed]

How to approach questions like these: In a two player static game with a discrete strategic space that permits each player to chose one of the four possible strategies what is the maximum number of ...
0
votes
1answer
16 views

When building a social accounting matrix, do you input domestic intermediate demand or total intermediate demand?

I have been trying to build a social accounting matrix (SAM) after building an input-output table (IOT). In the IOT, I had to distinguish between total intermediate demand (which includes import of ...
2
votes
2answers
40 views

What happened to the money multiplier after QE?

QE meant that the monetary base increased dramatically, yet we don't see such a large reaction in money supply (I am thinking of M4 for the UK) nor in inflation. Why is this money not being lent out? ...
0
votes
1answer
39 views

Can a CES parameter be negative?

I estimated the CES function (https://en.wikipedia.org/wiki/Constant_elasticity_of_substitution) using national accounts data for France. I got (using notation in wikipedia): a = 1.19 r = -0.48 so ...
0
votes
2answers
53 views

Heteroskedasticity assumption in fGLS into linear form?

I am following Chapter 8 ("Heteroskedasticity" p. 259) in the 6th edition of Woolridge Introductory Econometrics: A Modern Approach and I don't understand one piece of the transformation of our model. ...
0
votes
2answers
22 views

Where can I find the data for income, equity, assets and sales of a company that is presented in terms of U.S. and outside of US.?

I need to find the income, sales, equity and assets of Microsoft, Google and Apple for U.S. and outside of U.S. I see these information in the income stamens as a whole. But I need to know how much it ...
0
votes
0answers
25 views

How is it decided whether a societal need should be met by using a public project or private enterprise?

I know this is a large question, so I'm looking for a broad, general understanding only. Are there any principles using which it may be decided to meet a societal need using a public project rather ...
0
votes
1answer
27 views

Understanding the gradient of the social cost curve in a market failure/ negative externalities diagram

Why does the social cost supply curve in a negative externalities diagram have a steeper gradient than the private cost to firms? I assumed it should only be shifted upwards as the negative social ...
3
votes
0answers
66 views

Linear Homothetic Utility

A Homothetic Utility is where $$ \forall x,y, \forall a \in \mathbb{R}_+: \ u(ax,ay)=au(x,y) $$ (or its monotonic transformation). A linear Homothetic utility is defined as $$ \forall x,y, \forall ...
2
votes
1answer
22 views

Continuity of Prices for Constant Elasticity of Substitution Production Functions

Imagine I have a CES production function $$ Y_{\sigma} = Z [ \sum_{i=1}^N \alpha_{i} X_i^{\frac{\sigma}{1-\sigma}}]^{\frac{1-\sigma}{\sigma}}$$ I know that as $\sigma \to 1$, the corresponding ...
0
votes
0answers
27 views

Would apprenticeships improve the economy long term?

Evening my name is Nick and I am a high school student from Fairfield California and I’m 17, my super hyper theatrical question is about a substitute to college in order to create more efficiency in ...
1
vote
0answers
27 views

Do countries have an obligation to match their savings and consumption rate with that of the U.S.?

https://www.barrons.com/articles/europe-is-now-a-bigger-trade-villain-than-china-51558118723 The above articles state that trade imbalances are a bad thing and that if a government doesn't enact ...
0
votes
0answers
17 views

What is meant by “resource base” in this sentence?

I read a sentence in a chapter in my book which was: The emphasis on developing a resource base also meant that export-oriented growth was limited. I googled the for the term "resource view". But ...
0
votes
1answer
28 views

If an ordinal-scaled utility function is defined via strictly increasing transformation, how can it represent a case of indifference?

Problem: According to Wulf Gaertner’s (2009, p. 13) A Primer in Social Choice Theory, any strictly increasing transformation of an individual’s ordinal utility function is informationally equivalent. ...
0
votes
0answers
39 views

Immigration supply shocks, fixed effects and model interpretation

I'm new to this and I've been racking my brains for a couple days trying to understand this model and how to run it in Stata. More than programming help, I think I just don't understand the model well ...
1
vote
1answer
47 views

How to calculate standard deviation of a portfolio?

So i have this information: Suppose that 60% of your portfolio is invested in Johnson & Johnson (JNJ) and the remainder is invested in Ford. You expect that over the coming year JNJ will give a ...
1
vote
1answer
38 views

Demand correspondence is both upper and lower hemi-continuous; is the preference continuous?

$\succsim$ is a weak order over $\mathbb R^L$. For a closed budget set $B\subset\mathbb R^L$, define demand correspondence: $$D(B)=\{x\in B|x\succsim y\forall y\in B\}$$. We know that $D$ is always ...

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