All Questions

2
votes
4answers
109 views

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 ...
-1
votes
0answers
27 views

Intuition: Are IV coefficients expected to be smaller or larger than OLS?

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 $...
-1
votes
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 ...
0
votes
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 ...
-1
votes
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 ...
0
votes
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). ...
1
vote
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 ...
1
vote
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 ...
1
vote
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 ...
-1
votes
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?...
0
votes
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 ...
0
votes
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 ...
-1
votes
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 ...
0
votes
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 ...
1
vote
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 ...
0
votes
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 ...
1
vote
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 ...
-1
votes
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 ...
0
votes
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 ...
0
votes
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?
-1
votes
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?
1
vote
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?
0
votes
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 ...
0
votes
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 ...
-1
votes
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,...
-1
votes
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, ...
2
votes
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. ...
2
votes
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 ...
-1
votes
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....
1
vote
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 ...
1
vote
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 ...
1
vote
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 ...
1
vote
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 ...
-1
votes
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 ...
2
votes
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 ...
0
votes
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 ...
-1
votes
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 ...
1
vote
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 ...
1
vote
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 ...
4
votes
1answer
70 views

Economic interpretation of the concavity of the expenditure function

What is the interpretation of the expenditure function's being concave?
1
vote
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.
1
vote
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 = ...
2
votes
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 ...
1
vote
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. ...
1
vote
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 ...
3
votes
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 ...
3
votes
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 ...
1
vote
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 ...
0
votes
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 $x_2$, $y=x_1^{1/2}x_2$. ...
0
votes
0answers
23 views

Bias in an Autoregressive Model

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 ...

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