All Questions

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0answers
4 views

Is weak global economy always a “headwind”?

In the most recent (Mar. 20, 2019) FOMC Press conference, Powell said this: So, global economy was a tailwind for the United States in 2017. That was the year of synchronized global growth, and ...
-2
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0answers
5 views

Calculate the equilibrium National Income using the three Income approach

Revenue. Raw materials. Wages. Taxe Lucia Inc 1200. _ 700. - Salvatore Ltd ...
2
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1answer
104 views

Need a math help for the Cagan's model in macroeconomics

From the appendix after the chapter 4 in Macroeconomics 7th edition by Gregory Mankiw. To keep the math as simple as possible, we posit a money demand function that is linear in the natural ...
1
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1answer
9 views

Predicting Shifts in Supply and Demand for Loanable Funds

I know the answer is A.  but I need an explanation on why. I thought government savings would decrease since they have less tax revenue, shifting savings left and interest rates up. I could see how ...
0
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0answers
6 views

How to calculate Store/Category level Price elasticity?

I would like to compare different retail stores at category level using the percentage change in the category volume produced by a uniform 1% increase in the prices of all items in the category. What ...
0
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0answers
5 views

Net capital outflow = Net exports (Net capital imports)?

They say Net Capital Outflow equals to Net Exports(S-I=NX). And they say also that Net Exports is nothing but the Net Capital Imports. Then how come "Net Capital Imports" is same with the "Net Capital ...
0
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1answer
10 views

Deriving demand function from utility function

How do I derive the demand function from U=y + 2√x Currently I have, MRS = 1/√x = Px/Py, so, Py = Px√x Using the budget line: I= XPx + YPy, I = XPx +Y(Px√x) Which simplifies to X = (2I+Y^2Px +/- y√...
0
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0answers
11 views

Can I draw a smaller sample from one treatment group?

in an RCT, I have 3 different treatment groups and one control group. The size of the control group is around 1000 while the size of other groups are just above 300. To test balance I used ANOVA and ...
1
vote
1answer
19 views

Where's a good place to find Information on Non-OCED countries?

I'm looking for Private Savings (Sp), Investment (I), Taxes (T), Government Spending (G) for India.
-2
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0answers
12 views

Stamp duty deduction under Section 80c [on hold]

Please see that the below question is in respect with Indian nationality. I have a query in relation to applicability of Section 80C in a particular scenario. An individual paid stamp duty and ...
2
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0answers
25 views

Finding long run equilibrium price, quantity and number of firms with a linear average cost function

I've been been brushing up on my micoreocnomics lately and I came across a question in Perloff that looked really simple, but for some reason I am struggling to answer: Assume we are in the long run ...
0
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0answers
9 views

Two-person household labor supply

The most basic model of labor supply is $$\max U(c,l) \\\text{s.t. } c=wh \\l+h=T$$ which leads to the solution $MRS_{c,l}=w$. How would we solve this problem if we had a two-person household: $$\max ...
0
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0answers
5 views

Commonly used indicators for currency pair strength?

I am attempting to write a program in Python that monitors a single currency pair, GPB/NZD to be specific. My main focus will be to run constant calculations every 2 to 3 minutes in order to give ...
0
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0answers
25 views

Calibration of parameters by matching model with data in Dynare

I am new to dynare. I am trying to replicate the calibration of the paper 'Structural transformation and aggregate productivity' by Margarida Duarte and Diego Restuccia. (Picture attached) In this ...
0
votes
1answer
24 views

Why tax investment?

I assume that investing is more useful than consuming for society as a whole, at least in the long run. But then why isn't the government taxing consumption more and investment less? This would create ...
0
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0answers
8 views

matching with multilevel data

I have a data set of car accidents. It includes information on accidents (like date and time), vehicles (like make and year), and drivers (like age and gender).The goal is to estimate whether a new ...
2
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0answers
44 views

Auctions with affiliation

This problem is an example given in Vijay Krishna's Auction Theory(2nd Edition, Chapter-6, Example 6.2). The problem is as follows- Suppose $S_1,S_2$, and $T $ are uniformly and independently ...
0
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0answers
26 views

UBI - Impact on economy for money reinvested immediately

Universal Basic Income argues we should redistribute a massive amount of money from taxes, or other revenue sources, back to individuals. Using the United States Presidential Candidate Andrew Yang's ...
0
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0answers
5 views

Effect of a Deflationary Cryptocurrency

Wikipedia lists Deflation as a bad thing, but I'm assuming that the article makes the assumption that the currency is a fiat currency (as opposed to cryptocurrency). I understand the general principle ...
2
votes
1answer
27 views

If two variables are not cointegrated, can one still cause the other?

For part of a project, I wanted to see if electricity consumption causes GDP in Colorado. I initially intended to follow the approach of Mozumder and Marathe (2007), who use a VECM approach, but that ...
0
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2answers
20 views

Finding Optimal Bundle and Change in Satisfaction after Changes in Budget Constraint

I am looking at the following exercise and struggling with the solution proposed by my microeconomics book. A consumer spends all his income on two goods, X and Y. The prices he paid and the ...
1
vote
3answers
63 views

I don't understand the MV = PY

I'm not a native speaker so please excuse my English. When they draw the result that the central bank's monetary supply determine the inflation rate, didn't they suppose many variables sticky? With ...
3
votes
1answer
23 views

What R-squared is a low R-squared?

I keep hearing that R-squared does not really matter in economics research and that due to the unpredictable human nature, economics research regressions tend to have low R-squared. But how much is ...
0
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0answers
10 views

covariance of autocorrelated time series

When we calculate the variance of a time series with autocorrelation, we need to do some shrinkage to get the correct value. What about say we have two time series, X, Y. both have autocorrelations. ...
0
votes
1answer
31 views

Soros shorting the pound

How did Soros make money by shorting the pound? When he sold the pound and made its price to decrease, he had to buy it back again to return the amount he borrowed, but doesn't buying the pound raise ...
-2
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0answers
6 views

How to calculate the real GDP per capita annual percentage growth rate [on hold]

How do I calculate the real GDP per capita annual percentage growth rate from 1990 to 1999? The real GDP is 150 and the population is 20 in 1990 The real GDP is 195 and the population is 23 in 1999
0
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0answers
11 views

How can the government or the institution classify the frim the price-fixing cartel with price-leadership model?

It really disturbs me that the dominance firm and the cartel quite hold a similar pattern of setting the price. ( in case of the cartel is not a monopoly ) When the government or the institution of ...
0
votes
1answer
20 views

US Student debt volume and default rate data source

I would like to see data for private and public student loans and their default rate over time
0
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0answers
38 views

Would $1000/mo UBI funded by 10% goods and services tax cause prices to skyrocket, making the divident useless? [duplicate]

If everyone in the US was given $1000 per month, paid for by a goods and services tax of 10%, would prices then skyrocket, making the extra money useless? For example, if I wanted to buy products X, ...
-1
votes
0answers
9 views

Deriving the INADA conditions for CES production function

Suppose that we have a CES production in intensive form with the following marginal productivity for capital: $$MP_{K}=\alpha A^{\beta }\left (\frac{y}{k} \right )^{1-\beta }$$ As we know, the CES ...
-1
votes
1answer
25 views

Dominant Firm and Identical Competitive Firms

An industry consists of a dominant firm with C(Qd) = 32Q_d+Q_d^2 and 8 identical competitive firms with costs C(q) = 70...
0
votes
1answer
13 views

Finding an economic policy that worked in a developed country but failed in a developing one

As the term paper of development economics in BSc, I am assigned this topic but I have no idea where to begin with. Of course I can’t look up every economic policy that was ever made then check ...
0
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1answer
14 views

Real Income and a Fixed Money Supply

What would happen to nominal income and wages if the money supply were fixed (100% reserve banking). Would real wages increase, even though nominal wages would stay the same or even decrease?
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0answers
20 views
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0answers
12 views

Dominated lotteries in CPE

I have been looking into expectation-based loss aversion following Kőszegi-Rabin (2005, 2007). In particular, I find their choice-acclimating personal equilibrium (CPE) interesting, but it has a ...
-2
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0answers
14 views

EXCEL HELP!!!! Use of summation notation in excel [on hold]

can anyone help me on how can I perform this on excel? i = 1 n = 17 and for yi I have 20 years data for that. 1st year = 30222 2nd = 31680 and so on.
-1
votes
1answer
18 views

Sequential Bertrand game with differentiated goods, how to write the strategies of firm 2

In a Bertrand competition with differentiated goods where firms set the prices sequentially, we have the following demand functions: q1 is quantity of goods demanded for firm 1 q2 is quantity of ...
0
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0answers
19 views

Could a manupulation on a currency is possible?

Could a manupulation on a currency is possible? i have heard about from an economist who says that our currency(TRY) was not showing its real value (USD/TRY was about 3.7 at that time). He added ...
-2
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0answers
15 views

Inflation today is running at about two percent per year. This inflation is costly to [on hold]

Select one: A. Everyone because the purchasing power of the dollar is being eroded B. Individuals on fixed incomes (such as annuities and pensions) C. Households who have borrowed money D. The US ...
3
votes
1answer
36 views

Rationalizable action profiles in nice symmetric games

Suppose we have a nice symmetric game with $n$ players, i.e. each player's action space is the same compact interval of the real line. I am tasked with identifying all of the rationalizable action ...
0
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0answers
13 views

Coefficients of lagged inflation in phillips curve should sum to unity

I am working on an assignment and one questions asks to demonstrate mathematically that if the coefficients of lagged inflation in the phillips curve sum to unity the problem of non-stationarity of ...
1
vote
0answers
12 views

What causes the dramatic decline in container traffic on the Main-Danube canal?

The Main-Danube Canal is an essential link in the main waterway connecting Western and Easter Europe: Source: Wikimedia Commons Freight traffic, in particular container traffic, has seen dramatic ...
4
votes
1answer
28 views

Screening theory: Bundling problem

Consider an example of a risk-neutral seller that has two distinct indivisible goods for sale. The seller wants to maximize the expected revenue. The buyer's utility is $$I_av_a+I_bv_b-t,$$ where $I_a,...
0
votes
1answer
25 views

How to Calculate Price Elasticity of Demand When Perfectly Elastic?

When we have perfect elasticity, the demand curve is a horizontal line and the elasticity of demand coefficient is equal to infinity. How do we arrive at a solution equal to infinity? We know that ...
0
votes
0answers
11 views

Gilt edged securities with lottery prizes worth billions of dollars and other international currencies [on hold]

CAN more and more gilt edged securities coupled with many Australian lottery prizes worth many billions of dollars and other foreign currencies equal tradings of international traders?I have no ...
0
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0answers
12 views

Positive Phillips Curve

I am doing some research for a class project for Phillips curve of countries. For a certain country that I am doing, I am getting a slope for the Phillips curve to be positive. Is this possible? ...
4
votes
3answers
61 views

Why does a company want the value of its stocks to be as high as possible?

My professor claims that a company want the value of its stocks will be as high as possible. Why should the company care? The company "minds its own business" and make its money. Why should it cares ...
-2
votes
2answers
55 views

How did the Federal Reserve determine 3.5T USD in assets?

The financial media have reported that... In general, Fed officials appear to have converged to a minimum balance sheet of roughly $3.5 trillion, which means the runoff would end in the second ...
1
vote
0answers
33 views

Profit Maximisation for a Monopolist

Suppose a monopolist faces the following inverse demand function : $p = exp(-Q)$ The monopolist can produce any positive level of output with zero variable cost. Its fixed cost is $F$. Find the ...
-2
votes
0answers
19 views

What's unreliable about “penalty rates on excess reserves”? [on hold]

Can someone please enlarge on the emboldened proverb beneath by u/Integralds? I understand that the proverb means: A normally unreliable person or instrument can occasionally provide correct ...

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