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Debt Held By The Public

Following off the back of this question on debt-to-GDP vs. debt held by public-to-GDP - Difference between "Debt Held by the Public" and "Total Public Debt Outstanding"?: So in ...
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0answers
3 views

Derive the growth rate of an equation

I have the following equation: $$\mu =\left [s_{\pi }-v(s_{\pi }-s_{W})+\zeta \right ]$$ And I have to derive its growth rate, which is: $$\dot \mu =-\frac{v}{\mu } (s_{\pi }-s_{W})\dot v$$ Do ...
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107 views

Kyle Models - Information Asymmetry - Certainty Equivalent

I will try to re-state my problem: We assume that there exist three types of investors in the market who are indexed by $j=\{i,u,m\}$, where $i$ stands for the informed, $u$ stands for the uninformed ...
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0answers
72 views

Determination of Value of gold by share markets of India [on hold]

How value of gold is determined by the share markets of India? Are the following factors responsible? profits and losses of the companies gold loans purity genuine gold price share and stock ...
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0answers
3 views

Why is increased productivity infinitely good

From investopedia: Supply rises with productivity, dropping real prices and increasing real wages; it lifts people out of poverty and allows them to focus on efforts beyond mere survival. I ...
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1answer
6 views

Rules of total differentials

What are the rules of total differentials? I. e., given an arbitrary expression of which to take the total differential, what rules can be applied to arrive at the desired result, and how does ...
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1answer
15 views

Hep with total differentiation of an AD function

Is there anyone who can help me with a total differentiation exercize. I am starting with the following formula for AD: $$x=\mu ^{-1}(g+i+e)$$ Where $\mu$ is the Keynesian multiplier. And have to ...
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1answer
7 views

Rigorously Defining Newcombe's “Paradox”

I was surprised to find that we did not have a question on this Stack Exchange on this particular problem in decision theory. So I have chosen to add a question on Newcombe's Paradox, though I would ...
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0answers
5 views

what is the methods to check the impact of regulation on gender pay gap

i have a data for for the top 5 manager of 100 companies from 2010-2018 and i want to check the impact of a regulation that limits the max salary of managers in the financial sector on the gender pay ...
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17 views

Derivation of aggregate demand function for Monopolistic Competition (based on Combes et. al, 2008)

A specialized question for those, who excel in monopolistic competition and modern trade theories. I am interested in a derivation of an aggregate demand function for a model of monopolistic ...
4
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3answers
69 views

Can the coming recession - or any recession - be avoided?

I keep reading about all these warning signs of a coming recession, and I have a very silly question: If we can see it coming, why can't we do something about it now, instead of after we are deep in ...
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14 views

Why is price dispersion from Inflation called relative price “distortion”?

I know what relative price is and that it fluctuates more frequently in times of Inflation. But what I don’t understand is why it is called “distortion” when relative price dispersion is caused by ...
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1answer
196 views

What happens when a reserve bank runs out of foreign currency reserve?

What happens to a country when a reserve bank runs out of foreign currency reserve?
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9 views

How and why national income in current prices during inflation not measured in poor sections and poverty alleviation programs?

Here 1) how the range of inflation dwindles and what is the meaning of dwindles? 2) how and why higher inflation of the poor show higher income? 3) what is the relation of measuring national income in ...
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2answers
165 views

Balanced budget and change in taxes

Consider a simple Keynesian economy in which the government expenditure (G) exactly equals its total tax revenue: G = tY where t is the tax rate and Y is the national income. Suppose that the ...
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1answer
39 views

real exchange rate formula doubt

Real exchange rate formula is the exchange rate multiplied by the ratio of two prices. what does this ratio actually imply? What is the rationale behind taking the ratio?
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2answers
52 views

What impact would introducing 15 times more soy worldwide do to the price of soy?

Soy is a commodity and the main export of Argentina. It is said Argentina has 40 million of hectares of arable land and it produces food for 400 million persons and that potentially could make food ...
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18 views

Is Bayes correlated equilibrium relevant for dynamic games?

Consider the following classification of solution concepts ...
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0answers
8 views

How does interest rate impact exchange rate?

When I’m using the forward exchange rate formula based on non-arbitrage theory, it tells me that a positive interest rate spread (i_domestic > i_foreign)would cause the forward exchange rate(units of ...
3
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0answers
22 views

What is the difference between a power law exponent and the Pareto exponent?

I used the poweRlaw package in R to fit a power law to my data. I am trying to figure out what is the value of the Pareto exponent. Assume the probability mass function is defined by: $$ p(x) = \...
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0answers
14 views

The range of inflation dwindles means?

Basically, inflation has been a challenging aspect of policymaking in India because of its level (i.e., range in which it dwindles) and stability (how stable it has been). Here dwindles means what?
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3answers
100 views

why in some countries trade deficits for a few years generates economical crisis and in United States 40 years of deficit hasnt?

why in some countries (e.g. Argentina) trade deficits for a few years generates economical crisis and collapse and in United States 40 years of deficit havent? Which are the economical effects in both ...
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0answers
3 views

Retained Earnings and the Income Approach to GDP calculation

One of the 3 approaches to calculating GDP is the so-called income approach, which states that total income (distributed as salary/wages, interest payments, and dividends) should equal total output. ...
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1answer
63 views

Forward rate discounts

I'm working with the following task: "You are convinced that the bond market is dominated by long-term investors. Hence, you have your own view on the liquidity premium/discount that forward rates ...
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1answer
20 views

Does a trade union of YouTubers exist?

Would YouTubers see a sense in having a trade union? For example, to establish policies how much the value of their contribution is. The controversy here is, professional YouTubers make a bet for ...
4
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2answers
42 views

Why do some businesses choose scarcity as their business model instead of raising the price to meet the demand?

Here are some examples of what I'm talking about: Mass events such as Burning Man, the Olympics, and the World Cup sell out tickets very quickly which forces fans to resort to scalping or using bots ...
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1answer
12 views

How is India able to increase its foreign exchange reserves despite historically running a trade deficit?

Balance of Trade: https://tradingeconomics.com/india/balance-of-trade Foreign Exchange Reserves: https://tradingeconomics.com/india/foreign-exchange-reserves
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10 views

How is hyperinflation categorized, and how is it fixed?

I have a few questions about hyperinflation that I’m really curious about: I learned there are two types of inflation - demand pull and cost push. I was wondering if hyperinflation fits into the ...
2
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0answers
28 views

How far must one reason up the belief hierarchy?

In games of imperfect information, one must reason about the belief on the state of nature, the beliefs of other player's beliefs of their beliefs, and so on. This is referred to as the belief ...
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0answers
17 views

Performing good forecasts for the GDP

What forecasting models would you recommend to forecast the GDP? Through a quick research I have found that VEC, VAR, SVAR models are the most common. Are they though good forecasters? Or are they ...
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2answers
249 views

Does the Marginal Propensity to Import = negative Marginal Propensity to Tax?

the multiplier $= \frac{1}{(1-MPC)}$ and the multiplier $= \frac{1}{MPW} = \frac{1}{MPS+MPM+MPT}$. Now since $MPC + MPS = 1$ it follow that $1-MPC = MPS$, therefore the multiplier = $\frac{1}{(...
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0answers
13 views

Why does every blockchain have its own cryptocurrency?

Why can't they all use the same cryptocurrency like Bitcoin? Why do they have to invent a new cryptocurrency?
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1answer
36 views

Why a non-autonomous increase in aggregate demand will not trigger muliplier effect?

I understand a non-autonomous increase in AD as an increase in AD caused by an increase in income (please correct me if I am wrong). However, I do not understand why the multiplier effect must be ...
2
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0answers
40 views

If an endogenous explanatory variable is serially correlated does it mean that its lags are also endogenous?

in panel data when examining economic growth determinants lags are often used to account for endogeneity of explanatory variables. However if the explanatory variable is serially correlated, does it ...
3
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0answers
20 views

What changes do I, as an individual, experience during a recession?

There is a lot of talk about how we're approaching an economic recession. There is plenty of talk about how that would affect the world at large, but I haven't really found much on the level of ...
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0answers
32 views

Is the set of optimal strategies convex in a single-agent decision choice problem?

EDITED with insights from the comment below. Consider a decision maker who has to choose an action among $\mathcal{Y}\equiv \{1,2,...,L\}$. The payoff from choosing action $y\in \mathcal{Y}$ depends ...
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5 views

What are the factors on which value of all resources ( good, silver, cash land etc. ) found in world changes over time?

And followed by, Does it right to say that, if any country become rich then other must become poor and vice-versa. If no, then Is it possible that, in certain conditions, all Nation in the world can ...
2
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2answers
45 views

Why is consumer surplus the area under the curve?

So I understand that the definition of consumer surplus is the difference between what the consumer pays and what the consumer would have been willing to pay. I just don't understand why the consumer ...
17
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10answers
11k views

Car prices haven't changed in 20 years, no inflation?

I notice that there seems to be little or no change in car prices over the last 20 years and they seem to be unaffected by inflation. For example, a Toyota Camry sold for about \$23,000 +/- \$2,000 (...
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0answers
10 views

the question focuses on slutskys equaiton

.51 Consider the utility function, u(x1, x2) = (x1)1/2 + (x2)1/2. (a) Compute the demand functions, xi(p1, p2, y), i = 1, 2. (b) Compute the substitution term in the Slutsky equation for the effects ...
6
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0answers
37 views

Causes of trade deficit: Multiple views

I am trying to understand the causes and macroeconomic implications of running a trade deficit in the United States, and I came across a few different views on this topic. I'd like to know if there ...
2
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1answer
68 views

How to derive the measurement equation for the state-space representation of a DSGE model?

DSGE models, after log-linearisation, have a state-space representation. In this representation, in most papers, the measurement/observation equation is simply stated. I'm wondering how one deduces ...
1
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0answers
17 views

Regarding Macroeconomic Models

I've recently started my PhD and upon looking at my textbook (the sargent one) I found that it differed greatly from my Masters textbook (Romer) and in turn my undergraduate macro text (williamson). ...
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0answers
8 views

Acquiring a company :: How to treat working capital

I would like to know if you can help me in a valuation that I am currently working on. Problem framework: -I am valuating company A, which will acquire 100% company B with a 8x ebitda multiple (10M);...
2
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3answers
93 views

Why do banks loan at APR < 6%, when they can invest that principal in ETFs?

I screenshot the picture beneath from HSBC HK's website. Scroll down a quarter of the way, and click on 'Rates' to download that PDF. I ask just about loans under my green horizontal line. Canadian ...
6
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3answers
121 views

Does stock picking work?

Does stock picking work? Why/why not? What does the research say about it? (I was expecting that this should already have been asked and looked quite extensively for such a question but couldn't find ...
1
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0answers
12 views

Difficulty Understanding CPI (Consumer Price Index)

Here's a question about CPI in my microeconomics text (Pindyck), which I don't seem to understand: The price of computers has fallen substantially over the past two decades. Use this drop in price ...
0
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1answer
57 views

Present Value Analysis

For my exmaple, we have machine A with an initial cost of 15K and O&M of 2k per year for the next 4 years. After 4 years, the O&M rise to $2.7k per year. No salvage value and life span of 20 ...
0
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0answers
11 views

Reference Request: The Effect of Wealth in Society

I am new to the subject and I am looking for some help. It goes without saying that the economy is the center of society, and the theory of economics deals with that, But I am especially interested ...
1
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1answer
41 views

Is it bad for the economy of a country if forreign firms buy companies?

If a forreign firm buys a company. For example a Russian firm buys a British company. Is this good or bad or neutral for the British economy? As I see it, the profits of the company will be going ...

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