All Questions

0
votes
1answer
8 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 ...
-1
votes
1answer
77 views

Would taxing money owned (as a share of purchasing power) be a better form of taxation?

Consider a nation whose money is entirely digital (like Bitcoin), but centralized (unlike Bitcoin). Furthermore, the total money supply is fixed, i.e. money cannot be created nor destroyed. To be ...
0
votes
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
votes
0answers
5 views

Calculate the equilibrium National Income using the three Income approach

Revenue. Raw materials. Wages. Taxe Lucia Inc 1200. _ 700. - Salvatore Ltd ...
0
votes
1answer
30 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 ...
0
votes
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 ...
2
votes
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 ...
2
votes
0answers
24 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
votes
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
votes
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
votes
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√...
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.
0
votes
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 ...
-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 ...
0
votes
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 ...
-2
votes
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 ...
0
votes
1answer
23 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 ...
4
votes
1answer
43 views

Looking for behavioral economics research about the redemption of gift cards

This is a long shot! I was wondering if anyone could point me to any behavioral economics or other economics research on perceived value, specifically I'm looking at why some people don't redeem ...
0
votes
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
votes
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
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
votes
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
vote
3answers
62 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 ...
5
votes
1answer
949 views

Apply Ito's Lemma to exponential martingale

$\newcommand{\dd}{\, \mathrm{d}}$ Consider the exponential martingale, $$ \xi_t^\lambda = \exp \left\{ - \int_0^t \lambda_s \dd z_s - \frac 12 \int_0^T \lambda_s^2 \dd s \right\}, $$ that is used in ...
0
votes
1answer
21 views

Economics of disparity in wages and in 'financial quality of life'

I am seeking a quantitavely and logically satisfying answer to the question I will outline below. It could be in a form of a book/article reference and ideally have as little ideological bias as ...
0
votes
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
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 ...
2
votes
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 ...
3
votes
4answers
79 views

Is any aspect of the cryptocurrency adoption violating a widely held economic tenet?

This is not a homework question. I am merely interested. As an academic discipline, Economics refers to various laws and widely held beliefs including, but not exclusive to; Production precedes ...
0
votes
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
votes
3answers
46 views

Venezuela Petro Cryptocurrency

As I understand it, a primary feature / requirement of cryptocurrency is that it is not controlled by a government actor: it is decentralized. If this is true and the Petro is controlled by a ...
0
votes
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 ...
1
vote
1answer
99 views

Auction with “buy-it-now” option

Consider the buy-it-now price often included in online auctions. Suppose that 2 bidders in an ascending oral (English) auction bid for an object. Each has values i.i.d uniformly on $[0,1]$. Suppose ...
3
votes
1answer
22 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 ...
4
votes
2answers
332 views

The Effect of Two income Households on Housing Prices

In the book The Two-Income Trap: Why Middle-Class Parents Are Going Broke) by Warren and her daughter, she states the following in chapter 1: If two-income families had saved the second paycheck, ...
0
votes
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. ...
-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...
-2
votes
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
votes
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
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?
-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 ...
6
votes
1answer
48 views

Does the Lucas (1978) asset pricing model feature complete markets?

The Lucas (1978) asset pricing model seems to be one of the workhorse models in finance / asset pricing models. It also seems to be the case that the environment, with claims to $n$ (exogenous) ...
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 ...
2
votes
2answers
60 views

Continuation value versus utility in asset pricing

Is there a difference between continuation value ($V_t$) and utility ($U_t$) except for a possible scaling / difference in units? My question refers to the consumption-based asset pricing literature. ...
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 ...
9
votes
1answer
105 views

Kőszegi - Rabin (2006) model problem

First of all, that's a homework question, and I will try to make it as useful to future readers as possible. Problem So, I was given a problem about the model described by Botond Kőszegi and ...
6
votes
1answer
181 views

Shopping example in Kőszegi / Rabin (2006)

In "Section IV Shopping" of Kőszegi / Rabin (A model of reference-dependent preferences, QJE 2006), the example of consumer buying a pair of shoes is given. They claim that "her disutility from ...
0
votes
1answer
42 views

What's the market equilibrium price for the used good?

On a perfectly competitive market, a buyer wants to buy a used good. He is willing to pay $30$ for a badly used good, and $60$ for a nicely used good. The seller is willing to sell a badly used good ...
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 ...

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