# All Questions

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56 views

### How to approach such question of two periods and asymmetric information game?

There are two players 1 and 2, playing a two-period public good contribution game. The benefits from the public good per-period to each player is $b_1$ and $b_2$ respectively, which are common ...
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### What stops the interest rates from becoming highly negative?

What stops central banks interest from setting highly negative rates? Is it only that people can take out a lot of cash and put it in a vault, or are there other reasons? If we had removed cash and ...
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### France place in the eurozone in terms of prudence

When I think about the eurozone countires in terms of governments economical prudence I, as many, divide them into the northern prudent(Nordic+ Germany) and the less prudent southern(Grecce, Italy, ...
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### How would M2 and Velocity of M2 be affected if balance sheet expansion continues long-term?

Let’s assume that the Federal Reserve does NOT discontinue injecting liquidity into the Repo market but, instead, continues a long-term policy of continuous and regular liquidity injections. Let’s ...
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### Can minimum or subsidies or tax cuts really work? Or will resultant inflation always counterbalance such initiatives? [duplicate]

I was born at the tail end of Eisenhower era and what is clear is that the dollar does not buy what it used to and this inflation has been more or less the trend for many decades. I have yet to hear ...
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### Why would overemployment mean that labor is used inefficiently?

If labor is being used efficiently, there is no excess unemployment or over employment. This phrase from Khan Academy struck me as quite strange. Why on Earth would over employment mean that labor ...
54 views

### Macroeconomics two period model

This is the problem I've been given. Assume the consumers’preference over current and future consumption is given by $U(c,c')=c^\frac{1}{2}*c'^\frac{1}{2}$. Further assume there is no government. 1) ...
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### Does demand side economics only apply to manufacturing

For example, if investment falls then manufacturing falls. but there is no investment in secondary markets. Wouldn't recessions cause factories to collapse but why would they affect realtors, used ...
14 views

### Are interest rates low because of low aggregate demand? If so, what are the reasons for low AD?

Interest rates seem quite low in most of the western world and it looks like the market thinks this will last for a long time. 10-year government bonds in US, Canada, Australia, France, Japan, ...
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### What happens to interest rates when they are already at (near) zero and the stock market crashes?

Let's say the global stock market crashes in the coming months (it's currently at an all time high in the western world). What happens to interest rates? "Usually", as I understand from my absolute ...
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### PPP and real exchange rate [closed]

Can someone help me with this question. It shoul be easy but i am not able to solve any of them. Thanks
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### Where to find the latest statistics of brain drain in the world?

Where to find the latest statistics of brain drain in the world? I would appreciate your suggestions.
30 views

### MWG Proposition 2.F.1

Is homogeneity of degree zero necessary in proposition 2.F.1? It seems like the proof does not assume homogeneity of degree zero to establish the proposition. If this is true, it seems that ...
27 views

### Sources to know about latest research

I wanted to keep myself aware of the latest research news and trends etc. in economics. What are some good sources (newsletters, magazines, websites etc.) for that? I did find one from Nature. How ...
57 views

### Experiments in Economics

Hernando de Soto in his book "The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else" describes a series of experiments in different countries, illustrating economic ...
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### Does combination of sticky prices and stagflation lead to redistribution of wealth?

Suppose there is inflation in our country, but some prices are sticky and there is non-positive "growth" of the real GDP. In other words, we experience stagflation. If I understand correctly, non-...
28 views

### Definition of covered market

I do Industrial Organization course, and I've seen the phrase "market is covered" several times in my lecture slides, however, I'm struggling to find the formal definition of "covered market" and the ...
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### Capital Recovery Factor for Hyperbolic Discounting

I'm looking for a closed-form capital recovery factor when hyperbolic discounting is used. The Wikipedia article on hyperbolic discounting has this formula for the "present value of a series of equal ...