# All Questions

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38 views

### Finding restrictions on parameters for a demand function

I have a question that asks: Let $x_1$ be the quantity of a good 1, $p_1$ the price of good 1, $p_2$ the price of good 2, and $M$ is income. Let $𝑥_1(𝑝_1, 𝑝_2, 𝑀; 𝐴) = 𝐴𝑝_1^𝛼𝑝_2^𝛽𝑀^𝛾$ ...
7 views

### Behavioral economics, marginal costs

A firm lasts for two periods and then dies. In the first period, it can choose to buy a very special piece of equipment that will be no use to any other firm and will have no resale value. When the ...
26 views

### Simultaneous vs Sequential Games

Is there a way to characterize the distinction between simultaneous vs sequential games? I'm trying to describe a situation where players can only take actions without knowledge of other players' ...
21 views

### Development economics papers that used Difference-in-Differences

I need to write an assignment paper in development economics that explains the concept of differences-in-differences estimation, and I feel like it can certainly be helpful to look at some examples ...
9 views

### Converting a growth-centric to a job-centric economy. What does it mean and how does that work?

There was a recent interview and I quote the interviewee : I would move from just a growth-centric economy to a job-centric economy. I would say we need growth, but we are going to do everything to ...
13 views

### 1. what is equilibrium and consumption 2. what would be the new equilibrium income when there is an investment that is equal t0 50

income consumption 0 200 100 250 200 300 what is equilibrium and consumption what would be the new equilibrium income when there is an investment that is ...
36 views

### Constant marginal cost for a firm and perfect competition

What happens if the demand curve is flat because the firm is a price-taker in the market, but the firm has a constant marginal cost. If the equations are the same I assume the price would be set with ...
8 views

### Are investment certificates worth? What are the aspects to take into account when choosing a product over another? [migrated]

I know that there are many types of investment certificates, this was one based on Tesla - Uber, issued by Goldman Sachs, pdf . This in particular looks particularly interesting because it allows a ...
12 views

### Why debt/equity ratio is limited to between 0 and 9

Is there any economic reason that debt/equity is limited to between 0 and 9 as in the picture below? This research examines the impact of the law on firms' financial flexibilities.
34 views

### What are some good Phd or research programs for Economic History / Economic Thought History?

Please correct me if I am wrong, but my impression is that most "mainstream" economics programs are now focusing less and less on economic thought history. So, in order to do research on ...
20 views

### Some basic Consumption CAPM questions

Say we are in a world described by the consumption CAPM. All investors in this world have quadratic utility. Also, assume that consumption is as follows: $$c_{t+1} = (1+m_t)c_t + s_t c_t e_t$$ where ...
17 views

### how can Marginal price costing mitigating loss?

By a firm using marginal cost pricing, they set their price equal to marginal cost. This leads to no welfare loss. Marginal cost pricing however can make the firm take losses and not be able to ...
83 views

### Best book to self-study microeconomics

What textbook(s) (and other resources) would you recommend to someone who wants to self-study microeconomics to an advanced (graduate) level starting from 0 (i.e. no formal background in economics)? I ...
12 views

### Help with some homework! [closed]

Someone help , this is marcoeconocmis questions thanks
34 views
+50

### Are returns from secondary capital market funds (stocks and bonds) a form of unearned income?

If I own a bunch of market funds which hold securities from secondary capital markets (stock and bond markets), am I partaking in unearned income/economic rent? Let me clarify what I my question is ...
26 views

### Why does central banks lowering interest rate incentivize more borrowing?

I'm a layman trying to understand how the US monetary system works. I'm particularly interested in how the Federal Reserve can create inflation without printing new dollars and putting them in M1. My ...
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### Nominal Values or Real Value & stationary

I'm going to estimate a time series regression which has consumption as a dependent variable. My data source give it in nominal form and unfortunately there are no other sources. It is Question : Can ...
25 views

### How will Brexit impact fishing in the UK

I wonder, what will be the impact of leaving the EU for sustainable fishing in UK waters? Will the UK now be susceptible to the tragedy of the commons? Leaving the EU brings many changes to UK fishing....
62 views

### Ordinally Separable Utility Representation

Let $X_i$ be a separable, compact, Banach space. Definition: A weak order $\succeq$ on $X=\prod_{i=1}^NX_i$ has an ordinally separable representation if there exists $u_i: X\rightarrow \mathbb{R}$ and ...
17 views

### Is it productively and allocatively efficient? [closed]

IF price, MR and MC are 9 and the output is 6. can it be allocative efficient for monopolistic competition ??
93 views

### How to test if the effect of one regressor entirely comes from other regressors?

I have a regression model that includes IQ test scores as the dependent variable; my own education, my father's education and my mother's education as independent variables. Suppose I want to know ...
15 views

### How does the size of the largest cryptocurrency compare to the largest traditional currency?

'Money' has evolved throughout economic history, and has included moving from: barter economies (i.e. no 'Money' - simple trading of final goods/services) commodity money - money whose intrinsic ...
165 views

### Why do prices go up when the central bank increases money supply?

From my understanding, when the money supply curve shifts to the right, interest rates go down, it follows that the price level decreases and the prices should go down? Thanks in advance.
22 views

27 views

### Deriving the New Keynesian Phillips Curve (NKPC)

I have a question regarding the NKPC. I would like to know if it is possible to derive the NKPC from a sticky prices model, without making assumptions regarding the production function firms face. I ...
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### Selection of functional form for utility function in theoretical model

I am starting to work on an IO model and I am puzzled in front of the choice of the appropriate utility function. Since the concept of utility is so abstract, and one cannot directly refer to ...
21 views

### What is meant by digital currency?

I know that China introduced digital currency for the first time in 2014.There was some issue following the bitcoin. But I sincerely do not understand what it means by digital currency. A slightly ...
32 views

### Doubt in a particular statement taken from a textbook

"Economics studies how individuals firms, governments and other organizations within our society make choices and how these choices determine a society's use of resources." Firstly, what is ...
32 views

### Revealed preference when there is no substitution effect

I've started reading about revealed preference, and in particular, how it works in the context of price changes. I understand that revealed preference can show us the general direction of the ...
25 views

### Are there poor in the world because of the rich people?= [duplicate]

This is my question if there are millions of people suffering poverty :( is this just because the rich people 'sotle' their money ? in the sense of game Theory is ECONOMY a ZERO sum game ? so if one ...
106 views

### Correlation between nominal bond returns and growth

I read the following passage and the bolded section has me confused: In theory, assets earn a low (or negative) risk premium if they tend to perform well when the economy is weak. When growth ...
332 views

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}{(... 1answer 88 views ### Would an$8 National Minimum Wage Work in the US?

For those who advocate a \$15 minimum wage, would the benefits espoused also come from an \$8 minimum? The reason I ask, is that it’s often said that the minimum wage needs to be updated as it was ...
35 views

### Is this formula correct (monthly payments for a loan over time charging compounded interest while decreasing principal)?

I'm trying to derive a formula that I can use to optimize payments for my student loans. I'm not sure if Economics.SE is the best place for this because it is pretty math based, but the problem I have ...
192 views

### Ultra simple DSGE to implement

I want to create a DSGE model in Python. I want to build it myself to help me understand it (not just use a library) Can someone direct me to a very simple model which would be straightforward to ...
2k views

### Has the Nash Equilibrium led to any significant economic discoveries?

The Nash Equilibrium provided a new look at certain economic problems and won the Nobel Memorial Prize in Economic Sciences in 1994. Since its creation, the Nash Equilibrium has been applied to "...
8 views

### Is it an international norm to have excise or tariff to be balanced or reversed when exporting goods?

It's an accepted international norm to charge VAT on import and rebate VAT on export, such that goods from different countries can be competed on a level playing field. However, is it the same with ...
26 views

### Does stronger regulation of economic activity impede economic growth in constitutional democracies with basic constitutional rights?

Given similar democratic constitutions and basic constitutional rights such as property rights, freedom of speech, freedom of press etc and the definition of regulation according to OECD: Regulation ...
15 views

### How does strictly convex preferences make the independence axiom fail [closed]

How would you show that having strictly convex preferences implies the independence axiom will fail.
41 views

### Small Open Economy Without Government

Suppose we have an economy with a representative consumer with the following utility function: $$U=\sum_{t=0}^\infty\beta^t\frac{c_t^{1-\sigma}}{1-\sigma}$$ There is no uncertainty and the household ...
48 views

### risk aversion and convexity of indifference curve

This is a question from the CFA exam. With respect to utility theory, the most risk-averse investor will have an indifference curve with : (a) greatest slope coefficient (b) most convexity The answer ...
15 views

### Cobb douglas in Calculating TFP

I work on PRODUCTIVITY GROWTH AND R & D SPILLOVER IN THE AUTOMOBILE SECTOR IN INDIA. I want to know the effect of R n D expenditure on productivity growth of the automobile industry. Which will be ...
17 views

### Local Projections: lags and horizon

I would like to know what to consider when deciding about lag (p) and horizon (h) to estimate impulse responses with local projections. Jorda (2005) and Plagborg-Moller & Wolf (2019) talk about ...
30 views

### How do non-price determinants of supply and demand affect the price of a product?

I am currently doing my IB economics homework about demand and supply, and this question just has me very confused The teacher then specifies that they must be non-price determinants. To my ...