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Mapping of Utility function to a single vector

So I was watching this youtube video and during it, he talked about how the utility function can be mapped to a single vector. I was wondering how this was done? https://www.youtube.com/watch?v=v5ev-...
1 vote
66 views

Why does my graph (residuals vs fitted values) look like this?

My initial regression was # of newly constructed dwellings on avg per-capita personal income, unemployment %, GDP, # of current housing units, and population; all on the US county-level for 2022. I ...
1 vote
45 views

What are examples where MMT hasn"t worked in practice

I was reading the book In This Economy by Kyla Scanlon. When she talks about Modern Monetary Theory (MMT), she writes: This [MMT] is a good idea in theory, but in practice, it hasn"t worked out. ...
1 vote
454 views

Proving that Every preference relation can be represented by utility function

Im looking the prove the following: every preference relation ⪰ over finite/countable set X can be represented as a utility function u such that ...
64 views

What do Engels and Marx mean here?

The following extract is from The Communist Manifesto (1848) by Engels and Marx: The cost of production of a workman is restricted, almost entirely, to the means of subsistence that he requires for ...
170 views

Proof that independence implies monotonicity in Osborne and Rubinstein

I'm struggling to understand a proof in Osborne and Rubinstein's Models in Microeconomic Theory (p. 35). The relevant lemma is Let $Z$ be a set of prizes. Assume that $\succeq$ is a preference ...
1 vote
1k views

Opportunity cost on PPC

Hi, I'm trying to learn opportunity cost and this is an image I took from Khanacadmeny. They said that due to the bowed out shape, it means that there is an increasing opportunity costs of production. ...
103 views

How can I control for trade between UK and Australia in my difference-in-difference trade model?

I am doing a report on whether environmental regulation has an impact on trade, using a difference-in-difference model and seeing whether the EU Industrial Emissions Directive had an effect on UK ...
12 views

Modelling a likely unit root process with ARMA? HAC standard errors in python time series packages?

I am working on a project to forecast Canada's GDP. One of the exogenous variables for my ARDL model that I consider is the treasury spread. By plotting its ACF and PACF, I notice that it can be ...
18 views

Debreu's cardinal representation theorem for finite outcome set

Suppose there are three dimensions. $x,y,z\in X^3$. Independent: $z_ix\succsim z_iy\iff z'_ix\succsim z'_iy$. When $X$ is connected topological space, Debreu proved that weak order, independent, and ...
215 views

Is there a situation when a shift in supply and demand leads to a shortage?

For my intro health economics class, my professor asked us to explain how certain scenarios impact the supply and demand of health care (using only supply/demand analysis). He raised an example of a ...
1 vote
54 views

I am looking for a data about country classifications, I would need three categories: advanced economies; emerging market economies; developing economies. The IMF groups emerging and developing ...
99 views

Are there any examples of companies prioritizing market dominance or intellectual property ownership over long-term profitability?

I want to know if market dominance (total share of a market's profits) is more important than long-term profitability because psychologists believe that humans and other animals have a social ...
20 views

What is the history of live animal securitization? Has there ever been an market where shares of animal ownership were sold like stocks?

What is the history of live animal securitization? Has there ever been an exchange where shares of animal ownership were sold like stocks?
52 views

is Waste picker value added count in GDP?

Is the value added by waste pickers included in GDP calculations? For example, if an old washing machine that has been discarded by an individual is sold by waste pickers, does the entire sale price ...
1 vote
32 views

Where can I learn about what exactly effects currency values?

So I will admit I am very ignorant of economics, but I am interested in how current events effect currency value. For example, Saudi Arabia announces it will not renew the petrodollar deal with the US ...
14 views

The impact of private vs state ownership on social welfare: Theory

There are plenty of theories on private ownership, for example: State versus Private Ownership. There are also plenty of theories on social welfare, for example Pareto efficiency, Samuelson, Arrow's ...
39 views

How redenomination leads to strengthening of national currency?

I read that redenomination leads to strengthening of national currency but I didn't find more details. How is it possible? Thanks.
130 views

Show that the long-run supply curve of an increasing cost industry in perfect competition is upward sloping

Many intermediate microeconomics textbooks teach us that in perfect competition, the long-run supply curve of an increasing cost industry is upward-sloping. However, They usually give some hand-waving ...
1 vote
46 views

Modelling with drag & drop softwares

I have been reading Steve Keen's newsletter recently, and in one of them he mentions Minsky software, which is an economic modelling software where you drag & drop icons, and you can obtain the ...
1 vote
60 views

Can you change monthly monetary shocks into quarterly ones?

There are now many series deriving monetary shocks at high frequency, e.g., Jarocinski-Karadi (AEJ:M, 2020), Bauer-Swanson (NBER MA, 2023). These typically come at a monthly frequency. However my ...
19 views

Is cause of undervalued currency the low cost of labor force or vice versa?

I read in some source that cause of undervalued currency is low cost of labor force. In another source I read that low cost of labor force is conclusion of undervalued currency. What case is true and ...
34 views

Stackelberg Game with three players

My friend and I were solving the following game for assignment, and came up with different solutions. Could any one help us know whose solution is right? Suppose there are 3 firms in a homogeneous ...
57 views

Is this logical contradiction in explanation of Big Mac Index calculation or am I wrong?

Let we have currency A and currency B. In the first country 1A=50B and Big Mac costs 2A. In the second country Big Mac costs 200B. Old exchange rate: 1A=50B New exchange rate must be: 200B/2A=100(B/A)....
330 views

20 views

Thought Experiment: What would happen to the UK economy if many people suddenly moved their savings into managed investment portfolios?

Different people obviously have different risk appetite and ability to sequester money away in investments, however I believe there is a large amount of money that people are keeping in savings ...
14 views

Why are sales taxes added in the income approach to GDP

In the income approach to GDP: Y = p + w + dep + ib.tax where p, w, dep, and ib.tax are profits, wages, depreciation, and indirect business taxes respectively. Profits and wages are straightforward, ...
1 vote
108 views

Can we define the core as the intersection of Pareto efficient allocations and upper-contour sets?

Suppose that an economy has $n$ agents, each with endowment $\omega_i$. Their preferences are represented by the quasiconcave and increasing function $u_i$. Let the set of Pareto efficient allocations ...
36 views

Does economics have a solution to the long tail of costs in nuclear power?

The economics of nuclear power are highly significant to the energy transition required by climate change. The problems associated with upfront costs are frequently discussed. While this is clearly ...
18k views

Why is depreciation added to the GDP with the income approach?

In my economics textbook, it states that when calculating GDP using the income approach, depreciation should be added. Specifically, GDP = Employee Compensation + Taxes less subsidies on businesses + ...
1 vote
320 views

1 vote
250 views

How does a CLEC innovate?

A CLEC, competitive local exchange carrier, is described... A competitive local exchange carrier (CLEC), in the United States and Canada, is a telecommunications provider company (sometimes called a &...
38 views

Detecting outliers in a time series [closed]

I have a question on detecting the outliers in a time series like PPI, CPI, inflation,...etc.) Which method should I use? How can I precisely detect these outliers in a test or a method? Please ...
1 vote
37 views

Can you classify EU countries into developing and industrialised, or are they all industrialised?

The Heckscher-Ohlin model and Stolper-Samuelson theorem state that the relation between inequality and international trade is moderated by the level of economic development. I am studying this ...
1 vote
70 views

Is it better for low-income people to live in the countryside where it's cheap or in the city where there are more services?

Supposing someone is struggling to pay the rent in an urban area, and they don't have anything tying them down to any one place, would it make sense to move to a rural area where the rent is much ...
62 views

Why aren't more cities privately owned by a single company

There is a city in Southern California called Irvine, perhaps one of the only few "private" cities in the US. That doesn't mean it doesn't have an elected body or government. It's still ...
178 views

Are expensive cities economically threatened by an inability to house low-income workers?

Cities like New York, San Francisco, and others enjoy booming local economies that support high-paying jobs in industries like finance and technology. This and other factors have driven the price ...
1 vote
35 views

Is there another economics?

I look at the world around me and I see that in every industry there are firms of very different sizes. Firms compete on price and features and at any given moment in time similar products with prices ...