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3 views

Why does financial trading data not include “average” for a day?

Unix Timestamp,Date,Symbol,Open,High,Low,Close,Volume BTC,Volume USD These are the fields that the financial data provider shows in a CSV file, showing per-day Bitcoin trading data between USD. As ...
1
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0answers
6 views

Tax revenue formula maximization- whats the name of this formula?

I have been teaching intermediate microeconomics and have come across a formula a number of times relating the tax rate at which revenue is maximized if elasticities are constant. This formula is ...
1
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0answers
5 views

A question on the Reiter method

I am confused about how individual decision rules are approximated via the Reiter method. In particular, on page 653 of Reiter (2009) (JEDC), the link is: https://www.sciencedirect.com/science/...
1
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1answer
21 views

Can an irrational function be a utility function?

Given some irrational preferences, that can be represented by a function. If the function does not satisfy rationality (transitivity, completeness), does this imply it is not a utility function. I ...
0
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1answer
10 views

Current House Demand and Supply

Home prices are at an all time high so according to supply and demand, that means suppliers will supply more homes due to the high prices. Demand for a house on the other hand is also at an all time ...
2
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1answer
36 views

Extreme Value Theorem in Economics

Would appreciate some thoughts on proving the existence of a solution (a maximum) in an applied context. Suppose the objective function is one of maximising utility: $\max\Sigma(u_t)$ Subject to some ...
1
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0answers
15 views

Opportunity Cost Comparisons

Suppose we have 1 firm and the firm has three options: (1) Produce and get \$100 in revenue - \$200 in costs = -\$100 in profit. (2) Temporarily shut down and pay fixed costs = -\$50 in profit. (3) ...
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0answers
22 views

Time series Econometrics demonstration

Hey there! Can anyone help me with this? I am able to arrive to expression (3) from (2) by using the lagged variable and make the variation from $Y_t$ and then divide to the right such that $\beta_0 = ...
0
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0answers
20 views

How to design / interpret a difference in differences regression

I have a set of active scientists and editors. I want to study the effect that becoming an editor has on the different outcomes of a scientist (such as citation count and publication rate). I decided ...
1
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2answers
35 views

Subgame Perfect Equilibrium for Pure and Mixed strategy

In a game theory textbook there is something similar to the table below where there is one pure strategy nash equilibrium and multiple mixed strategy nash equilibria. It is a simultaneous game with ...
1
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1answer
507 views

Mathematical Notations that I Never Understand While Reading Articles or Dissertations

I have some problems when I reading mathematical notations. For example: $$\mathrm{E}_{0}\left\{\sum_{\mathrm{t}=0}^{\infty} \beta^{t}\left[\mathrm{u}\left(\mathrm{C}_{\mathrm{t}}, \mathrm{M}_{\mathrm{...
3
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1answer
73 views

What are the main drivers of insolvency at a macro level?

In July, Euler Hermes published a report that claimed that insolvency will explode due to covid by late 2020, the first half of 2021. To support their statement, they show the evolution of what they ...
3
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2answers
156 views

Showing utility function gives preferences that are rational and convex

Consider a consumer with preferences relation $\succsim$ over non-negative commodities $x_1$ and $x_2$ such that their utility U = $x_1$ + $\ln(x_2)$ Are these preferences rational and are they convex/...
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3answers
53 views

Does it ever make sense to underproduce as a firm?

The larger the supply, the lower the price. Therefore, the more thneeds you (the firm) produce, the less you'll be able to sell each one for. Traditional sense says that as long as there are people ...
1
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1answer
70 views

Weak and strict dominance

Im just seeking for confirmation, is it OK to say that : "A strictly dominant strategy is a weakly dominant strategy too"? This would be usefull because for IEWDS we can eliminate strictly ...
4
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5answers
558 views

How can the stock market keep growing indefinitely?

It sounds like a dumb question, but there is only so much money in the world. Assets can grow, but money can only be printed. So if there is 400 trillion dollars worth of money in the world, and the ...
1
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0answers
9 views

How to calculate and interpret a marginal treatment effect (local instrumental variable)? (Intuition through simple example.)

I am working on the intuition behind local instrumental variables (LIV), also known as the marginal treatment effect (MTE). I have worked some time on this and would benefit from solving a simple. I ...
3
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0answers
26 views

How can you interpret one of the parameters of optimal consumption at the Merton portfolio problem?

Statement: Let the dynamics of wealth of the agent satisfy $$dX_{t} = \pi_tX_t\Big(\mu dt+\sigma dB_{t}\Big)- c_t X_t dt, \qquad \textrm{with}\quad X_0=x_0 \in \mathbb{R},$$ where $(\pi,c)$ is an ...
3
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1answer
80 views

Prove that the profits of the firm weakly decreases with input prices

Prove that the profits of the firm weakly decreases with input prices. More formally, suppose that the firm has a production function f, so that its profit function is π(p, w) = max(x≥0) $pf(x) − w · ...
2
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1answer
74 views

Are simultaneous equation models out of fashion? Why?

According to Angrist & Pischke "Undergraduate econometrics instruction: Through our classes, darkly" (2017) Tables 2 and 3, econometrics textbooks deemphasized simultaneous equation ...
2
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1answer
43 views

How did the silver standard “insulate” China from the beginning of the Great Depression (1929-1931)

There is a segment from this article that I want to unpack: The Great Depression was a global crisis—almost. Every significant economy was devastated, with one notable exception: China. The reason ...
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0answers
25 views

Impact of Expansionary Fiscal on aggregate output [closed]

What would be the impact of expansionary fiscal and monetary policies on aggregate output, interest rate, and prices in an economy under recession, and how would this impact policies on output, ...
2
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0answers
31 views

What's the difference between Gregory Mankiw's “Macroeconomics” 4th ed. and 10th ed.?

I am planning to use Gregory Mankiw's Macroeconomics (not to be confused with his Principles of Economics) for self-studying macroeconomics, along with David Weil's Economic Growth. As you can see, ...
1
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2answers
41 views

What is the main difference between FDI and short run capital inflows/outflows?

What is the main difference between FDI and short run capital inflows/outflows? I feel like both are quite similar in their nature but I don't understand the distinction between the two fully. Many ...
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0answers
13 views

What formulas should I know to find national income accounting [closed]

National income and accounting formulas to find autonomous expenditure
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1answer
41 views

Estimate unobservable $X_t$ with observable estimation {$Y_t$}, where $Y_t= X_t+\delta e_t$

Suppose there are measurement values {$Y_t, Y_{t-1},..., Y_0$} which come from the relationship $Y_t= X_t+\delta e_t$, where $\delta$ is a known constant, $e_t\sim N(0,\sigma^2_e)$ is a Gaussian ...
1
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1answer
57 views

Fractional Reserve Banking

Highly contrived example with 3% reserve ratio: ...
0
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1answer
67 views

Help finding the right term - Behavioural Finance / Pricing jargon

There is a phenomenon used in Economics(?)/Marketing/Pricing/Psychology when selecting the right price for your product. Within a certain price range, the customer is insensitive to changes in the ...
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0answers
36 views

Why does MMT insist on positive rates? [closed]

MMT sounds obsolete and not at all modern to me. You dont even need to print money, you can use negative rates to tax banks which gives the same result and is also a progressive tax, and not a flat ...
1
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1answer
31 views

Which econometric test applied here?

I have been reading an article about the Phillips Curve. But I got stuck in a part of econometric analysis. I am not good at econometric. Therefore I need help here. In this link you can read the ...
1
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0answers
35 views

Best companion for Mas-Colell Microeconomic Theory textbook

What are the best sources to accompany MasColell Microeconomic Theory textbook in 1st year of MA in economics? I mean any sources - textbooks, videos, websites, book companions, etc. And I mean easy ...
1
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1answer
16 views

Can indifference curves slope up and to the right when both goods are inferior goods?

Just a general question related to Micro. I always thought they sloped down to the right. Thanks!
3
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2answers
505 views

How can I model my problems with math?

I want to ask a question about mathematical economics. When I read an article about economics, I see lots of mathematical equations. I can solve them without any help. But I can't create my own ...
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0answers
22 views

Deriving the savings function [closed]

The structural model of an economy is given below, C=400+0.8Yd,. I=350,. G=450. ,. T=200 Derive the savings function?
4
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2answers
580 views

What's the logic behind dividing rental price of capital and wage rate by price level?

I've just started to learn macroeconomics and I think even the teachers can't get what's the price level and why we divide by it in order to find for example real economic profits. Textbook says "...
1
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0answers
12 views

unit iso-quant curve and unit iso-value line

This question is about international trade theory. For the labor L and capital K, I know the theory of iso-quant and iso-cost. The price will be determined where iso-cost line touches iso-quant curve. ...
-2
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1answer
34 views

mortgage rate in 2008

if banks and finanfial entity paniced, which cause people to stop lending which leads to higher interest rate, how did the mortage rate stayed the same in 2008? it barely dropped. It's kind of ...
3
votes
1answer
72 views

Understanding the Choice Rule in MWG

I am reading the Microeconomics Theory book by MWG, and I am having a tough time interpreting what things mean to a real life example, so any help would be appreciated. For example, it gave this. ...
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0answers
23 views

Is there a concept of the replacement level of an employee for determining compensation?

In sports statistics there is a somewhat common and useful statistic known as WAR, which stands for wins above replacement. This statistic tries to measure the impact of an individual on a group in ...
-1
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1answer
44 views

What may the alpha mean in the context of indifference curves? How to solve such questions? [closed]

The question is as follows: A consumer has a budget of 3000 units. He uses it to buy 2 goods: bread and cheese. Cheese costs 30 units/kg, and bread costs 3units/kg. The indifference curve is ...
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0answers
20 views

Question involving Engel's curve's slope, substitution, and income effects

The question is as follows: The absolute value of the substitution and income effects for the change of price of good X is equal to 3, and 14. The Engel's curve for good X has a positive slope. ...
-1
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0answers
18 views

What's the formula for calculating the Marginal Rate of Substition using Total Utility function, total utility, quantities of both X, and Y?

The question is as follows: If the total utility function of two goods, X, and Y, is: TU = f(X,Y) = sqrt(XY), total utility is equal to 25, and X = 5, then what must the Y be? What's the Marginal Rate ...
2
votes
1answer
62 views

What is the equilibrium price in this case?

From the Review Questions to Chapter 1: The Market in Hal Varian's Intermediate Microeconomics with Calculus, 9th ed.: Suppose that there are 25 people who had a reservation price of $\\\$500$, and ...
3
votes
1answer
48 views

Leontief input output model with column sum greater than 1

In a linear algebra textbook I came across the following question (not included in the answer key): Consider an open economy with a consumption matrix \begin{equation} C = \begin{...
-3
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0answers
29 views

ECONOMICS BUSINESS [closed]

𝐖𝐡𝐞𝐧𝐞𝐯𝐞𝐫 𝐬𝐢𝐱 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐬𝐭𝐬 𝐚𝐫𝐞 𝐠𝐚𝐭𝐡𝐞𝐫𝐞𝐝, 𝐭𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐞𝐯𝐞𝐧 𝐨𝐩𝐢𝐧𝐢𝐨𝐧𝐬' 𝐋𝐞𝐭 𝐮𝐬 𝐣𝐮𝐬𝐭𝐢𝐟𝐲 𝐭𝐡𝐞 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑛𝑜𝑡 ...
-2
votes
1answer
28 views

If a country experiences high domestic inflation compared to its trading partners with a fixed exchange rate then the effect of inflation will be to? [closed]

A.decrease the county's imports B.shift the country's currency supply curve to the right requiring central bank purchases of the domestic currency to maintain the fixed exchange rate. C.increase the ...
3
votes
3answers
57 views

Auction with one buyer and multiple sellers

In the standard auction model, there are one seller and multiple buyers, the bidders are the buyers. Consider now an auction with one buyer and multiple sellers, where the bidders are the sellers. ...
-1
votes
1answer
30 views

Does it really matter if the real estate prices change for the owners? [closed]

Assume the following: You buy 100m^2 somewhere at 150€/m2. Ten years later you want to sell it but the prices dropped and now the price is only 100€/m2. So, you lost 50€/m2. However, you can still buy ...
0
votes
0answers
21 views

is dictatorial SCR Nash-implementable?

We know that when n=2, If the SCR F is weakly Pareto optimal and Nash-implementable, then F is dictatorial. But when N is at least three, is dictatorial SCR Nash-implementable? Also again when N is at ...
-2
votes
0answers
39 views

Will the central banking system collapse if rates are severely negative? [closed]

If the fed charges -10% interest on excess reserves, would there be a flight to alternative currencies because the fractional reserve/federal reserve system becomes prohibitive? Since banks already ...

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