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7
votes
3answers
752 views

Do circular invoices count in GDP?

I'm trying to understand GDP and what it means. Say that there are two US software companies, Foo Inc and Bar Inc. Foo Inc produces software and charges Bar \$1 million for its usage, while Bar Inc ...
15
votes
6answers
4k views

Why aren't we seeing carbon taxes in practice?

(See also a version of this question under politics, https://politics.stackexchange.com/questions/48764/why-arent-we-seeing-carbon-taxes-in-practice) It seems that there are many advantages to carbon ...
3
votes
1answer
32 views

Empirical tests for symmetry of cross-price elasticities

It is a well known fact in consumer theory that for a Hicksian demand curve the cross-price elasticity of good $i$ with respect to the price of good $j$ equals the cross-price elasticity of good $j$ ...
1
vote
1answer
41 views

Initial creation of reserves

I am currently reading the book "Where does money come from?" which is co-authored by Richard Werner after I took the "Money and Banking"-class in coursera by Perry Mehrling. There are certain ...
-5
votes
2answers
36 views

Country GDP vs Exports - why such a big difference?

I discovered that country ranking by GDP and Exports are very different. Largest by GDP ...
1
vote
0answers
12 views

How can I obtain monthly unemployment by ethnicity by state for the US (1986-present)?

This is what I have found so far: -Yearly data by state on the Bureau of Labor Statistics (BLS). [https://www.bls.gov/lau/ex14tables.htm]. Surely yearly estimates must be based on monthly estimates. ...
2
votes
2answers
309 views

Why do many papers not write the actual utility function?

Why do many papers write the intertemporal maximisation problem for the household as \begin{equation}E_{0} \sum_{t=0}^{\infty} \beta^{t} U\left(C_{t}, N_{t}\right)\end{equation} and then do not write ...
0
votes
1answer
25 views

Calculating Per Capita

This is in reference to https://fred.stlouisfed.org/series/M2 My question is how can i calculate the M2 value on per capita basis? Do i just divide it with the population by year?
-3
votes
0answers
36 views

Resource depletion [closed]

The question was closed for no reason. Why have complicated theories when recessions are obviously due to resource depletion? Coal in 08, us oil in the 70s etc.
-1
votes
1answer
28 views

Why are US equity prices and inflation inversely correlated?

Many comments on this r/stockmarket Reddit thread hypothesize an inverse correlation between USD value and US equity prices. Why would this be true in theory? It's not true in reality, right? Has the ...
-1
votes
0answers
23 views

What happens in this scenario

Bank a lends to bank b. Then, bank b lends to bank a. Then, both banks become insolvent. How can the banks be dissolved if there is no solvent entity to be the bankruptcy trustee?
0
votes
1answer
41 views

What's holding the U.S. from decreasing unemployment by cutting H1B limits?

I don't understand why doesn't the U.S. decrease the number of H1B visa holders (foreign workers) during the current economic crisis? The unemployment is skyrocketing, wouldn't this measure decrease ...
0
votes
1answer
13 views

How to find the corresponding APR to a given APY?

Suppose that ​$6000 is invested in a 3​-month CD with an APY of 1.5​% I want to find the corresponding APR to a given APY. If 6000$ is invested in a 3​ month CD with an APY of 1.5​% then according to ...
0
votes
1answer
25 views

How is the defintion of the mean preserving spread (MPS) not too general?

The mean preserving spread is defined as follows: Consider two lotteries g and h. Let $x_g$ und $x_h$ denote the corresponding random variables. Then h is a mean preserving spread (MPS) of g, if: $...
0
votes
1answer
70 views

In a social accounting matrix, what does Capital refer to?

In the process of building a social accounting matrix for Panama, I am trying to understand what capital refers to. The Panamanian National Accounts have tables on capital, but they describe gross ...
2
votes
1answer
37 views

How did the Hunt brothers' cornering the silver market drop gold prices in 1981?

Muro's answer at Money SE discusses the attempt by brothers Nelson Bunker Hunt, William Herbert Hunt and Lamar Hunt to corner the silver mark. But Muro didn't explain the causation. I can't infer why ...
0
votes
1answer
100 views

Intermediate demand vs. Intermediate consumption

I am trying to understand what's the difference between intermediate consumption and intermediate demand. The context is the European System of Accounts, which says that intermediate demand is the ...
1
vote
2answers
39 views

Why does a positive output gap imply workers working overtime?

From Investopedia, "A positive output gap indicates a high demand for goods and services in an economy, which might be considered beneficial for an economy. However, the effect of excessively ...
0
votes
1answer
32 views

Effectiveness of fiscal policy through increased tax compliance

I am inclined to think that in a country like the USA where tax compliance is a more than respectable 83%, there is less sense in reducing tax rates in an effort to increase tax revenue through hoping ...
2
votes
2answers
91 views

Sen's property $\alpha$ holds when limited attention in choice?

Consider the limited attention choice framework by Matejka and McKay (2015). This framework can give rise to consideration sets, as roughly summarised below. Consideration sets in the limited ...
0
votes
1answer
24 views

Interest rate determination in the real world

I have just learnt about the demand and supply framework for money and how the equilibrium interest rate in an economy can be determined. In theory, based on that framework, an increase in nominal ...
0
votes
1answer
82 views

Debt-to-GDP ratio in connection to inflation

On this segment of the Tucker Carlson show, interviewing Robert Hockett, as an advisor to Rep. Octavio-Cortez on the proposed Green New Deal, the following interchange ensues: Tucker: "On the ...
6
votes
5answers
408 views

Why is gold a safe haven investment?

To me, it seems like gold is the ultimate example of something where the value should go down when the economy, stock market etc go down. Just like Ferraris, and other frivolous consumer luxury goods,...
1
vote
1answer
118 views

Travel Cost Method - how to treat people who live at a site

We are about to do a survey using the individual travel cost method to value a harbour, located in a fishing society, which is visited by tourists each season. My question is - should we include in ...
-3
votes
1answer
27 views

Find the firm’s cost function [closed]

Can you solve my microeconomics question thanks a lot...
-3
votes
0answers
24 views

Resources and depletion [closed]

Obviously all recessions happen for a resource reason. Why do economists develop these complicated arbitrary theories rather than just saying it's a coal shortage or whatever.
-3
votes
0answers
34 views

How substainable and stable is the currency back up by the resouces of coal block? [closed]

if the future economics increase demand for all the natural resources, how will you compare: The A country uses some sort of 50% purity Silver to back their coin and gold leaves to manuafuture their ...
0
votes
1answer
26 views

Expected inflation in the real interest rate equation

Real interest rate = Nominal rate - Expected inflation In the above equation, in a quarterly data-set, which expected inflation shall be used? next quarter (q+1) or the same quarter of next year (q+4)...
10
votes
1answer
216 views

How does a bank convert one currency to another?

Say for example I sell ZAR and buy USD. What happens behind the scenes so that the local ZAR bank is able to deposit USD into my account? Does the bank require some sort of USD cash reserve? How do ...
1
vote
1answer
56 views

How does an increase in the minimum reserve requirement affect the monetary base?

Monetary base is defined as currency+currency held by banks+deposits of banks at central bank. We assume that the current reserve is below the minimum reserve requirement. Which component of monetary ...
0
votes
0answers
20 views

economy and consulting [closed]

I’ve finished my orientation year and I want to get into consulting after graduation. I’m majoring in electrical engineering. I read case in point.but when we solve cases, I see my friends ,they are ...
3
votes
3answers
197 views

Alternatives to Capitalism and Communism

Are there any remarkable economists who have envisioned alternative economic system to the ones previously tried? I'm looking for realistic economic system models and their authors.
0
votes
2answers
107 views

Monthly price elasticity and possibility of using daily values

I am calculating the price elasticity as a starting point to find a theoretical optimal price that would maximize our revenue. I am looking at 2 years data and to use the price elasticity formula, I ...
1
vote
3answers
75 views

Why doesn't government work more like a company when it comes to taxes?

In government, the revenue is fixed (most of the time); you don't have to anything extra to get money from your "investors", i.e citizens. Similarly, from a citizens' perspective, whether ...
1
vote
1answer
118 views

What does Smith mean by “price of work” in this context?

I've read these excerpts from The Wealth of Nations multiple times: In reality high profits tend much more to raise the price of work than high wages In raising the price of commodities the rise of ...
1
vote
2answers
32 views

How is an interest swap collateralized

I am trying to understand what it means for an interest swap to be collateralized. If for example, I am paying fixed to a bank and receive floating in return. Who is giving collateral to whom? and how ...
0
votes
1answer
46 views

Can someone please explain how personal savings and fiscal deficit are related in this context?

The lines which i have highlighted is what I want to be explained to me. This is with reference to indian economy
3
votes
2answers
63 views

Stag Hare inefficient Nash Equilibrium and level-K thinking

Two players $i,j$; both have two strategies $\{h,s\}$. The payoffs vector of $i,j$: $u(h,h)=(5,5)$ (if both players choose $\{h\}$ then $i$ receives 5 and $j$ receives 5) $u(h,s)=(10,0)$ $u(s,h)=(0,10)...
0
votes
1answer
29 views

Why we introduce the intermediate good producers into RBC model?

I am learning the RBC model and find some papers that use the intermediate good producers under the monopolistic competitive market. Could you tell me the benefit of this method? Thanks.
0
votes
1answer
21 views

Equation of exchange and inflation target

The inflation target is $2$% and the equation of exchange states $MV=PQ$. Is the idea that we want to have greater money supply growth then real growth in general?
0
votes
0answers
59 views

how to calculate Leontief demand functions from first order conditions of a CES function when sigma tends to 0?

This question is NOT about how to approximate a CES function to a leontief function. Knowing that: $i= good (\begin{array}{*{20}{c}} {1}&{or}&{2} \end{array})$ $j= firm (\begin{array}{*{20}{c}}...
1
vote
1answer
57 views

Deadweight Loss Due to Taxes Represented on a Graph of the Market?

Let's say a market is operating at equilibrium, with MSB=MSC, and a tax is imposed on the market. This would shift the supply curve to the left and cause a deadweight loss represented by the triangle ...
3
votes
1answer
82 views

How much should it cost to close the beach?

For most of the past week a private surfing contest has closed off Steamer Lane - one of California's most popular waves - while paying only a few hundred dollars in permit fees. I think this is far ...
0
votes
1answer
24 views

Exogenous variables and money

What are the exogenous variables that drive demand for and supply of money? Are there variables in common between the two? I think I'm getting caught up with interest rates, as adjusted by the Feds vs ...
1
vote
2answers
58 views

According to the U.S., what constitutes as fair subsidies?

The U.S. asked China to do this during the trade negotiations: China immediately will cease providing market-distorting subsidies and other types of government support that can contribute to the ...
3
votes
2answers
61 views

How to approach rigorous probability theory from an economics background?

I am attempting to read around the theory of probability theory from the ground up, coming from a background of economics I have little experience in set/measure theory, whilst I am not new to ...
1
vote
4answers
84 views

What are good advanced textbooks to learn mathematics for economist?

I am looking for books or other sources that focus on math that is above bachelor level (i.e. above just simple calculus). I am not looking for a specialized text for some field but just general ...
2
votes
2answers
73 views

Complementary slackness conditions (Kuhn-Tucker)

Consider the problem of maximising a smooth function subject to the inequality constraint that $g(x) \leq b$. The complementary slackness condition says that $$ \lambda[g(x) - b] = 0$$ It is often ...
0
votes
3answers
88 views

How to find daily/weekly data on the state of the economy

I am interested in economic modelling of the correct state of the economy. Figures such as unemployment and gdp come out with a considerable delay. What are good publicly available datasets that are ...
1
vote
1answer
26 views

Is there inverse relationship betweet prices of interest-bearing assets and the interest rate?

I was wondering about why investors converting out of interest-bearing assets into money in the money market cause the interest rate to increase. Then I remembered that there is inverse relationship ...

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