# All Questions

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33 views

### Why different law implementation dates is less susceptiable to concurrent but unrelated economics shocks?

Leuz,2016 documented that an international setting that measures regulatory effects in multiple countries at different points in time is also less susceptible to concurrent but unrelated economic ...
76 views

### What is the “recursive moral hazard theory” of “trade credit”?

When reading a recently published paper, I saw the paragraph We construct a sample of over 200,000 supply chains to conduct a chain-based analysis of trade credit. Our study uncovers novel stylized ...
156 views

### Why do some businesses choose scarcity as their business model instead of raising the price to meet the demand?

Here are some examples of what I'm talking about: Mass events such as Burning Man, the Olympics, and the World Cup sell out tickets very quickly which forces fans to resort to scalping or using bots ...
35 views

### What should we conclude when the significant levels are different but the sign are similar among coefficients of variable of interest?

I saw the impact of anticollusion laws on dependent variables Y across the country by using generalized DID by following Dasgupta, 2019. The identification is: $Y_{it}$ = $\alpha$ + $\beta$ $(pt)_{kt}$...
32 views

### What's the name of this particular economics phenomenon (loss and increase of value over many years)?

I have almost no knowledge of economics so I decided to ask you here. Sorry for tags but I didn't have any idea what should I use. Some things loss its value due to quality and functionality increase. ...
26 views

### Why laws that country implements also depend on “economic conditions of a firm’s country”? [closed]

In this discussion, @1muflon1 mentioned that laws that country implements also depend on "economic conditions of a firm’s country" (Dong, 2019) Is there any reference or explaination for ...
19 views

### Static Bertrand duopoly with incomplete information

Does anyone know why in a static Bertrand duopoly with incomplete information in costs and heterogeneous goods the perfectly informed firm (i.e, knows its costs and the rivals') has always less ...
18 views

### Effect of change in endowments on prices in Walrasian equilibria

I have a two-good, two-consumer exchange economy. $(\omega_{i1}, \omega_{i2})\in \mathbb{R}_{+}^2$ denote consumer $i$'s endowments of commodities 1 and 2 for $i\in\{1,2\}$. Utility functions are ...
297 views

### What is the difference between conditional and unconditional risk premia?

This is an asset pricing question. What is the difference between conditional and unconditional risk premia? Here's the context: The fact that carry trade strategies typically earn positive average ...
198 views

### Proving local non-satiation in arbitrary metric space

I have a pure exchange economy where every consumption set $X_i$ is non-empty and convex and every preference relation $\succeq_{i}$ is strictly convex. I am asked to show that preferences are locally ...
40 views
+50

### How to classify sample by time-variant index?

In finance paper, we have a famous index representing for law is WGI (World Governance Index). I am wondering how we classify countries by this time-variant index as this paper below. It is easy to ...
13 views

### Are passive asset management strategies increasing the volatility of big cap stocks?

Over the last decade, more money has been allocated using passive asset management strategies. A good part of the latter relies on ETFs that are replicating indices that are mainly comprised of big-...
11 views

### Why this is not possible to start a new banking system without interest (riba) where the country's central bank is interest base? [closed]

Some of the scholar or researcher said that it is not fully possible to start new banking system without interest (riba) under the country's central bank where the central bank is under interest . ...
106 views

### Why standard errors in country-level variables are higher than that in firm-level variables?

From this dicussion, the commentor said Lastly, firm fixed effects may absorb more variation and likely reduced the size of their standard errors. In practice, I also mainly see that the standard ...
32 views

### How come a representative consumer with quasilinear utility need not economize?

Suppose a representative consumer has the following quasilinear utility function: U_i(x_1,x_2)=ax_1+ax_2-(1/2)*[(x_1)^2+(x_2)^2] + k where a>0 is a utility parameter, x_1 and x_2 are the goods, and ...
100 views

### Is The Money Masters (1996) correct in its main thesis?

The Money Masters is a 1996 documentary film that discusses the concepts of money, debt, taxes, and describes their development from biblical times onward. Its main points were summarized by a ...
136 views

### Difference-in-differences using countries: is it necessary to cluster by country?

I have a question regarding difference-in-differences (DD) studies. If I want to compare a policy that is implemented differently in three different countries - thus three different treatment groups - ...
28 views

### Intercept in 2nd-stage Error Correction Model (ECM) regression — yes or no?

When doing a two-step ECM regression, do we add an intercept in the 2nd stage regression? I've seen course notes that add an intercept in the ECM, but some do not, so I'm confused if I should include ...
23 views

### Market for loanable funds

Can anyone explain why in some textbooks a government deficit causes a shift to the left of the supply curve (Mankiw) and in others a shift to the right of the demand curve (Krugman). Furthermore,how ...
102 views

### IV estimate for entire sample is larger than IV estimates for subsets of sample?

I am using two-stage least squares to estimate a local average treatment effect, with 'treatment' being the endogenous variable and 'assignment to treatment' being the instrument. If I use my full ...
25 views

### What is the economic word for firms buy material in credit?

I am looking for the word relating to firms' account payable, meaning that firms buy the materials from suppliers without paying money immediately.I need the word to search on google scholar for some ...
26 views

### What are some negative/positive aspects from globalization in regard to developed countries?

I have read many articles on how globalization is helping developing countries, as more and more companies from developed countries have been moving their production oversees. However, as hard as I ...
29 views

### Fixed effects vs first difference

Or more generally, what are the reasons for the absolute dominance of the fixed effects estimators to control for unobserved heterogeneity in large N, short T panel settings? I get that random effects ...
22 views

### Does FED's change in short-interest rates impact long term rates?

Through changing the federal fund rate(short-term), does this empirically impact the longer end of the curve? If so, what is the logic or transmission mechanism that caused the change?
25 views

### When choosing among alternative projects, must one always adjust for opportunity cost?

When evaluating a business project, a textbook recipe is to take incremental income from the project and subtract the incremental costs -- including opportunity costs -- to arrive at the incremental ...
22 views

### What would happen if the US decided to eliminate taxes and instead simply target spending to 30% of GDP? [closed]

I've been getting more into MMT and I'm aware that for MMTers taxes function more as a way to manage the money supply and distribute wealth than as a way to raise money for spending. But I'm still ...
18 views

### Beginner's Guide to Econometrics [duplicate]

I was wondering if you could guide me to a book that I can use as a starting point for preparing myself for graduate level econometrics. I will be applying for MA programs this fall and wanted a head ...
16 views

### Kaldor's Theory of Income Distribution

I am referring to Kaldor/Keynesian theory of income distribution and I am having trouble understanding why the model won't work if marginal propensity to save of workers (S(w)) is more than the ...
9k views

### How does the money supply behave when bank loans are repaid?

In a fractional reserve system when banks lend out money, that money is created out of thin air by a accounting journal entry, and the money supply goes up by the amount of the loan & when the ...
23 views

Less favourable terms of trade are always said to be a bad thing, but if less favourable terms of trade caused by greater international competitiveness of local firms were to occur, wouldn't that be a ...
67 views

### What will be the additional investment?

I recently encountered upon this question: Suppose, in an economy,autonomous consumption is Rs 100 crore and autonomous investment is Rs 60 crore. Imagine that in this economy,with every increase in ...
44 views

### About the 9 tests on Index number theory to evaluate the efficency of the different types of price indexes

Correct me if I'm wrong, I've seen a section in Wikipedia about Index number theory and I've understand it as "if an index x (Laspeyres, Paasche, etc.) satisfies all of this test, then it's 100% ...
29 views

### References for regional classification

I read an international study, Table 2 and see that the author did regions*year fixed effect. I am looking for some reference to classify 64 coutries in their paper to different region. I found a link ...
25 views

### King–Plosser–Rebelo Preferences and Additively Separable

The wiki of King–Plosser–Rebelo preferences says that the utility function has the multiplicatively separable form $$u(C, L)=\frac{1}{1-\sigma_{c}} C^{1-\sigma_{c}} v(L)$$ and "in the limit case ...
49 views

### Understanding utility function curve and marginal rate of substitution

This example appears in a different question, but there is something I don't understand. Maybe this question is better suitated for algebra stackexchange. John’s utility function for food (f) and ...
29 views

### I am given an annual interest on my money. How do I calculate how much interest I earn daily?

If an institution is giving me an interest of 7% pa and the interest will be earned daily. How do I calculate how much do I earn per day? I tried it calculate like this: ...
20 views

### Other than being cryptographically correct, is it the case that bitcoin meets none of its objectives? [closed]

I am sufficiently familiar with what it takes for something to be a currency. This is not a question about whether bitcoin is money, this question is exclusively about whether bitcoin meets the ...