All Questions

Filter by
Sorted by
Tagged with
2
votes
1answer
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 ...
4
votes
0answers
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 ...
6
votes
4answers
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 ...
3
votes
1answer
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: $Y_{it}$ = $\alpha$ + $\beta$ $(pt)_{kt}$...
0
votes
0answers
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. ...
0
votes
0answers
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 ...
0
votes
0answers
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 ...
1
vote
0answers
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 ...
1
vote
1answer
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 ...
2
votes
2answers
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 ...
3
votes
0answers
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 ...
1
vote
0answers
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-...
0
votes
0answers
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 . ...
4
votes
1answer
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 ...
0
votes
1answer
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 ...
2
votes
1answer
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 ...
1
vote
2answers
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 - ...
2
votes
2answers
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 ...
0
votes
0answers
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 ...
1
vote
1answer
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 ...
2
votes
1answer
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 ...
0
votes
1answer
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 ...
3
votes
1answer
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 ...
0
votes
1answer
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?
1
vote
1answer
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 ...
-1
votes
0answers
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 ...
0
votes
0answers
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 ...
2
votes
0answers
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 ...
6
votes
5answers
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 ...
0
votes
0answers
23 views

Are less favourable terms of trade bad or good? [closed]

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 ...
0
votes
1answer
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 ...
3
votes
1answer
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% ...
3
votes
0answers
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 ...
2
votes
0answers
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 ...
1
vote
2answers
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 ...
1
vote
1answer
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: ...
0
votes
0answers
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 ...
2
votes
0answers
33 views

How to explain the meaning of coefficients standing for ATT by words in DID setting?

In a generalized DID setting, we have the equation (I copy from a hot discussion that triggered my interest) $Margin_{ikjt}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ + $\delta$$X_{ikt}$ + $\theta$$_{...
2
votes
0answers
38 views

Event study by Kleven

I was reading the following paper by Henrik Kleven et al. https://www.henrikkleven.com/uploads/3/7/3/1/37310663/kleven-landais-sogaard_nber-w24219_jan2018.pdf The estimate the child penalty on wage ...
0
votes
1answer
23 views

Is 'price hike' synonymous with 'price rise'?

Since my childhood I have a belief that in economics price rise and price hike synonymous with each other. Moreover, the Collin dictionary strengthens by belief: Hike But what you experts have to say--...
1
vote
0answers
10 views

Can I test Granger causality in cyclical components?

I want to test Granger causality test in cyclical components of GDP and private credit, obtained with Christiano-Fitzgerald filter in annual growth rates of quarterly data. The main purpose is to find ...
0
votes
0answers
7 views

Is Depreciation considered Cost of Revenue? [closed]

According to wikipedia article on "Cost of Revenue": Cost of revenue can be found in the company income statement. Generally, any costs that are directly connected with manufacturing and ...
6
votes
1answer
55 views

What are the main differences among xtreg, areg, reghdfe?

Normally, when I run regressions for panel data in Stata using these three commands (xtreg,areg, ...
1
vote
1answer
32 views

How can a “producer face a limited market as regards sales and yet a highly competitive market as regards price”?

Kaldor (1972): it is evident that the co-existence of increasing returns and competition—emphasised by Young and also by Marx, but wholly excluded by the axiomatic framework of Walrasian economics—is ...
5
votes
2answers
89 views

What does “Difference-in-Diffrence” models with heterogeneous effects" mean?

Today, when reading this paper, page 3, I saw a sentence By decomposing the DD estimator into its sources of variation (the 2x2 DD’s) and providing an explicit interpretation of the weights in terms ...
0
votes
0answers
25 views

Do people detrend panel data before estimation?

For a panel data i= entity and t= time, must the data be stationary for each country before estimation? Thus, should the data for each entity be detrended before estimation? Or maybe you should not ...
0
votes
0answers
6 views

How to interpret fixed effects from a binary logit model in which all dependent variables are categorical? Marginal effects does not work

The study is on survey data from UK households with a lot of missing variables. I ran a logit regression to predict the probability of Y (binary variable)and estimated the corresponding marginal ...
0
votes
2answers
57 views

How to interpret the intersected information partition element of different actors?

In this paper, it said that given $\omega$ is the current state of the world and $P_1(\omega)$ is the unique element from the information partition $\textit{P_1}$ of actor 1 in which the player 1 is ...
3
votes
2answers
76 views

Exact definition of one-player Bayesian Correlated Equilibrium

Consider a game where a decision maker (DM) has to choose action $y\in \mathcal{Y}$ possibly without being fully aware of the state of the world $V$. The state of the world has support $\mathcal{V}$. ...
0
votes
1answer
46 views

Is it possible to find a nash equilibrium that is not an equilibrium in weakly dominant strategy?

I know that it is possible to have a Nash equilibrium which is not an equilibrium in dominant strategy, but is it also applicable for equilibrium in weakly dominant strategy (i.e. a Nash equilibrium ...

15 30 50 per page