All Questions

Filter by
Sorted by
Tagged with
3
votes
0answers
43 views

Research on the link of QE and increased economic activity

Im looking for good literature of quantitative easing and the effects on economic actitivty. from a modelling perspective Any empirical research? What I am thinking of, is how much of an effect ...
5
votes
1answer
443 views

Converting word definitions of Pareto-Optimal into math symbols

I'd like to have a mathematical version of the following two definitions just because I remember symbols better than words. But I lack the math prowess to convert them from words to symbols. Can ...
3
votes
1answer
474 views

What to do for missing points in CPI time series?

I am looking at CPI datasets for developing countries which have gaps in them. For each country I have two time-series with annual averages for years 2000-2013: i) General/Overall CPI and ii) Food ...
5
votes
1answer
398 views

Normalizing comparisons of corporations and countries

When publicly-traded corporations reach record valuations, articles in the media often compare such valuations to the GDPs of countries throughout the world, typically in the form "Company X's ...
2
votes
1answer
36 views

Ratios to determine company's current purchasing power

what are the parameters which will affect a company ability to buy a new product based on its current financial situation. Is there any metrics or ratios which will tell the current company ...
6
votes
1answer
287 views

Present value of a payment

Suppose I've just won 1'000'000 dollars in a game show. At the end of the program they tell me that they will pay me the prize as following: they will deposit in my bank 50'000 dollars every year for ...
4
votes
1answer
181 views

Random Choice interpretation

Due to McFadden Economists usually interpret Random Choice, in the population sense, as each DM being drawn from the probabilistic choice rule independently and identically. However, Psychologist have ...
4
votes
1answer
91 views

Multiplicative factorization of stochastic growth time series--solving for an eigenfunction/eigenvector

I'm trying to understand the tools used/presented in Lars Hansen's Econometrica paper "Dynamic Valuation Decomposition within Stochastic Economies." In a part in the paper, Hansen introduces a long-...
9
votes
1answer
508 views

Generalization of the Heckscher-Ohlin Model

The Heckscher-Ohlin Model is normally presented for the case of 2 countries, 2 factors of production and 2 traded goods, leading to statements that, subject to free trade and various other assumptions:...
2
votes
2answers
49 views

When using consumables consider the purchase or market price?

Say I use two fuels to heat my home (space heating): oil and wood. I purchase both in bulk, at a price decided at the time of purchase. Wood is cheaper per kWh, but I purchase both because oil has ...
0
votes
1answer
600 views

How do you find marginal revenue if you don't have a production function?

I was given a word problem. No formulas. So I set up the following equations: Demand Function \begin{equation} D(p) = a - p \end{equation} Cost Function: \begin{equation} c(q) = 9 + 10q \end{...
3
votes
1answer
59 views

How can I write a conditional expectation of finite state markov process in matrix notation

NOTE: This question is related to the econometric method explored in the following two questions: Multiplicative factorization of stochastic growth time series--solving for an eigenfunction/...
2
votes
2answers
177 views

US GDP vs sub-$50/bbl oil

How would we expect US GDP to be affected by oil prices dipping into the 30-50 USD/bbl range? If you need to make additional assumptions to answer this question, please note these, but still answer ...
2
votes
1answer
457 views

Intuition behind the linkage principle

An important result in auction theory is Milgrom & Weber's linkage principle, which, roughly, holds that the expected revenue from an auction is higher is the seller commits ex ante to reveal as ...
2
votes
1answer
84 views

Am I using quantity and price correctly in trying to calculate price elasticity of supply?

The problem I am considering involves a firm that is a price-taker and sells its good at price $p$. From the production function, I calculated the cost function and the profit-maximizing level of ...
2
votes
2answers
229 views

What is the relation beween Granger causality and Rubin's causality?

Granger proposed a test for causality based on time series, is there any relation with the notion of causality by Rubin that seems prevalent on applied micro work. The latter deals with the notion of ...
3
votes
0answers
97 views

Europe not self-sufficient in terms of food requirements and consumption?

An acquaintance once told me that Europe is not self-sufficient in terms of food consumption as it does not have enough farmland and farmers to produce enough for all its people, especially in terms ...
7
votes
1answer
172 views

How to see that upper-semicontinuity and supermodularity are equivalent in a supermodular game context?

One requirement for a supermodular game $(I, \mathbf S, \mathbf u)$ is usually presented in two ways (e.g. in this note): For $i \in I$, $u_i$ is supermodular in $S_i$, when $s_{-i}$ is fixed, i.e. ...
1
vote
0answers
66 views

Calculate Gross Private Product from standard metrics

Is it possible to calculate GPP given commonly available data like GDP and government expenditure? The example in this Wikipedia article seems to suggest those two alone are enough. Would nominal GDP ...
2
votes
0answers
55 views

Test Series for Stationary Process

I want to apply grangers' Test between GSDP and Electricity production in the state. The state is a newly formed in the year 2000 and hence I have only 13 data points, as mentioned below Year | ...
3
votes
4answers
368 views

What is the justification for it being a problem if loans are not paid back?

As far as I could understand, the loan system applied by banks which is based on a fractional reserve system works as follows: Assumptions: The bank has initially 1000$. The fractional reserve is ...
1
vote
1answer
88 views

How do I distinguish price-taking in perfect competition from monopsony?

I'm working on a practice problem where I'm giving the following: Suppose a firm is a price-taker and can sell the good it produces at price $p$. There is more to the problem, but it is not ...
6
votes
1answer
124 views

Are symmetric equilibria continuous with respect to the payoff matrix?

Assume a two player symmetric game where the payoff for the row player is given by: $$ A = \left( \begin{array}{cc} a_{1,1} & a_{1,2} &\cdots & a_{1,n}\\ a_{2,1} & a_{2,2} &\cdots &...
4
votes
2answers
12k views

Difference between 'surplus' and 'welfare'

I see these two terms used interchangeably but I have the feeling they are not exactly the same. My gut feeling tells me this: 1) Surplus is the additional aggregate utility from the existence of one ...
2
votes
1answer
771 views

What is Production Possibility Frontier (PPF) diagram drawn on consumption-leisure?

When explaining basic macroeconomics model involving consumption-leisure tradeoff, often diagram showing production possbility frontier (PPF) is drawn with leisure on x-axis and consumption on y-axis. ...
2
votes
3answers
1k views

competitive equilibrium, Walrasian equilibrium, Walrasian auction

There are several sellers holding some indivisible goods, and several potential buyers with different valuations for these goods. I need to calculate the Walrasian equilibrium in this scenario, but ...
2
votes
1answer
42 views

Macroeconomic formulas for global limited raw material economy exist?

Macroeconomics basic formulas are referring to a model in which the raw material are unlimited. Also the efficiency of production is a consequence of the pressure done by consumers (that buy the most ...
9
votes
2answers
362 views

Does economic theory support the notion that the wealth of the wealthy is based on the poverty of the poor?

Almost any discussion about poverty and wealth and income inequality at some point includes arguments based on the premise that the wealth of the wealthy is causally related to the poverty of the poor;...
14
votes
3answers
68k views

What is the difference between intensive margin and extensive margin in labor economics?

What is the difference between intensive margin and extensive margin in labor economics, or general RBC model, where we talk about labor-hours supplied changing with extensive margin or intensive ...
3
votes
1answer
143 views

What would happen if the entire world switched to the 4-day work week? [closed]

What would happen if the entire world switched to the 4-day work week? Specifically would someone's quality of life drop significantly in a developed or a non-developed country?
1
vote
0answers
64 views

Example of the change of measure proposed in Hansen (2012)

In this question, I'm continuing to explore the tools used/presented in Lars Hansen's Econometrica paper "Dynamic Valuation Decomposition within Stochastic Economies" (2012). I'm trying to compute an ...
2
votes
1answer
173 views

Is Dollarization a good decision for a small open economy with an economic cycle that weakly correlates with the anchor country?

I have been reading the work of Alesina http://scholar.harvard.edu/files/alesina/files/dollarization.pdf, about the pros and cons of dollarization (i.e. adopting the currency of other country, say the ...
5
votes
3answers
249 views

Collusion model with imperfect public monitoring

It is well known that consumers' intertemporal incentives may play a key role on the potential of firms to sustain collusion. To my knowledge, most previous efforts studying the topic have assumed ...
5
votes
2answers
570 views

Oligopolistic producers and retail price wars

Consider an industry with few producers selling differentiated products. The products must be sold through retailers of whom also there are a few and who therefore possess some degree of market power. ...
2
votes
0answers
60 views

How can I construct a process for cumulative returns that is riskless?

This question is a little more specific than the title. Here I use the same notation that is set forth in this other question about cumulative returns (the sum of return observations). That is, let $...
16
votes
1answer
248 views

Does merger control really affect market structure?

Pretty much since 1976 (the passage of Hart-Scott-Rodino Act) US antitrust authorities have been reviewing mergers, challenging only 1.8 per cent of the total number of above-threshold notifications (...
3
votes
1answer
202 views

Random Utility interpretation

Can someone explain intuitively, the Block-Marschack Polynomials that completely characterize random utility.
4
votes
1answer
397 views

Do countries invest in the country's own stock market?

For example can the government of the UK invest in some company with shares in the FTSE 100? Or can Russia take the opportunity now that the shares of oil companies are low to buy them?
13
votes
4answers
942 views

Osborne, Nash equilibria and the correctness of beliefs

In Osborne's An Introduction to Game Theory Nash equilibrium is described as follows (p. 21–22): First, each player chooses her action according to the model of rational choice, given her beliefs ...
1
vote
2answers
1k views

Formula for the unconditional variance of the sum of observations from an autoregressive time series

I have notes that say that we can make the following calculations. I'm a little confused about some of the calculations that are being made. What assumptions would I need to get the following results? ...
0
votes
0answers
33 views

Measuring Integrating Capital Market

There are several methods measuring integration capital market. What best to measure for integration capital market?
3
votes
2answers
3k views

Is non-monotonic local non-satiation supported by consumer theory in economics?

In general (Walrasian) equilibrium, local non-satiation is one of the assumptions that guarantee existence of equilibrium. Question is, is non-monotonic local non-satiation preference supported by ...
9
votes
1answer
16k views

Finding demand function given a utility min(x,y) function

I am confused about a particular point regarding finding a demand function. All the problems in this practice set I am doing have involved applying the method of Lagrangian multipliers. But I am ...
2
votes
1answer
8k views

A general drought in the world, raises the total income that farmers receive?

I need to write 6-7 lines explaining why is the following statement true: ...
8
votes
2answers
623 views

What causes the “imperialism of economics” and how did it start?

Wikipedia defines "economics imperialism" as follows: Economics imperialism (often economic imperialism) in contemporary economics refers to economic analysis of seemingly non-economic aspects of ...
2
votes
1answer
194 views

What is “Observed realized measure”?

I am working with a Realized GARCH model. I have am having some trouble understanding a concept: Paper: Realized GARCH: A Complete Model of Returns and Realized Measures of Volatility, Hansen & ...
5
votes
1answer
117 views

The $\sqrt{N}$ convergence of semiparametric estimators of Newey 94, why does it converges to a normal distribution?

The famous Newey 94 paper on the asymptotic convergence of semiparametric estimators with a first non parametric step and a second parametric one, http://www.jstor.org/stable/2951752, establishes that ...
12
votes
2answers
2k views

Why in most macro models technology is labor-augmenting?

Take Romer's advanced macro book as reference. In it the Solow model,the Ramsey model and the Diamond OLG all contain the fundamental $A_t$ variable representing technological progress. In all these ...
11
votes
3answers
394 views

Can econometrics test for correlation or causality between prices and corruption?

This week there was news that some prices are rising. I heard that in some countries where corruption is high the prices are also higher. I wonder if there is causaility or just both at same. It would ...
3
votes
3answers
1k views

Deriving and explaining the weighted cost of capital

The Wikipedia article for the "weighted cost of capital" (WACC) defines the WACC as "the rate that a company is expected to pay on average to all its security holders to finance its assets." What ...

15 30 50 per page
1
231 232
233
234 235
237