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40 views

external benefit confusion

I'm a little confused by the following question and answer provided by MRU: Fruit farmers pay beekeepers for their honeybees’ pollination services. Honeybees provide an external benefit to fruit ...
36 views

Interpretation of sub-unity money velocity

I've read through questions like: Implications of declining money velocity and noticed this trend has intensified since, with velocity printing the lowest readings in history in the past few months. ...
19 views

Converting nominal exports to real exports: Which Price Index to use?

I want to convert nominal export values to real one. I have GDP Implicit Price Deflator and Consumer Price Index. I would like to know which price index is better to use in order to get the real ...
45 views

Muth-Mills Model

I am exploring the Muth-Mills monocentric city model covered in Brueckner's article. It is given that consumers earn the same income $y$ and buy $q$ housing for a price $p$ at distance $x$ from the ...
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Modelling GDP growth rates with an AR(1) process

I am trying to model the growth rates of real output per worker. I read that GDP growth rates are often assumed to be stationary and are modelled using an AR(1) process, so I took logs and then took ...
29 views

Maximum of conditional expectation

I have a statistics question for the insider problem in the Kyle (1985) model: How does one go from $\max\limits_{X} E[(v-\bar{v}-\lambda(X+u))X|v]$ to $\max\limits_{X} (v-\bar{v}-\lambda X)X$ ?
39 views

Total differentiation in a IS curve context

everyone. I'm having a hard time trying to figure out how the total differentiation occurs in this exercise. In this excerpt, from Inflação e Crises", by Affonso Celso Pastore, the author ...
3k views

Are democracies more economically productive than autocracies?

The book The Dictator's Handbook claims in several places that democracies are more productive than autocracies. It's central to their argument of lower taxation rate in democracies giving more wealth ...
46 views

Monetary policy rate and fiscal deficit

A colleague in work mentioned today that Chile is keeping a flat monetary policy rate given "there is a higher expected fiscal deficit". If there is an expected fiscal deficit (i.e., ...
35 views

Strange screening game were FS contracts equals optimal contracts

Consider the setting where a principal hires an agent to do a project. Payoff from project is $\pi = \beta e$, where $\beta \in \{1,2\}$ is the degree of the agent's talent and $e \in [0, +\infty]$ is ...
36 views

How to calculate inter-annual variation of inflation for a 3 months period?

I have the monthly indexes taken from the National Institute of Statistics of my country (below), then I can calculate its inter-annual variation easily: ((index month year - index same month year - ...
2k views

Doing a PhD Economics without background in formal theorems?

I could really use some advice. I am a new PhD student in Economics and Finance. My background is in economics, and while I did mathematics in my Master's course, it was more data-analysis based ...
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Printing money to put into a Superannuation or UBI fund

It is fiscal policy to keep inflation at between 1-2% (in New Zealand at least) Various tools are used to keep inflation in this range. Let's say the average inflation rate is 1.25% What would ...
90 views

Proof that two utility functions $u(x_1,x_2) \text{ and } v(x_1,x_2)$ with the same MRS represent the same preference

I am having some difficulty proving that two utility functions with the same marginal rate of substitution represent the same preference. I think I need two use some argument related to strictly ...
91 views

Complexity economics and computational economics books recommendation

I'm looking for books in complexity economics and/or agent-based computational economics. What are some good introductory and advanced books in these fields? Thanks in advance
10 views

Inter country currency exchange [duplicate]

This is probably a stupid question as I don't know much about economics, please bear with me. My question is; why can't a country insist on the worth of their currency relative to the dollar. For ...
36 views

How come debts is higher than assets?

Investopedia has a definition about Debt ratio, I do not understand how come Debt ratio can be higher than 1. Because it means that equity is negative (because Total Assets=Debt+Equity).
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What is used for calculating equity multiplier between total liabilities and total debts from Datastream?

Equity multiplier=Total Assets/Total Equity But I did not download the Total Equity but Total Liabilities and Total Debt from Datastream. Therefore I think of calculating Total Equity by using Total ...
19 views

Both the Business Cycle and DSGE literature find that Investment adjustment costs and capital adjustment costs give rise to different dynamics for investment, output, consumption etc. Investment ...
9 views

when a firm borrows a loan, is it charged at the real interest rate or the nominal interest rate? eg when the nominal interest remains constant, the inflation rises and the real interest falls, does ...
17 views

What is the most important factor in sample selection for time series models?

Is there some convention in sample selection for time series analysis? And what is the most important factor in this regard? I mean, I have seen Kónya, I. (2018) use annual data from 1995–2016 to ...
136 views

Game theory and differential equations

Does anybody know, any (advanced/classic) textbook that combines game theory with differential equations in mathematical economics. Specifically, I an interested in asymmetric information problems.
101 views

Will economic discrepancy between democratic and authoritarian states decrease over time? [closed]

The most popular explanation for the economic discrepancy between different states is that in the authoritarian states the leaders need corrupt extractive institution to preserve their power. However, ...
52 views

Why do yield spikes reflect badly on tech stocks

Yield spikes are a reflection of market equity valuation. How I interpret this is that there’s real fear that some companies in the market won’t be able to pay their debt. Therefore, bonds trade cheap,...
1k views

How to find the maximum profit in a graph?

We know the maximum profit will occur at the quantity where the gap of total revenue over total cost is largest. But how can we find such gap?
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Stationarity of variables for Local Projections

Should we care about the stationarity of the time series when doing Local Projections? In his website Jorda (the author of Local Projections method) provides a code for doing local projections : https:...
33 views

Multi dimensional Auction in economics

I am following this paper . They have different suppliers and one buyer and They are using auction to select best suppliers Suppliers will submit. suppliers offer a multidimensional bidding on quality ...
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What will be the effect on velocity of money when demand for real money increases?

Suppose that a change in government regulations allows banks to start paying interest on checking accounts. The money stock is the sum of currency and demand deposits, including checking accounts. (...
33 views

What does 'establishment' mean in real estate industry?

I read data on real estate industry and there is a table titled "establishments". The title of it is "number of establishments in real estate for all establishment sizes". Is '...