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3
votes
2answers
68 views

Can we have a Non-Reflexive Preference Relation?

I've been thinking about preferences alot recently and have been specifically thinking about the reflexivity requirement. That is: $$x \succsim x$$ Though this is apparent and obvious, I have been ...
0
votes
0answers
4 views

How can I describe a differential equation for a set of data?

I am trying to find a differential equation to describe private debt as a percentage of GDP from the following link? How can I accomplish this? Data Source
0
votes
1answer
10 views

Does Efficient Market Hypothesis make anticipated monetary policies useless?

Since the market perfectly captures all the information, is it true that any anticipated monetary policy has no impact on equity prices? Or the “information” has an immediate impact but the “event” ...
8
votes
7answers
3k views

Mathematical Micro/Macro Economics Textbook Recommendation

I was formerly an economics major and now also majoring in mathematics. I want a textbook that is rigorously based on mathematics; not just using mathematics whenever the author wants, but in a more ...
-2
votes
0answers
6 views

Finding expenditure function from indirect utility function

Suppose you have this indirect utility function Find the expenditure function
-4
votes
0answers
35 views

A new economic system in 2020? [closed]

A new economic system in 2020? Is it possible to create a hypothetical economic system in this real world, based on the following steps: 1- Develop a software application/website where we can have ...
0
votes
0answers
8 views

China benchmark rates and Shibor relationship (chart)

I made the chart below for an assignment on People's Bank of China monetary policy during the financial crisis. The problem is that it got me very confused about the relationship between these ...
1
vote
1answer
183 views

Axiom: More is Better; But when is more better?

I'm taking an introductory microeconomics course and have been introduced to the 3 axioms of economic preferences. These include Completeness Transitivity Non-satiation My understanding of non-...
0
votes
1answer
46 views

Most significant factors in the price of a goverments bonds

As a follow up on Long-,short-term interest rates and inflation. Inflation is clearly a factor(tho not possible to model mathematically) when it comes to the market price of a bond. I can think of ...
1
vote
1answer
18 views

Am I correct that cyclical unemployment can be negative?

Let's start with stating and emphasizing some truths that we will need later. Overall unemployment rate=Frictional unemployment + Structural unemployment + Cyclical unemployment. Also, Natural rate of ...
1
vote
1answer
20 views

Are these two derivatives the same with regards to TR?

Given that Marginal Revenue is change in Total Revenue: TR = P*Q P = f(Q) TR = f(Q) * Q MR = dTR/ dQ Or ...
2
votes
2answers
95 views

Calculating the amount paid for a loan in today's dollars

So I was trying to figure out the amount paid for a loan in today's dollars using two different methods but they give me different results. I was hoping that someone could explain which method is ...
1
vote
3answers
137 views

Perfectly competitive firms. Economies of scale

My textbook says the following: "Perfectly competitive markets only achieve productive efficiency if you assume that there are no economies of scale in the industry." Why is this the case? And by "...
0
votes
0answers
14 views

What are the different types of Adjustable Rate Mortgages(ARMs)?

I'm aware of Hybrid ARMS that have a 7 fixed 1 adjustable composition and Convertible ARMs that can be converted to fixed rates but are there other types of ARMs? For example for this Ginnie Mae ...
0
votes
2answers
46 views

regression method for data that contain a number of observation for several years

I have a data set about 125 companies. For each company I have the salary and some other variables about the top 5 managers in each company. One observation contains the top 5 managers in each one of ...
0
votes
0answers
22 views

Unbiasedness of MoM estimator

Why is the method of moments estimator $g(\bar{Y})$ of $\theta$ only unbiased if $g(\mu)$ is a linear function of $\mu$? (Note: It is assumed that $\theta=g(\mu)$ for some function $g$ and $\bar{Y}$ ...
2
votes
0answers
22 views

Do countries with high taxes end up with low government debt but high private debt?

I'm curious if my observation that some Scandinavian countries (Denmark, Sweden) have high taxes, low government debt, but high private (in particular high household) debt is applicable more generally ...
0
votes
0answers
7 views

List of stock and bond indexes for countries

I am doing some master`s degree research and looking for the list of stock/bond indexes for developed and developing countries. So the excel-file I should gather in the end will look like this: ...
2
votes
1answer
38 views

Why do Eurozone members have a commonly higher Debt-to-GDP ratio?

As you could find out from the map, among 22 countries whose debt-to-gdp ratio is above 50%, only 7 are not Eurozone members, and from which only UK is comparably large economical entity. ...
0
votes
1answer
16 views

How are PPP, nominal exchange rates and inflation related?

This Forbes article discusses how changes in the market exchange rate can be used to estimate an inflation rate thanks to the principle of purchasing power parity (PPP). Can someone distill this ...
1
vote
0answers
26 views

Transversality Condition

I am reading the first section of chapter 10 of the Obstfeld and Rogoff textbook Foundations of International Economics and I have a doubt in how the transversality condition is obtained. Even though ...
0
votes
0answers
13 views

Should I use start of quarter interest rate or end of quarter interest rate for time series regression?

Not sure what the correct procedure is since there is daily data for the period. Assume I can't find the average for the period.
0
votes
0answers
7 views

Why did the central bank of China raised the amount of repos during the financial crisis?

According to the PBOC monetary reports, the total amount of repos conducted went from 1.27 trillion yuan in 2007 to 3.3 in 2008 and further increased to 4 trillion in 2009. It wasn't until 2012 that ...
-2
votes
1answer
31 views

Cobb-Douglas function homotheticity

I've been given the Cobb-Douglas utility function: $\ u(q_1, q_2)=a\ln q_1+b\ln q_2=q_1^aq_2^b \ $ If I want to prove homothetic preferences, I use the following condition: $\ u(\lambda q_1, \...
1
vote
1answer
15 views

central banking using the term reserve

The central bank of united states is called federal reserve and central bank of india is called Reserve bank of india. What does the term reserve in central bank mean??
1
vote
1answer
34 views

Check for concavity, quasi-concavity with given value of function

I am studying for an upcoming exam in microeconomics and I have always struggled with proving concavity, convexity in different exercizes. This one I can't solve for the life of me. It is kind of hard ...
0
votes
2answers
49 views

For the case of two goods, give an example of preferences that are represnted by a continuous utility function that allows for fat indifference curves

The question in the title sounds like a trick question, due to the monotonicity property that indifference curves have, such that for two goods x and y, strong monotonicity implies y > x. Possible ...
0
votes
1answer
25 views

Does the UK have a trade agreement with Australia?

I'm assuming since the UK was a member of the EU, the EU was responsible for any kind of trade arrangements between the UK and Australia but I'm not entirely sure. Does the UK have an agreement with ...
2
votes
2answers
207 views

Why is the price of capital ‘r’ ? (From Cost function)

according to the Cost formula in microeconomics class, Total Fixed Cost is represented as “rK” (K as in unchanging, fixed K) now my economics teacher tells me this ‘r’ is the interest rate at which ...
0
votes
1answer
27 views

extensive vs intensive labor in US in recent decades

Total Hours worked is a mix of extensive (to work or not, the usual standard working week) and intensive (how many hours to work). I'm interested in how this balance of extensive and intensive ...
-3
votes
0answers
24 views

Why the movie theater use the price-fixing scheme [closed]

From my perspective, the movie industries are implicitly anti-competitive. Their pricing is perfectly fixed, regarding the movie genres, studios and budget. No matter the movie comes from the big ...
1
vote
1answer
28 views

What is the optimal forecast for the following moving average model?

Suppose that we have an MA(1) model where $y_t=\epsilon_t-\frac 1 2 \epsilon_{t-1}$ and $\epsilon_t$ are i.i.d. I want to find an optimal forecast of $y_{T+1}$ in the form of $Cy_T$ where C is a ...
1
vote
3answers
135 views

Bank Runs During the 1930s

Why were there numerous banks run right after the stock market crash of 1929? Why would a bank fail because the stock market crashes?
0
votes
2answers
24 views

How to derive substitution and income effect using Slutsky equation if we don't know which of the prices change?

We have the utility function $$U(x,y)=x + y$$ and we have to derive the substitution and income effects using Slutsky equation. But after I derive the Hicksian demand functions for e.g. x: $$h_x= \...
0
votes
2answers
38 views

locally nonsatiated preferences

what does this symbol mean in the discuss of locally nonsatiated preferences: $\varepsilon > 0$ and $||y-x||<\varepsilon$.
1
vote
1answer
27 views

What's the special notation?

I'm studying "ALGORITHMIC AND HIGH-FREQUENCY TRADING". Page 249 of it tries to find a formula for $h(t,q)$. First, it supposes $h(t,q) = \bar\kappa log \space\omega(q,t)$ then let $\omega(t)=[\omega(...
0
votes
1answer
67 views

why does an aging population positively impact on a decline in the smoking rate?

I've been studying the causes of a decline in the smoking rate, and I found out from the article that an aging population causes the decline. But, I'm not sure why it could happen. Is that because ...
0
votes
1answer
15 views

How can I control for trade between UK and Australia in my difference-in-difference trade model?

I am doing a report on whether environmental regulation has an impact on trade, using a difference-in-difference model and seeing whether the EU Industrial Emissions Directive had an effect on UK ...
-1
votes
0answers
14 views

Unbias, consistent,efficent estimator [closed]

I would like to ask for an example of estimator for the following: 1. unbiased+consistent (Is it the mean/sample variance?) 2. bias +consistent 3. unbiased + inconsistent 4. biased + inconsistent
1
vote
1answer
41 views

Set of Bayes Correlated Equilibria when complete information is not available

Model 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. The state of the world has support $\mathcal{...
6
votes
1answer
140 views

What were “scissors prices” (China, 1950s)?

Chan (2018) writes: Implementing such a strategy, the state siphoned off resources in the rural sector for capital accumulation in industry through the well-known process of "scissors prices". ...
2
votes
1answer
23 views

Probit with panel data - assumptions violated with endogenous covariate?

I am trying to understand how does the fact that a regressor is endogenous (as a result of reverse causality) in a dynamic probit model violate any assumptions that I may need to make for this model. ...
2
votes
2answers
54 views

Why does price elasticity of demand formula work?

Hi there, I understand how to use the price elasticity of demand formula (mid-point method), shown in the picture above. However, I'm not too sure why exactly it works. Why are dividing the change ...
2
votes
2answers
84 views
+100

What would happen to US economy before US government lose control over its national debt?

From this wiki page we can clearly see that US national debt is growing steadily after 2010 and now it's larger than US GDP already (at the end of 2019). Still it's commonly believed the debt is ...
0
votes
1answer
33 views

If a Chinese person wants to buy an iPhone or any international goods, which GDP per capita would be a better indicator?

Which GDP per capita of a Chinese citizen would better reflect their affordability- Nominal GDP per capita or PPP GDP per capita of China? My question is would PPP would matter much in case of buying ...
1
vote
1answer
52 views

Are there economic models that predict (only) a medium/long-term negative effect of protectionism?

Going by some ECB models/estimates from last year, protectionism would result in negative consequences pretty fast, e.g. For illustration, I will use the results of simulations carried out by ECB ...
-1
votes
0answers
70 views

Solving constrained optimization [closed]

Jamal has utility function 𝑈𝐵(𝑋1,𝑋2)=(𝑋1+2)⋅(𝑋2+3) . He also has income 𝑚 , and faces prices 𝑃1 and 𝑃2 for goods 1 and 2 respectively. 1) What is Jamal’s budget constraint? 2)What is ...
0
votes
0answers
11 views

How does China control tax havens / finance flight differently?

It is said that china tries to prevent its money leaving overseas, for example yuan holding officials can't expatriate millions abroad or smuggle diamonds? How is that possible and efficient?
3
votes
1answer
68 views

He, Krishnamurthy (2013)

How do you derive equation (10) on page 740 from He, Krishnamurthy (2013 AER)? They say that "Given the log objective function in equation (8), the risky asset household chooses $\alpha_t^h$ to solve ...
-2
votes
0answers
21 views

Microeconomics - endowments [closed]

I need to answer these questions until tomorrow. quite frankly I have no idea how to even start with this assignment since we have not gone through something similar on my lectures. Is there anyone ...

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