# All Questions

11,809 questions
Filter by
Sorted by
Tagged with
7 views

### Linear version of Taylor type rule

I have a problem with linearization of Taylor rule from monetary policy. How can I linearize this equation I dont know how I should treat R, pi and y, as parameters?
6 views

### Did Adam Smith make a calculation error in Chapter XI?

Excerpt from Chapter XI of The Wealth of Nations (emphasis mine): The money-price of wool, therefore, in the time of Edward III, was to its money-price in the present times as ten to seven. The ...
26 views

### Literature recommendation

Classic economic theory suggests people earn wages according to their productivity. Over time CEO's, directors, managers and the like seem to earn more relative to the 'normal worker'. Lets call this ...
578 views

### Why is healthcare so expensive in the USA?

I find this phenomenon to be kind of puzzling. USA is one of the countries with one of the highest purchasing powers in the world, yet when it comes to healthcare an standard US citizen is likely to ...
15 views

### Is Hodrick-Prescott filter optimal with irregular component?

I need to extract cyclical component from time series, when doing seasonal adjustment I have the option to remove, apart from seasonal component, the irregular component. Then I'll apply HP to the ...
9 views

### Why the Marshall Lerner Condition is needed only when we are looking at changes in exchange rate

When looking at impact of change in exchange rate on the country's balance of payments, we require the use of Marshall Lerner Condition to determine the impact on Balance of Trade. When foreign prices ...
11 views

### What combination will reduce consumption? Inferior/Normal good — Rebate/ No Rebate? All of the above?

I am having trouble with this course question. I asked the course tutor about it, though everything is supposedly fine. The problem that I am having is that it seems that all the choices will reduce ...
24 views

### Walrasian Equilibrium in A Simple Assignment (Matching) Model

I am reading Acemoglu 1996 and the Walrasian allocation in section II makes me confused. The setting is following. The economy lasts for two periods and consists of two types of agents, firms and ...
43 views

### Understanding an article in the BMJ about the sugar tax

The research paper Changes in soft drinks purchased by British households associated with the UK soft drinks industry levy: controlled interrupted time series analysis was examining the impact of the ...
28 views

### Balance of Payment (BPM6) - Direct Investment: how to record

I have a question related to recording in BOP Let say we have two countries: DOMES (domestic country) EXT (external country) a company in EXT invest a new factory in DOMES. I don't know how this ...
20 views

### Isn't Germany supposed to have more of a market based financial system?

I read in the book, Indian financial system by Bharti V Pathak that Demirguc-Kunt and Levine did a research on comparison of fin. system of 150 countries and found a pattern that countries with low ...
23 views

### When to use dynamic panel data models

I recently got a comment that I should use dynamic panel data model instead of a static one because my outcome is likely to be serially correlated. I guess it makes sense for my application, but it ...
57 views

### Cointegration in stock market between different market places

Hi guys im interested in cointegration in stock market between Brazil, USA, London, China, India, Argentina and Hong Kong. Since I want to compare each country’s index to the BR index, how do i do to ...
9 views

### Explain the statement: “Due to international capital mobility, S and I should not move together.”

I read this statement in ADB's e-course on financial globalisation. I have basic knowledge of the economics, but nothing too advanced. So, what I understood is that since in there is much greater ...
31 views

### Locating an article from the Economist

This is an article from the FT about the UK's recovery from the pandemic and the setting of interest rates by the BoE. I would really like to find the equivalent article from the Economist on this ...
29 views

### Difference between retail sales growth and consumption growth

In the comments in this article, professor Michael Pettis states that "By the way please do not assume that retail sales growth rates are a good proxy for consumption growth rates." I ...
43 views

### How to get the condition of OLS mathematically?

From this discussion, I asked @tdm about the condition of OLS but I still cannot get it, and it is not easy to answer the mathematic equation in comment part so I want to ask here. One way to see this ...
19 views

### Calculation of yield on the 10-year treasury note

Recently, I've learnt more about the mathematics of bonds and so I tried out what I've learnt with the 10-year treasury note, to see if I could calculate the yield based on its price and the coupon ...
12 views

### If a poorer country's currency appreciates equal to the dollar would their minimum wage decrease?

Currently $1 = 31.5 Thai baht, and Thailand has a minimum wage of 336 Thai baht/day (42 baht/hr). If the baht appreciates to the point where it is$1 = 1 baht would that 42 baht/hr minimum wage ...
27 views

### If we clustered by country, why we need to cluster by firms and industry?

From this discussion, it seems to me that if the test survives when clustering by year, we do not need to cluster by industries or firms because firms and industries for sure have more independent ...
635 views

### Why we need at least 40 groups to be properly clustered?

From this discussion, I deem that we need approximately 40 groups for clustering. For example, if we want to clustered by industry, we need at least 40 industries, or if we want to cluster by year, we ...
648 views

### Why the larger the sample, the lower standard deviation?

I concern about why country-level variables normally have higher standard deviation compared to that in firm-level variables. Today, my senior friend told me that it seems to be because the firm-level ...
7 views

### Why does the Silk Belt search for local concessions?

There are several examples of Chinese willingness to take control of harbours in foreign territories, with financial property as well as "landlordship": China gained concessions in the ...
64 views

### In experiments of 2-by-2 games where the dominant action benefits both players, do people frequently choose the other action?

Sayers et al look in Some descriptive aspects of two-person non-zero-sum games at variations of the prisoner dilemma. They had two participants (α and β) pressing press either a black (1) or a red (2) ...
75 views

### How does the Austrian School view land rents?

I have come across these publications: The Spatial Market Process. Advances in Austrian Economics Vol. 16. In “An Austrian Theory of Spatial Land,” Fred E. Foldvary addresses the disregard of spatial ...
31 views

### Do 'liquidity pools' effectively determine market price?

First, lets be clear - I'm not pitching a crypto here, and I'm not seriously interested in Safemoon, which seems to be a pyramid scheme. However, I was investigated Safemoon, and discovered this ...
26 views

### Where can I find research on the impact of informal/unregulated suppliers on prices and externalities?

I am looking for research and papers on the impact of informal/unregulated suppliers on market prices and negative externalities. I am particularly interested in the manufacturing sector.
67 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 ...
42 views

### Has the ban of single-use plastics sparked innovation in biodegradable recyclable plastics?

One of the rationales of the single-use plastics ban adopted by the EP in 2019 was that it would spark innovation in cheap biodegradable recyclable plastics. Has any progress been registered in this ...
76 views

### Proving that Marshallian demand is of the form: $x_i^*(p,I) = \hat{x}_i^*(p)I$ with certain conditions

Can I please have some feedback/help proving the following. My proof is below but I am quite uncertain as to whether my solution is efficient. Thank you. If $u(x)$ is a homothetic utility, then show ...
85 views

### Mixed Strategies in Bayes Nash Equilibrium (Bayesian Battle of the Sexes). Shouldn't it depend on $p$?

I have a question about calculating mixed strategies in a Bayes Nash Equilibrium in a simple 2-player bimatrix game. To demonstrate the issue, consider Bayesian Battle of the Sexes.'' Suppose P1 ...
63 views

### What is the purpose of taxes if central banks can fund deficit spending?

Somewhat straight forward. If the federal reserve can print money to buy treasuries to fund deficit spending, what is the purpose of taxes? Sure, taxes reduce the amount of deficit that needs to be ...
23 views

### How to understand the intuitive criterion

I am studying for my exam in MicroEconomics 2 which involves game theory and I have trouble with understanding the intuitive criterion and how to use it. Consider the down below signalling game. ...
16 views

9 views

### Reference for “Sustainable competitive advantage” and “Strong Balance sheets”

Sustainable competitive advantage are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long-term position over competitors. In ...
26 views
+50

### Are “organizational slack” and “organizational capability” opposite?

The word "organizational slack" is extracted from one paper, and "organizational capability" is extracted from another paper. I am wondering if they are opposite to each other. For ...
14 views

### Second Degree Price Discrimination illustration

A monopolist without fixed costs and marginal costs 0 faces two customer types with an inverse demand: $$𝑝_1(𝑥)=8−2𝑥 \;for\; 0≤𝑥≤4$$ and $$𝑝_2(𝑥)=12−𝑥\;for\; 0≤𝑥≤12$$ for both type 1 og type 2....
3k views

### Will printing more money during COVID cause hyperinflation?

When COVID started, many countries started printing loads of money and handing it out to their people. Here are some examples US is printing money to help save the economy from the COVID-19 crisis We’...
23 views

### Why do firms reduce both price and supply during a recession?

Could anyone explain why firms reduce both price and supply of goods and services during a recession with a practical real life example for better understanding ?
26 views

### Finding data on (estimated) trade cost elasticities of imports

I'm an undergrad student of economics, and I need to find estimates of the trade cost elasticity of the UK's imports for some homework. My instructors pointed me to the World Bank's databases, ...
29 views

### How many ways to call dependent and independent variables?

The words "dependent variables" and "independent variables" are the cornerstones of every regression. However, I am collecting the alternative ways to call these two terms. Because ...
40 views

### Can a small reward control big money exchange rates? [closed]

Let we have a prediction market. Suppose the prices of some conditionals became high because it bubbled so much that people started to use the conditionals as means of payment. I want to control this ...
23 views

### How is the translog cost function derived?

I realize that the translog production function is derived as a second order taylor approximation of a production function (e.g. the CES-production function), as explained in this post. Is the ...
8 views

### What is the relation between “Capital Market Line” and “Capital Asset Pricing Model (CAPM)”?

I asked this question on Personal Finance and Money but was asked to ask it here. On the Coursera course Portfolio and Risk Management, on Week 2, I am having trouble finding the link between the ...
863 views

### What are some further readings in Econometrics you recommend?

I've reached the end of my Econometrics courses for the undegraduate level at my university, but I would like to continue learning. I hope I could get some recommendations for further reading. I ...
17 views

### confusion regarding debt and debit [closed]

According to it's etymology, the term debit comes from the word debt, which means "the state of owing money.". Among other meanings, liability is a contractual obligation to deliver cash ...
82 views

### When building a social accounting matrix, do you input domestic intermediate demand or total intermediate demand?

I have been trying to build a social accounting matrix (SAM) after building an input-output table (IOT). In the IOT, I had to distinguish between total intermediate demand (which includes import of ...