# All Questions

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### What would be the income tax rate be if it were 'flattened'?

In some recent conversations/speeches (It's voting season), I have noticed many people do not understand how a marginal income tax system works. Not understanding how they are only taxed at the ...
6 views

### What are Frisch Demands useful for?

Frisch demands are demand equations found usually in an intermediate step of the standard utility maximization problem. By example for the basic two-good case of a consumer with quasilinear ...
15 views

### Limit of random walk auto correlation function

Given the random walk process $y_{t}=y_{t-1}+e_{t}$, the auto correlation function is given by $corr(y_{t}, y_{t-h})=(\frac{t-h}{t})^{1/2}=(1-\frac{h}{t})^{1/2}$, which tends to 0 as t tends to ...
7k views

### Why is CRRA utility often used in macroeconomics DSGE model?

As title says, why is CRRA utility often used in macroeconomics DSGE model? That is, the form of $$u(c_t) = \frac{c_t^{1-\sigma}}{1-\sigma}$$ I cannot find any theoretical background around this........
52 views

### Why doesn't capitalism run out of money?

There's this question that doesn't let me sleep at night... From what I hear, investing surplus money is always considered a good idea because it lets your money "work for you" and earn you more ...
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### Autocorrelation function of a random walk process

What is the intuition behind the result that the autocorrelation function of a random walk process $y_{t}=y_{t-1}+e_{t}$ tends to 1 as $t\rightarrow \infty$? Thank you.
11 views

### Do reserves at Bank of Canada count as money?

I read the following three statements concerning M1 and M2 in Canada: a) "M1 consists of currency held outside the banks and chequable deposits of individuals and businesses." b) "M1 does not ...
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### How do I find monthly domestic interest rates for Panama for the early nineties?

I am looking for monthly domestic interest rates for Panama from before December 1996. Any type of interest rate will suffice - deposit rate, money market rate, saving rate, lending rate. The time ...
98 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 ...
17 views

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 ...
9 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 ...
201 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-...
26 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 ...
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### 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 ...
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 ...
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### What are the different types of Adjustable Rate Mortgages(ARMs)? [closed]

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 ...
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### 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 ...
24 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 $\bar{Y}$ ...
31 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 ...
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### 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: ...