# All Questions

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### Does Direct Benefit Transfers make an economy poorer?

Printing money and giving to the poor causes inflation. Increases demand and hikes prices. This is basically certain. But on the contrary, a paper titled Debunking the Stereotype of the Lazy Welfare ...
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### Is an input-output model an equilibrium model?

I know the difference between CGE and input-output models. But can an input-output model be called a equilibrium model?
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### Existence of Symmetric Pure Strategy Equilibrium

I have 2 symmetric players $A$ and $B$. Each of them has 2 decision variables $x_i\in[0, \beta]$ and $y_i\in[0,1]$, where $i\in\{A,B\}$. Their payoff functions are symmetric, i.e., if you swap the ...
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### Using ML to estimate demand function

Say, I am looking to estimate the demand curve for rental of a real estate property. The demand varies depending on time of the year, location, economic and demographic variables. I'd like to ...
25 views

### What's the role of money multiplier in the banking system?

On the internet , there are lots of people claming that the banking system has an immense power because it can multiply money obtained by deposits ( 'make money out of thin air' ) and then lend this ...
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### Why do we need to “get the economy moving again”?

Sorry I have no background in economics but as a computer programmer, I specialise in building models out of simple math and logic, so I hope we can speak the same language without having to get into ...
29 views

### How much moral hazard from Federal Reserve's purchase of junk bonds?

Why doesn't the Federal Reserve appear to worry Moral Hazard? How bad's the Moral Hazard? The Fed is creating money to transfer to the balance sheets of corporations that invest in securities like ...
19 views

### Are there benefits from the financial economy diverging from the real economy?

There are some adverse effects of the financial economy decoupling from the real economy. Here are just a few debatable, but nonetheless thought-provoking points: High asset prices often create ...
6 views

### Helicopter Money in the time of Covid-19

In this voxEU article by Jordi Galí, he says the following: In the current context, the central bank could credit the government's account (or governments, in the case of the ECB) for the amount of ...
10 views

### Can someone help me solve this cost table

Can someone help me with solving this?
28 views

### How do the factors of production map to the GDP identity?

How do the 4 factors of production (nature / capital / labour/ entrepr.) map to the GDP components in: $$Y=C+I+G+(X-M)$$ To me it seems that all factors map to all GDP components, simply because it's ...
24 views

### Meaning of revenue deficit

On the internet, I find that there are two different meanings given to the phrase' revenue deficit'. One says that it is the excess of revenue expenditure over revenue receipts of ,let us say, a ...
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### Farmer and owner Bayesian game

A farmer has talent $\theta$ uniformly distributed on $[0,1]$. His payoff from farming his land is $\theta.$ Before setting up his farm, he chooses some $w\geq0$, which a plant owner can either accept ...
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### Depreciation of currency shall incentivise or disincentivise the foreign portfolio investors?

I am confused - if suppose currency depreciates then assets will become cheaper and foreign investors will find it enticing to buy these assets so in that case, foreign inflows shall increase In ...
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### How can I tell who are major investors in an asset management group and their associated funds?

I am trying to determine which individuals/organizations are the largest investors in Netflix, but when I look at the list of top shareholders, they are all investment management groups. Investment ...
19 views

### What is data trapezoid form?

For one of our class project we are required to do the following: Download U.S. real GDP in data trapezoid form (vintages) I tried to search online for what does the data in trapezoid form means ...
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### What is the result of the Bellman Equation

I'm just starting with dynamic optimization and although I understant the proof's of the theorem I'm not able to fully understand whether the bellman equation is a function , a function valuated at ...
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### Stabilizing Property of a Taylor Rule

Considering the New Keynesian Model we have the Phillips curve and dynamic IS curve in log-linearized form with price shock $u^{\pi}$ and demand shock $u^{IS}$ :\pi_t=\beta E_t\pi_{t+1}+\kappa(y_t-...
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### Example on profit function that contains the maximum of a decision and a random variable

I am looking for an example of a profit function that contains the maximum of a decision and a random variable in this form: $\max(d,X)$, where $d$ is a decision variable and $X$ is a random variable. ...
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### What does it mean that Ontario is considering a regional approach to reopening? [closed]

I read the article Ontario now considering regional approach to reopening the province but failed to understand what it means by "the province is now considering a regional approach to reopening." I ...
15 views

### Bank lending rate & ROE

When a bank lends money to a company, does the bank (typically) demand an interest rate higher or lower than the ROE (Return on Equity)? I have always thought they demand a higher interest rate but I ...
215 views

### How can people save in a equilibrium economy?

Two people on a desert island: John produces 100kg potatoes and sells them to Paul for \$100. Paul catches 100kg fish and sells it to John for \$100. GDP is \$200\$, right? Next year, they improve ...
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### Relationship of Customer discrimination and discrimination by a firm

The following question relates to Becker's Theory of Discrimination. In the context of the question of whether a firm taste-discriminates against a minority group, I was of the opinion that the firm ...
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### How do I understand the fed

I apologize if this question seems incoherent as I'm struggling to get my thoughts together. I would like to understand the Fed and their mechanisms better, and their far-reaching implications of ...
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### What are the calculations that policy makers do when deciding to ease a lockdown?

I have heard this question framed as making the decision between lives and the economy. But on the other hand, I also read a StackExchange discussion(I am not sure of the link), where it was shown ...
1k views

### Mortgage loans from foreign banks at lower interest rates

I had a thought - what if I live in a relatively poor country like let's say Russia and I would like to buy a house. In order to do that, I need to take a mortgage loan. In Russia however, interest ...
30 views

### Does the negative economic shock caused by the covid pandemic can increase mean productivity?

Countries in the middle income trap often have trouble with capital and technological accumulation, informal labor market, institutional deficiencies, low productivity, etc. If firms in those ...
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### Keynesian cross. Can there be a situation when the point of equilibirum “runs away”, shifts in response to attempts to reach it?

In Keynesian cross model, as far as I understand, income-expenditure equilibirum is reached this way: when unplanned inventory investment>0, then firms produce less, when unplanned inventory ...
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### What would be the mean of a finite aggregation of AR(1) processes?

What would be the (expected) mean at each period t of a (in)finite aggregation of AR(1) processes generated by the same data generating process? How would the resulting plot look? For iid data ...
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### Does combination of the paradox of thrift and the acceleration principle reduce economy to c=a level of consumption during recession?

By "c=a level" I mean situation when all consumption by households equals to autonomous spending, more or less. I assume no counter-cyclical policies(including automatic stabilizers). I also assume ...
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### What is the definition of: 'commodity space'?

I have seen the concept of commodity space being used multiple times in economics, in particular within microeconomics, but I could not find a general definition of it. Based on the examples that I ...
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### Are charter cities already existent? [closed]

Is the concept of charter cities already in practice provided we answer to politicians and politicians answer to billionaires and corporate executives?
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### In credit easing, how do central banks avoid allegations of unequal treatment?

In credit easing, central banks purchase private assets such as corporate bonds. How do central banks choose which corporate bonds to buy? If the central bank buys bonds of one company but not those ...

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