All Questions

Filter by
Sorted by
Tagged with
4
votes
1answer
958 views

Self-teaching 1st year PhD Microeconomic Theory

How should one proceed if he wanted to master the microecon theory course typically taught in the 1st year of a PhD program on his own? Which text(s) and/or online course(s) should he follow? Suppose ...
1
vote
1answer
5k views

What is the difference between average cost and marginal cost?

$$AC(q) = \frac {C(q)}{q}$$ $$MC(q) = \frac{\partial C(q)}{\partial q}$$ These are the definitions. But I don't understand what the difference is. Is the average cost the cost per unit while the ...
2
votes
2answers
1k views

Exporting inflation

One explanation I have read for the resistance of the dollar to inflation is that it is "exported" meaning that excess dollars go abroad and foreign use of the dollar increases, thus preventing the ...
3
votes
1answer
101 views

Can be the duality theorem applied to not locally non-satiated utility functions?

I have the following not locally non-satiated utility function: $$U(x,y)=-(x-1)^2-(y-2)^2$$ where $U(x,y): \, \!R^n_+ \rightarrow \!R $ The 3D plot of this function is an infinite paraboloid; ...
4
votes
3answers
149 views

Binary Relations for Cobb-Douglas

I am reviewing old midterms to prepare for my upcoming midterm and ran across this question: Let $\alpha , \beta \in (0,1)$. Now, let $f_{\alpha}$ and $f_{\beta}$ on $\mathbb{R^2}$ be defined as $f_{...
4
votes
1answer
183 views

Canonical set of books covering Bachelors and Masters in Economics?

I am a Physics student and would like to learn some Economics in my spare time. Preferably, I would chronologically go through textbooks which cover entire Bachelors and Masters degrees. For instance, ...
5
votes
1answer
763 views

Convexity of Walrasian Demand

A follow up to my previous question: Given $u(x) = (x_1-b_1)^\alpha (x_2-b_2)^\beta(x_3-b_3)^\gamma$ and ending up with from a maximization that $$x(p,w) = (b_1, b_2, b_3) + (w - (b \cdot p))\...
1
vote
2answers
192 views

Why are European countries happy to be outside Eurozone?

In EU countries like Poland, Czech Republic, Hungary, etc, people are happy that they are not in Euro zone and Euro crises like that of Greece do not affect their economics. However, some European ...
14
votes
4answers
5k views

Is Malthusian theory of population growth being realized?

You probably are familiar with Malthus' Theory of Population Growth. If you are not, Malthusian model has the following mathematically form: $$P(t) = P_0e^{rt}$$ A basic graphic representation is: ...
5
votes
1answer
3k views

Linear Expenditure System of Demands, Derivation Help

This problem I am working on comes out of--surprise--the Mas-Colell book for graduate micro (3.D.6). I think I have correctly used the FOC of the Lagrangian of the utility maximization problem to ...
0
votes
2answers
2k views

How interest rates affect investment [duplicate]

We know that a rise in real interest rates will cool down the economy in terms of investments. An increase in interest rate will provide higher incentive for saving rather than consumption. So people ...
3
votes
1answer
54 views

“Tightness” of political elections and public attention

Are there any empirical studies on political elections that focus on the "tightness" of the race and how much attention the election receives from the public (or perhaps voter turnout). By "tightness"...
3
votes
1answer
10k views

Why does marginal cost (derivative of total cost) differ from variable cost at each level?

Why does the marginal cost equation (as the derivative of total cost equation) make predictions of variable costs that are very different from costs calculated using the Total Cost equation? Marginal ...
3
votes
1answer
291 views

Can holding interest rates at zero (ZIRP) for a very long time cause the deflation it is trying to prevent?

The fisher equation is nominal interest rate = real interest rate + inflation rate. If nominal interest rate is kept to zero, and real interest rate remains ...
4
votes
2answers
452 views

Sum of Homothetic Functions

If two utility functions represent homothetic preferences, will their sum also be homothetic?
0
votes
3answers
134 views

Logic Fallacy in a single government purchase creates infinite GDP?

Suppose the government increase its spending by $100 million. And suppose we are talking about intermediate level macroeconomic class. Let the marginal propensity to spend be 0.5. Now the total GDP ...
2
votes
0answers
17 views

What is the chain of events that occur when oil price drops that makes the Canadian dollar lose value? [duplicate]

A large part of why the CAD has been weakening (against the USD) is because the value is crude oil has been falling, and Canada is a big exporter of oil. But this oil doesn't belong to Canada. It ...
2
votes
0answers
88 views

Did I do something wrong in calculating the market equilibrium?

Sorry for asking such a silly question, but something seems odd about my answer to this question: Suppose that two consumers, Jeff and Walt, are the only consumers in the market for carrots. Jeff’...
2
votes
1answer
43 views

Is there a term for an externality in which prices for a good go up due to consumers being subsidized to purchase or consume that good?

Is there a term for an externality in which prices for a good go up due to consumers being subsidized to purchase or consume that good? So for example, let us say that the government covers part of ...
6
votes
2answers
7k views

Concave production function implies convex cost function

Let's assume we have an increasing production function $f:\mathbb{R^+} \to \mathbb{R^+}$ Now, assume this production function is concave and that the price of input z is fixed (this is a single-input ...
2
votes
1answer
58 views

What should the value of a private sector company tell us? [closed]

At the highest level, would you say that regardless of market/economic environment (free/regulated), a company's value should reflect its ability to efficiently and effectively bring products and ...
1
vote
0answers
193 views

Testing Tobin's q theory predictions

I'm reading this great intermediate level macroeconomic book by Carlin and Soskice, and on page 31, when discussing the empirical studies testing the Tobin's q theory to explain the behaviour of ...
1
vote
2answers
79 views

Proving or disproving hypothesis?

I took statistics class years ago in my college and I don't remember much of it now. I am into public policy research now and I am bit confused about about what conclusion to make from available ...
4
votes
0answers
76 views

Why is poverty worse in larger cities?

In inner cities in the US there is more poverty (as a proportion of the population) than in mid-sized cities or small towns. Do we have a definitive answer as to why this is?
1
vote
0answers
36 views

Amazon's 1-Click Check Out : any feedback? [closed]

Does anyone have feedbacks or analysis on Amazon's 1-Click Check Out ? Any numbers about the conversion rates (before/after using the 1-click checkout button) , etc. ? This page is about a $300 ...
4
votes
1answer
858 views

What does n stand for in the taylor rule?

I was asked what the relationship of $\bar m$ and $\bar n$ are with the taylor rule. Using $\bar m$'s definition which is the sensitivity of real interest rate to inflation in a market's monetary ...
2
votes
2answers
206 views

Uniqueness of utilities in competitive equilibrium

Suppose several traders are given some initial endowment of goods. Then, a free market opens and they trade until the market is at a competitive equilibrium. Each trader now has a final utility which ...
5
votes
1answer
620 views

How to measure Tobin's q?

How do people calculate Tobin'q empirically? Does anyone use it to make investment decisions? In particular, the version I learnt has no company debt involved with only capital under consideration, ...
0
votes
1answer
2k views

How to derive a marginal cost curve [closed]

Provide a mathematical proof for the general result that, given a linear average curve, the corresponding marginal curve must have the same vertical intercept but will be twice as steep as the average ...
1
vote
0answers
26 views

References for “Capturing value”

I have seen in several places references to "capturing value". For example: Value Creation vs. Value Capture Work on Stuff that Matters: First Principles I think that such considerations are ...
4
votes
5answers
270 views

Where are the payments for export in the balance of payment?

I know that when we sell some goods abroad, we credit Goods&Services part within Trade balance, which is a part of Current Account. What part of the Financial Account is debited with the sum ...
1
vote
1answer
2k views

What is the economic meaning of a differentiated variable cost function [closed]

Given the total cost function $C(Q)=Q^3-5Q^2+12Q+75$, write out a variable cost function. Find the derivative of the variable cost function and interpret the economic meaning of that derivative. Note:...
1
vote
2answers
61 views

The notion of price

Typically in market clearing, the supply and demand (ask and bid) curves meet at a certain point, and the projection of these curves creates a quantity and price. Does this price have a deeper meaning ...
5
votes
1answer
2k views

Stone-Geary utility function, derivation of Marshallian demand

I am reading a paper on structural change. It has three sectors and it features non homothetic utility function, namely a CES with some thresholds for the consumption of the three goods. The UMP is as ...
1
vote
0answers
29 views

Python package for discrete preferences

Do you know of a package allowing to create objects representing agents with (strict) preferences over (a finite set of) discrete objects $A,B,C,…$, and profiles thereof. A minimal requirement would ...
4
votes
2answers
571 views

Bayesian vs. Frequentist Approach

I hope this question is not too general in nature; I just wanted to ask the members of this community their opinion on the following question: How can one choose between the Bayesian approach and the ...
3
votes
3answers
136 views

Solow model reparations

I have the following task: At some moment of time (1953), the government of a country (Israel) signs an agreement with another country (West Germany) stipulating that West Germany would pay ...
1
vote
0answers
105 views

Why might a country with a budget surplus continue issuing bonds - ie borrowing?

Some argue that if a government runs a budgetary deficit, it is a drag on the public finances because taxpayers must fund interest payments to external creditors. If the interest payments were an ...
3
votes
1answer
1k views

Shadow Price vs Marginal Cost

Is there a difference between the two? If so can you intuitively explain it? I see internet resources saying these are equivalent, but I thought I remember someone telling me once shadow price was ...
6
votes
1answer
2k views

Prove the budget correspondence is upper hemi-continuous

Let $p \in \mathbb{R}_+^L$ be price vector and let $w \in \mathbb{R}_+$ be wealth of the consumer. Define the Budget correspondence $B(p,w) =\{x \in \mathbb{R}_+^L : p\cdot x\le w \}$ . How to prove ...
4
votes
1answer
280 views

Calculating mean variance portfolio with risk aversion parameter

I want to calculate the classic mean variance portfolio (Markowitz) with a risk aversion parameter $\gamma$. I have the following problem where I want to maximize: $max(x_t) \ \ x_t^T\mu_t - \frac{...
1
vote
1answer
150 views

Concept of absolute advantage

Can someone please explain the concept of absolute advantage with an example? I know it has to do with the fact that a nation should produce a commodity that is cheap relative to other commodities but ...
2
votes
1answer
122 views

Measuring demand for banking services - (Maximum) Market Size

I am in need of a variable measuring "demand for banking services" in general, on a country level. Specifically the (maximum) size of the market for banking services for a given country. This will be ...
6
votes
1answer
16k views

Differences between Hicksian and Slutskian approaches

When deriving the substitution effect for both Slutskian and Hicksian definitions, a 'phantom' budget line is drawn.However, for a Slutskian definition, the 'phantom' budget line is drawn parallel to ...
5
votes
2answers
3k views

Is fisher equation a definition, identity? Or is it rather a very good estimate

So let us agree that the fisher equation is $1 + i = (1 + r)(1 + \pi).$ Is it a definiton or good estimate. Intuition tells me this make so much sense and almost qualify as an equation that must hold. ...
6
votes
1answer
257 views

Nash social welfare function with negative exponential utilities

I got one question about the Nash-SWF. Typically it is defined as the product of individual utilities, ie. $$ NSWF:=u_1(x_1) \cdot u_2(x_2) \cdot u_3(x_3) \cdot ... $$ For this to make sense, ...
1
vote
0answers
86 views

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth. I was reading through a textbook and saw that the devaluation of a nation's ...
7
votes
2answers
252 views

Throw-away paradox with independent goods

The throw-away paradox is a situation in which a trader can gain by throwing away some of his initial endowment. The specific example, brought by Aumann and Peleg in 1974, concerns an economy with ...
4
votes
2answers
1k views

Existence of solution to maximization problem

I'm a first year grad student and we're learning about the utility maximization problem and the producer's problem now. We have been assuming that a solution to these problems exists. But every now ...
2
votes
1answer
103 views

How can you tell if any given preference structure is continuous or not?

From a given preference structure (not the utility function), how can one tell if it satisfies the continuity axiom of preferences?

15 30 50 per page
1
167 168
169
170 171
202