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10 views

Volatility measure in Diebold-Yilmaz connectedness approach

I am trying to create Diebold-Yilmaz connectedness table for returns and volatilities. When I do it for returns everything works properly (I can reproduce their work actually) but for volatilities I ...
-1
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1answer
50 views

Consequences of removing hard currency [on hold]

If an appropriate electronic system were implemented governments would know how much money there is in circulation, who has it and if some illegal transaction has been done. This measure could help ...
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2answers
51 views

Indifference Curves and Preferences

Why are averages preferred to extremes on the same indifference curve? Doesn't everything along an indifference curve have the same preference?
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2answers
36 views

Difference between Engel curve and income expansion path

I was scrolling through many questions on this site about income offer path and it appeared to me that income offer path, income expansion path, engel curve all are different terms with same meaning, ...
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0answers
13 views

List of important business and economic news events between 1850 and 1930?

I'm collecting data on important business and economic news dates in the late 19th to early 20th century. The only list I found is this: https://www.encyclopedia.com/history/news-wires-white-papers-...
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1answer
25 views

Rent dissipation meaning?

What is Rent dissipation? Please explain with an example. I tried to search it on the internet about it. And I couldn't find anything in simple language. It was the esoteric language and was unclear. ...
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0answers
13 views

How to I find some of the most basic US State-level economics (survey) data for each year?

Some of the variables that I am interested are the state-level GDP, population, income, saving, consumer spending, employment, investment, industry share, RD investment, etc. I've tried the US census ...
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0answers
24 views

Expected Inflation and its results

I was reading a macroeconomics textbook and found two statements which seem kind of contradictory so I wish to ask how to correctly interpret this. “When expected inflation is high, people increase ...
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0answers
7 views

Regarding exchanges (crypto exchanges or equity exchanges) is there a reason Vickery auctions (second price sealed bid auctions) are not used?

Is there any benefit to the current choice of auctions in exchanges or conversely any reason why no one has used Vickery auctions in equity exchanges. I know they're used in ad auctions.
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1answer
22 views

How to calculate the risk-free rate of cryptocurrencies?

For a conference I need to show the Sharpe ratio's of bitcoin portfolios using different trading strategies. To calculate the Sharpe ratio, I need the Bitcoin's risk-free rate. Risk-free rate for ...
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1answer
31 views

Is solving unemployment impossible?

Supposing that there in island. The island is barron except for a machine that makes food. Let us suppose that people want for nothing else. At first the machine requires the whole population to ...
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0answers
51 views

Is “laissez faire capitalism” what was practiced in economies before the advent of capitalism? [duplicate]

Is "laissez faire capitalism" what economies were before the advent of capitalism?
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1answer
26 views

Alternatives to avoid sanctions

Recently we saw that EU and Iran devised an instrument called INSTEX to avoid dealing in dollars and hence avoid US sanctions. Similar thing is being planned between India and Russia (regarding S-400 ...
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1answer
19 views

Coefficient omitted because of collinearity

I have a panel data that includes a decade of firm-year observations (1995- 2005). These companies are from different countries. A law has passed in (almost) every country at different points in ...
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0answers
42 views

Covariance between regression coefficient and residual

Given regression equation Y=Xβ + ε which satisfies all classical assumptions including those of homoscadasticity Estimated regression equation using OLS is the following - Y=Xb + e Where, b is ...
-2
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0answers
17 views

Will a golden rule level of capital exist if the production function does not satisfy INADA conditions? [on hold]

I am trying to think about a generalized form of Golden rule level of capital.
3
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1answer
41 views

Dealing with Missing Values in Diff-in-Diff Estimation

To preface this, I am asking this question on the Econ SE because I was made aware on Cross Validated that Difference in Difference estimation is quite an economics specific method. The picture above ...
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0answers
13 views

How did the purported 2008 decoupling of emerging markets pan out?

One opinion voiced (in The Economist) around the 2008 recession was that: Decoupling does not mean that an American recession will have no impact on developing countries. That would be daft. The ...
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0answers
16 views

Historically has the “decoupling” of world trade from GDP not lead to (or deepened) a recession?

The ECB speaks (somewhat euphemistically, in my opinion) of a "decoupling" of world trade from "activity" (i.e. GDP) in Q1 2019: Historically, has it been the case that such a "decoupling" can last, ...
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1answer
17 views

Interest rate - Price of Credit vs Price of Money

I read somewhere that interest rate as the price of money is wrong but rather it is the price of credit. Can someone elaborate and explain what this means?
3
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0answers
33 views

Unique Nash-equilibria in multi-unit auctions with uncertain participation

Setup Consider a one shot sealed bid multi-unit auction where $N$ bidders compete for $K$ identical objects and each bidder $i$ has demand $d_i\in \{1,\dots,K\}$. Bidders receive private i.i.d. ...
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0answers
20 views

Link between recession and decline in investments

I recently followed MIT online lectures for economy and I found this - one of the reason for investments decline in recession is bad expectations about economy -----> leading to Higher capital output ...
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0answers
9 views

How to determine the first bid for a Double-Bounded Dichotomous-Choice Contingent Valuation model?

I'm very new to the survey format of double-bounded dichotomous-choice for contingent valuation, so I apologize for my naive question. Could you please let me know how a researcher decides the initial ...
2
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2answers
40 views

Comparative data on agricultural subsidies

Where can I find data on the agricultural subsidies of each country, ideally in a comparable fashion? I've googled without success. I hope there are some experts on this forum that can direct me to ...
2
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1answer
43 views

Is loss in tax revenue a negative externality?

I was thinking about how online gambling could cause numerous governments to face a reduction in tax revenue from conventional gambling, upon which taxes do apply in most countries. If governments ...
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1answer
110 views

What would the indifference curve of min{√x,y} looks like?

The locus of kinks would follow x=y^2 but what would the arms look like?
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0answers
16 views

Investments during recession

During Recession, banks loans decrease which leads to financial constraints and ultimately Investment suffers and declines. my question is - "Are loans lower because of demand or supply?" My ...
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0answers
13 views

Relationship b/w consumption & increase in interest rate

Please help me clarify this- Case 1 - If interest rates increase then people will save more to reap the benefits and will cut down on their consumption(C) so Consumption will fall. Case 2 - Due to ...
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0answers
7 views

Designing the payment function in Mechanism Design problems

Suppose we have a network in which agents request access to its resources. Thus we have a resource allocation problem. Ideally, we want to incentivize agents to send social-welfare supporting ...
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0answers
26 views

Are fair societies always unstable? [closed]

I was thinking about land ownership and whether this is a good or bad thing. What I usually do in these circumstances is try and reduce the question to it's simplest form. So I imagined an island ...
0
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1answer
38 views

Fall in share due to litigation

Recently, I read a news article stating Indiabulls Housing Finance shares plunges on reports of litigation against company Why do shares plunge when company finds itself in a litigation process? ...
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0answers
20 views

How to run Panel data analysis when data on the dependent variable is on a 5 year interval basis and that on independent variable is on yearly basis?

I am reading a paper which empirically tests if primary exports affect education attainment in LAC countries over the period 1965 to 2010. It uses percentage of secondary school enrollment as ...
0
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1answer
51 views

A case where the solution to Expenditure Minimisation Problem is not a solution to Utility Maximistion Problem

I am looking for a preference relation which satisfies the above property.
3
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2answers
160 views

Why has M1 grown a lot faster than M3 after the financial crisis?

While the fed has printed a lot of money the last decade and the M1 money quantity growth rate has gone up significantly (red), the M3 growth rate (blue) is almost exactly the same as before the ...
1
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1answer
35 views

Why does trade depress relative wages?

I've read that increased trade tends to decrease relative wages of labor. What is the intuition behind this? Lower wages in labor imply lower demand for workers, but doesn't trade just encourage ...
0
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1answer
31 views

Most profitable conversion of stock into money

When Forbes-lists of top billionaires are published we are usually aghast of their riches and statements such as "the 8 richest people own as much as the poorer half" are disseminated. I was ...
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0answers
43 views

Minimizing the error: Transforming dependent variable

As given in the picture, question ask us to transform dependent variable, by premultiplying with a weighting matrix W, (which will change the regression coefficient into C'β) such that the expression (...
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0answers
24 views

Is current inequality comparable to Communism?

This graph says the top income was 5% under Stalin. However- There were no real taxes in the USSR. The current vat and income tax take about half of income. A lot of that is capital gains, which is ...
4
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2answers
64 views

Set Theory Properties of the Budget Constraint

In Microeconomic theory, the budget constraint is defined by 4 distinct properties: It is Bounded Closed Convex Non-empty The 1. 2. and 4. are very straight forward and the benefits in terms of ...
1
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1answer
50 views

What is the upper limit of circulating money on earth?

I've come up with this question while discussing the topic of customer-perceived value with coworker. Is there a theoretical upper limit to all circulating money in this world? To avoid inflation ...
-1
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1answer
27 views

If a firm produced 100 pens with a market value of $1 each, but only 50 were sold, what is the value added to the GDP? [duplicate]

Is it 100 dollars or 50 dollars? I'm assuming it is $100 because GDP is the total market value of all final products. Is this correct?
2
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2answers
48 views

Explanation for Mundell-Tobin Effect

Apparently, Mundell and Tobin used different methods to explain the Mundell-Tobin effect (which means that in general higher inflation increases the nominal interest rate, but decreases the real ...
1
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1answer
17 views

Monopolistic Competition- productive efficiency

In my textbook, it says that monopolistic competition will never lead to productive efficiency (where $MC=AC$) in the short run and long run. I understand that they are meant to be producing at the ...
0
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1answer
54 views

A hypothetical question on neutrality of money

Let's assume that we start with an economy producing two goods, A and B, with each priced $100. Each good is weighted using the same quantity, so CPI equals 100. Nominal wage is also 100 dollars. An ...
3
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1answer
59 views

Macroeconomics v Microeconomics

Microeconomics concepts greatly help us to understand the broad aggregates which are used in Macroeconomics to understand the overall functioning of an economy but are there any ways in which ...
1
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0answers
17 views

One Week U.S. GC REPO Bid Rate Exceeds Ask Rate

I have recently downloaded a time-series of one-week U.S. Generalized Collateral Repurchase Agreement Rates from Bloomberg (Ticker: USRGCY1Z CURNCY). While looking through the data, I noticed that the ...
-1
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2answers
167 views

Opportunity profits vs. opportunity costs

Having learned that Opportunity costs = the costs for avoided profits are a well established and quite useful economic concept, I wonder how its counterpart is officially called and investigated: ...
5
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2answers
75 views
+100

Why is the Australian dollar, often viewed by traders as a proxy for the Chinese economy?

The Australian dollar, often viewed by traders as a proxy for the Chinese economy, gained 0.3 per cent against its US counterpart. From: https://www.ft.com/content/b18d1c56-cf75-11e9-b018-...
0
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0answers
16 views

Recapitalization of Banks

If a government decides to recapitalize banks then will that come under government expenditure and show up in GDP or will it be a transfer payment and stay outside the GDP? and why? In short, Is the ...
0
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0answers
17 views

What are the statistical tests I need to perform before I regress GDP on multiple variables?

I'm using data over 10 countries for the period 1975 to 2010. My objective is to check if the chosen regressors have significant effect on GDP. I have very basic knowledge of econometrics which I ...

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