# All Questions

8,447 questions
Filter by
Sorted by
Tagged with
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 ...
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 ...
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?
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, ...
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-...
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. ...
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 ...
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 ...
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.
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 ...
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 ...
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?
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 ...
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 ...
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 ...
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.
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 ...
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 ...
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, ...
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?
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. ...
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 ...
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 ...
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 ...
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 ...
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?
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 ...
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 ...
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 ...
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 ...
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? ...
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 ...
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.
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 ...
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 ...
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 ...
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 (...
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 ...
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 ...
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 ...
27 views

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 ...
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 ...
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 ...
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 ...
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 ...
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: ...
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-...