All Questions
15,883
questions
1
vote
0
answers
25
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Regression coefficients interpretation
Can anyone help me with finding out the computations for reaching this conclusion?
"In terms of magnitude, the point estimate implies that going from the average of 8% blacks in the same-gender ...
- 69
-1
votes
0
answers
35
views
Is the Accursed Share hypothesis respected among academics or practitioners?
Batallie, a French philosopher of all things, put forward a famous (at the time) theory known as The Accursed Share.
A few lines from the treatise, characterizing his position:
I will simply state, ...
- 1,109
1
vote
1
answer
33
views
Hausman test from Wooldridge (adding level variables)
Wooldridge's graduate textbook (p.285) says that:
We can formally test the assumptions underlying the consistency of the FE and FD estimators by using a Hausman test. [...] If T = 2, it is easy to ...
- 59
0
votes
0
answers
24
views
Why do sweep accounts not inflate prices at the end of the business day?
From investopedia, sweep accounts are defined as
a bank or brokerage account that automatically transfers amounts that
exceed a certain level into a higher interest-earning investment
option at the ...
1
vote
1
answer
60
views
Convex to origin - precise definition
This question asks about what "convex to origin" means. IMO even though there are half a dozen answers, they are all unsatisfactory. So in this question I ask for a precise definition of &...
- 29.5k
0
votes
0
answers
20
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Sequential Bertrand competition Nash equilibrium when marginal costs are zero
How do I find the Nash equilibrium in sequential Bertrand competition between 2 firms if both their marginal costs are zero?
1
vote
1
answer
62
views
Find the Pure Nash Equilibria in this Two-Player Strategic Game
Players 1 and 2 are involved in a joint project. Each player i independently chooses an effort $c_{i}$ that can be any number in the interval from 0 to 1;
that is, $0 \leq c_{1} \leq 1$ and $0 \leq c_{...
- 15
0
votes
0
answers
36
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Chan Park - Fundamentals of Engineering economics - 1st edition - Chapter 5 - Present value - 5.8
hope I could ask some help around here. I'm working with Chan S Park book Fundamentals of Engineering Economics, 1st edition. I'm in the problem 5.8, page 171. Which states:
``Your firm is considering ...
1
vote
1
answer
46
views
Finding Utility Function for Optimal Allocation in Consumer Choice Model
I'm working on a consumer choice model involving a consumer with one good and a numeraire. In this model, the price of the numeraire is assumed to be one. My objective is to identify the utility ...
- 11
3
votes
0
answers
29
views
Labor augmenting technological progess and its relevance
Can you provide a proof showing why balanced growth requires technological change to be labor-augmenting in the neoclassical growth model?
- 177
2
votes
1
answer
67
views
Production function in Solow Model
I was studying about the Solow Model from Acemoglu. One of the properties of the production function $Y = F(A,K,L)$ is that it exhibits diminishing marginal products. That is, $F_{KK} < 0$ and $F_{...
- 25
1
vote
1
answer
39
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Derivation from Solow-type neoclassical growth equation?
In Chapter 6 of the 12th edition of "Economic Development" by Michael P. Todaro & Stephen C. Smith, an equation is introduced to illustrate the consequences of rapid population growth, ...
2
votes
0
answers
17
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Marginal Costs of Supplying Space to Space Market and the 4Q Model - Property Investment
In analysis of the Property Investment Market Supply and Demand Curve, the Supply Curve is kinked, reflecting the high inelasticity of supply in the short run. The Supply Curve rises after the Kink, ...
- 21
1
vote
1
answer
24
views
Diff-in-diff and ATE vs ATT
I understand that the coefficient of the interaction term in a standard diff-in-diff model is the average treatment effect on the treated (ATT). But I was wondering how/when we can derive the average ...
0
votes
0
answers
19
views
Is there an estimation about the monetary conseuqences of the distrust of the markets caused by the freeze of the Russian assets?
I think already the news of the frozen Russian assets (and the possibility of its nationalization to the Ukrainian government) caused some distrust on the market. If the probability of that the bank ...
- 101
4
votes
3
answers
98
views
What kind of utility function is needed to derive a "Backwards Bending Labor Supply Curve"
The idea of a backwards bending labor supply curve is often discussed in many introductory labor economics classes where a consumer's labor leisure decision at higher wages (due to a diminishing ...
- 8,345
2
votes
1
answer
55
views
what portion of US consumer spending that is debt-financed (looking for data source)
In a piece from Business Insider, we read:
US households today have a savings rate of just 3.7% — way below the historical levels of 9%. Meanwhile, consumer spending exploded by \$208 billion in the ...
- 144
1
vote
0
answers
7
views
GMM panel data in R pdynmc. What's the correct format of missing values?
I have an unbalanced panel with firm level data. Each observation represents a one year of several variables of financial data for one firm. However, while one firm may have an observation for a given ...
- 111
0
votes
0
answers
7
views
1099-int concern, tax filing [migrated]
My credit union issued me a 1099-int for savings bonds that were cashed in 2023. Is it correct to say that box 3 of the 1099-int be the total of the interest earned plus half the face value of the ...
1
vote
1
answer
17
views
Regression with one independent variable bounded for some observations
I am investigating the effect of a policy on land price.
The land is transferred by English auctions. My regression looks like this:
$$
\ln(y)=\beta_0+\beta_1 x_1+\beta_2 x_2+u,
$$
where $x_1$ is the ...
- 11
0
votes
1
answer
22
views
One sided attractors in a one dimensional continuous time system
I am trying to find a (relatively) simple closed formula for a continuous dynamic system where a local asymptotic equilibrium $x^*$ is bracketed by two 'one-sided' attractors $x_l$ and $x_h$. So I ...
- 29.5k
2
votes
0
answers
138
views
Global Asymptotic Stability in the Solow Model - Rigorous proof
Consider the (simplified) Solow equation, which is a first-order non-linear difference equation:
\begin{equation}
k_{t+1} = sf(k_t) + (1-\delta)k_t
\end{equation}
where $s$ and $\delta$ are two ...
- 403
1
vote
0
answers
25
views
Data on average annual hours worked by persons engaged
In Penn World Table 10.0 (source: https://www.rug.nl/ggdc/productivity/pwt/pwt-releases/pwt100), the avh (average annual hours worked by persons engaged) figures are missing for many countries.
Where ...
- 121
5
votes
2
answers
127
views
Why is exponential discounting considered rational?
I have repeatedly heard a claim that only an exponential discounting is the rational one, however I've never seen the proof. Why is it so?
Intuitively, we would expect exponential discount since the ...
- 151
0
votes
0
answers
26
views
A question about a derivation process in gali (2015), chapter 2, equation 20
In chapter 2 of Gali's book, he uses the equation (25):
and combine the "driving processes for technology and preference parameters", inflation can be written as :
I wonder how this new ...
- 1
0
votes
1
answer
25
views
Strict monotonicity implies FOSD under EU?
I think this result is very simple and very useful. However, I find no paper cover it.
Is it on some textbook like MWG?
Strict monotonicity means: $f(s)\succ g(s)$ for all $s$ implies $f\succ g$ and $...
- 281
0
votes
1
answer
36
views
How can I replicate the Kaldor facts?
I have just started to do economic research and I was asked to replicate the Kaldor stylized facts. But I've encountered some problems; specifically, I don't know how I can find such data:
For the ...
- 383
0
votes
1
answer
103
views
Find the Nash Equilibria in this Two-Player Strategic Game
Find the non-randomized Nash Equilibria of this two-player strategic game, in which each player's set of actions is the non-negative real numbers, and the players' payoff functions are:
$$u_{1} (c_{1},...
- 15
0
votes
0
answers
13
views
What are the shifters of demand and supply for loanable funds?
So far what I think is true is that changes in government borrowing and savings behavior shift demand and supply, respectively. I am definitely missing shifters, so I was wondering what they were.
1
vote
1
answer
59
views
What exactly is an exogenous stationary distribution?
All jobs are identical except for their wages, and wages are given by
an exogenous stationary distribution of $F (w )$ with finite (bounded) support $\mathbb W$.
This is from page 6 of https://ocw....
- 113
1
vote
2
answers
42
views
Clarifying question about utility theory and preferences
I am trying to solve this question about preferences and I got into an argument about it. I just want to make sure I am not overlooking something really simple.
What can you tell about the risk ...
4
votes
2
answers
144
views
Definition of economics
What is the accepted definition of economics?
I've read basically two versions, one that defines it as the study of scarcity and the other as the study of how to coordinate human desires given ...
- 41
1
vote
0
answers
40
views
What is a utility function rationalizes these preferences?
For a consumer deciding between goods A and B, with a budget of w:
If A and B are the same price (or if A is cheaper), the consumer will spend their entire budget on A.
As the relative price of A ...
- 640
2
votes
3
answers
156
views
Individual Consumers Representation on the Demand Curve
I recently watched an educational video titled “Understanding the Demand Curve: Shifts and Consumer Surplus”. In the video, individual consumers were associated with specific points on the demand ...
- 143
1
vote
0
answers
19
views
Possibility of recession with high interest rates
From this plot, it seems that every time there is a recession, the Federal Reserve Bank cuts interest rates. This is because money circulation slowing down will lead to a downward spiral and lower ...
- 111
0
votes
1
answer
22
views
Competitive input markets and allocative efficiency
Suppose two firms are operating in a competitive input and output markets. If the two firms' production functions are $(k_1l_1)^{1/3}$ and $(1+k_1)^{-1} (l_2)^{1/2}$ where $k_1, l_1, l_2$ denote the ...
- 25
0
votes
0
answers
32
views
Why do revenue neutral taxes result in a change in behaviour
Suppose we have the following utility function defined over two commodites,
$c_{1}$ and $c_{2}$. The function is:
$$
U\left(c_{1},c_{2}\right)=\ln\left(c_{1}\right)+\ln\left(c_{2}\right)
$$
subject to
...
- 1,633
1
vote
1
answer
53
views
Judge prosecutor example of Kameinica and Gentzkow
Based on Kamenica and Gentzkow example about the prosecutor and the judge. The utilities of the sender and the receiver are $v(\alpha,\omega)=\alpha$ and $u(\alpha,\omega)=-(\alpha-\omega)^2$.
The ...
- 370
0
votes
0
answers
25
views
Good practice in time series tests with different start/end dates
I am testing purchasing power parity on monthly data, in a sample of about 70 to 200 countries depending on which price index / currency pair is used. Would it be considered bad practice to use ...
- 96
0
votes
0
answers
32
views
Non-renewable resources metallic recycling
Why, in the presence of recycling capability, are metallic non-renewable resources eventually exhaustible?
0
votes
0
answers
45
views
Why don't we use model averaging?
Why don't we use model averaging? Sure, the clever econometricians will say that the coefficients are not directly comparable and in theory there is one correct model with that exact set of covariates....
- 1,843
1
vote
2
answers
181
views
Why this optimisation problem cannot be solved with "usual" KT conditions?
I have this optimisation problem:
$$f(x, y, z) = 2xy + yz \qquad \text{subject to} \qquad \begin{cases} x+y+2z \leq 1 \\ x \geq 0, y \geq 0, z\geq 0 \end{cases}$$
I solved it with "a certain ...
- 111
1
vote
0
answers
38
views
Monotonicity of Concave Indifference Curves
I'm doing an intermediate micro course, and we've been given a problem asking to draw curves that correspond to the utility function with the expression of a circle centred at (3,4). I understand that ...
- 11
0
votes
1
answer
38
views
Why was the September 2022 United Kingdom mini-budget so badly received, but not other similar budgets?
I'm not sure if this is an economics question or a political one. I'm posting it here because I'm looking for an economics-based answer.
In September 2022, UK Prime Minister Liz Truss produced a ...
- 1,304
1
vote
1
answer
58
views
Why do multiple investment funds exist?
Say that you are a head of an investment fund. Your goal is to maximise the return on money entrusted to you by investing in various enterprises. You look to your left, and see another investment fund....
- 39
2
votes
0
answers
51
views
Spillovers as test of purchasing power parity
Transformed coefficients of a vector autoregressive model (VAR) with up to p lags or VAR(p) yield impulse responses that can be used to produce forecast error variance decompositions, or spillovers, ...
- 96
0
votes
1
answer
44
views
How to find BNE of the exchange game?
Each of two players receives a ticket t on which there is a
number in [0,1].
The number on a players ticket is the size of a prize that he may
receive.
The two prizes are identically and independently ...
- 1
0
votes
2
answers
156
views
What happens to the British pound if the dollar collapses?
Hypothetically, if the dollar's value collapsed either over night or a fast down hill crash, what would happens to the value of the British pound?
- 111
1
vote
1
answer
39
views
Market as a system versus Market as an institution
Can the concept of the market be considered as a "system" or not? What about "institution"?
What are the scientific articles in this field?
0
votes
0
answers
9
views
IS Curve and AD Relation
Relation between Aggregate demand and Investment saving
What happens to the Investment saving curve when Aggregate demand curve is steeply sloped?
I know that with a higher Marginal propensity to ...
