All Questions

Filter by
Sorted by
Tagged with
0
votes
0answers
23 views

Cardinal Voting, Incentive Compatibility and Secrecy

Is there any available/feasible/practical way to make a Cardinal Voting both Incentive Compatible and Secret? A method to make a cardinal voting incentive compatible would be to force them to put ...
2
votes
1answer
17 views

Which market category does this sustainable product belong to?

I'm currently working on an assignment, which is making an export plan for a product aimed at Asia. However I can't define the market of my product. My product is basically an artificial riverbank; ...
0
votes
1answer
22 views

What prevents a government to issue debt to finance riskier investment?

Germany's government has a 10Y bond yield of -0.336% (http://www.worldgovernmentbonds.com/country/germany/). Meanwhile, Brazil has a 10Y bond yield of 6.415% (http://www.worldgovernmentbonds.com/...
2
votes
0answers
12 views

Economics of Health Textbook Recommendation

Was wondering if anyone who has taught a class on health economics could give some background on which textbook they used for their class and why. It seems like "Healthy Economics" by Bhattacharya, ...
1
vote
1answer
26 views

Negative correlation conditional variance and return

I've estimated a GARCH for S&P 500, Nikkei and DAX index. The model for the return of S&P 500, the results indicate the return of DAX has an negative effect on the S&P 500 conditional ...
0
votes
0answers
10 views

Why does Canada have only half the taxes of the UK in the OECD NTCP data?

This data sums taxes with healthcare contributions, private or not, so not surprisingly the US scores high on that measure. But why is Canada so suspiciously low? I mean Canada has less than half (11....
1
vote
2answers
43 views

When everyone sells at an event of a recession, who buys?

I'm trying to walk through and understand the basic events of the great depression. I understand that at one point (Black Thursday) the news of a downfall of stock prices hit investors, so they ...
0
votes
0answers
9 views

Forward Currency Exchange

Could anyone help me understand the forward bid and ask for PLN/RON for the next 3 months. I know : Bid - Ask EUR/RON 4,7261 - 4,7309 CAD/RON 3,2302 - 3,...
2
votes
0answers
19 views

Linking creeping inflation to industrial revolution

The russian wiki on price revolution says Ползучая инфляция стала тем стимулом, который привёл в конечном итоге к промышленной революции, which translates to in the end result, the creeping inflation ...
0
votes
2answers
41 views

What is equilibrium dependent upon in Generalized Second-Price Auctions?

Theory states that GSP auctions induce truthful bidding. Is it the case that this is true ONLY IF a) each of the bidders truthfully bids their value ($b_i = v_i$) (each bidder's optimal strategy) ...
1
vote
1answer
38 views

Why can we write any lottery as a convex combination of the degenerate lotteries?

I know that a degenerate lottery is a lottery that yields outcome $n$ with probability $1$ and I also know the definition of convex combination: given $x_{1},x_{2}, \cdots ,x_{n} \in \mathbb{R}$, a ...
0
votes
0answers
33 views

Modeling market growth, without compound interest or regression

I am working on predicting the growth of a certain market. Traditionally, this is done through a simple compound interest model: $$ ThisYear'sMarket * (1 + g)^n $$ What would be a better way to ...
4
votes
3answers
81 views

What's the opposite of a Pareto improvement called?

Wikipedia defines a Pareto Improvement, "given a certain initial allocation of goods among a set of individuals" as: a change to a different allocation that makes at least one individual or ...
0
votes
2answers
33 views

What is 'repo' in banking

I keep hearing about repo rate etc. But this question is not what is the repo rate. It is: What is a definition of 'repo' ?
0
votes
1answer
26 views

Question Regarding Equilibrium Price & Surplus

So here's an example of a standard Supply & Demand Relationship for an Individual Supplier: As a supplier, for 1 dollar, I'll produce 1 unit of something. For 2 dollars, I'll produce 2 units, for ...
0
votes
0answers
44 views

How much do the concepts and methodologies of GDP, CPI, PPP overlap?

Indicators of greatest importance in macro-economics are: the gross domestic product (GDP → comparison and growth of wealth) the consumer price index (CPI → inflation rate) purchasing power parity (...
-1
votes
1answer
17 views

How to maximize total revenue on constant elasticy curve

So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should ...
1
vote
1answer
16 views

Papers on the rate of returns for government-run pension plans

I'm looking for papers studying the implied rate of return for various government pension programs around the world. Both historical and expected returns. Or any study that looks at the taxes for the ...
1
vote
1answer
21 views

Meaning of Exchange rate

Does exchange rate of local currency relative to US dollar mean LOC/USD or USD/LOC ?
1
vote
1answer
62 views

Equity-efficiency tradeoff examples

What could be an example of equity-efficiency tradeoff in healthcare, social protection or defense? For environment I did think of pollution permits that can cause geographical differences in ...
0
votes
1answer
63 views

Does quasi-concave utility function imply convex indifference curve?

It is well-known that convex indifference curve (i.e. the function is convex)/ preference would imply quasi-concave utility function. But does quasi-concave utility function imply convex indifference ...
0
votes
0answers
19 views

How does definition of “price equilibrium with transfer” also include the case for the definition of “walrasian equilibrium”?

According to MWG and this answer, walrasian equilibrium is a special case of price equilibrium with transfers. However, since wealth distribution is predetermined in walrasian equilibrium, would it ...
2
votes
1answer
27 views

Congruence of GDP as calculated by production and by consumption

Here I've read the following (translated by Google) GDP can be calculated in two ways: firstly, by origin, that is, by estimating the value of all goods and services produced, and secondly by ...
0
votes
2answers
34 views

Why does average variable cost = marginal cost for this function?

I was hoping someone could explain the following. Suppose the short-run total cost function is TC = 50 + 12Q. Which of the following statements is true at all levels of production? The correct answer ...
-2
votes
0answers
14 views

Labor Economy Question [closed]

Assume skilled TRNC citizens have a relatively easy access to the job markets in UK, EU, Australia and Canada, while the access of unskilled TRNC citizens to those markets is more limited and wages in ...
-1
votes
1answer
48 views

How to prove the relationship between the expected value of a lottery and its certainty equivalent?

Utility function $u(x)$ is monotonic. I want to prove that $u(x)$ exhibits risk aversion if and only if for all lottery $F$: $E(x) \geq CE(F,u)$ (CE is certainty equivalent). (Definition of $CE$: the ...
3
votes
1answer
47 views

Is a 6% wealth tax a sustainable source of income?

Elizabeth Warren is planning to pay for various things with a 6% wealth tax on those with fortunes in excess of $1B USD. Now, right or wrong, this seems to be an awfully big annual scoop from a ...
0
votes
0answers
27 views

Special case for wealth allocation with quasilinear utility functions

Building on this question, regarding the answer from Bkay: Is it a general statement that when $m < \frac{p_y^2}{4 p_x}$, all income will be allocated to $x_M$? What about the case when the ...
0
votes
0answers
19 views

How to prove that the substitution effect is negative when price of another good is changed?

In Slutski equation, we have: $$\frac{\partial x_i(p,w)}{\partial p_j} = \frac{\partial h_i (p,u)}{\partial p_j} -\frac{\partial x_i(p,w)}{\partial w}x_j(p,w)$$ If $i \neq j$, the substitution effect ...
0
votes
1answer
16 views

Individual Firm and Market Demand Curve

In Section 10.2, Monopoly Power, in Pindyck's text on Microeconomics, an example says that suppose $N$ firms produce a particular product and the market demand curve is $P = -aQ + b$. An individual ...
0
votes
0answers
22 views

How to determine if two individuals having to make equal contributions for a public good would lead to the efficient quantity?

Consider an economy with two consumers, Ben and Joe. There is public good in this economy in a form of tornado sirens. Ben’s demand for tornado sirens is given by P = 10 − Q, and Joe’s demand for ...
4
votes
2answers
84 views

Are there any examples for $u(x_1, x_2) = \max\{x_1, x_2\}$ in real word?

I know how its graph looks like, and it's like when you want to choose between 2 inferior goods you choose the cheaper one so you can have more, but is there another examples?
0
votes
1answer
10 views

Does Medicaid or Medicare represent a higher risk to the Federal Government Solvency and Debt going forward?

I'm trying to understand not only which program is expected to be larger in terms of costs, but which one has the least capacity to adjust (reduce benefits if revenues for the program fall).
1
vote
1answer
20 views

Does a negative interest decrease the money supply?

If there is less money, its value increases. There is less liquidity when there is less money. Does a negative interest decrease the money supply? Especially when people don't need money: they saved ...
0
votes
1answer
20 views

What does 'currency convertibility' mean?

As a student with almost zero background in economics, I've been struggling to comprehend the notion of the currency convertibility. Most of the definitons I've found online talk about the ease with ...
2
votes
0answers
25 views

Software used for solving demands of different functions

I'm currently doing some research on demand systems and have been experimenting with different underlying utility functions which will generate different systems of demands. However I've been doing ...
1
vote
1answer
23 views

Tendency of the rate of profit to fall

https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit_to_fall The tendency of the rate of profit to fall (TRPF) is a hypothesis in economics and political economy, most famously expounded by ...
0
votes
1answer
29 views

statistics about loaning tradeoff

It is very likely that Banks have more loans that have been repaid compared to loans that have not been repaid. Otherwise the bank would lose money instead of money. (otherwise the bank will go ...
0
votes
0answers
13 views

Forward exchange rates and inflation

Looking at forward rates, the exchange rate for the currency with the higher interest rate gets worse over time. This makes sense or else there would be an arbitrage opportunity to borrow in the low ...
0
votes
0answers
9 views

Japanese savings glut vs capital adequacy issues in 1990s

If Japan had a huge savings glut in the 1990s, even during the financial downturn years, why were traditional banks and lenders struggling to meet the new capital adequacy requirements, under the 'Big ...
0
votes
0answers
29 views

Understanding a Keynesian point of view

The statement is - Inflation is caused by independant cost push factors and causes an increase in money supply .This is from the Keynesian school of thought.How would cost push factors ,say an ...
0
votes
0answers
8 views

Is there a specific test for this procedure? (NKPC and coefficient stability)

I'm running a GMM regression in order to estimate a New Keynesian Phillips Curve, with forecasting purpose, and i want to know if there is a testing procedure for the following problem: (i) First i ...
1
vote
1answer
22 views

How is the utility function with constant relative risk-aversion obtained?

In this slide, it says that constant relative risk-Aversion utility function have this form. $u(x) = \frac{1}{1-b} x^{1-b}$ for $b≠1$ $u(x) = In(x)$ for $b=1$ When I tried to derive the utility ...
0
votes
1answer
38 views

Economics Optimal bundle [closed]

Kanghyock has preferences given by $U(x, y) = 3xy + 2x + y^2$, and an income of $I = 102$. Prices are given by $p_x = 1$, $p_y = 2$. Solve for his optimal consumption bundle. What happens to his ...
0
votes
1answer
30 views

Empirically checking efficiency and equity

I am aware that because of externalities or public goods (or for other reasons) there can be no allocative efficiency on the market. I am also aware that policy makers' subjective judgement of the ...
0
votes
1answer
13 views

Relation between foreign currency reserve and exchange rate and others

What is the relationship between foreign currency reserve(USD) of a country with it's exchange rate (against USD), and also with export and import strength ? And if it's too complicated to explain, ...
1
vote
1answer
48 views

Solving Euler Equation for standard DSGE Models

I am studying a rather standard DSGE Model with a standard Utility function $U = f(c_t, n_t, M_t)$ subject to a budget constraint. Now, tosolve the intertemporal optimization problem I have, or ...
0
votes
0answers
11 views

calculating quarterly rates from

What is the "normal" way to calculate quarterly rates OR Prices. E.g. calculate the quarterly Oil Price, if I have the monthly data? I suppose simply taking the average of the three months isn't the ...
0
votes
0answers
13 views

Interest rate in the Ramsay-Cass-Koopmans model in a closed economy

I am struggling to understand the optimal choices of firms in the Ramsey-Cass-Koopmans model. Specifically, everywhere I see there is the following optimality condition for the interest rate, $r_{t}$, ...
1
vote
0answers
29 views

Two different definitions for a Complete Relation

Many sources show this definition for completeness of a relation $$ \forall a, b \in A, a \neq b, (aRb) \text{ or } (bRa) \tag{1} $$ Others show only $$ \forall a, b \in A, (aRb) \text{ or } (bRa) \...

15 30 50 per page