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any contingent labor and capital demand functions shortcuts for cobb-douglas functions?

for cobb-douglas utility functions, aI/px and (a-1)I/py gives the marshallian demand for x and y. Are there any parallels for cobb-douglas production functions, q = x^a * y^(1-a) ? Thank you.
Mark An's user avatar
1 vote
1 answer
100 views

where does the condition of aggregate demand can be written as function of aggregate wealth come from

I'm self studying MWG chapter 4, and it says the aggregate demand $x(p,w_1,...,w_I)=\Sigma_{i=1}^Ix_i(p,w_i)$ can be written as function of $W=\Sigma_i^I w_i$, that is $\Sigma_{i=1}^Ix_i(p,w_i)=x(p,W)$...
Nonenicht's user avatar
  • 113
0 votes
1 answer
40 views

Question on economic data

I need to find two data sets: inflation (seasonally adjusted) (I found the inflation data, but seasonally unadjusted) Sectoral prices (automobile prices, energy prices and so on) The data I need to ...
studentp's user avatar
  • 172
1 vote
0 answers
32 views

Existence and uniqueness of equilibrium points for concave n-person games

I hope you are doing well. I am reading Rosen's paper. I am having a difficulty in understanding the following statements on page 530 The set $U(x) \subset E^k$ is determined as follows: $$ U(x)=\...
Tran's user avatar
  • 11
0 votes
1 answer
34 views

Inverse Hyperbolic Transformation of Dependent Variable

I am trying to transform a dependent variable which is a measure of time (minutes per day). To account for zero values of the dependent variable in the regression, I am taking its inverse hyperbolic ...
jheelum sarkar's user avatar
0 votes
1 answer
33 views

If land value taxes should be estimated at highest and best use, wouldn't that mean that planning/zoning gain would not be captured?

According to Dwyer (2014), a land value tax should be based on the highest and best use. I interpret this as not taking into account the permissible use, meaning that people owning land in a zone that ...
Victor Nielsen's user avatar
1 vote
1 answer
69 views

Why is land considered fixed if the supply of land for a particular use is not fixed?

There is a very strong consensus that the supply of land is fixed or perfectly inelastic. However, I found this article by Wyatt (1994) that contests this view: To begin with, the conventional wisdom ...
Victor Nielsen's user avatar
0 votes
1 answer
45 views

Defining Intensive Margin and Extensive Margin

I am trying to see the effects of exogenous shocks on paid and unpaid labor. In this regard, I am trying to incorporate intensive and extensive margins of labor participation. I use "hours worked ...
jheelum sarkar's user avatar
2 votes
2 answers
90 views

Do standard consumer theory axioms rule out corner solutions?

By standard consumer theory axioms I mean (1) completeness, (2) transitivity, (3) continuity, (4) non-satiation, and (5) strict convexity of the indifference curves. If these axioms are not sufficient ...
Santiago Valdivieso's user avatar
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0 answers
18 views

Aggregate Demand and Aggregate Supply

Suppose the economy is at full employment and aggregate demand falls. Show the effects on output and prices in the short-run. Also, show how the Keynesian aggregate supply adjusts over time to bring ...
Ecoooo's user avatar
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1 vote
0 answers
24 views

Topkis lattice theorems for strong Nash equilibria?

Apologies in advance if my question is unclear. A well known result of Topkis is that, in short, the set of Nash equilibria of a supermodular game is non-decreasing. Is there an equivalent result for ...
raving-bandit's user avatar
1 vote
1 answer
54 views

Difference between country-fixed and region-fixed effects

I struggle a lot with econometrics and interpretation. I would highly appreciate if someone here can help me... I am writing a paper about the effect of childcare on maternal employment and I use an ...
anonymousx3's user avatar
0 votes
0 answers
19 views

Hyperinflation of debt/taxes

I assume that if you owed a large amount of money (including back taxes) in say 1920s Germany, the hyperinflation they experienced made paying off the debt very easy. Or did Germany (or other ...
releseabe's user avatar
  • 143
9 votes
1 answer
323 views

Challenging question on mathematical economics

I'm going through the paper of Acemoglu and Autor (2011, Handbook of Labor Economics) Consider the following system of two equations: \begin{equation} \frac{A_M \alpha_M (I_H) M}{I_H - I_L} = \frac{...
Maximilian's user avatar
1 vote
4 answers
73 views

Net effect of govt spending and tax cuts

Let's say a government comes out with a new budget. This budget decreases income taxes in a more or less neutral way (neither progressive or regressive). However they also decrease government spending ...
DarcyThomas's user avatar
1 vote
0 answers
33 views

Causal inference exogeneous shock question

What does it mean when some says they are using an exogenous shock to study the effect of X of Y ? What is the econometrics condition that defines this intuitively and econometrically? From my vague ...
metrics24's user avatar
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0 answers
15 views

Are there any datasets that have reconstructions of historic GDP that go further back in time than Maddison Project data?

As the title says, is there any alternative to Maddison Project data that would go more back in time, for roughly similar sample of countries/regions?
Ezekiel's user avatar
  • 506
2 votes
1 answer
50 views

Is there any downside to synthetic control compared to differences-in-differences model?

Synthetic control seems to me to be simply a version of differences-in-differences model, where the assumption of parallel trends is satisfied by construction, since the synthetic control to the ...
WilliamT's user avatar
  • 1,847
-2 votes
1 answer
431 views

Why do Banks care about settling their debts at the end of the day? [duplicate]

The way I understand the current banking system is: Banks make money primarily by writing loans and then collecting interest When I go to a bank A and take out a loan for 500$, they take my account ...
user2741831's user avatar
1 vote
2 answers
127 views

Is there a formalization of the 'broken windows fallacy' that discriminates wasteful economic activity from useful?

If I pay someone €100 to dig a hole, and they pay me €100 to fill it back up, GDP will (seemingly) grow by €200, making this seem good for the economy. "Aha!" says the economist, "that'...
Jumboman's user avatar
  • 111
2 votes
1 answer
68 views

Properties of Multivariate Frechet Distributions

I was reading an answer from another Economics Stack Exchange post and I had further questions. The highest up-voted answer here utilized two properties of multivariate Frechet distributions, but the ...
nate's user avatar
  • 23
2 votes
0 answers
34 views

CRRA and CARA utility

I frequently see CRRA and CARA utility functions, and I was wondering what's the history of thoughts behind this ? I mean, I guess (although not sure) that it is linked to discrete/continuous time so ...
krauuuus's user avatar
  • 115
0 votes
0 answers
17 views

Event study of a merge

I want to see whether the announcement of the merge between CaixaBank and Bankia had a stats significantly impacted Caixabank's stock returns, but I am not sure the method I'm using is correct. I have ...
sunflower2732's user avatar
2 votes
0 answers
20 views

Bayes rule and term with expectation

I am reading the paper "Bayesian learning, growth, and pollution" (1999) by Kelly and Kolstad. On page 495, authors give an expression with Bayes rule. As an example, say that there is a ...
optimal control's user avatar
1 vote
1 answer
59 views

Derivation of the Ideal Price Index

I'm studying Chapter 15 of Acemoglu's growth book, which is about skill-biased technological change. The unique final good is produced in perfect competition by combining the output of the two ...
Maximilian's user avatar
1 vote
1 answer
60 views

Can global real GDP be calculated using nominal GDP and inflation rate? If so what is the error?

I am attempting to calculate (in R) the global real GDP using what I assume is the nominal GDP from the World Bank and what I can only identify as the inflation rate, also from the World bank. ...
At_my_wits_end_99's user avatar
1 vote
0 answers
43 views

Kohlberg-Mertens theorem

I am trying to understand the Kohlberg-Mertens theorem. Here is the context and the theorem. We fix $N$ a set of players and $S_i$ the finite set of actions of each players with $\lvert S_i\rvert =m_i$...
G2MWF's user avatar
  • 131
2 votes
1 answer
53 views

A question about Lagrangian, KKT theorem, consumer's problem

Suppose we want to maximise a expected utility function: $$E_1(u(C_1,C_2,C_3)) $$ subject to following constraints. There are two possible situations each with probability $\frac{1}{2}$. $$C_1 + S_1 = ...
Nonenicht's user avatar
  • 113
1 vote
0 answers
69 views

Taxation in a general equilibrium framework

Is there a good reference on taxation theory in a general equilibrium framework? I am especially interested in the following questions. Is the equilibrium independent of who pays the taxes? Is the ...
kenji's user avatar
  • 73
1 vote
0 answers
30 views

Bargaining on infinite horizon with no offer period

The original problem solved by Rubinstein (bargaining on infinite horizon with fixed discounts) is sufficiently clear to me but I can't understand what will happen in the following situation. Suppose, ...
Feelings.сfg's user avatar
0 votes
0 answers
12 views

How to quantify arable land output potential?

How do economists assess the production potential of arable land? More specifically, how is land fertility quantified? For example, how would I compare countries by their agricultural potential by ...
Markku P.'s user avatar
  • 101
1 vote
1 answer
14 views

Synthetic Control - Potentially confounding policy in the treated and donor units

I am currently conducting a synthetic control approach and try to assess the possibility of confounding effects. In my setting, two policies had happened. One policy that (in theory) affected the ...
matthew5678's user avatar
2 votes
0 answers
30 views

Technological contributions of Economics

Physics has led to technological inventions like rockets, television sets, motor cars etc. Medical science has led to the invention of numerous medicinal drugs. Computer science has led to the ...
Ishan Kashyap Hazarika's user avatar
0 votes
1 answer
76 views

Confusion on the Profit Maximization Equation [closed]

So, I found a formula for Profit Maximization on this page. https://en.m.wikipedia.org/wiki/Profit_maximization Listed in the Marginal Revenue- marginal cost perspective section. My question is, what ...
DanceroftheStars's user avatar
1 vote
0 answers
39 views

Flow budget constraint in a paper by Garleanu and Panageas

I am reading this paper and got confused by Equation (6) in said paper. Suppose there is an investor that can trade in riskless bonds that pay interest rate $r_t$, and holds a market portfolio with ...
Wittgenstein's Poker's user avatar
3 votes
1 answer
64 views

Variable dropped for collinearity in feols package in R (TWFE)

sorry if this is a basic question (I'm new to econometrics). I have the following regression model: $Y_{i,t} = \alpha_i + \gamma_t + \beta_1\cdot X_{1,i,t} + \beta_2 \cdot X_{2,i} + \beta_3 \cdot X_{3,...
user308036's user avatar
1 vote
1 answer
69 views

Nicholson & Snyder V.S. Varian for teaching?

I will be teaching both Intermediate Micro 1 and 2 and would like to pick one textbook for both courses so students don't have to spend too much. I am inclined toward Nicholson & Snyder's ...
Galactic Economist's user avatar
0 votes
1 answer
64 views

Independence Axiom and Expected Utility Theorem Proof

In my micro class we covered the proof of the existence of a Von Neumann–Morgenstern utility representation of preferences $\succeq$ over a set of lotteries $\Delta(Z)$ - where $Z$ is some finite ...
Joseph Basford's user avatar
0 votes
0 answers
33 views

What kind of figures are insightful in game theory?

I am finishing my thesis on a signalling model in which I characterize the perfect bayesian equilibria of the game. However, I find that my final expressions are too mathematical and that the ...
Ignacio Canabal's user avatar
0 votes
1 answer
27 views

Delinquency rate on student loans in the United States

Why is the delinquency rate (90 days+) on student loans at an all time low in the United States (as illustrated in the last Household debt and credit report of the New York Fed). For most borrowers, ...
Stradam's user avatar
0 votes
0 answers
23 views

True Market Capitalization

Market capitalization just extrapolates a price from the current share price and number of outstanding shares. While this reflects a theoretical value for the companies/stock market in question, it ...
Lawnmower Man's user avatar
0 votes
1 answer
72 views

Linear model estimated as log-log: What is the bias exactly?

Consider a causal model: $$ \text{(I)} \qquad y = \beta_0 + \beta_1 x_1 + \beta_2 x_2 + \beta_3 x_3 + \epsilon$$ Now, assume we estimate it by OLS in the form: $$ \text{(II)} \qquad \ln(y) = \alpha_0 +...
Athaeneus's user avatar
  • 834
2 votes
1 answer
74 views

Is CES production representing the average of inputs?

I know that the Constant elasticity of substitution production function is given by: $$Q=\gamma\left[\delta L^{-\alpha}+\left(1-\delta\right)K^{-\alpha}\right]^{\frac{-1}{\alpha}}$$ where $\gamma$ is ...
Pallak Goyal's user avatar
0 votes
0 answers
16 views

What does A-coefficient, A-star-coefficient, Leontief inverse, and Ghosh inverse means in EEIO?

All 4 features are dependent of the transaction Z table, where Z table is an NxN matrix of sectors representing input/output or export/import. Intuitively, I'm still confused by what they do. From ...
David LE's user avatar
0 votes
1 answer
25 views

References for minimum distance estimator

What is the formula for finding the minimum distance estimator and how does it differ from GMM? Also, do you know of any good resources on MD? Can't find any besides my textbook. Thanks!
GraceLynn87's user avatar
1 vote
0 answers
24 views

Modified Elasticity Calculation

I have 5 yrs worth of price and unit sold data for retail products. Generally these products have MRP and sold at some discount. I want to create elasticity curve for these products. However over a ...
Sourabh's user avatar
  • 21
0 votes
1 answer
235 views

Why can't Russian CB influence on dollar?

I read in Russian article that Russian CB can't influence on dollar. CB can't depreciate dollar. CB can influence on rate of RUB only. But if there is demand on USD or RUB then why can't CB influence ...
Mike_bb's user avatar
  • 141
0 votes
0 answers
44 views

What is liquidity of dollars?

I read Russian article about exported inflation and it was written there about liquidity of dollars: In order to reduce national debt of the USA and to stimulate economic growth government of USA ...
Mike_bb's user avatar
  • 141
1 vote
0 answers
35 views

Can we use the utility of discounted flows to do asset pricing?

Is it possible to do asset pricing by using the expected utility of the present value of all future discounted cash flows ? I aim to use this utility function to define an optimal portfolio, but I ...
Ignacio Canabal's user avatar
0 votes
0 answers
17 views

Negative externality in consumption to a Cobb Douglas utility function

I am performing a brief analysis with a Computable General Equilibrium Model approach. I want to apply a negative externality in consumption to a Cobb Douglas utility function, any idea to do it and ...
Clonaclo's user avatar

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