All Questions
15,482
questions
2
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0
answers
30
views
AIC Calculation
Our object is calculating AIC, and we are unsure whether we can use our measure below when calculating AIC. The following are the data from the experiments and our method to calculate the information ...
0
votes
0
answers
32
views
Calculating the value of this asset
calculate the cash value of a financed asset that is paid in the following way: an initial payment of 500,000, in month 2 a payment equal to half its value, in month 7 a payment equal to a third of ...
0
votes
1
answer
75
views
Why is monotonic preference and monotonic utility function non-decreasing?
Obviously a monotonic function can be either nondecreasing or nonincreasing:
However, in Economics, a quick google search gives:
I am interested in the history or the motivation behind the econ ...
- 259
0
votes
1
answer
24
views
the income elasticity at the mean values
What is the formula of the income elasticity at the mean values?
I have two variables, I is income and C is consumption. And I have 10 observations (sample size)
Regresison equation
$$C = a + bI $$
...
- 120
-1
votes
1
answer
51
views
Why do estimates of potential GPD made at different origins differ?
I am stuck on a diagram that shows the development of GDP over time period from '04 to '16.
We have 4 graphs; actual GPD, and estimates of potential GDP made in '07, '10 and '15.
Now to the actual ...
- 1
0
votes
1
answer
28
views
why is increasing price not more profitable when the demand is unitary elastic?
according to the theory (if p-p1=q-q1), the total revenue remains the same because the demand decreases by the same percentage price does. If this is the elasticity of a product, the company ...
- 25
0
votes
1
answer
56
views
Does the tech sector show that we can live with deflation?
Technology has been incredibly deflationary in the past century. A thousand dollars buys you a better iPhone this year than what was available last year. If you want a 60-inch TV, you could get it for ...
- 103
2
votes
0
answers
17
views
From the original position, is the Nash axiomatic bargaining solution as the social contract more egalitarian than Utilitarianism?
Let us with Hobbs suppose that life in a state of nature, without agreement on basic social values (“Murder is bad”), without benefit of our common heritage of knowledge and technology, without, in ...
- 315
0
votes
0
answers
47
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Is there a type financial instrument that can realistically increase its value 100 fold
Is there a type of financial instrument with extreme volatility, which could realistically grow in value by 10 000% over less than a year? If there isn't one that's commonly traded, could I craft one ...
- 101
1
vote
1
answer
44
views
Price elasticity of demand when total expenditure is constant
I was recently given the following question: assuming that a consumer's total expenditure for a good does not change when the price of that good declines, what is the price elasticity of that consumer'...
- 13
3
votes
1
answer
111
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Validity of asking about WTP (willingness-to-pay) when dealing with paid services
The question that I'm interested in is whether questions about WTP make any sense in a scenario where we are dealing with a paid service.
To give it a little bit of context: consider Uber, for example....
1
vote
1
answer
31
views
Intermediate/used goods and GDP
I am new to macroeconomics and I had some questions about GDP when we say that it does not take into account intermediate goods. Therefore, a company X that only sells car parts to car brands like ...
- 119
0
votes
1
answer
37
views
Increasing Returns to Scale and Perfect Competition
Increasing returns to scale due to internal economies are incompatible with perfect competition BUT increasing returns to scale due to external economies are compatible with perfect competition
SOURCE:...
- 21
17
votes
4
answers
5k
views
Is there any way retirement systems can cope with declining population?
Data show that population in developed countries will start declining by end of this century. Because this is due to low birth rates and aging this will lead to very large imbalance between ...
- 508
1
vote
1
answer
68
views
direction of causality between Increasing returns to scale and economies of scale
Does increasing returns to scale cause economies of scale OR is it the other way around?
- 21
1
vote
0
answers
8
views
What was the study that shows peoples' tax preferences shift when they get more information about their income?
I am trying to find a study I read a few years ago, but I forgot the names of the authors and the title of the study. I have already tried to search for the study on Google Scholar without much luck. ...
- 2,673
0
votes
1
answer
82
views
Why do governments issue bonds rather than just increasing tax or printing money?
Assuming a government needs to raise money, what are the pros and cons of increasing taxes or printing more money or selling bonds?
- 175
1
vote
0
answers
10
views
Costly capital adjustment
Why do we need to take FOC w.r.t both $K_t$ and $I_t$ in presence of costly capital adjustment when capital accumulation follows $ K_t = (1-\delta)K_{t-1} + \Biggl[1-S\left(\frac{I_t}{I_{t-1}}\right)\...
1
vote
1
answer
91
views
the relationship between Returns to Scale and shape of Production Possibility Frontier (PPF)?
Guys any material that discusses the above in detail for a two commodity case?
- 21
3
votes
1
answer
36
views
Confusion in the relationship between GNDI and GNI
GNDI- Gross National Disposable Income; GNI- Gross National Income
We know that GNDI = GNI + Net Current Transfers from ROW(rest of world).
What I don't understand is why is there no mention of direct ...
- 33
0
votes
0
answers
37
views
Example to Demonstrate that with Uncountably Infinite Outcomes We do not Have A Representing Utility Function [duplicate]
Suppose we define $\Omega$ = $\mathbb R_+$. The preference relation $\succeq $ is defined as $$(x_1, x_2)\succeq(y_1,y_2)\iff x_1>y_1 \text{ or } [x_1=y_1 \text{ and }x_2\geq y_2]$$
where $x_1, x_2,...
- 1
3
votes
1
answer
75
views
Capital-Output Ratio using Nominal GDP and Nominal GFCF
I have this assignment which asks the following:
"Compute the average capital-to-output ratio in Australia from 1960 to 2022. Explain how to compute
the average ratio. (Hint: use the nominal GDP ...
4
votes
1
answer
82
views
Choice Theory Book Reccomendations
I am a post-graduate economics student in India, currently taking a core course in Choice Theory. Unfortunately, there is no standardized text which we are following for the course. The course ...
- 41
1
vote
0
answers
21
views
Cutoff rule-mechanism question
I was checking on this paper where they define some rule-mechanism that is called cutoff rule-mechanism. I do not really understand why is this useful and how is this defined. Any help would be ...
- 184
4
votes
1
answer
97
views
What is the net effect of organized crime on the economy of Italy?
In connection to this question are there any empirical estimates of the effect of organized crime on economy of Italy? I am looking for some net effect.
- 244
6
votes
2
answers
77
views
Are there some sucessfull pro-natality economic policies?
Many people are warning against demographic decline in the Europe and USA. Is there any evidence that economic policies or subsidies can help increase birth rates?
- 508
3
votes
2
answers
87
views
What are some good general economic journals to keep up with the literature in various fields?
I know about the American Economic Association Journal of Economic Literature (JEL), are there any other examples? By good I mean it should be at least Q1 or Q2 journal. It shouldn't also be ...
- 2,673
7
votes
1
answer
66
views
Portion of Derivation of F-test
In Greene's Econometric Analysis there is a derivation regarding the F stat. The setup is a null hypothesis of the form: $H_0: R\beta =q$ where $\beta$ is a $k\times 1$ vector of parameters, $R$ is a ...
- 3,458
2
votes
0
answers
45
views
Individual vs. Market Transformation Function
Let $F_j$ denote the transformation function of firm $j$, i.e., $j$'s production set $Y_j=\{y:F_j(y)\le0\}$. Also, let $F$ denote the transformation function of the market, i.e., $Y=\{\sum_j y_j: y_j\...
- 53
2
votes
0
answers
60
views
What is the most general category-theoretic description of a market?
In the history of economic theories, various formalisms of "a market" or "the marketplace" have been used to explain various facets of economic behavior, starting roughly with Nash ...
- 131
2
votes
1
answer
62
views
Marginal rate of technical substitution in a general setting
I am interested in the definition of the marginal rate of technical substitution (MRTS) under a general setting where the production set of firm $j$ is $Y_j=\{y: F_j(y) \le 0\}$. This formulation ...
- 53
0
votes
0
answers
13
views
Digital Impact on External Audit?
Do any of you have theses, research papers, or articles related to the topic of 'Digital Impact on External Audit'? I am a Ph.D. student, and I have been struggling to find a professor to supervise my ...
- 101
1
vote
1
answer
46
views
For which number of firms in a Cournot oligopily a merger is profitable
Assume a Cournot oligopoly with N (equal to 2 or higher) symmetric firms. Firms face a demand function P=a-bQ and an average cost c. I need to find the number of firms N for which it will be ...
- 21
-1
votes
1
answer
39
views
How does the claims on gold increase when debt is involved?
I was reading Ray Dalio's book on Priciples for dealing with the changing world order, and I came across this statement
"""
At first there are the same number of claims on the "...
- 1
0
votes
1
answer
127
views
Are the marginal conditions for Pareto optimality sufficient?
In introductory microeconomics textbooks, it is argued that the following three conditions are necessary for the Pareto optimality;
Exchange Efficiency (MRS must be equal among all individuals)
Input ...
- 53
3
votes
1
answer
79
views
Hello, I am a science graduate, looking to learn about economics, any suggestions where can i start?
Any books you can suggest might be amazing, i am completely new to this and it would be a huge help if you guys could help me out
- 31
0
votes
0
answers
21
views
Consumer optimization problems with multiples cases
Does anyone know of any resources where the Lagrangian optimization of the consumer problem with one constraint has two cases for an answer? For example, when income is greater than x, the optimal ...
- 31
3
votes
1
answer
116
views
Stackelberg equilibrium with arbitrary number of firms
Consider a market, where N firms with average cost c compete in quantities. Assume linear demand P=a-bQ. Assume that N is arbitrary.
a)Find the equilibrium of the game, where these N firms compete a ...
- 33
0
votes
1
answer
39
views
Log-linearization of the additive habit formation model
I am trying to derive the log-linearized Euler Equation (EE) of a Model with additive Habit formation. Attached you will find my attempt to derive the EE. I am missing an (1-b) in the denominator. ...
- 3
2
votes
0
answers
31
views
Defining an Arrow Debreu Equillibrium with a No Default Constraint
I am faced with defining an equilibrium for a two person (infinitely lived) market with borrowing and lending of one period bonds. Their utility of consumption is just $\sum^\infty_{t=0} \beta^t ln(c^...
- 179
0
votes
0
answers
21
views
ETS (error, trend, seasonal) formulation
Does someone know if there is (clever) way to formulate mathematically all the following models below:
In a unique (system) of equations?
- 101
1
vote
2
answers
46
views
What downside is there to making the USD the national currency for your country?
I get that for huge countries like China, you can't have the US controlling your currency.
But for some smaller countries, or new fledgling countries, why not have the USD be your national currency? ...
- 111
1
vote
1
answer
40
views
Microeconomics question: Find consumer optimal choice after tax
Consider an economy with one farmer whose farm produces 100 units of
food. The farmer can trade food for clothing from other countries, but he
cannot produce clothing. The price of food in the market ...
- 123
0
votes
0
answers
14
views
How Marxian economists evaluate current and future technologies for making investment decisions?
Current Marxian economists are incredibly vague about the merits of technologies and about concrete investment decisions, at least, the Western Marxian economists are.
E.g. there is book https://www....
- 425
1
vote
1
answer
25
views
Why does the demand for central bank money shifts to the right with an increase in the reserve rateo?
Defining the demand for central bank money as $ [c + \theta (1-c)]M^d $,
where c = percentage of money people keep as currency, and $\theta$ the reserve rateo, I don't understand why, as my book ...
- 11
0
votes
0
answers
39
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How to combine different pollutants into a common measure?
I'm examining several pollutant variables -- like CO2, lead, NOX etc -- and wondering how I can weight them appropriately to have some kind of comparability. Not all pollutants are equally bad for the ...
- 331
0
votes
1
answer
68
views
Monetary policy: could there by alternative outcomes?
Firstly, I understand the standard analysis of how a central bank attempts to modulate credit conditions in the economy (and therefore money supply) to dampen demand to prevent excess price level ...
- 66
0
votes
0
answers
14
views
Price dispersion in online retail Of BookTown.in
Since these are homogenous goods and anyone who can access one of the stores can as easily assess another I wonder how we might explain this price dispersion. I have not done a systematic study but it ...
- 1
1
vote
0
answers
58
views
How do I show that the set of probability distributions that first/second-order stochastically dominate p is closed and convex?
I was trying to understand stochastic dominance when I came across this problem (Question 2). How do I show that the set of probability distributions that first/second-order stochastically dominate $p$...
- 365
2
votes
1
answer
75
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About Proof of Theorem 21.3 in Mathematics for Economists by Simon and Blume
Background Information
I am studying concave and convex functions using Mathematics for Economists by Simon and Blume. I have difficulties understanding their proof of the following theorem:
Theorem ...
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