# All Questions

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### Is there tutorial for forecasting binary otcomes from textual data using random forest with economic application?

I am looking for some tutorials on how to forecast some binary outcomes (e.g. change in interest rate vs no change), from textual data (e.g. speeches of central bank governors) using random forest. I ...
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### Quasilinear preferences - Income level [closed]

Quasilinear preferences do not work for too low and too high incomes. Could you please explain why? Thank you.
52 views

### Stock price equation Nakamura and Steinsson (2018a)

I am in the process of deriving all equations in the DSGE model of Nakamura and Steinsson (2018a). So far, everything is derived correctly, but when I had a look into the replication files (https://...
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24 views

### Why is onion priced at 1\$per kg and gold at 10000\$ per kg ? How does interest rate determine development? [closed]

Phillips Curve: How does the relationship between unemployment and inflation impact stock prices? Discuss the implications of stagflation and its effects on market sentiment. Aggregate Demand and ...
89 views

### Macroeconomics - Does GDP undervalue government produced goods and services? [closed]

I have thought of this problem and after searching it appears a similar question is asked here (apparently spawned by a debate on twitter), but I'm afraid the top reply doesn't fully resolve the issue....
275 views

### How to show this game of complete information always has a pure strategy nash equilibrium with positive probability?

Suppose I have the following 3-player binary game with $Y_i\in\{0,1\}$ denote the action of player $i$ and $u_i+\delta_i\sum_{j\neq i}Y_j+\epsilon_i$ is the payoff function of choosing $Y_i=1$ for ...
• 379
79 views

### Comparative Statics in Acemoglu's Article

I'm struggling to derive equation 8 from the paper by Acemoglu and Restrepo (AEA Papers and Proceedings, 2018). Consider an economy where aggregate output is produced in perfect competition according ...
• 396
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### Is GDP relative to CPI?

Assume some country has an increase of GDP (gross domestic product, PIB is spanish) of +3% in some time interval and an increase of CPI (consumer price index, PCI in spanish) of +4% in same interval. ...
28 views

### Definitional ambiguity for weakly dominated strategy with beliefs

I have been reading some game theory and I have come across the following belief-based definitions. As is recommended, it is instructive to prove the equivalence between definition 3 and the usual '...
112 views

### How to formally define the preference profile in which the top alternative of one player becomes the bottom alternative of the next player?

I need to generically define a strict preference profile with Condorcet cicles when the number of players and alternatives coincide. To illustrate my problem, consider the following four-player & ...
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71 views

### Proving Truthful bidding is weakly dominant strategy and not just very weakly dominant strategy in second price sealed bid auction

In most books on auction theory, it is left as exercise to prove that the truthful strategy $s_{i} = v_i$ is a weakly dominant strategy and not a very weakly dominant strategy. To eliminate confusion, ...
1 vote
36 views

### What are some good introductory economics books for the actuarial science formation examination in economics and law by the DAV

The DAV has one examination about economics and law within their six principle examinations during their formation in actuarial science, as you can see on this page. What are some good introductory ...
51 views

### Comparative Statics - Capital Augmenting Technological Change

I am reading the article by Acemoglu and Restrepo (AEA Papers and Proceedings, 2018) and have encountered some difficulties deriving equation (1). I hope you can help me work through it. The aggregate ...
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59 views

### Can the current rise in joblessness in the US be caused by the AI replacement?

Currently there are big concerns regarding possible recession in the USA maily based on growth of joblessness and reductions in payrolls. At the same time, other indicators do not show any economic ...
• 131
156 views

### Expected Value of random variable in terms of hazard function

I am reading Krishna's Auction Theory. I am currently stuck on Appendix A where he writes, Now I understand equation A2, what I don't follow is that for a hazard rate defined as below: he writes I ...
1 vote
95 views
+100

### Is the Constrained Pareto Frontier Linear in Bilateral Trade?

Suppose we have a Myerson-Satterthwaite model of bilateral trade between a buyer and seller. The buyer has private information about their valuation, $v$, and the seller has private information about ...
22 views

### Is anyone aware about the Msc Economics course offered by IIT Delhi and also about the entrance exam pertaining it known as IIT Jam Economics? [closed]

I am currently pursuing my bachelor's in commerce, and I am thinking about going for a master's in economics. But I have no background in mathematics. And also, I only studied economics at a very ...
24 views

### How can I rebase a series to a different base year?

I have three monthly data set for import prices. First one --> Base year = 2003 (2003=100), data period: 2003 M1 - 2012 M12. Second one --> Base year = 2010 (2010=100), data period: 2010 M1 - ...
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13 views

### Finding marginal propensity to consume

For the first part of my question: I've calculated my IS (Biens et services = Goods and services) and LM (Monnaie = Money) equations and equilibrium output and interest rate for which I obtained: Y = ...
• 7
90 views

### Any classic micro models in which the (equilibrium) number of producers of a product increases monotonically with demand?

I want to build a model to capture the following thing: when there is higher demand for fish, this attract more producers to enter and produce fish and there will be a higher number of fish producers ...
• 379
34 views

### Books on Stock Price Forecasting

I want to be able to predict stock prices. Are there any standard books?
24 views

### Calculating the present value of a payment in installments

So I was doing some online shopping and had the chance to buy an item now for a 20% discount or pay in 6 interest-free installments using my credit card. Given that inflation goes crazy in my country (...
175 views

### What is the “Reinforcement Axiom” for a social choice function?

I recently came across this Computational Social Choice lecture note from Stanford, where an axiom for social choice functions called “Reinforcement” is introduced as a desirable axiom. I am trying to ...
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20 views

### Efficiency of various Panel Data Models

I'm preparing for an Econometrics exam, and am confused about what makes a Panel Data Model efficient. For Pooled OLS, why do we require heteroskedasticity & E^2a=0 for the model to be efficient? ...
17 views

### Normalized CES supply systems: Klump, McAdam, and Willman (2007)

I am trying to use EViews to replicate the article that used the normalized CES supply system from Klump, McAdam, and Willman (2007). When I set technology progress as an exponential function, I can ...
1 vote
23 views

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### Strategy-proofness of a modified serial dictatorship algorithm

I am working on a practical problem and I have come up with an algorithm for that. I think this is strategy proof (I will outline my proof below) but I want to be sure. There are, say $N$ agents who ...
16 views

### IV with uncommon treatment and implausibly large effects

I am working on an instrumental variables strategy where I have an uncommon binary treatment (less than 1% of the sample is treated). I have a binary instrument that is switched on for around 85% of ...
31 views

### Net exports equation

I have found the following equations: Exports - Imports = Private Consumption - Private investments and savings + Taxes - Government Expenses = Net private savings + Net public deficit. While I could ...
1 vote
128 views

### Is It necessary for a monopoly firm to be profitable at the elastic region of the demand curve?

Considering a linear demand curve, we conclude that the monopolist only produces at the elastic region of the demand curve (given, he doesn't discriminate prices). But if the cost is a function of ...
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### What's a good textbook reference for interest rate models / term structure modelling?

There is a huge literature modelling the yield curve. For instance, the affine term structure literature, both in continuous and in discrete time, has many models with different factors, models that ...
25 views

### Economics of Christmas Trees and Interest Rates

True/False: If Christmas tree growers harvest and market their trees at earlier ages, one possible explanation is that interest rates have fallen. My Intuition is that the interest rate represents ...
• 1
84 views

### A question on the optimisation problem and FWL theorem

Let's say we have the following model: (\beta^{\star},f^{\star}) := \arg\min_{\beta,f \in \mathcal{F}} \mathbb{E}[\left(Z_i - f(X_i, E_i) - \beta^\top \boldsymbol{\tau}_{i,E_i}\right)^2|S_i^{tr} = ...
1 vote
35 views

### Why is the demand curve that a perfectly competitive firm faces horizontal while the market demand curve is negatively sloped?

I'm studying producer-theory and I'm stuck on this. Maybe I'm missing something important, but if the demand curve facing a firm in a perfectly competitive market is the same as the market demand ...
18 views

### Addressing Irregular Time Intervals of observations in Event Study/Staggered Difference-in-Difference Method

I am conducting a study using an event study/staggered difference-in-difference (DiD) method. My dataset consists of observations with irregular time intervals: some individuals have daily ...
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1 vote
41 views

### How would an increase in money demand create a downward pressure on prices and outputs?

I was reading "Monetary Policy Games and the Consequences of Non-cooperative Behavior" (1985), and this part came up: " In the absence of fully indexed input prices, an expansionary ...
My question is somewhat related to utility functions with inferior goods (some answers here). Suppose there are two goods, $a, b$. I am looking for a utility function such that it satisfies the usual ...