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5 views

Solow and Cobb-Douglas

Suppose in an economy the steady state level of GDP is 1443.376 and the steady state level of capital is 3007.032 Suppose aggregate demand function is given by the following: Y = 100K^(1/3)L^(2/3) ...
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0answers
2 views

Is there a reference that plots different countries' debt-to-GDP ratios over (long) times?

This old blog post has an interesting plot that demonstrates that the U.K.'s current debt-to-GDP ratio is significantly below its very-long-term (180-year) average. Is there a plot anywhere that ...
-1
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0answers
13 views

What is the most rational thing that banking sector can do to squash cryptocurrency sector?

Given growing capitalisation of the cryptocurrency market on one hand and borderline infinite supplies of fiat on the other, what is the most rational thing that banking sector can do to defend their ...
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0answers
9 views

how calculate average price after sell some share?

I don't have idea why average price is high when i sell some share after average down. I bought some share several time. For example. first 3 share at 10 price. second brought 2share at 15 and then ...
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0answers
5 views

Is it better to calculate inflation rate using gap deflater whether based year is the first year or last year of our data?

if we wanna calculate inflation rate for years 1997 and 1998, there are 2 ways, first is set our base-year 1997 and according to my data it will be 0.39 and if we set the base-year 1998 the rate will ...
-1
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0answers
20 views

When does reduce in purchasing power leads to deflation and when it leads to inflation?

I have wondered if economy experts have isolated when does reduce in purchasing power leads to deflation and when it leads to inflation. In a simple contemplation: If there is an economic ...
-2
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0answers
19 views

Difference between Money and Currency

What is the difference between money and currency? 1.Is debit card money or currency ? 2.Inflation erodes purchasing power of money or currency?
-2
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1answer
29 views

Is it possible that total virtual money i.e. total money in all bank account around the world can increase the total money produced by mankind?

I am not an expert of economics so please give advise me if I have committed any mistake. This question striked in my mind a few months ago, I tried to think on this question many times but I wasn't ...
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0answers
21 views

Is it possible that marginal cost is fixed but not equal to zero in the real world? Thanks

Is it possible that marginal cost is fixed but not equal to zero in the real world? I do know it has in textbooks or exam papers, etc (haha), but I think it's odd if it happans in the real world (eg. ...
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0answers
13 views

Proving that revealed preference relation is the only relation that is rational and rationalizes the choice structure

if a choice structure i) satisfies WARP and ii) includes all subsets of X (the grand set of alternatives) of up to three elements, then the revealed preference relation generated by it a) rationalizes ...
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0answers
7 views

Best reports / data sources on economics flows / trade between US & China?

curious for any suggestions on reports or data sources on trade and flows between the US and China? In addition, the impact that the current political frictions could potentially have moving forward ...
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0answers
27 views

Balanced Growth Path - Solow model without technological change

Hi all, I am having troubles with this easy assignment. In particular point (c) is taking a lot of my time and energies, I have already obtained the law of motion for capital per worker, and I got ...
1
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1answer
28 views

Identification strategy for measuring impact of employee turnover on project quality

I am seeking help with identification strategy for figuring out causal direction in the following context: There is a company where project managers (PM) rotate every 3-7 years across the country/...
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1answer
17 views

Central banking in Saudi Arabia

People say that central bank with autonomy is needed to avoid political business cycle but then how do we explain the existence of central bank in arab oil exporting countries like saudi arabia where ...
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0answers
12 views

Is the spread on CAD-USD trades lower when both the NYSE and LSE are open?

Buying US stocks via Questrade. Currency Risk? : CanadianInvestor I don't use Questrade, but if you want to convert CAD to USD, the best moment is from Monday to Friday from 8:00am to 11:00am (EAST ...
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0answers
25 views

Stuck on optimal employment/capital stock homework

This is the original question below: A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, and marginal productivity of labour given by MPN = 50 - 2N + K. real ...
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1answer
25 views

Liquidity Trap Question? Return to equilibrium

As far as I inderstand a liquidity trap occurs when increasing the money supply is not able to stimulate the economy because people prefer hoarding the cash rather then investing in debt securities ...
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0answers
17 views

How will economy find long-term equilibrium in AD-AS model in case of a negative supply shock?

Let's suppose that negative supply shock happened that affected SRAS, but not LRAS. Let's also assume that previously there was long-run equilibrium at point $A$. Due to negative supply shock SRAS ...
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0answers
14 views

Minimum requirements under basel 3

Why is it that banks are told to maintain 4.5% of CET1 and capital conservation buffer of 2.5% of CET1 instead of 7 % of CET1???
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3answers
542 views

Why can't I find masks for the corona virus?

Not an economist by far, just a layman, and that's a layman question. How is this possible that it's difficult to find mask for the Corona Virus? I have been several times to 7/11, boots, Watson, and ...
19
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9answers
5k views

What are examples for the phenomenon that more (or better) information makes everybody worse off?

More information is usually considered "better". Let's say a rational agent chooses optimally given his information on the circumstances of a particular decision problem. Then providing him with more ...
-1
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0answers
8 views

Loans and advances and credit growth in banking sector

What is the difference between loan and advance ? Is credit creation same as lending?? What is the difference between loan and credit growth?
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1answer
86 views

Competitive equilibirium of max utility functions

Apologies in advance if my terms aren't exact, I'm learning "Mathmatical Economoics" in the hebrew language and some of the terms don't translate well. I was given the following question: Two ...
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3answers
60 views

How to derive this Hicksian Demand?

So I have this utility function where I need to find t expenditure minimizing value of x. Normally, I would get the marginal utility of goods x and y, but doing that in this case doesn't leave any ...
-1
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0answers
17 views

Markets and the allocation of resources (people's time)

I'd like to learn more - on what's written on how market's allocate resources efficiently. Specifically with regards to people's time / labour through pricing. I heard an interview with an economist ...
-2
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0answers
8 views

Gains tax for a given MARCS

Let's say you purchase a $10,000 - machine - with - a - salvage - value - of - $1000 in year 1 and at the end of year 9 you sell for $2500. Tax rate 21%. How to calculate gains tax on the machine? (...
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0answers
11 views

Arbitrage checking (one step price tree)

I have a questions on arbitrage. These questions are from my lecture notes. And I don’t understand their some points. Ex1: there is a single step market as follows here, there are two securities ...
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0answers
11 views

Suppose the RBI reducces money supply by 5%. What happens to aggregate demand and supply?

Suppose the RBI reducces money supply by 5%. What happens to aggregate demand and supply?
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0answers
24 views

Hedonic regression and attribute-shares in house prices

Given a house with price $P$ and attributes $h_1,\dots,h_n$, I want to estimate how much each attribute costs as a percentage of house price $P$. In other words, if we express house price as the sum ...
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0answers
27 views

RESERVE PRICE IN COMMON VALUE AUCTION

A seller has an item for sale to either one of two bidders, each with common value $v=x_1+x_2$, with $x_i$ privately known to bidder $i$ and $x_1, x_2$ iid with CDF $F(\cdot)$. If the seller values ...
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0answers
11 views

Given an MRS how to be better off [closed]

Let's assume we have 2 agent A and B. A has n good x and m good y and B has a good x and 2a good y. If we know their MRS's at their current bundles how can we offer them a trade that makes both of ...
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2answers
36 views

K in the Cobb Douglas function

I'm using the Cobb Douglas production function for a Mathematics investigation into how optimisation works in Economics. The assumption is that the firm require's only one type of capital, that is, a ...
0
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2answers
23 views

What is the best observable proxy for the instantaneous risk-free market interest rate?

I am exploring a number of different models using daily data, of the US economy, and am trying to gather up observable proxies for some of the most important macro and micro variables, and surveying ...
-2
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1answer
50 views

Does Nine-dimensional Euclidean space has any use in Economics or Econometrics? [closed]

https://en.wikipedia.org/wiki/Nine-dimensional_space i am looking for any application of nine-dimensional space in economics or econometrics. Thanks !
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0answers
20 views

Questions about merger simulation with logit demand

I'm trying to learn how to do merger simulation with logit demand. I think I get the concept of it and most of the math, but I'm struggling to put everything together and see how you would actually ...
1
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0answers
20 views

Mechanism Design and Multidimensional Type Spaces

Is it possible to design a mechanism of agents with multidimensional types? In particular, what if the type space has the following form: $$\Theta_i=\{\theta_i\in\{{1,2,\dots, n}\}\times[0,1]:n\in\...
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0answers
22 views
+50

Write search model as a signal density inducing posterior belief

Consider a decision maker (DM) who as to choose an action from the finite set $\mathcal{Y}$ with cardinality $L. $ The payoff the he gets depends on the action chosen and the state of the world. The ...
1
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3answers
50 views

What would be the income tax rate be if it were 'flattened'?

In some recent conversations/speeches (It's voting season), I have noticed many people do not understand how a marginal income tax system works. Not understanding how they are only taxed at the ...
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0answers
68 views

What are Frisch Demands useful for?

Frisch demands are demand equations found usually in an intermediate step of the standard utility maximization problem. By example for the basic two-good case of a consumer with quasilinear ...
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1answer
23 views

Limit of random walk auto correlation function

Given the random walk process $y_{t}=y_{t-1}+e_{t}$, the auto correlation function is given by $corr(y_{t}, y_{t-h})=(\frac{t-h}{t})^{1/2}=(1-\frac{h}{t})^{1/2}$, which tends to 0 as t tends to ...
0
votes
2answers
29 views

Do reserves at Bank of Canada count as money?

I read the following three statements concerning M1 and M2 in Canada: a) "M1 consists of currency held outside the banks and chequable deposits of individuals and businesses." b) "M1 does not ...
0
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0answers
5 views

How do I find monthly domestic interest rates for Panama for the early nineties?

I am looking for monthly domestic interest rates for Panama from before December 1996. Any type of interest rate will suffice - deposit rate, money market rate, saving rate, lending rate. The time ...
0
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2answers
42 views

Autocorrelation function of a random walk process

What is the intuition behind the result that the autocorrelation function of a random walk process $y_{t}=y_{t-1}+e_{t}$ tends to 1 as $t\rightarrow 0$? Thank you.
0
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0answers
7 views

Random payoff generation in Otree

I am programming an experiment in python which involves the decision between two players to either enter a market or exit based on a prisoner's dilemma payoff structure. However, the payoff of each ...
2
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0answers
44 views

Deriving FOC in OLG model with Cobb Douglas utility

I'm trying to derive the first order condition in a partial equilibrium overlapping generations model. The setup contains both consumption and housing goods. $$ \underset{c_{t+i},h_{t+i}}{max}U_{t}^{...
0
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2answers
93 views

Why doesn't capitalism run out of money?

There's this question that doesn't let me sleep at night... From what I hear, investing surplus money is always considered a good idea because it lets your money "work for you" and earn you more ...
-1
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0answers
21 views
+50

NIPA sectoral balances, understanding influences on household sector

we know that the private sector balance = S-I = Y-C-T-I lets split it into 3 sectors: Households, Firms, and Banks. Suppose that that the HH balance equals +100 so far into the period. Q1) Then, a ...
5
votes
1answer
91 views

Is there a reproducibility crisis in Economics?

I am an undergraduate economics student, and came across this paper by John Ionnadis on 'The Power of Bias in Economics Research'. the findings are quite bleak. https://academic.oup.com/ej/article/...
-3
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0answers
15 views

What is the time period I should assume for factor prices in the cost function? [closed]

I have a quick and rather urgent question. Using the method of Lagrangian multipliers I got my cost function for my Cobb Douglas function of the form AQ^(1/b) where b>1, and A was an extremely large ...
-2
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0answers
14 views

Fixed vs Flat Tax Rate Question

Sam consumes, among other things, telephone services. He pays a fixed tax t on every phone call he makes (in addition to the regular price), and ends up paying 100 dollars every year in telephone ...

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