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1answer
9 views

Are there any effective research efforts into combating wealth inequality?

There seems to be no "correct" answer in combating wealth inequality; however, we should attempt to use different methods to combat inequality in cities, then counties, then states, then countries. ...
3
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1answer
19 views

Understanding this particular criticism of RCTs by Deaton and Cartwright

Deaton and Cartwright make several criticisms of randomized controlled trials (RCTs). My question is about this one in particular from a 2016 VoxEU piece: Well-conducted RCTs could provide ...
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0answers
7 views

Difference type of crowding out effect in economics

In macroeconomics I came across two type of crowding out. First, in IS LM model where in classical case, when LM curve is vertical increase in government expenditures have no increase in output i.e. ...
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0answers
5 views

Does income equality correlate with less fraud?

If a population of people have less disparate income levels among themselves, are we able to predict anything about the level of phone scams, phishing emails, etc. perpetrated by members of that ...
2
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2answers
16 views

Books friendly to self-studying Industrial Organization

I'm currently an undergraduate freshman looking for resources to self-read Industrial Organization. I've read Varian's undergraduate book cover-to-cover and have a decent understanding of basic game ...
0
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0answers
15 views

question about the paper “the colonial origins of comparative development”

I have to answer some multiple choice questions about this paper and it is important that I get all of them right so I would greatly appreciate if someone could let me know if my answers are correct. ...
3
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0answers
29 views

Do central banks pay their staff and other costs with money that they create?

Central banks like the Bank of England and the Fed must cover their costs. I was wondering how they do this? I can think of two possible mechanisms: Government allocates money from its tax revenue to ...
-3
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0answers
14 views

Finding the effect of change in parameters of the demand curve in a Cournot Game

Two firms produce the same commodity. Let x1 and x2 be the quantity choices of firms 1 and 2 respectively. The total quantity is X = x1 + x2. The inverse demand function is P = a bX, where P is the ...
1
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1answer
20 views

How to show that the estimator is consistent?

$Y_i=\beta_0+\beta_1X_i+U_i$ is my regression model for an I.I.D. sample with N=1000 observations. Suppose $U_i\sim I.I.D.(0,\sigma^2)$ and Xi are also I.I.D for i=1,2,3......1000. Xi is independent ...
0
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1answer
32 views

Example which violates weak pareto and non dictatorship

Can you give an example of a social choice rule and a social welfare function that violates the conditions of Weak Pareto criterian and non dictatorship simultaneously?
2
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0answers
17 views

Can the Bellman Equation be used for Finite time problems?

Its known that the Bellman equation in recursive macroeconomics is used for the following problems: $$\sum_{t=1}^\infty\beta^tU(c_t)$$ $$s.t. c_t+k_{t+1}=f(k_t)$$ $$k_0>0$$ Im wondering if we can ...
1
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1answer
149 views

Is the amount of tax that consumers pay the same as the amount producers pay?

I am confused about the amount of tax producers and consumers pay. On this diagram, I can see that the supply curve increases by twenty dollars, as the tax is 20 dollars. The consumers have to pay 10 ...
0
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2answers
14 views

Difference between no perfect multicollinearity and no multicollinearity

Some textbooks (for example, Introductory Econometrics: A Modern Approach by Jeffrey Wooldridge) assume that no perfect multicollinearity for the OLS regression, while others (for example, ...
1
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0answers
19 views

How to test if the effect of one regressor entirely comes from other regressors?

I have a regression model that includes IQ test scores as the dependent variable; my own education, my father's education and my mother's education as independent variables. Suppose I want to know ...
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0answers
4 views

Dataset including decentralization of infrastructure spending?

Does anyone know if there exists a dataset of many countries (preferably developing countries and preferably with a time series) including the amount of spending on infrastructure by local government ...
-1
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0answers
9 views

Finding the current value of an asset?

I need to find the current value of this asset with this given information, but I really have no idea how to start this and how it would work. It would be great if somebody could get me on the right ...
0
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1answer
25 views

Why do some phones depreciate faster than other?

Based on evidence from reselling sites (eBay, Amazon etc.) we can observe a trend that iPhones on average depreciate far less and slower than for example Samsungs (or other phones that lose their ...
-1
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0answers
29 views

Derive the asymptotic distribution

Let $x_1, ..., x_n$ and $y_1, ..., y_n$ be two independent random samples from $X$ and $Y$. We have $µ_X = E (X ) > 0, µ_Y = E (Y ) > 0$ and $σ^2_X = Var (X )$ and $σ^2_Y = Var (Y )$. Derive ...
0
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2answers
21 views

Uniqueness of OLS estimates

Wooldrige says that ‘intuitively, to estimate k+1 parameters, we need at least k+1 observations’. Why is this the case?
0
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0answers
6 views

Does a private company that is 100% financed by a bank loan have a WACC equal to the interest rate?

When estimating a company's Cost of Debt for a Weighted Average Cost of Capital (WACC) calculation we normally look into its bond yield. But for a private company with 100% debt capital structure, ...
0
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0answers
12 views

Kaldor-Hicks optimum allocation with externality

Suppose there are two individuals. Level of good h can be determined only by individual 1 and it has a positive externality on individual 2. To find Pareto efficient allocation, we add the utilities ...
2
votes
1answer
24 views

Does it matter which is the dependent variable in regression of time series data?

I am testing for cointegration between the Real GDP per capita of England and France. I use a Dickey-Fuller test to test for stationarity and concluded that both of my series are non-stationary. So I ...
0
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1answer
30 views

Is single-peaked preferences necessary for majority rule to be transitive and yield non-empty choice set?

I understand that when individuals have single-peaked preferences, majority rule will be transitive and the choice set will be non-empty. So single peaked preferences is a sufficient condition. Is it ...
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0answers
17 views

Marginal Product of Labor for CES production function is not decreasing in Capital

In a problem set, I believe my instructor has had a typo but I would like to confirm. Consider the standard CES production function $f(k,n) = (\alpha k^p + (1-\alpha)n^p)^{1/p}, \quad p \in (0,1)$ ...
0
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0answers
7 views

How to measure and demonstrate risks of technological uneployment or dualisation?

Our country is consudering its own strategy for artificial intelligence. Currently it is being considered at the level of ministerial secretaries and the next move is the plenary committe of ministers ...
0
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2answers
47 views

Example of social choice rule that does not satisly the unrestricted domain condition

Can any social choice rule that is not complete said to be violating the unrestricted domain condition? Could you provide an example of SCR other than Pareto dominance that is not complete or violates ...
1
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1answer
32 views

In Smith's theory, what is the difference between the “nominal price” vs. “market price” and “real price” vs. “natural price”?

In Adam's Fallacy, Foley writes: "Smith distinguishes what he calls the nominal price of a commodity (the amount of money for which it exchanges) from the real price of the commodity, the amount of ...
-1
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0answers
25 views

capital vs. labor allocaton

How does the balance between resorces alllocated to capital vs. labor impact GDP growth; if there is a relationship is it linear. what are the consequences to gdp growth of excess capital (current ...
0
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1answer
23 views

Is local non-satiation enough to talk about Walrasian Equilibrium being subset of Core

In Advanced Microeconomic Theory, the author mentions that the Cobb Douglas utility function is neither strongly increasing nor strictly quasiconcave over all of R+. But the condition of strongly ...
0
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0answers
13 views

Regression design, difference in differences

I plan to look at the regional differences of a policy effect. I would like to use the difference in differences approach however I am not sure how to assign a control group. I have data for time ...
1
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0answers
35 views

How can I prove that the following estimator is biased?

I'm trying to prove that $e^{x\hat{\beta}}-1$ is a biased estimator for $e^{x \beta}-1$. I know that this involves taking the expected value of the estimator and showing that it is not equal to $e^{x ...
-1
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1answer
20 views

How to read nash equilibrium from a normal form?

For example, on the section with the title "sequential games in normal form" of this wikipedia page, there is a table with all its SPNE and nash equilibrium labelled. How are the NEs obtained? It ...
0
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1answer
21 views

How to interpret the intersected information partition element of different actors?

In this paper, it said that given $\omega$ is the current state of the world and $P_1(\omega)$ is the unique element from the information partition $\textit{P_1}$ of actor 1 in which the player 1 is ...
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0answers
7 views

Calculate a weighted relative growth to distribute national growth rate

Consider two regions ($R_1$ and $R_2$) in one country ($N$). I know, for instance, the consumption of pigs on national level in period 1 and 2. Let's say that this is: $C^{N}_1=100$ and $C^{N}_2=150$. ...
0
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0answers
15 views

Total factor productivity persistence

Would it make a difference whether a decrease in total factor productivity z on the labor, goods, and money market is persistent? (That is, whether decreased productivity today also is predictive of ...
0
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0answers
19 views

A problem: allocation of apartments

Setup: Trine owns an apartment in Copenhagen. She is willing to rent it out at any positive price. Peter and Simon lives together and are both students. They will like to rent the apartment for less ...
0
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1answer
28 views

Moderation effect of a variable [on hold]

Should we include some control variables in regressions when we test a moderation effect of a variable?
2
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1answer
19 views

Meaning of UK Employment Change Index - 3 Months Average

I am trying to understand the meaning of an economic index which is measured in the following way: The value for month n is determined by calculating the average of the last 3 months (n, n-1, n-2) ...
0
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0answers
16 views

Order of Marginal Effects in Ordered Regression Model

I'm looking to validate my understanding of marginal effects on the probability of an ordered probit model. I don't understand how ME is calculated in respect to some alternatives. For example if I ...
1
vote
1answer
68 views

Linear Utility?

Consider a preference relation $\succeq$ on $X\subseteq\mathbb R^2$. If $\succeq$ satisifies: $$ \begin{align} &1.\mbox{ }(a_1,a_2)\succeq (b_1,b_2)\implies(a_1+t,a_2+s)\succeq (b_1+t,b_2+s),\...
3
votes
1answer
50 views

How does fuel tankering save airlines money

The aviation industry practice of fuel-tankering has been in the news recently. As the BBC describes it: "planes are filled with extra fuel, usually to avoid paying higher prices for refuelling at ...
0
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0answers
8 views

Calculting the Exchange market pressure index

Does anyone knows how to calculate the exchange market pressure? I am using the following paper to calculate the EMP, but I am not sure if I am calculating the relative precesion correctly. My Stata ...
0
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1answer
14 views

What are good books about financial markets?

I found answers on this question online but people always recommend books for beginner investors who want to become rich. I just want book that is about history and role of financial markets and book ...
0
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1answer
20 views

How do takeover deals create arbitrage opportunities that involve necessarily selling short the acquirer’s stock?

Yes, you can get a juicy yield from a pot ETF. But here’s the catch - The Globe and Mail Takeover deals create arbitrage opportunities that involve selling short the acquirer’s stock [I emboldened.]...
0
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0answers
11 views

How do you calculate the cost of down time in production?

We are looking at a process that will significantly reduce down time in production for (at least) one of our products. In addition to the saved labor and material costs, is there a way to calculate ...
0
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1answer
67 views

Why is the labour supply independent of the wage in this case?

Consider the model $\max U = \ln c + \ln l$ subject to $c=Lw$ and $1=l+L$, where $c$ denotes consumption, $l$ leisure, $L$ the labour and $w$ the wage rate. The optimal choices of $L$ and $l$ can be ...
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0answers
22 views

Are there any papers that have tried to model the Modern Money Theory?

This is a reference request for papers that have tried to model MMT.
1
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0answers
20 views

How do you call systems in which the more you have, the more you make?

I am looking for a term for systems or dynamics in which the ability to earn a particular resource requires having a minimum of that resource available, and grows progressively or exponentially with ...
-1
votes
2answers
39 views

Nash Equilibrium and SPNE [on hold]

Firms Alpha and Beta serve the same market. They have constant average costs of $2 per unit. The firms can choose either a high price ($10) or a low price (5) for their output. When both firms set a ...
0
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2answers
47 views

Questions about the Edgeworth box

I have some doubts about the Edgeworth box, it's a newbie one so thanks in advance for the patience. In case, I'm confused if we can count the root of the contract curve (point M) as one of the ...

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