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3 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 ...
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0answers
14 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 ...
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0answers
10 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
9 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 ...
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0answers
9 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 ...
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0answers
11 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 ...
-2
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1answer
19 views

Tax and Spending Multiplier(Balanced Budget)

The government presents a budget with an increase in spending by \$10 million and increases taxes by \$5 million to help finance the increased spending. The MPC equals .90. By how much will GDP change?...
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0answers
31 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
17 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 ...
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1answer
16 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 $C^{N}_2=150$. ...
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0answers
14 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 ...
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0answers
17 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
24 views

Moderation effect of a variable

Should we include some control variables in regressions when we test a moderation effect of a variable?
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0answers
15 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
14 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
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1answer
53 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
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1answer
48 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.]...
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0answers
10 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
64 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
21 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.
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0answers
19 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
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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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0answers
14 views

How to integrate technology lifetime in NPV

I want to calculate and compare the NPV for different ways of producing a good X. The NPV should be calculated for 30 years. The following technologies can be used for production: Technology A, which ...
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0answers
20 views

Production for multiplant firm?

A multi-plant firm will never produce at a plant with an increasing marginal cost when they own another plant with a decreasing marginal cost. Is this true? My reasoning behind this is that firms ...
0
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1answer
54 views

Kuhn Tucker Maximization

I have to maximize following expected utility function using Kuhn tucker conditions - Since expected utility function are increasing $C_{1,t}$ and $C_{2,t}$ so constraints (i) and (ii) will hold with ...
-1
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2answers
56 views

Prove quasi-concavity of utility function [on hold]

How do you prove from definition (no Hessians) that $U(x_1,x_2)=x_1^2 x_2$ is quasi-concave?
3
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1answer
25 views

Question about the relationship between Weak Axiom and Slutsky Matrix

We know that if a differentiable Walrasian demand function $x(p,w)$ satisfies Walras' law ($p^Tx=w$), homogeneity of degree zero ($x(\alpha p,\alpha w)=x(p,w)$), and the weak axiom of revealed ...
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2answers
155 views
+100

Which authority on this planet determines the strength of all currencies and can it be rebelled?

I know that to determine the strength of a currency several factors are contemplated, such as: Amount of money going in and out of a certain state, in a given period of time Stability of the ...
1
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0answers
51 views

Dynamic programming, optimal consumption-savings (finite horizon) problem

Let $w_t$ denote a consumer's wealth at time $t$ and $c_t$, the amount she chooses to consume, so her savings exiting this time period are $w_t-c_t$. Given this savings decision, her savings $w_{t+1}$ ...
-3
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0answers
14 views

What is this kind of survey called? [on hold]

What do you call a survey that required to be filled by all members of the sales team? The choices are: stratified sampling non-random sampling census This is a question I got on my business exam ...
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0answers
25 views

How does a government implement negative interest rates in practical terms?

We usually understand interest rates from a very simple story "you went to a bank ans asked to borrow money, the bank agrees but requires you to return an extra amount be the end of the loan term, ...
1
vote
1answer
41 views

Why charge higher interest rates to poorer customers?

Consumer loans/credit charge different rates depending on the individual's risk. In particular, it charges more to poorer individuals. Whilst this seems to make sense from a risk perspective, there ...
-4
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0answers
17 views

How can I solve this? [on hold]

How can I solve the diminishing marginal rate of technical substitution?
1
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1answer
20 views

First-price symmetric auction with discrete value

I've been trying to work the following problem out but I can't quite seem to understand it, or the whole concept of first-place auctions. I don't understand how we get to the equilibrium. The problem ...
0
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0answers
18 views

Is the supply of a price-taking firm increasing in price?

Is the supply of a price-taking firm increasing in price? When the price goes up, this means that firms can make more profit. Therefore, they would want to increase their supply. Is there a way to ...
1
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0answers
62 views

What is Economic Interpretation of three nonlinear equations?

I have the following nonlinear system $w$ is wealth $c$ is consumption $r(w)$ is gross return on wealth $a,b, d$ are parameters which are strictly positive and fixed. $$\dot{w} =r(w)w-c$$ $$\...
0
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0answers
31 views

Examples of textbook definitions of transaction costs, for a non-econ student

I'm not an econ major, neither am I taking it as a minor, however seemingly out of nowhere economics has jumped into my CS class when talking about the role of IT in reducing transaction costs of ...
1
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0answers
15 views

Strategic Complementarities and Multiplicity

Consider a coordination game, in which actions taken by players are strategic complements. Moreover, assume that actions are strong strategic complements, in that the slope of the best response ...
0
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0answers
26 views

Why do commercial banks buy government bonds at negative interest rates instead of keeping cash?

I know commercial banks need to meet liquidity requirements, but why would they choose to invest their money in an instrument that is guaranteed to give them a negative return, instead of just keeping ...
0
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1answer
34 views

Why are the same set of controls used for both OLS and 2SLS?

I have been reading several papers that use 2SLS. These papers usually also show the OLS regression results. I noticed that when authors report results for 2SLS, they also include control variables ...
-1
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0answers
8 views

Effects of Increase in Total Factor Porductivity in labor, asset, and money markets [on hold]

What is the effect of a decrease in current total factor productivity, z. Determine the effects this shock will have on output, investment, consumption, employment, real wage, real interest rates, ...
-2
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0answers
9 views

give the following demand function qd

qdA =80-0.6p qdB =-120-0.4p p=500-1.2qdc (a) derive the market demand function (b) supposed price in the market are given as p=15,20,25,and 30.calculate the various quanties and present your answer in ...
1
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0answers
18 views

Continuous trading economies

Continuous trading economies. I see this expression in many papers but I do not know what it means in the precise technical sense. And I'm not an economist. Maybe it could refer to an economic ...
-1
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0answers
10 views

Households and Capital Accumulation Problem Set Up

I have to set up the competitive equilibrium for this economy, and am given the following information: The household directly owns the capital stock and makes the investment decisions. And has a ...
0
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1answer
30 views

The assumptions of Rational Expectations Models

What are the assumptions between rational expectations models and how restricted are there for the following results of economic theory? Where can I find them all gathered in some textbook or in the ...

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