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4 views

Why does inequality fall in recession

Why is this so common. Is new keynesian recession even possible if inequality falls. Maybe find some cases where inequality doesn't fall.
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1answer
4 views

What is the formula for finding derivation of total annual revenue for any year

I'll to explain this as best as I can, with what I've got. Say you have a gantt chart and have calculated the total weeks in starting a business. You have a loan with a draw down with an interest ...
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0answers
5 views

How to structure an array with both categorical and quantitative variables?

For example, I am conducting a global cross-sectional analysis explaining the effect gender and mental health have on life expectancy. This means combining a bunch of quantitative (control) and dummy ...
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0answers
2 views

What are some historical examples of laissez-faire capitalism?

I suspect both supporters and detractors of laissez-faire capitalism have some historical examples in mind that they consider reasonably close to an ideal or to a "natural experiment". (The examples ...
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0answers
6 views

Gali (2015) Chapter 8 Symmetric Steady State

In Chapter 8 (small open economy) of Gali's 2015 version of Monetary Policy, Inflation, and the Business Cycle, he often performs log linearisations around a symmetric steady state like below: My ...
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1answer
6 views

Why does the price and wealth derivatives, weighted by the price and wealth, sum to 0?

From Mas-Colell, Whinston and Green (Microeconomic Theory), we have this proposition on page 27. If homogeneity holds, $$ \Sigma_{k=1}^{L} \frac{\partial x_l (p,w)}{\partial p_k} p_k + \frac{\partial ...
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0answers
19 views

Calculating the amount paid for a loan in today's dollars

So I was trying to figure out the amount paid for a loan in today's dollars using two different methods but they give me different results. I was hoping that someone could explain which method is ...
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0answers
13 views

Modeling risk aversion. Expected utility function

I want to model an Expected Utility Function for risk aversion but my problem is uncertainty in itself. I want a function(a special case) $$f(x, y) =\left\{\begin{matrix} h(bx^{1-C}+ay^{1-C}),C\neq 1\...
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1answer
23 views

Did capitalism exist before the 18th century?

Were there capitalistic economies before the 18th century?
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2answers
16 views

How does the pie get larger?

I understand the concept of creation of wealth through trade, innovation, labor and capital. New value is being added to the economy. Let's imagine for a second that there are no central banks and the ...
1
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1answer
27 views

Framing Effect Risk-Aversion Risk-Pursuit

I am an economics' graduate seeking to study Law and I want to illustrate the importance of legal certainty. Penalties, Costs are negativelly framed. I am trying to word. 200 dollars with 50% ...
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0answers
6 views

Tier-tax value calculation task

anyone can help me to find this problem equation ? Thank you appreciate your help!! Tax tier task
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0answers
9 views

Volatility measure in Diebold-Yilmaz connectedness approach

I am trying to create Diebold-Yilmaz connectedness table for returns and volatilities. When I do it for returns everything works properly (I can reproduce their work actually) but for volatilities I ...
-1
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1answer
27 views

Consequences of removing hard currency

If an appropriate electronic system were implemented governments would know how much money there is in circulation, who has it and if some illegal transaction has been done. This measure could help ...
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0answers
22 views

What are the different approaches to represent and analyse an economic model/system with scientific rigour [on hold]

My objective is to test the said model's stability or a lack thereof, along with factors that cause such. I have read about certain techniques like using partial differential equations (chaos theory) ...
0
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1answer
42 views

Indifference Curves and Preferences

Why are averages preferred to extremes on the same indifference curve? Doesn't everything along an indifference curve have the same preference?
1
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1answer
26 views

Difference between Engel curve and income expansion path

I was scrolling through many questions on this site about income offer path and it appeared to me that income offer path, income expansion path, engel curve all are different terms with same meaning, ...
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0answers
12 views

List of important business and economic news events between 1850 and 1930?

I'm collecting data on important business and economic news dates in the late 19th to early 20th century. The only list I found is this: https://www.encyclopedia.com/history/news-wires-white-papers-...
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1answer
20 views

Rent dissipation meaning?

What is Rent dissipation? Please explain with an example. I tried to search it on the internet about it. And I couldn't find anything in simple language. It was the esoteric language and was unclear. ...
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0answers
12 views

How to I find some of the most basic US State-level economics (survey) data for each year?

Some of the variables that I am interested are the state-level GDP, population, income, saving, consumer spending, employment, investment, industry share, RD investment, etc. I've tried the US census ...
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0answers
20 views

Expected Inflation and its results

I was reading a macroeconomics textbook and found two statements which seem kind of contradictory so I wish to ask how to correctly interpret this. “When expected inflation is high, people increase ...
0
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0answers
7 views

Regarding exchanges (crypto exchanges or equity exchanges) is there a reason Vickery auctions (second price sealed bid auctions) are not used?

Is there any benefit to the current choice of auctions in exchanges or conversely any reason why no one has used Vickery auctions in equity exchanges. I know they're used in ad auctions.
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1answer
19 views

How to calculate the risk-free rate of cryptocurrencies?

For a conference I need to show the Sharpe ratio's of bitcoin portfolios using different trading strategies. To calculate the Sharpe ratio, I need the Bitcoin's risk-free rate. Risk-free rate for ...
-4
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1answer
31 views

Is solving unemployment impossible?

Supposing that there in island. The island is barron except for a machine that makes food. Let us suppose that people want for nothing else. At first the machine requires the whole population to ...
-1
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0answers
51 views

Is “laissez faire capitalism” what was practiced in economies before the advent of capitalism? [duplicate]

Is "laissez faire capitalism" what economies were before the advent of capitalism?
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1answer
24 views

Alternatives to avoid sanctions

Recently we saw that EU and Iran devised an instrument called INSTEX to avoid dealing in dollars and hence avoid US sanctions. Similar thing is being planned between India and Russia (regarding S-400 ...
0
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1answer
17 views

Coefficient omitted because of collinearity

I have a panel data that includes a decade of firm-year observations (1995- 2005). These companies are from different countries. A law has passed in (almost) every country at different points in ...
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0answers
42 views

Covariance between regression coefficient and residual

Given regression equation Y=Xβ + ε which satisfies all classical assumptions including those of homoscadasticity Estimated regression equation using OLS is the following - Y=Xb + e Where, b is ...
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0answers
17 views

Will a golden rule level of capital exist if the production function does not satisfy INADA conditions?

I am trying to think about a generalized form of Golden rule level of capital.
3
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1answer
39 views

Dealing with Missing Values in Diff-in-Diff Estimation

To preface this, I am asking this question on the Econ SE because I was made aware on Cross Validated that Difference in Difference estimation is quite an economics specific method. The picture above ...
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0answers
13 views

How did the purported 2008 decoupling of emerging markets pan out?

One opinion voiced (in The Economist) around the 2008 recession was that: Decoupling does not mean that an American recession will have no impact on developing countries. That would be daft. The ...
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0answers
16 views

Historically has the “decoupling” of world trade from GDP not lead to (or deepened) a recession?

The ECB speaks (somewhat euphemistically, in my opinion) of a "decoupling" of world trade from "activity" (i.e. GDP) in Q1 2019: Historically, has it been the case that such a "decoupling" can last, ...
1
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1answer
17 views

Interest rate - Price of Credit vs Price of Money

I read somewhere that interest rate as the price of money is wrong but rather it is the price of credit. Can someone elaborate and explain what this means?
3
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0answers
25 views

Unique Nash-equilibria in multi-unit auctions with uncertain participation

Setup Consider a one shot sealed bid multi-unit auction where $N$ bidders compete for $K$ identical objects and each bidder $i$ has demand $d_i\in \{1,\dots,K\}$. Bidders receive private i.i.d. ...
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0answers
18 views

Link between recession and decline in investments

I recently followed MIT online lectures for economy and I found this - one of the reason for investments decline in recession is bad expectations about economy -----> leading to Higher capital output ...
0
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0answers
9 views

How to determine the first bid for a Double-Bounded Dichotomous-Choice Contingent Valuation model?

I'm very new to the survey format of double-bounded dichotomous-choice for contingent valuation, so I apologize for my naive question. Could you please let me know how a researcher decides the initial ...
2
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2answers
33 views

Comparative data on agricultural subsidies

Where can I find data on the agricultural subsidies of each country, ideally in a comparable fashion? I've googled without success. I hope there are some experts on this forum that can direct me to ...
2
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1answer
43 views

Is loss in tax revenue a negative externality?

I was thinking about how online gambling could cause numerous governments to face a reduction in tax revenue from conventional gambling, upon which taxes do apply in most countries. If governments ...
0
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1answer
95 views

What would the indifference curve of min{√x,y} looks like?

The locus of kinks would follow x=y^2 but what would the arms look like?
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0answers
14 views

Investments during recession

During Recession, banks loans decrease which leads to financial constraints and ultimately Investment suffers and declines. my question is - "Are loans lower because of demand or supply?" My ...
1
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0answers
12 views

Relationship b/w consumption & increase in interest rate

Please help me clarify this- Case 1 - If interest rates increase then people will save more to reap the benefits and will cut down on their consumption(C) so Consumption will fall. Case 2 - Due to ...
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0answers
5 views

Designing the payment function in Mechanism Design problems

Suppose we have a network in which agents request access to its resources. Thus we have a resource allocation problem. Ideally, we want to incentivize agents to send social-welfare supporting ...
-3
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0answers
26 views

Are fair societies always unstable? [on hold]

I was thinking about land ownership and whether this is a good or bad thing. What I usually do in these circumstances is try and reduce the question to it's simplest form. So I imagined an island ...
0
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1answer
30 views

Fall in share due to litigation

Recently, I read a news - Indiabulls Housing Finance shares plunges on reports of litigation against company Why do shares plunge when company finds itself in Litigation process? how does litigation ...
0
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0answers
20 views

How to run Panel data analysis when data on the dependent variable is on a 5 year interval basis and that on independent variable is on yearly basis?

I am reading a paper which empirically tests if primary exports affect education attainment in LAC countries over the period 1965 to 2010. It uses percentage of secondary school enrollment as ...
0
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1answer
45 views

A case where the solution to Expenditure Minimisation Problem is not a solution to Utility Maximistion Problem

I am looking for a preference relation which satisfies the above property.
3
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2answers
151 views

Why has M1 grown a lot faster than M3 after the financial crisis?

While the fed has printed a lot of money the last decade and the M1 money quantity growth rate has gone up significantly (red), the M3 growth rate (blue) is almost exactly the same as before the ...
1
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1answer
33 views

Why does trade depress relative wages?

I've read that increased trade tends to decrease relative wages of labor. What is the intuition behind this? Lower wages in labor imply lower demand for workers, but doesn't trade just encourage ...
0
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1answer
30 views

Most profitable conversion of stock into money

When Forbes-lists of top billionaires are published we are usually aghast of their riches and statements such as "the 8 richest people own as much as the poorer half" are disseminated. I was ...
1
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0answers
42 views

Minimizing the error: Transforming dependent variable

As given in the picture, question ask us to transform dependent variable, by premultiplying with a weighting matrix W, (which will change the regression coefficient into C'β) such that the expression (...

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