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Is it possible to maintain economic equality in a society?

If the governor (or administrator) of a small town decides to keep the town economically equal by taking away the wealth of all residents and then redistributing it equally among the residents. In ...
Riq's user avatar
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0 answers
7 views

Long Run Model of Oligopolies After Recession

I am currently investigating about the long run impact of the COVID 19 to the US airline industry. Is there any specific (long-run) model that I can use for oligopolies (for 4 main companies)? Because ...
HelloWorld's user avatar
3 votes
1 answer
25 views

In revealed preference (RP), is any two points $x,y$ related by the indirect revealed preference relation?

Let $X$ be the closed compact convex set of alternative and $B$ be a closed compact convex subset of $X$. $C$ is defined on all closed compact convex set $B\subseteq X$. $X$ is ordered by a strictly ...
High GPA's user avatar
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1 vote
1 answer
28 views

Conditions for an interior solution to the UMP

I was wondering under what set of conditions one is allowed to assume an interior solution to the Utility Maximisation Problem. In most of my classes and lecture notes, interior solutions are assumed ...
TomUcl2003's user avatar
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4 views

Ordered Logit Model: Marginal Effects Signs Opposite

I'm deeply stuck in an issue in my research paper's methodology. I'm getting the following disparate results for my marginal effects. In my Ordered Logit model, I have Y = Trust in banks (4-Max trust,...
Fasih's user avatar
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0 votes
1 answer
73 views

Why does the Substitution effect always have to be negative?

I understand why the income effect can be positive or negative depending if the good is normal or inferior. but why does the substitution effect always have to be non-positive?
tessa's user avatar
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2 votes
0 answers
24 views

Why does the voter paradox entail 0 turnout?

The decision to cast a vote (under a simplistic FPTP two-candidate model), as formalised by Downs can be written as follows: $pB \geq C$ where $p$ is the probability of you changing the outcome, $B$ ...
fruitless fruit juice's user avatar
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0 answers
14 views

Good tutorial on constrained optimization with state switching (macroeconomics)?

I am looking for some tutorial (website, book, video or even answer that explains it directly) that explains how to solve dynamic constrained optimization problem with state switching. Preferably the ...
Lorenzo Pozzi's user avatar
3 votes
1 answer
26 views

What is the issue in mapping verbal concepts to math symbols without proper justification, in economics?

I am really sorry for the vague question. I was going through some research on excessive math in economics, and I stumbled across this thread Criticism of Math in Economics One of the comments was - &...
Garvit Gupta's user avatar
2 votes
0 answers
21 views

A question about an exercise in Hal R. Varian, Microeconomic Analysis (1984), Ch.3 Exercises 3.1 (c), Page 48

I have a question on the following exercise: A competitive profit-maximizing firm has a profit function $\pi(w_1, w_2) = \phi_1(w_1) + \phi_2(w_2)$. The price of output is normalized to be 1. (c). ...
ttd's user avatar
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2 votes
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Find a choice function such that WARP or SARP is violated

WARP implies choice function is raionalizable. Say we have a choice function $C(B)$, $B$ is a closed convex compact set. I am looking for a intuitive example of $C$. The $C$ is economic meaningful, ...
High GPA's user avatar
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0 votes
1 answer
64 views

How to show there is no a Walrasian equilibrium?

There are 3 agents, one seller and two buyers. There are two indivisible goods, apple(a) and banana(b), and one divisible good, money(m). The seller's endowment is $W_s=(1,1,0)$, and buyers's are $W_{...
user45481's user avatar
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0 answers
4 views

Can I use secondary data to run LA AIDS model in R

Can the Almost Ideal Demand System analysis be done using secondary data
K Anushree's user avatar
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0 answers
31 views

how to derive that golden rule steady state = alpha in the solow model?

I have successfully derived the Golden Rule steady state for capital, but I'm struggling to derive the saving rate = equal to alpha (α) for the Golden Rule level. Have I made an error in my ...
Mackenzie Watts's user avatar
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56 views

Who is a personal computer buyer in 80s?

There are many materials devoted to the rise of the personal computer industry. Some of them focus on technic aspects. Like "IBM PC was cheap and has open arcitecture. So it won Atari, Commodore ...
Arseniy's user avatar
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36 views

Variance of OLS Error Variance Estimator

Consider a model $Y=X\beta+e$ and define the OLS error variance estimator as $\hat{\sigma^2}=1/n\sum_{i=1}^n \hat{e}_i^2$, assuming that $ E[e_i^2]=\sigma^2 $ More precisely I want to derive the ...
Paul Huang's user avatar
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0 answers
23 views

Why has the price of laser eye surgery not changed?

Within the USA, I have long heard rumors that since laser eye corrective surgery is not often included in insurance plans or subsidized by governments, the price of laser eye has remained relatively ...
stats_noob's user avatar
0 votes
1 answer
28 views

Can FOSD-transitivity replace the transitivity in utility representation theorem?

Let $\succsim$ be a complete, non transitivity preference relation. I wonder if FOSD-transitivity implies transitivity. The primitive is the space of lotteries $p_1,p_2,p_3,...$. We say the preference ...
High GPA's user avatar
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0 votes
1 answer
31 views

Can a Subgame Perfect Equilbrium consist of a weakly dominated action?

I was reviewing the Market Entry game and observed that 'being mean to the entrant' is weakly dominated by 'being nice to the entrant.' Coincidentally, 'being nice to the entrant' is also part of the ...
Dr Patrick Bateman MD's user avatar
1 vote
1 answer
13 views

What is the meaning of "Nominal GDP was converted to 2021 dollars using the GDP Price Index" in ERP 2023?

Reading the Economic Report of The President 2023, there is a note under the real GDP graph stating: "Nominal GDP was converted to 2021 dollars using the GDP Price Index" What I understand ...
Omar's user avatar
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1 vote
0 answers
22 views

Deriving the tax incidence formula -- what am I doing wrong?

I'm trying to derive the tax incidence for an excise $t$ so that producers receive $p$ and consumers pay $q=p+t$ per unit. The formula I am seeing everywhere is some version of $$ \frac{\mathrm{d}p}{\...
alcedine's user avatar
  • 111
0 votes
1 answer
21 views

Internationalization of Chinese Yuan, and Chinese exports?

If Chinese Yuan is internationalised and more countries use it to settle payments, then wouldn't that cause strengthening of Chinese Yuan and make Chinese exports uncompetetive ?
ecorajx's user avatar
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0 answers
63 views

About Theorem 3.5 (The Finite-Approximation Theorem) in Game Theory: Analysis of Conflict by Roger Myerson

I am study infinite strategy set using Myerson's Game Theory textbook. The author stated the following theorem (Theorem 3.5) but did not prove it. I tried the proof, and would really appreciate it if ...
Beerus's user avatar
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1 vote
0 answers
37 views

What is a very very famous example of structural estimation?

I took a behavioral econ class and learnt the "structural estimation" of risk-aversion parameter. Later some friends told me that what I learnt is too simple when I was bragging about my ...
dodo's user avatar
  • 259
1 vote
0 answers
40 views

Durable goods in a (two sector) necolassical growth model

i want to add a firm to a neoclassical growth model that produces a durable good which it rents out in each period to the consumers. Right now i'm using the following approach: The firm maximizes: $\...
mfba's user avatar
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0 votes
0 answers
20 views

Heterogeneity analysis for a randomised experiment

Suppose that you are planning a randomised experiment and will estimate how effects vary with baseline covariates. One simple approach uses interactions. That is, if $Y_i$ denotes the outcome of ...
afreelunch's user avatar
1 vote
0 answers
24 views

Definition of semi-elasticity

The "$x$-elasticity of $y$" is defined as $\epsilon = \dfrac{\partial y/y}{\partial x/x}$. The $x$ goes down, and the $y$ goes up. But we have two definitions of semi-elasticity: $\epsilon_1 ...
robertspierre's user avatar
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0 answers
60 views

Walrasian equilibrium

Explain why z(p)=0 is a general equilibrium
sophie's user avatar
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1 vote
0 answers
46 views

How can I find a Radner equilibrium?

Consider an economy with 2 consumers and 1 good. There are 2 dates, date 0 and date 1. At date 1 there are 3 states of nature. The utility functions for the 2 consumers are the same: $$u_i(x_i)=\frac{...
Ludwig Gershwin's user avatar
1 vote
1 answer
25 views

Total cost and public cost of sports stadiums

I'm interested in doing data analysis on the cost of large sports stadiums (in the US). I have an excellent data source in "Financing Professional Sports Facilities" (Robert A. Baade, Victor ...
Hilts's user avatar
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1 vote
0 answers
13 views

Credit profile bank dataset for Machine learning

Can you advise please any credit profile Bank free available datasets for Markov chain and machine learning computational experiments? For my student masters thesis. Thank you.
Player 777's user avatar
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0 answers
4 views

Aggregate elasticity of demand in a differentiated products market

Is the notion of aggregate elasticity of demand applicable in a market for slightly differentiated products? Intuitively, it seems like it should. If market output can be expressed in a single number (...
Dale's user avatar
  • 1
1 vote
1 answer
50 views

If utility function is convex, what can be said about preference relation?

It is known that if a utility function is concave, then it is quasiconcave, and the preference relation is convex. What can be said if a utility function is convex? I've found on the Internet then in ...
Paul R's user avatar
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1 vote
1 answer
37 views

About infinite strategy sets and $\epsilon$-equilibrium from Game Theory: Analysis of Confilct by Roger Myerson

I am studying infinite strategy sets using Myerson's Game Theory: Analysis of Conflict. On Page 143, he defines an $\epsilon$-equilibrium as follows: Definition For any nonnegative number $\epsilon$, ...
Beerus's user avatar
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1 vote
1 answer
69 views

If utility function is homogenous of order 1, then partial derivatives of demand function are equal

Prove that if $U(\alpha x)=\alpha U(x)$, then $$\frac{\partial x_i(p,w)}{\partial p_j}=\frac{\partial x_j(p,w)}{\partial p_i}$$ for any $i$ and $j$. I've proved that $x(p,\alpha w)=\alpha x(p,w)$, but ...
Paul R's user avatar
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0 answers
32 views

Second-degree price discrimination exercise

A monopolist produces output with constant marginal cost equal to 1. There are two of consumers that are potentially in the market for the good. Consumer A has inverse demand function $$p_A(x) = 7 − x,...
Sofia Delacruz's user avatar
0 votes
1 answer
19 views

Marginal and Average costs for constant returns to scale production function being constant

Suppose that we are dealing with a production function $q = f(k,l)$, of inputs capital and labor. If this function exhibits constant returns to scale then I know that both the marginal cost and ...
Nick's user avatar
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0 votes
0 answers
19 views

Engine efficiencies on small scale ( ice engines vs turbines

A formula one engine is around 51% efficient (and if it weren't for the regulation and rules it might have been close to 55 to 60% efficient read somewhere in Google) that the extreme side but there ...
Doctor Pinocchio's user avatar
0 votes
1 answer
36 views

Showing UMP and EMP do not exhibit duality if the assumption of local non-satiation is absent

I have been trying to use the contradiction method to prove this, but it does not seem to be working. Suppose $x^*$ is optimal in both EMP and UMP. Then $u(x^*) \geq u(x')$ for all $x'$ in $B_pw$. And ...
pacmanscuriousbloob's user avatar
1 vote
0 answers
33 views

Why would bank runs lead to a decrease of the total quantity of money supply M1?

It‘s specifically about the German banking crisis of 1931. I get how the banks increasing their reserves and cutting their loans (starting 1930) would cause money contraction (at least of M1). Doesn‘t ...
Iris L's user avatar
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0 votes
0 answers
19 views

Why cant other country Imitate China give people work in place of relief subsidies? especially country with low-employment rate?

From my shallow perspective as a Chinese, whenever there is a low economic growth rate, there is a massive infrastructure building plan as to give people work in place of relief subsidies to stimulate ...
Tong Su's user avatar
0 votes
1 answer
22 views

What is the difference between "The effects of Monetary Policy" and "The effects of Monetary Policy Shock"?

I know this may be a silly question. I always thought these were different but some people in the literature use them interchangeably and I was wondering are they different? If so, how are they ...
EHMJ's user avatar
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0 votes
1 answer
21 views

Is my understanding of Arrow's dictatorship correct? The dictator is free to update her preference and the social choice will always follow her taste

Suppose $R$ is a social ordering, $f$ is the social choice function, and $R_i$ is an individual preference. A profile of individual preference is $<R_i>$. $f(<R_i>)=R$ Suppose $i=1$ is ...
dodo's user avatar
  • 259
0 votes
1 answer
23 views

Which Spanish scholastic economist said that economies could not be controlled even if one could track every transaction?

Which Spanish scholastic economist said that economies could not be controlled even if one could track every transaction? I think the context was an argument against Keynesian economics, Cartesian ...
Geremia's user avatar
  • 473
1 vote
0 answers
37 views

How to add a linear contraint between state variables to a current time Hamiltonian?

Let's say I have an objective function $F$ with state variables $A,B,C$ and relative equations of motion, I can create the current time Hamiltonian with $H_C = F\{A,B,C\}+\alpha * \dot A+\beta * \dot ...
Antonello's user avatar
  • 307
-1 votes
0 answers
27 views

Equilibrium asset prices of a risk-free bond and a stock

Setup: Two-period economy with two equally likely states of the world in the second period. Two consumers with Bernoulli utility and same discount factor
TomUcl2003's user avatar
0 votes
1 answer
22 views

FOCs for profit maximization using a transformation function

I'm (still) reading the microeconomics textbook of Mas-Colell et al. On p. 135, the profit maximization problem (PMP) for producers is introduced; characterizing the technology as $Y = \{ y \in \...
chsk's user avatar
  • 283
0 votes
0 answers
41 views

Forecasting and Structural Breaks

Let's say I am using walkforward evaluation for forecasting a certain time series with ARIMA and I want to test for structural breaks. And then I detect structural breaks. How can I use this ...
a12345's user avatar
  • 101
0 votes
0 answers
31 views

Differentiation of a composite utility function

Taking the utility function $U: ln(c_1)+\beta ln(c_2)$ with $c_t=\sqrt{c_{Nt}c_{Tt}}$, t indicating a time period 1,2. Ignoring any b.c.'s. I am having issues interpreting the marginal utility wrt $c_{...
econstudent's user avatar
0 votes
1 answer
66 views

Auction with independent private values - An example from Game Theory: Analysis of Conflict by Roger Myerson

I have difficulties understanding the equilibrium analysis of the following auction game: Suppose that there are $n$ bidders in an auction for a single indivisible object. Each player knows privately ...
Beerus's user avatar
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