All Questions

Alice consumes two goods, almond milk and granola. Let xm and xg be monthly consumption of milk and granola respectively, while pm and pg be the corresponding prices. Suppose that a granola vendor ...

The following production function is given, $f(X) = min\{x_1,x_2\} + x_3$ There is a solution here https://math.stackexchange.com/questions/605925/constrained-maximization-of-leontif-utility-function-...

As the title says. Why do we need at least as many instrumental variables as endogenous regressors to identify parameters?

Premise In 2017, passively invested assets totaled 37% of mutual funds and ETFs; by 2021 this number is closer to 50% if not more. After the market downturn in (March) 2020, the Fed updated their ...

It is often told that domestic work is not included in the GDP estimates due to difficulty in measuring them. I wanted to know if there are any advances in measuring this, or any alternatives that ...

This question is from Harvard seminar problem set (Q-3 part b) https://www.studocu.com/en-us/document/harvard-university/economics/mandatory-assignments/econ2020a-14-ps01-please-give-as-much-...

I noticed that the interest rate on excess reserves and the fed funds rate are almost exactly the same at all times. Why is this the case? Shouldn't the credit risk of a bank be higher than the ...

What is the right framework to think about the prime rate in relation to the fed funds rate? Idea 1: A bank is safer to lend to than even trustworthy institutions so there's a premium on prime rates. ...

USA's GDP (at this time) is ~21 trillion dollards, and UK's is ~2.8 trillion dollars, then how come UK's currency is more than USA's. By that I mean, 1 GBP gets you more than 1 USD.

See e.g. Nvidia CEO: GeForce RTX 3080 and 3090 Shortages To Last Until 2021 (Tom's Hardware, 2020-10-05) The great graphics card shortage of 2020 (and 2021) (BBC, 2021-01-24) Why don't Nvidia and ...

I have seen min{x1,x2} functions representing perfect compliments but have never seen a max{x1,x2} function anywhere in my book or lectures, I also have never seen anything about p1 not equaling p2. ...

Consider the following scheme that I remember from the sitcom Zach and Cody: One person is selling very spicy food in a hotel lobby, and another person is selling glasses of milk at exorbitant prices ...

How is the following equation derived? Please help ,why am I being downvoted (https://i.stack.imgur.com/pOF92.jpg)

I suspect I have an instrument that is invalid on account of a specific factor. I read that I can control for that factor to make the instrument valid conditional on it. What would the issue of doing ...

There is no secret that our government(both republican and democrat) will need more money than they collect from taxes to pay their bills. The public debt is getting close to 30 TRILLION and the ...

If we have a convex utility function, like the quadratic one, does the law of diminishing amrgnial utility still apply or do we have that the partial derivative of utility with respect to, say ...

How do negative interest rates impact the future prospect and business model of (defined benefit) pension funds? What could be winning investment strategies for pension funds in a negative interest ...

I have derived the microeconomic foundations of a dsge model and I've obtained the IS and NKPC. I would like to represent them in matrix form to study the system. However the problem is that both ...

Domestic and immigrant labor is complementary in this problem (r= -1). There are 4 immigrants and 12 domestic workers. Find the equilibrium wages for both. Production function F(LI , LD) = 120(LI+LD)^(...

We've recently worked in class with the IS-LM-UIP model (where UIP stands for the uncovered interest rate parity). The central bank chooses the policy rate. Hence, the LM curve is horizontal. The IS ...

I would like to know if it is useful to learn Monte Carlo simulations if I want to focus on macroeconometrics ? Or even is it useful outside of academics ?

During a recession the FED applies expansionary monetary policies while during high inflation periods it contracts the money supply which respectively lowers and raises interests rates. Given that ...

An LM Curve can be described as following $M^d(Y,i) = M_0 + M_1Y – M_2i$ $M^d = M/P$ M and P are exogen I know that $i$ is interest rate, and Y is GDP. Why is $M_1$ and $M_2$ positive? And what does $...

Hi everybody and thanks for reading. I'm currently working on university research where my proposal is to find which are the fertility determinants. In the first instance, I made a balanced panel for ...

Say a Japanese citizen (living and working in Japan) owns a house in the US and rents it out (to a US resident) for \$10,000 in 2020. (Assume the value of the land is negligible.) Where in the US BOP ...

It is a well known fact that NNP and GNP are loosing their significance with time. I tried to find a solution to this issue and in a book I found the following statement: "NNP and GNP are ...

I'm not sure where should I post this under since it's both about Power Systems and Economics but I want to understand the economics aspect of it. This is the answer: This is my attempt, tabulated: ...

My understanding is that you can empirically test some of the main assumptions required for using a GMM estimator. Namely, I understand that you can test over-identifying restrictions with Hansen's J ...

An Economy has a GDP described by the following: $Z=C(Y −T)+G+I(r)$ $C(Y −T)=C_0 +C_1(Y −T)$ $I(r) = I_0 − I_1r$ where Z is planned expenditure, Y is GDP, T is tax, G is public consumption, I is ...

Which companies derive most of their income for rentals in London? There is an exodus of renters from London and record buy to let houses being put up for sale. what does this mean for the London ...

I want to figure out how much time [hours/week] the 2017 median income earner for several countries had to work to earn the country's 2017 minimum wage. The best data I've found is: Median disposable ...

When a country's government has a budget shortfall, that country has to find some way to pay its contractors/emplooyees. Unlike a normal company, the government can't simply go to the bank and ask to ...

I want to convert the "Median disposable income (current prices)" found in the link below to Median pre-tax income (current prices). How do I do so? Are there for example any appropriate ...

Hi I have three question below which I tried searching on internet and read a lot of literature as well. Besides all the literature sources I need to know some practical knowledge of people out there. ...

I'm trying to understand the basis of this claim As the main mode of transaction in the world's second biggest economy, China's currency should be a natural contender for the spot. However, the U.S. ...

I'm having trouble understanding how to find the offer curves in general equilibrium. Is there a general way that we can use to find it? I can understand the Pareto set and contract curve but when it ...

I am reading a paper with an extended CES final good setting: The representative household consists of a continuum of members, indexed by $k$ $C_{t}=\int C_{k, t} d k$ $C_{k, t}=\left(\int_{j \in \...

Many textbooks claim that the difference between GDP and GNP is about geography vs citizenship. For example, Colander: GDP is output produced within a country’s borders; GNP is output produced by a ...

As several major banks disclosed their financial reports recently, there seems to be much interest in the financial community as to the implications of the large cash piles at US commercial banks. The ...

Got a question about the famous BLP paper (http://people.stern.nyu.edu/wgreene/Econometrics/BLP.pdf). When there is no interaction between product characteristic and consumer characteristic, the ...

I recently applied to an economics pre-doctoral RA opportunity at a North American research university. I was asked to do a 7-hour empirical exercise, which I did (took me closer to 10 hours). ...

If a firm produces combinations of goods along the PPF curve, it has achieved its productive efficiency. And when a firm reaches productive efficiency, it means that all factors of production have ...

Hi guys im interested in cointegration in stock market between Brazil, USA, London, China, India, Argentina and Hong Kong. Since I want to compare each country’s index to the BR index, how do i do to ...

In my OLG model, I have two law of motions for capital and pollution \begin{align*} &K_{t+1} = s_t\\ &P_{t+1} = (1-\delta)P_t+\rho K_t \end{align*} where $K$ is capital, $s$ is the saving from ...

If there is a 2-person zero sum game with mixed strategies, A and B are maximin strategies of Player 1, C is a maximin strategy for Player 2. Strategy D is strongly dominated for player 2, while ...

the title says it all. What is the relation between HICP and GDP. And will there be a high inflation just before recessions? So the upper graph is the percentual change of the BNP from the last year, ...

Find Pareto optimal allocations and the core for the following economies. There are two consumers and two goods. Utility functions are $u_1(x_1,y_1)= 10x_1-(y_1-2)^2$ and $u_2(x_2,y_2) = 10y_2 − (x_2 −...

the title says it all. What is the relation between HICP and GDP. And will there be a high inflation just before recessions? So the upper graph is the percentual change of the BNP from the last year, ...

In period 1 the consumer of type $\theta$ selects an option contract consisting of an up-front fee, $B>0$, and exercise price, $\bar{R}$. The consumer pays $B$ at the end of the first period. In ...

I am trying to understand a balance sheet. Shareholders funds are divided into Capital and Other shareholders funds. However, I don't have a clear idea about what the difference between the two is. ...