All Questions

I have been taught in Money and Banking that money is any entity that has the following properties. 1 It is generally accepted as a means of transactions. Nonetheless how much is "generally" is a ...

For example I have a Cobb-Douglas utility function $U(x,y)$ and I want to check the monotonicity property. Can I use the marginal utility functions to see that they are always positive to conclude ...

I have been reading from this textbook which talks about CPI and inflation http://faculty.washington.edu/cnelson/Chap04.pdf On pages 5 and 6, it talks about how they are deflating the nominal ...

Over the last few years, the amount of currency is circulation (and the corresponding liability on the Fed's balance sheet) has been growing; however, the asset side of the BS hasn't increased. By ...

Rents are dissipated whenever the marginal returns from appropriation process are smaller than the marginal costs of appropriation. What does this mean?

Primary dealers have a privileged position, so there is value in being registered as a primary dealer. - https://economics.stackexchange.com/a/13450/8387 I was previously under the assumption that ...

I am starting this conversation because I am searching some book in game theory for the classic problems that the literature encounnters. More precisely, I would like to know if there is some book ...

I know that when the Federal Reserve buys Treasury bonds it increases the money supply, but I don't understand the process behind it. The model that I have given below (which is my best understanding ...

I originally asked this question on personal finance/money because I didn't know that this exchange site existed. link to same question at person finance/money. Someone on that site mentioned that it ...

if Y=f(AL,K) is CRS, a_k+a_L=1 by euler thm. but I wanted to know the return to scale of y=f(1,k) (1/AL divided) I tried z=p/AL , then py=f(p,pk) differentiate w.r.t p ; y=fp+fpk*k ...

I am new to behavioural economics and I'm trying to work through a question. I understand the question but I don't know how to go about it as the example questions I have seen normally provide beta ...

Given a utility function $U= {10x^{0.5}} + 5y$, calculate the MRS and explain its economic meaning. The MRS I calculated is $\frac{1}{\sqrt{x_1}}$, but I can't really understand it's economic meaning ...

A bit of googling found some conflicting ones... Capel and Houben (BIS) Asset inflation occurs when the prices of financial assets are rising even though they are already above their intrinsic or ...

If in a hotelling model question the two firms decide to collude what is the process of working out the optimal price for the firms if: The firms decide to collude such that firm 1 takes all the ...

! There's this statement in my Applied Economics book that I don't understand. Why is that when one person or group gets a good or service, someone else will have to live without it? I hope you ...

All Fama-French (and other) factor models are based on an annual frequency of financial reporting and portfolio holding periods. Is there any research on quarterly factor models in the context of ...

In Monderer and Shapley (1996) (pdf) there is the following theorem. The next theorem is well-known (and very useful). THEOREM 4.5 Let $\Gamma$ be a game in which the strategy sets are ...

I'm pretty sure this is a very simple question that I am missing something obvious. I have a simple linear regression with multiple independent variables. I want to calculate the elasticity (no ...

Is there an externality if someone buys all stock of some merchandise? On one hand, if they buy all of everything and there's still demand then they've taken it away from other people. On the other ...

There are two goods, $1$ and $2$ produced by two firms at zero marginal costs. The goods are perfect complements. The demand for each goods is: $Q_1=Q_2=a-(p_1+p_2)$. The prices are set sequentially, ...

Consider the limited attention choice framework by Matejka and McKay (2015). This framework can give rise to consideration sets, as roughly summarised below. Consideration sets in the limited ...

Can you construct an example with p $\geqslant$ 0 such that the solution of EMP is not the solution of UMP.

In recent coverage of the Fed's repo operation, I was struck by this line: It also indicated Wall Street is struggling to absorb record sales of Treasury debt to fund a swelling U.S. budget ...

Total Hours worked is a mix of extensive (to work or not, the usual standard working week) and intensive (how many hours to work). I'm interested in how this balance of extensive and intensive ...

Does anybody know where to look up the following unemployment-related figures: Probability of becoming unemployed in a given period (month/quarter/year) Reemployment probabilities in a given period (...

The following is the gist from chapters - 3, 4 & 5 dealing with IS-LM model from Macroeconomics, Blanchard & Johnson, 6th edition. Equilibrium in the financial market implies an increase in ...

My macroeconomics professor told the following: A decrease in interest rate causes that consumers rather spend their money on investments (stocks, houses) than put the money on the bank, and the ...

I am confused about the relationship between fiscal policy and net exports. Suppose government goes for expansionary fiscal policy Case 1  - If public expenditure rises, income rise, rise in ...

This is a question in my growth class on the PPT. Pretty confused by it. I tried drawing it out but have had no luck getting over this.

From the Wikipedia: The fixed monthly payment for a fixed rate mortgage is the amount paid by the borrower every month that ensures that the loan is paid off in full with interest at the end of ...

I was studying Fiscal policy and I came across measures to reduce income inequality by using fiscal tools. One of the tool mentioned in that was - Higher taxes on luxury goods This makes sense that ...

This question is with reference to the paper 'Efficient Trade with Interdependent Values' by Marek Pycia and Peng Wang,2015(See here). At page no. 4 of the paper, the authors describe $v_i$ as the ...

There are two identical firms, $1$ and $2$, with zero marginal costs. They produce homogenous product, which is demanded by a unit mass of identical consumers, each of which has inelastic unit demand ...

My thought process here would be that since government bonds are usually held by the richer households, buying of these government bonds would inject a large amount of money only to the richest, thus ...

I am trying to give a puzzle from behavioral economics illustrating on the irrationality of thinking of costs in proportional rather than absolute terms. I remembered vaguely an example like this but ...

It is intuitive that E[xe] is non-zero but the result E[xe]=sigma(x)*sigma(e)*corr(xe) seems odd. Please help point me in the right direction.

I am trying to study for a Health Economics exam and I was wondering if anyone could help me with the logic of one of the questions. I can't understand the basic logic from which to approach part a. ...

The other day I was having a debate with a supporter of high taxes. I decided to argue against this by explaining the concept of the deadweight loss of taxation. In order to do so, I started with ...

I had an economics paper today, and there was a question for finding the socially optimal level of pollution given the benefits to factories and cost to citizens. We were given a set of discrete ...

Suppose there is some exogenous shock in the economy due to which the production of oil has fallen dramatically. Also, let's assume that oil forms a substantive part of the economy's production. What ...

In the standard model of Aggregate Demand and Aggregate Supply which display equilibrium in all the markets, I often get confused on how a change in one variable will shift curves. Say, output ...

The term "public bad" is sometimes used for "goods" which, like public goods, are non-excludable and non-rival, but which tend to lower rather than raise welfare. Air pollution is an example. For a ...

I am an undergrad with limited experience in the fields of economics and ecology, and having recently discovered the work of the celebrated economist Herman Daly, who has been writing for decades ...

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

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 ...

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 ...

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 ...

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 ...

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 ...

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\...