All Questions

I'm currently an undergraduate freshman looking for resources to self-read Industrial Organization. I've read Varian's undergraduate book cover-to-cover and have a decent understanding of basic game ...

I have to answer some multiple choice questions about this paper and it is important that I get all of them right so I would greatly appreciate if someone could let me know if my answers are correct. ...

Central banks like the Bank of England and the Fed must cover their costs. I was wondering how they do this? I can think of two possible mechanisms: Government allocates money from its tax revenue to ...

Two firms produce the same commodity. Let x1 and x2 be the quantity choices of firms 1 and 2 respectively. The total quantity is X = x1 + x2. The inverse demand function is P = a bX, where P is the ...

$Y_i=\beta_0+\beta_1X_i+U_i$ is my regression model for an I.I.D. sample with N=1000 observations. Suppose $U_i\sim I.I.D.(0,\sigma^2)$ and Xi are also I.I.D for i=1,2,3......1000. Xi is independent ...

Can you give an example of a social choice rule and a social welfare function that violates the conditions of Weak Pareto criterian and non dictatorship simultaneously?

Its known that the Bellman equation in recursive macroeconomics is used for the following problems: $$\sum_{t=1}^\infty\beta^tU(c_t)$$ $$s.t. c_t+k_{t+1}=f(k_t)$$ $$k_0>0$$ Im wondering if we can ...

I am confused about the amount of tax producers and consumers pay. On this diagram, I can see that the supply curve increases by twenty dollars, as the tax is 20 dollars. The consumers have to pay 10 ...

Some textbooks (for example, Introductory Econometrics: A Modern Approach by Jeffrey Wooldridge) assume that no perfect multicollinearity for the OLS regression, while others (for example, ...

I have a regression model that includes IQ test scores as the dependent variable; my own education, my father's education and my mother's education as independent variables. Suppose I want to know ...

Does anyone know if there exists a dataset of many countries (preferably developing countries and preferably with a time series) including the amount of spending on infrastructure by local government ...

I need to find the current value of this asset with this given information, but I really have no idea how to start this and how it would work. It would be great if somebody could get me on the right ...

Based on evidence from reselling sites (eBay, Amazon etc.) we can observe a trend that iPhones on average depreciate far less and slower than for example Samsungs (or other phones that lose their ...

Let $x_1, ..., x_n$ and $y_1, ..., y_n$ be two independent random samples from $X$ and $Y$. We have $µ_X = E (X ) > 0, µ_Y = E (Y ) > 0$ and $σ^2_X = Var (X )$ and $σ^2_Y = Var (Y )$. Derive ...

Wooldrige says that ‘intuitively, to estimate k+1 parameters, we need at least k+1 observations’. Why is this the case?

When estimating a company's Cost of Debt for a Weighted Average Cost of Capital (WACC) calculation we normally look into its bond yield. But for a private company with 100% debt capital structure, ...

Suppose there are two individuals. Level of good h can be determined only by individual 1 and it has a positive externality on individual 2. To find Pareto efficient allocation, we add the utilities ...

I am testing for cointegration between the Real GDP per capita of England and France. I use a Dickey-Fuller test to test for stationarity and concluded that both of my series are non-stationary. So I ...

I understand that when individuals have single-peaked preferences, majority rule will be transitive and the choice set will be non-empty. So single peaked preferences is a sufficient condition. Is it ...

In a problem set, I believe my instructor has had a typo but I would like to confirm. Consider the standard CES production function $f(k,n) = (\alpha k^p + (1-\alpha)n^p)^{1/p}, \quad p \in (0,1)$ ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 $C^{N}_2=150$. ...

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 ...

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 ...

Should we include some control variables in regressions when we test a moderation effect of a variable?

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) ...

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 ...

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),\...

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 ...

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 ...

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 ...

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.]...

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 ...

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 ...

This is a reference request for papers that have tried to model MMT.

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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