# All Questions

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### 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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### utility maximization with nested Cobb–Douglas–CES preferences

I'm trying to understand the following paper: Hsieh & Ossa: A global view of productivity growth in China (2016). The pdf can be found here: https://faculty.chicagobooth.edu/chang-tai.hsieh/...
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### Why don't governments exploit negative interest rates more than they currently do?

At the moment many governments, such as Finland's, are able to borrow money at negative interest rates. My question is: why don't they borrow as much money as possible while interest rates are ...
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### Afriat theorem for negative goods

GARP and Afrait theorem assume that the alternative $x\in\mathbb R_+$ is always positive. In some economic contexts, such as financial choices, the attribute can be negative. I wonder if we can ...
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### Examples of Analysis of Competition in a Latent Product Characteristic Space

Competition between firms offering heterogenous products is often an exercise of constructing the right kind of spatial model. There is the famous Hotelling model and many other papers that model ...
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### Under the gold standard, how did the redemption of gold work in practice?

For example, in the US: In 1834, the United States fixed the price of gold at $20.67 per ounce, where it remained until 1933. (EconLib) Does this mean that anyone with US\$20.67 could walk up to ...
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I'm currently reading up on matching models in terms of their ability to describe frictional unemployment, they generally follow a cobb-douglas form. $$M(u,v)=m=\mu u^\alpha v^{1-\alpha}$$ Where $M(... 0answers 22 views ### How did “excess liquidity” in the US contribute to the 2008 crash? Here I'm using "excess liquidity" not in reference to monetary policy, but to the concentration of capital at the top in regard to private citizens. This excess liquidity, for which the tax cuts in ... 0answers 193 views ### How could the Roman sestertii/sesterces be converted into modern terms (say 2017 US$)?

Of course, the value of the sesterti must itself have fluctuated over the centuries it was in use. And so if I must narrow it down, I am particularly interested in its value during the time of ...
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### How to econometrically identify perfect complements in production?

The production $$f(x_i,...,x_n)=\min\{x_i,...,x_n\}$$ is pretty straight forward and usually with smaller size data sets and can usually be picked up on rather quickly in an intuitive sense. ...
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### Does a determinant ever have its own interpretation in economics?

I know there are applications of determinants in economics to compute equilibrium, aide in identifying profit maximisation/cost minimisation and in calculating elasticity of substitution. However, is ...
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### Optimal Fight Purse and Boxing Strategies

The following is all public information available to all the players in this scenario. The General Setup In the aftermath of the infamous race between the tortoise and the hare, the salty hare went ...
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### Can PPP adjusted values be compared over time?

I'm a little baffled about this: Let's say I want to compare the average income of 2 countries, A and B. Of course I'm interested in the real income so I adjust to PPP using the big mac index of that ...
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### Common knowledge in model formulation and solution

Economics models usually assume that the structure of the economy is common knowledge among agents. Mathematically, an event is common knowledge if it lies in the meet of all agents' information ...
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### Equilibrium Uniqueness in a General Equilibrium Framework

I was wondering if anyone had any insight into the conditions that lead to a unique equilibrium in an exchange economy under a general equilibrium framework. More specifically, I know that the two "...
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### Why are inventions inevitably correlated with imperfect competition?

Romer (1990) elaborates the incompatibility of nonrival inputs with constant returns to scale: If a production function depends on rival and nonrival inputs and both inputs are productive, then the ...
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### Principal's beliefs in a repeated moral hazard problem

I have a question about models of repeated principal-agent models. There is this famous piece by Bengt Holmstrom: Moral hazard and observability, 1979, The Bell Journal of Economics. It presents the ...
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### References on mathematically rigorous general equilibrium theories

I'm looking for a relatively recent survey on the state of the art for mathematical general equilibrium. I'm especially interested in questions of uniqueness, stability and dynamics. (I'm planing on ...
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### Did a similar property boom take place in another country or throughout history like we have seen in London? If so how did it effect the economy?

The London property market has seen a sharp increase in the average house price. If we go back to the 70's the average UK and average London price were almost the same, however since than the gap has ...
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### Regional disaggregation of a national input-output table

I am trying to disaggregate a "national" input-output table into three regions using Simple Location Quotients (SLQs) and RAS balancing. In particular, I'm trying to use the "Two region logic with ...
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### Dynamic demand model in many good competitive markets and price optimization

This is a question about demand models, price optimization, dynamic pricing, big data, online learning, so I will cross-post in other communities. $\mathbf{Background}$ I am interested in dynamic ...
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### Reading list: Housing Economics

Hi Im looking for some books or articles or books on the basics of housing economics. Where should I start?
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### Don't let me take the last bit

I believe everyone has experienced something like the following once in her or his life : There is a cake on the table and three people to share it. The three people each eat a quarter of the cake. ...
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### Social Choice: from Independence axiom to Mixture symmetry axiom

Harsanyi's Utilitarian theorems' has been criticized by Diamond Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparison of Utilities and others that, it is the morally unacceptable for ...
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### How does real GDP take into account technological advancement?

I'm asking this question, since it was not explained in my textbook and since I couldn't find the answer in Internet. For example, 1 TB HDD costs 50 dollars now, and 100 GB HDD costed 50 dollars in ...
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### How do organisations diversify? Determinants of choosing new target industries

A very weird question I agree. I am interested in understanding the motives behind firm behaviours of diversification. Why would some firms choose new target sectors/activities? Is there any ...
A martingale is a model in which the expectation for the next value is equal to the presently observed value, even given knowledge of prior values, ie $E(X_{n+1} |X_1, X_2, ..,X_n)=X_n$ What tests ...