All Questions

2,513 questions with no upvoted or accepted answers
Filter by
Sorted by
Tagged with
4
votes
1answer
124 views

Insignificant Interaction effect in applied econometrics (multinomial logit regression)

I'm currently writing my master's thesis where I'm applying a multinomial logit regression with interactions effect. The model I'm using is $$ P(y=j) = exp(xb_j)/(1+∑exp(xb_h)) $$ where $$ xb_j =...
4
votes
0answers
141 views

Understanding the Diewertt Cost Function

The Diewert cost function (as described in Microeconomic Analysis by Hal Varian 3rd Edition) takes the form of: $$c(w,y)=y\sum_{i=1}^k\sum_{j=1}^kb_{ij}\sqrt{w_iw_j}$$ Varian goes on to say (page ...
4
votes
0answers
40 views

Economic valuation of green spaces using GIS

I was wondering if there are any standard methods that are employed to obtain insight of the economic value of tree cover in a particular area. I assumed using negative difference vegetation index ...
4
votes
0answers
258 views

Why is the symmetric grim trigger not a Nash?

Consider the stage game: Let $\delta\in(0,1)$ be the discount factor. Let $G$ be the symmetric grim trigger strategy profile. The payoffs are then $$E_{A}(G) = E_{B}(G) = \sum_{i=0}^{\infty}3\delta^{...
4
votes
0answers
59 views

Estimating Job Vacancy rate empirically

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(...
4
votes
0answers
25 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 ...
4
votes
0answers
267 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 ...
4
votes
0answers
66 views

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. ...
4
votes
0answers
131 views

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 ...
4
votes
0answers
197 views

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 ...
4
votes
0answers
39 views

VCG mechanism with a minimum payment threshold

Suppose that we want to find a socially-optimal allocation in the following setting: There are $n$ firms and $m$ workers. Each firm $i$ needs one worker and has value $v_i$ for having a worker (any ...
4
votes
0answers
353 views

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 "...
4
votes
0answers
217 views

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 ...
4
votes
0answers
112 views

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 ...
4
votes
0answers
75 views

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 ...
4
votes
0answers
198 views

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 ...
4
votes
0answers
66 views

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. ...
4
votes
0answers
168 views

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 ...
4
votes
0answers
61 views

Segal (2000) question about utility opportunity set

I am reading a JPE paper "Let's agree all dictatorship are equally bad" from Uzi Segal (2000). I have a small problem with this paper. We have the following Utility Opportunity Set (UOS): $$ S(w)=\{...
4
votes
0answers
1k views

Corner Solutions for Pareto Efficiency

I have been reviewing calculations to find walrasian equilibrium and pareto efficient allocations. Assume we are in an environment with two consumers, $A$ and $B$, and two goods, $x$ and $y$. From ...
4
votes
0answers
50 views

Taking a mechanism as given, what goal functions can we implement?

Let $\theta_i$ be $i$'s private information about the state of the world, $\theta \in \Theta$, where $\theta = \times_i \theta_i$. Each agent reports $\hat{\theta_i}$ to a social planner, so that $\...
4
votes
0answers
29 views

Estimates of the global STEM workforce?

I am looking for any recent estimates of the global STEM workforce (STEM = Science Technology Engineering Mathematics, and ideally includes software engineers). Time series data would be even better, ...
4
votes
0answers
76 views

R reproducible example, restrictions on cointegrating equations

The code given below estimates a VEC model with 4 cointegrating vectors. It is a reproducible code, so just copy and paste into your R console (or script editor). ...
4
votes
0answers
53 views

Test data for repeat sales indices

I'm interested in calculating a repeat sales index like that of Case and Shiller (1987) or Bailey, Muth and Nourse (1963). While I believe I have a handle on the econometrics, to test my ...
4
votes
0answers
232 views

Explanation of paper's econometric assumptions

The authors of this paper (http://andrewleigh.org/pdf/GunBuyback_Panel.pdf) appear to be essentially regressing the change in the death rate to the change in guns from a gun buy back in Australia, at ...
4
votes
0answers
5k views

Difference between embodied and commanded labor in the Labor Theory of Value?

Could the difference between "labor embodied" (production cost in labor value) and "labor commanded" (selling price in labor value) as described in the labor theory of value be attributable to the ...
4
votes
0answers
171 views

Econometrics: Weights in regression that contains averages

Let's say I have a regression of the form: $$y_j=a_0+a_1*T_j+a_2*X_j+u_j$$ where $j$ stands for county, and $y$ and $X$ are averages over worker outcomes/characteristics for each county, and $T$ is ...
4
votes
0answers
79 views

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 ...
4
votes
0answers
137 views

Proof of Proposition 1.4 from Microfoundations I by Kreps

Regardless of the size of X (set of all possible objects), if a preference relation which is complete and transitive is defined on it, then the corresponding choice function generated by it will ...
4
votes
0answers
3k views

Multiplier in the two-sector Keynesian model

Which of the following is most likely to reduce the size of the multiplier in the simple (2-sector) Keynesian model? Increased taxes on savings Reduced access to government funded medical care ...
4
votes
0answers
56 views

Non parametric and parametric tests of martingale?

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 ...
4
votes
0answers
524 views

What is the proper term for the “meta-value” of an object?

For instance, say I have a roll of quarters and a roll of dimes. I can use the dimes and quarters in a parking meter, but 50 cents in dimes gets me less time than 50 cents in quarters. Additionally, I ...
4
votes
0answers
56 views

How exactly do Participatory Notes induce volatility into the economy?

I was reading up on participatory notes. Wikipedia defines these as "instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian ...
4
votes
0answers
59 views

Post-redistribution Lorenz curve comparison with reranking in R

Using R, assume the population income for N= {1.. 7} looks like $X_1$= c(1,3,5,7,7,19,21). Use the Lc() function from the "ineq" package to plot the corresponding Lorenz curve $L_{X_1}(p_1)$. Next, ...
4
votes
0answers
105 views

Decreasing Yield Curve: Infer expected future trend?

If the yield curve for zero coupon bonds is decreasing does it mean (in general) that investors are thinking that country's economy has gloomy future? Or unpredictable?
4
votes
0answers
75 views

Will US Treasury and Federal Reserve's expansionary policies in 2020 crowd out?

Scott Minerd, CIO of Guggenheim Investments contends What could go wrong with my outlook? We are already in uncharted territory and another black swan might emerge in the midst of a very fragile ...
4
votes
0answers
39 views

Are there any economic studies of License-On-Transfer agreements?

A recent entry at GitHub's blog caught my attention: https://github.com/LOT. The "network" claims to provide protection from patent trolls by entering into an agreement automatically granting all ...
4
votes
1answer
264 views

Papers on Game Theory and the Housing Market

Professor George Fallis in his book "Housing Economics" writes: (Chapter 4 pg. 78) The (home)owners will establish a pricing strategy depending on how they believe demanders are behaving; ...
4
votes
1answer
155 views

Effects of ACA individual mandate vs AHCA surcharge

The US Congress is currently considering a new healthcare bill, the AHCA, which would replace the existing healthcare bill, the ACA. One of the major changes is the way each bill encourages people to ...
4
votes
1answer
168 views

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 ...
4
votes
1answer
99 views

If the economy is not always on the Price setting curve, can the Central Bank target unemployment?

In the usual textbook model, in which there's imperfect competition, the economy is always on the Price-Setting(PS) curve, and to have a target unemployment level, above equilibrium unemployment, will ...
4
votes
1answer
44 views

Easterlin hypothesis

In my understanding, the seminal contribution of Easterlin (1974) showed that within a single cross section, both within and across countries, happiness correlates positively with income. However, ...
4
votes
3answers
629 views

Is the labor force participation rate related more to labour supply or to labour demand? Or both?

I have read several Labor Economics books, but I am stuck. Is the labor force participation rate related more to the labour supply or to the labour demand? If the labor force participation rate ...
3
votes
0answers
44 views
+50

How to classify sample by time-variant index?

In finance paper, we have a famous index representing for law is WGI (World Governance Index). I am wondering how we classify countries by this time-variant index as this paper below. It is easy to ...
3
votes
0answers
29 views

References for regional classification

I read an international study, Table 2 and see that the author did regions*year fixed effect. I am looking for some reference to classify 64 coutries in their paper to different region. I found a link ...
3
votes
0answers
29 views

Gale's version of the Rubinstein-Wolinsky (1985) model

Likely to be a very stupid doubt. I am reading Douglas Gale's book "The Strategic Foundations of General Equilibrium", which presents a brief version of "Equilibrium in a Market with ...
3
votes
0answers
46 views

Which statstical method/model should I use with my study?

my dear fellows. I mainly do experimental research, so I run experiments in which participants play a game repeatedly (for 20 periods for example). The dataset I get after the experiments would be ...
3
votes
0answers
23 views

What is normal capacity?

The average variable cost will generally fall as output increases from zero to the normal capacity output due to the occurrence of increasing returns. But beyond the normal capacity output average ...
3
votes
0answers
24 views

Value function iteration with stochastic productivity's standard deviation

Hello I would like to know how would you discretize the AR(1) process of technology in a standart RBC model when there is stochastic productivity's standard deviation. Namely I have: Technology $Z_t$ ...
3
votes
0answers
38 views

Theoretical models of copyright infringement and efficiency implications

I wanted to know if there are theoretical models of copyright infringement and what are their implications for efficiency in the market and also, if possible, any empirical support they have. When I ...

15 30 50 per page
1 2
3
4 5
51