# All Questions

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### two period consumption problem

Ms. A earns 25,000 dollars in period 1 and 15,000 dollars in period 2. Mr. B earns 15,000 dollars in period 1 and 30,000 dollars in period 2. they can borrow money at an interest rate of 200% and can ...
35 views

### Given a Walrasian equilibrium, compute all intitial endowments that lead to given Walrasian equilibrium

If you would be so kind to take a look at the following problem:* Consider an economy with two agents Stan ($S$) and Laurel ($L$) and two goods: Cans of coke ($C$) and Pretzels ($P$). The total ...
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### Beta convergence: data uncertainties

Maybe these questions are silly for many of you but I’m trying to conduct a beta convergence analysis using data from the Penn World Table, and I have run into some uncertainties. For the dependent ...
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I am working on my master thesis, where I investigate the impact of the Russian embargo on Georgia's exports. I have already identified my dependent variable, as well as the variables of interest. ...
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### Constrained Optimisation: Why is it that when I merge constraints, I get different results?

The problem that I am given is the following: $\max \ln c_0 + \beta \mathbb{E} [\ln c_1 ] \\ \text{ s.t. } c_0 + x_g q_g + x_b q_b = y_0\\ c_g = y_g + x_g\\ c_b = y_b + x_b$ Where $y_0$, $y_b$ ...
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### GDP Deflator and Economics Well-Being

The question is regarding GDP deflator. nominal & real GDP 2015, and GDP Deflator; 800, 400, 200 nominal & real GDP 2014, and GDP Deflator; 400, 400, 100 As far as I understand the increase ...
49 views

### Household utility functions

In basic consumer theory, there is an individual consumer who has a utility function, this function induces the individual's demand (given budget and prices), and this in turn determines the ...
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### Why people respond to surveys like that of Purchasing Managers' Index?

A lot of data, including indexes, rely on surveys. For example, Purchasing Managers' Index. (1) Why people answer these surveys (is there any benefit)? (2) How to make sure the data is correct? What ...
25 views

### Real Business Cycle model and demand shock

Suppose there is an increase in demand in a real business cycle set-up. Since aggregate supply is fixed and prices are fully flexible, won't that leave output unchanged as prices adjust to clear the ...
9 views

### Relation between variation of the drift and insurance fee?

what is the relation between insurance fee and the variation of the drift of the underlying asset? I've created a simulation code, and changing those two values does not change the result. As I assume ...
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### Two periods two agents; savings and interest rate problem

I am trying to answer the following question but not getting the right result Note: I use v and u interchangeably in my notation In previous problems I simply used the Euler equation approach in the ...
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### The law of supply and demand - How does it work?

I've learned what the principle of supply and demand says, and would paraphrase it like this: The price of a good is at equilibrium when supply and demand are equal. Or with other words: The ...
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### Finding the optimal consumption bundle given the strictly concave utility function $v(x,y) = U(x) +y$?

I am also finding it difficult to understand what are the fundamental differences between analysing optimal bundles between concave and convex functions ? Does it also happen that the optimal bundle ...
39 views

### How to calculate indentical cash flows?

So i have this question: Homemade leverage Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity; B is financed 10% debt and 90% equity. The debt of both ...
23 views

### Why can we collect more Ricardian Rent than the land has to offer?

1MM, ideal tax-independent property value = $P_p$ 1% tax rate, x, on market tax-dependent property value, $P_t$ $0.01 * P_t = tax revenue = T_r$ $T_r$ over real interest rate, $R_r = M_p$, market ...
87 views

### Regarding some econometric problems

How do I know the specification in (3.2) is a chi-square distribution with df k-1? and why is it the case that the asymptotic variance of $\hat{\beta}_{FD}- \hat{\beta}_{OLS}$ is simply the ...
6 views

### Calculation of Inflation and purchasing power

kindly I'm stuck in this problem instead of many attempts through net present value and other discounted cash flow methods, some one could give me a detailed information and answers on this problem : (...
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### What are the hot topics (sub-fields) in the International-trade to pursue for the research work?

I am interested in trade economics. Suggest me some hot topics and authors in the field. Different dimensions of trade economics. Use of game theory, networks etc.
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### Difference between corresponding and secondary tax adjustments in transfer pricing

What is the exact difference between a secondary tax adjustment and a corresponding tax adjustment? Are these two adjustment not the same? Does a secondary tax adjustment only happen with regard to ...
32 views

### When building a social accounting matrix, do you input domestic intermediate demand or total intermediate demand?

I have been trying to build a social accounting matrix (SAM) after building an input-output table (IOT). In the IOT, I had to distinguish between total intermediate demand (which includes import of ...
31 views

### Where can I find the data for income, equity, assets and sales of a company that is presented in terms of U.S. and outside of US.?

I need to find the income, sales, equity and assets of Microsoft, Google and Apple for U.S. and outside of U.S. I see these information in the income stamens as a whole. But I need to know how much it ...
25 views

### How is it decided whether a societal need should be met by using a public project or private enterprise?

I know this is a large question, so I'm looking for a broad, general understanding only. Are there any principles using which it may be decided to meet a societal need using a public project rather ...
29 views

### Would apprenticeships improve the economy long term?

Evening my name is Nick and I am a high school student from Fairfield California and I’m 17, my super hyper theatrical question is about a substitute to college in order to create more efficiency in ...
19 views

### What is meant by “resource base” in this sentence?

I read a sentence in a chapter in my book which was: The emphasis on developing a resource base also meant that export-oriented growth was limited. I googled the for the term "resource view". But ...
48 views

### Immigration supply shocks, fixed effects and model interpretation

I'm new to this and I've been racking my brains for a couple days trying to understand this model and how to run it in Stata. More than programming help, I think I just don't understand the model well ...
21 views

### How do I simulate technological change in an input-output model?

I am interested in using environmentally-extended input-output models to construct different scenarios representing waste reduction (efficiency gains) in different economic sectors representing stages ...
24 views

### How can I obtain State level Investment in the US?

How can I obtain investment level data by state in the US? I want to analyse how Public investment vs Private Investment responded to TFP shocks on a state level, so I am looking for Gross Private ...
28 views

### Stay or switch game

Consider a game consisting of two players, P1 and P2, played over multiple time steps. Refer to P1 as she and P2 as he. State: Each player can be at one of two locations, A or B. Writing the possible ...
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The formula for today's consumption is defined as: $$C = Y - T -S^P$$ That being said the consumption of tomorrow is: $$C' = Y' - T' + S^P(1+r)$$ Could anyone possibly explain to me why the ...
11 views

### How do I calculate quarterly Sharpe Ratio USING geometric averages?

I am looking to calculate the Sharpe ratio using Geometric average. The issue is I don't understand how to find the standard deviation term. Any help would be greatly appreciated.
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### What is the effect on money multiplier of the following three cases?

Assuming ceterus paribas in each case: (i)The bank expands its operations in the field of financial derivatives. (ii) Increasing competition leads to a fall in the transaction costs incurred by ...
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### Why is the present value of outflows = present value of inflow in an small open economy?

So as far as I understand the present value of outflows is the amount of money economy. On the other hand, the present value of inflow is the money coming into the economy (from other countries). ...
23 views

### Using Propensity Score Matching to evaluate non randomized and fully implemented village fund program

So i want to make a research about the impact of this program to community empowerment and infrastructure in villages. But the problem is the program itself (at the first year) implemented to almost ...
27 views

### Optimal pareto in two-person game

For what values $x$, $y$ the profile $(D,L)$ is Pareto optimal? \begin{array}{c|ccc} & L & R \\ \hline U & x,5 & x+2,y \\ D& 1,-1 & x,0 \\ \end{array} Is correct $x<1$ ? ...
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### Uncovered Interest Rate Parity Assumptions (UIRP)

When learning about UIRP i have naturally come across the assumptions under which it may hold. However i am having trouble understanding the role of these assumptions and what the actual consequences ...
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### Exchange rate target zone 45 degree line in the free float case - Krugman Target Zones

As far as i understand in the Krugman target zone model the following equation describes the behaviour of the exchange rate within and outside a target zone $s_t = f_t + \alpha E_t(ds_t/dt)$. But if ...
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### Compound lottery preference implies simple lottery preference

Suppose $\alpha>\beta$ and for two lotteries $L, L'$ $\alpha L + (1 - \alpha)L' \succ \beta L + (1- \beta) L'$ where $\succ$ implies preference. If the independence theorem holds, how do you ...
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### why does an aging population positively impact on a decline in the smoking rate?

I've been studying the causes of a decline in the smoking rate, and I found out from the article that an aging population causes the decline. But, I'm not sure why it could happen. Is that because ...
34 views