# All Questions

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419 views

### Capital - augmenting and energy-augmenting technical progress

I've read a number of papers on factor - augmenting technical progress and directed technical change. Authors do not note about the implications of factor - augmentation in sufficient details. Assume ...
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### Multi-way clustering

I want to understand when and why multi-way clustering is necessary. Could anyone give a good example that provides intuition of when and why to use multi-way clustering that also illustrates why ...
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### Interpretation of Incidence Rate Ratio for a Poisson Regression With a Non-Binomial Dependent Variable

Well, the name pretty much says it all. I have searched high and low, but I cannot find a concrete answer to the following question(s): How would one interpret the incidence rate ratio for a poisson ...
302 views

### How does Joseph Stiglitz and Greenwald explain why markets with imperfect information fail to have a pareto efficient equilibrium?

How does Joseph Stiglitz and Greenwald explain why markets with imperfect information fail to have a pareto efficient equilibrium? What premises do they use to come to that conclusion? For example, ...
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### Is utility function used in customer data/profile analysis? What alternatives in practice?

Utility function is great theoretical concept but is it used in customer data analysis or in building customer profile (e.g. from Big data or cash register/checkout data, ecommerce history) or in ...
509 views

### Why does only relative price and not absolute price matter in international trade models?

Suppose I have two teachers: Adam and Bob. Suppose Adam takes 20 hours to lecture and 30 hours to grade, while Bob takes 100 hours to lecture and 60 hours to grade. In absolute terms, Adam is ...
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### Reducing the working hours to 32 hours / week - how much it would affect the prices of commodities?

If the working hours would be reduced from 40 hours / week to 32 hours / week (4 days x 8 hours instead of 5 days x 8 hours), but maintaining the wages at the same levels, then I guess that the price ...
72 views

### Differentiating under integral sign, capital accumulation

I am reading a paper, the author takes the derivative of the following equation with respect to $t$: $$q(t) = \int_t^\infty e^{-r(s-t)}c(s)e^{-\delta(s-t)}ds$$ $q$ price of capital goods $r$ ...
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### How does the euro swap for Greek debt work?

As I understand it, some portion of the Greek sovereign debt has been converted into "Euro swaps". Can someone explain in simple terms what that means? What debt was given to whom?
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### Bibliography International Macroeconomics/Finance

I'm looking for some bibliography for International Macroeconomics/Finance. Any suggestions? Any help would be appreciated.
116 views

### Second derivative of Capital stock per unit of effective labour

Let $K=$capital, $L=$ labour, $A=$ knowledge or effectiveness of labour. And put $\mathcal{K} = K/AL$ the capital stock per unit of effective labour. If the following is negative  \displaystyle \...
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### Regression on default rates and backward extrapolation

Suppose that we have bankruptcy data representative for Small and Medium-sized enterprises in a country. We can therefore calculate default rates. Furthermore suppose that we found that GDP, ...
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### More privileges to the rich and less rights for the poor in the Great Depression?

I would like to know if in the Great Depression (1930s) the government of US and other Western governments increased the taxes for the poor or if they reduced the incomes and the rights of the poor. ...
68 views

### Are things any better in what society considers “third world countries” as they were years ago? If things are better, how did they improve and why?

For years I've seen non-stop commercials of countries in the continent of Africa showing kids who live in sewage huts, parents are dead, war gangs and criminals rule their lives. Like in Captain ...
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### Data source for a corporate bond yield curve?

Yield curves are a valuable tool for economic analysis. It is particularly interesting to analyse the difference between Government Debt yields and Corporate Debt yields (credit spreads). This gives ...
53 views

### How does supply and demand determine price for the following scenario?

Two individuals are stranded on an island. Bob and Jill. By themselves they can produce: Bob: 5 fish & 5 coconuts Jill: 5 fish & 5 coconuts If they specialize and trade, they can produce: ...
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### Government Spending, Econimic Growth Correlation

A major problem when testing hypothesis in economics is the lack of historical data. Is there research into the correlation between long term economic growth and government spending, that is based on ...
213 views

### Finding Pareto efficiency from competitive equilibrium

So to my knowledge, the competitve equilibrium would be Marginal cost= Marginal private benefit. My question is, how would you determine what the pareto efficiency is from the Marginal social benefit ...
274 views

### Advice on upper and lower hemicontinuity?

Consider the correspondence f: $\mathbb{R}$ -> $\mathbb{R}$ defined by: f(a) = {x $\in$ $\mathbb{R}$:x2 + x $\leq$ a2} for all a $\in$ $\mathbb{R}$. Find the points where the correspondence is uhc ...
33 views

### Gross National Income for Personal Income?

is there such a thing as the measure that amounts to roughly the aggregate of personal income for a country (say: all salaries combined) and an aggregate of corporate income. But as separate figures, ...
25 views

### Which countries invest their state pension in their stock market and its effects?

I apologise in advance if this is not the right stack exchange site to ask this question. China has started investing its state pension fund in the stock market on full scale recently. I know Norway ...
69 views

2k views

### Finding the covariance of a stock portfolio

So my question goes like this, I have the returns of 3 different stocks AAPL, NKE and BBRY I make 4 portfolios out of them as follows: and the question asks me to compute the correlation coefficient ...
60 views

### Optimal taxation and substitute commodities

Reading Ramsey's paper: a contribution to the theory of taxation. It says that when we are dealing with rival goods we look if the tax that is going to be applied leave unchanged the proportions in ...
171 views

### Data Reduction using Principal Component Analysis

I have performed PCA over a data set containing 25 items (variables). PCA was performed in a view to reduce the number of items (variables) from the data set, so as to move forward with analysis. ...
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### Measuring Integrating Capital Market

There are several methods measuring integration capital market. What best to measure for integration capital market?
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### Is the Ramsey model one with non negative investment?

I have a very fundamental question. I am currently searching for an economic growth model with non negative investment. Can someone tell me if the Ramsey model is one with non negative investment and ...
43 views

### Why would a CBDC (Central Bank Digital Currency) be good for the economy?

I've read about CBDC, how it could be a cryptocurrency like digital payment system, that could replace fiat currencies. But what I don't get is what value would it give to the economy? Someone who ...
57 views

### How does the Fed's stimulus push stocks markets higher?

I read that the Fed’s stimulus last March has contributed to a spectacular rally in stock markets. And indeed S&P500 has increased a lot since March. But how does the mechanism work? How does the ...
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### How does total money in the economy changes?

I don't understand why total money in economy increases. Where does this money come from?
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### What are the benefits of reducing zeroes from currency (eg: Iran)?

Recently, Iran decided to replace its old currency to a new one. Quoted from Wikipedia A proposal has been agreed to by the Iranian parliament to drop four zeros, by replacing the rial with a new ...
34 views

### What are the economic arguments against (a) variolation (analogue) as a solution for Covid-19?

It has been suggested in some parts of the (usually right-wing) press that a solution to Covid-19, especially in economics terms, is to expose the young to the virus sooner, e.g.: Perednia [...] ...
64 views

### Is fiat currency better than a backed-currency?

My question is would it be better if we went back to something like a gold standard but backed by a finite virtual material instead? It avoids the problem of fluctuations in gold supply. The money-...
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### What would be the consequences of Downsizing on the economy?

In the 2017 movie Downsizing, a chunk of the population decides to reduce their body size to just a few inches. What would be the consequences of this on the economy? I'd like to know chronologically ...
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### Does Medicaid or Medicare represent a higher risk to the Federal Government Solvency and Debt going forward?

I'm trying to understand not only which program is expected to be larger in terms of costs, but which one has the least capacity to adjust (reduce benefits if revenues for the program fall).
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### Can't we measure the growth in the income levels of poor?

Inflation has been a challenging aspect of policymaking. In such situations growth in the income levels of the population living below the poverty level can never be measured accurately (due to ...
30 views

### Why the source profit is not only trade markups?

I'm researching the source of profit. In Marx I've found the following passage: If then, speaking broadly, and embracing somewhat longer periods, all descriptions of commodities sell at their ...
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### Is a loan lent with a rate under the inflation rate free money?

Suppose we have an inflation in a country with an annual 2% and we get a loan for an annual 1% (real interest). Is the money we receive free? This is a common practice in some European countries, ...
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### Economics of disparity in wages and in 'financial quality of life'

I am seeking a quantitavely and logically satisfying answer to the question I will outline below. It could be in a form of a book/article reference and ideally have as little ideological bias as ...
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### what is the Relationship between Zero nominal interest rates and liquidity traps

So I'm reading mankiw"s principles of economics and I'm in the chapter about the influence of monetary and fiscal policy on Aggregate demamd. The part about nominal Interest rates and liquidity traps ...
106 views

### Does Preference have a Hierarchy? A Silly Question

I have what is probably a very silly question, but I have gone down the rabbit hole and can’t get back out..... Is there is a hierarchy of preference, and within each level of choice do we reset the ...
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### Do the efficiency savings of mergers indicate a type of waste or inefficiency in a market?

In this BBC News article about the merger of Tata Steel and Thyssenkrupp, the following figure is reported: The merged group anticipates it will make costs savings of between £350m to £440m a year. ...