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History of Education Economics

I am looking for an historical overview about education economics covering especially the 20th century, e.g. the randomized experiments beginning in the 1960s or the early as well as recent attempts ...
Arne's user avatar
  • 210
3 votes
1 answer
169 views

Can euler equations and intratemporal optimality conditions ever bind one another?

The Euler equation is an a solution concept in most macroeconomic models which determine the optimal path to be taken in a consumption sequence. In a case where we have multiple consumption goods (say ...
EconJohn's user avatar
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3 votes
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59 views

Cost of UK Wind Power

I am looking for reliable information on the cost of wind power. Is there any source which, ideally: Relates to wind power in the UK. Is recent – say within the last 5 years. Is published in a peer-...
Adam Bailey's user avatar
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3 votes
0 answers
171 views

Unit cost function for CES

You do not need to make computations, you can just tell me how to make the following derivation: I'm studying a paper where the unique final good of the economy is produced according to the following ...
John M.'s user avatar
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0 answers
33 views

Intuition Behind Difference-in-Differences with Continuous Treatment?

It's very clear to me how a difference-in-difference model works when there is a binary treatment. If the model is $y_{i,t}=\beta_{0}+\beta_{1}P_{t}+\beta_{2}T_{i}+\beta_{3}(P_{t}*T_{t})+u_{i,t}$ ...
econogist's user avatar
3 votes
0 answers
220 views

Logarithmic utility and and cancellation of income and sub effects

From these notes by Per Krussel on page 16, the author writes that "With logarithmic utility, a relative price change between two goods will make the consumption of the favored good go up ...
Kwame Brown's user avatar
3 votes
0 answers
38 views

Solution concept in Benabou/Tirole (2006)

In a well known paper, Benabou/Tirole (2006) examine `pro-social' behaviour in an environment in which others draw inferences about one's motives given the map from motives to behaviour in the ...
afreelunch's user avatar
3 votes
0 answers
29 views

Is there alternative to the monetary tighetning when the inflation is caused by scarcity (supply-side shocks)?

Current economic crisis is created by sharp reducing shocks to the supply side - bad economic weather, political restrictions to the trade, service availability reduction in the transportation sector. ...
TomR's user avatar
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3 votes
2 answers
139 views

Why do stock returns seem to be uncorrelated with interest rate?

Since expected return of stock is risk-free rate plus risk premium, intuitively they should be correlated. Of course the size of risk premium is not constant, but it's hard to imagine why risk premium ...
ssamtkwon's user avatar
3 votes
0 answers
93 views

Current best methods for solving dynamic optimization problems in high dimensional state spaces

I was wondering what the current best methods are for solving dynamic optimization problems in high dimensional state spaces. Let me lay out the common cases where I would do something like this in ...
krishnab's user avatar
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0 answers
144 views

How to visualize first-stage in IV regression?

I know what matters is the F-Statistic, but for a presentation it would also be nice to add a plot that visually shows the first stage. How to best visualize that? Say you have an outcome $Y$, ...
Papayapap's user avatar
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Is the viability of a limited supply currency dependent on the equality or inequality of its distribution among potential users?

Presumably, the more unequal the distribution of a limited supply currency among potential users, the more advantage early accumulators have vs latecomers; as soon as the early accumulators begin to ...
Hieronymus Larsson's user avatar
3 votes
0 answers
48 views

Extensive form game with multiple players

I am wondering on how to draw the extensive form with multiple players. Below is an example of the trust game. How would that look if there were two receivers with potentially different payoffs? Note ...
Papayapap's user avatar
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3 votes
0 answers
332 views

How can you simulate price/exchange for an economy according to supply and demand on a computer? Have there been any research papers or code doing so?

Essentially, I am asking if there have been any attempts at actually simulating how economic agents act in an economic environment and how prices are determined. To get a better feeling of what I mean,...
MrMineHeads's user avatar
3 votes
0 answers
66 views

Effect on Price of Emissions Permits of Progressively Reducing the Cap on Emissions in an Emissions Trading Scheme

Suppose that, in order to address climate change, a country has an emissions trading scheme comprising the following elements: The scope of the scheme is defined to include most industries that ...
Adam Bailey's user avatar
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3 votes
0 answers
147 views

Economic interpretation of assumption on utility function

Suppose $u\colon \mathbb{R}_{>0} \to \mathbb{R}$ is a utility function, twice continously differentiable, $u' > 0, u'' < 0$, and the classic Inada conditions hold, i.e., $\lim_{c \to \infty} ...
maximilian43's user avatar
3 votes
0 answers
95 views

Solve Value Function Analytically

The context is the Schumpeterian growth model with incumbent innovation (see Aghion, Akcigit, Howitt 2014 Handbook of economic growth): the value function is $$ r V_{t}(n)-\dot{V}_{t}(n)=\max _{z_{i} \...
Alalalalaki's user avatar
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3 votes
1 answer
197 views

Why aren't stock bubble crashes just zero sum exchanges of wealth?

(I'm not an economics student or anything of the sort) Let's say the total valuation of a country's stocks rises from 1000 to 2000 during year 1, and then "crashes" from 2000 to 1000 in year ...
755's user avatar
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0 answers
86 views

How did econometricians justify the use of $EU$ instead of $EU^2$?

Consider the following two utility functions: $EU(p)=\sum_i u_ip_i$ $EU^2(p)=(\sum_i u_ip_i)^2$. In preference theory, $EU$ and $EU^2$ are equivalent because they represent the same preference. A ...
dodo's user avatar
  • 261
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0 answers
74 views

Safety: Air travel vs. car travel

One sometimes hears that flying is much safer than driving a car, the death/mileage ratio being much lower. This is very plausible, especially in developed countries, and the safety gap widened as ...
Giskard's user avatar
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3 votes
0 answers
50 views

Neoclassical Growth Model with Technology Investment

I am reading Parente & Prescott 1994 JPE. This is just a typical neoclassical model with the extension of a global technology diffusion function and firm investment in technology. Firms have ...
Alalalalaki's user avatar
  • 2,419
3 votes
0 answers
55 views

Structural Estimation, Simulations, and Initial Values

I want to estimate model parameters and fear about the impact of initial values of simulations. Short model overview Consider a firm producing a homogeneous output good whose output price, $P_t$, is $...
Alex's user avatar
  • 323
3 votes
0 answers
38 views

How to measure mental accounts of an individual?

I wonder whether its possible to identify mental accounts as defined by Richard Thaler https://www.jstor.org/stable/183904 given i observe consumption and/ or investment behavior of an individual? I ...
T123's user avatar
  • 303
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0 answers
73 views

MLE on Structural VAR / DSGE

I have a simple DSGE model that I wish to fit using data. The model is of the form: \begin{gather} y_t = -\lambda r_t + \theta a_t + \varepsilon_1 \\ \\ \pi_t = \pi_{t-1} + w y_t + \varepsilon_2 \\ \\ ...
Mich55's user avatar
  • 111
3 votes
0 answers
115 views

Are these two definitions of Bayesian Nash Equilibrium equivalent?

Consider a standard game $\Gamma$ with incomplete information. There are $n$ players indexed by $i=1,...,n$. $S_i\equiv \{s_{i1},...,s_{iJ}\}$ is the set of actions of player $i$. $S\equiv \times_{i=1}...
Star's user avatar
  • 436
3 votes
0 answers
132 views

Extension of Harsanyi Transform for Two-sided Incomplete Information Games to Beliefs with Zero Probability

In the textbook I'm reading "Game Theory - Giacomo Bonanno", one requirement to applying the Harsanyi transform to convert a two-sided incomplete information game to an imperfect information ...
oswinso's user avatar
  • 83
3 votes
0 answers
17 views

How to combine labor market time series when there is a methodological change that creates a break?

Any suggestions on how to combine time series of labor market variables (such as, for example, labor force participation) when there is a methodological change in the way the variable is calculated by ...
night_owl89's user avatar
3 votes
1 answer
334 views

How to solve a general equilibrium problem with lexicographic preferences?

I have been unable to find a good example of this type of GE problem in our textbooks, and our professor has indicated that something like this may appear on our exam. So, here is a hypothetical ...
quickhatch's user avatar
3 votes
0 answers
54 views

How to read Sala-i-Martin datasets?

I found the datasets used in Barro and Sala-i-Martin's papers from the early 1990s. I have no idea how these could be read to either Stata or R. The file formats are .h, .wf , .wk1 and .wk4. I believe ...
erik's user avatar
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0 answers
67 views

At what level should I cluster my standard errors and why?

I have a yearly panel data in which each observation is a pair of monitoring stations (stations measuring water quality in rivers) one located upstream and the other downstream, each station in the ...
Quinoba's user avatar
  • 31
3 votes
0 answers
56 views

How is market share of a firm calculated *in practice*?

As stated in the title: How is the market share of a firm calculated in practice? By emphasizing "in practice", I'm most interested in the market share figures that show up in companies' ...
Herr K.'s user avatar
  • 15.4k
3 votes
1 answer
138 views

SVAR causal interpretation: shock effects vs effects between variables

Consider a structural vector autoregressive (SVAR) model. One way to define a SVAR model is $$ \begin{aligned} B_0 y_t = B_1 y_{t-1} + \cdots + B_p y_{t-p} + \omega_t \quad (1) \ , \end{aligned} $$ ...
vvv's user avatar
  • 111
3 votes
0 answers
25 views

monetary policy reaction function with gmm: optimal lag for instruments

(edited) I am estimating a Central Bank reaction function using GMM using monthly data. Following the literature, I used lagged values of each variable as instruments (are there other feasible options?...
Khairon's user avatar
  • 43
3 votes
0 answers
44 views

Model the uncertain impact of a proposed policy by expected utility or other probabilistic approach

The impact of a proposed policy is often uncertain and subjected to randomness. As such, it seems natural to use probabilistic models. How to model the policy impact using the expected utility ...
user141240's user avatar
3 votes
1 answer
143 views

Why do the PV and FV formulas (in Excel, at least) use slightly different geometric series?

With geometric series, I understand that, broadly, you can sum from $1$ to $n$, or from $0$ to $n-1$. Let $r=0.03, p=\\\$10, n = 10$. $\sum_{j=s}^{j=s+n-1}{pa^j}=\frac{p\left(a^{n}-1\right)a^s}{a-1}$ ...
s7eqx9f74nc4's user avatar
3 votes
0 answers
105 views

GMM Estimation with HAC Weight Matrix in R

I am currently working on my econometrics assignment regarding a seminal paper of John Taylor (1993) and really got stuck during the last days with one specific question. I am supposed to set up a GMM ...
jotheta's user avatar
  • 31
3 votes
0 answers
22 views

Does only search-and-matching predict bunching around minimum wage?

I heard a comment that search and matching models are empirically more valid than job-posting (even though the predictions are very similar) because with posting it is not possible to rationalize the ...
Papayapap's user avatar
  • 1,843
3 votes
0 answers
49 views

Providing an example in cooperative - games and coalitions

Here is the paper from chich I previously posted another definition here Definition of a $k-$strong Nash Equilibrium I am trying to construct an example to understand the idea of the following ...
Hunger Learn's user avatar
3 votes
0 answers
33 views

Super and sub modular games

I was trying to read up on super and sub modular games. I have started with basic survey papers like the one by Rabah Amir (2005). Research papers assume a lot of common knowledge (the papers that I ...
Pc1's user avatar
  • 85
3 votes
0 answers
120 views

Weighted OLS with weights as a regressor

Suppose one estimates: $$y_i =\beta_0 +\beta_1 x_i +\varepsilon_i$$ with weighted least squares using $w_i$ as weights. If one were instead to estimate $$y_i =\beta_0 +\beta_1 x_i +\beta_2 w_i +\...
Michael Gmeiner's user avatar
3 votes
0 answers
210 views

Bootstrapping standard errors in SMM estimation

I have estimated a number of key parameters in a model by the Simulated Method of Moments. So far, I have computed asymptotic standard errors (that rely on computing numerical derivatives, where we ...
EconRider's user avatar
3 votes
0 answers
890 views

Kleibergen Paap F-statistic

I have commonly seen references to a Kleibergen and Paap F-statistic. In their paper, I see a derivation of a chi-squared statistic, but don't see any references to the F-distribution or F-stat. In ...
Michael Gmeiner's user avatar
3 votes
0 answers
374 views

How to estimate an SUR model in R with fixed effects and clustered standard errors?

I want to estimate an SUR (Seemingly Unrelated Regressions) model. I tried using systemfit and its wrapper Zelig. But I am not ...
Anisha Garg's user avatar
3 votes
0 answers
42 views

Quantifying treatment effect in multivariate interrupted time series

I have a multivariate time series dataset, from which I am building an ITS (Interrupted Time Series) model by using facebook's Prophet to construct the counterfactual. Let's say I have a y variable ...
Arthur Langlois's user avatar
3 votes
0 answers
57 views

AR(q) Strongly Stationary

Consider an AR(q) process, $u_t$. If the roots of a characteristic polynomial are outside of the unit circle, the AR(q) process is weakly stationary. I've seen this proof that proceeds by showing the ...
Michael Gmeiner's user avatar
3 votes
0 answers
54 views

Do Fed OMOs directly and immediately increase M1 or M2 if they buy treasuries from a member bank? And what proportion of OMOs does that constitute?

I commonly hear that when the Fed conducts open market operations, it is directly increasing the money supply by exchanging newly created electronic money for US treasuries. But in the case where the ...
Tim kinsella's user avatar
3 votes
0 answers
87 views

Effect of tax plus rebate on fuel consumption

I'm studying the Slutsky equation and an example in the text discusses the effect of a tax plus rebate on the consumption of fuel. Suppose the original price of fuel is $p$, tax is $t$, $x$ is the ...
AnotherJohnDoe's user avatar
3 votes
0 answers
43 views

Get empirical steady state moments for calibrating a DSGE model

I want to calibrate some parameters of my DSGE model so that in the steady state some variable ratios, that are present in data, are met. My question is, how do I get such ratios from time series ...
manifold's user avatar
  • 831
3 votes
0 answers
154 views

A doubt on summary statistic of post*treat variable of a paper using DID (Dong,2019)

Generalized DID or Staggered DID are DID using staggered treatment events. In Dong,2019's paper, he uses the framework as below: $Margin_{ikjt}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ + $\delta$$...
Phil Nguyen's user avatar
  • 1,130
3 votes
0 answers
41 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 ...
Tanay's user avatar
  • 308

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