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17 views

Do any social welfare functionals meet all of Arrow’s conditions, plus absolute-scale full-comparability, but no other informational condition?

I’ve been trying to think of social welfare functionals which meet all of Arrow’s conditions–––unrestricted domain, weak Pareto, independence of irrelevant utilities, and non-dictatorship (see this ...
20 views

Would households rather live in a world with or without the unemployment insurance?

Would households rather live in a world with or without the unemployment insurance? What is a good example of world in which unemployment insurance is seen as a benefit, and not a hindrance?
29 views

Banks and Stock Market in Germany

My question is: ** Why does Germany have such a small stock market, but very large powerful banks? **
18 views

Effect of Agricultural products on GDP/capita

What is the best way to regress this effect. I would like to show the effect of the production of different agricultural products (Rice, maize, wheat etc..) have on the gdp of a country (India in this ...
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35 views

Running a regression to avoid multicollinearity

I have the following regression (pooled OLS; panel data): Y Treated Shock Shock*Treated {with industry and year fixed effects} Y is a continuous variable, “...
8 views

Query regarding derivation of aggregate demand curve

What is the difference between AD curve derive from is-lm model and quantity theory of money.
19 views

Regression estimators for an equation with three independent variables

I'm trying to find the estimators for a regression equation with three independent variables: $y_i = \beta_0 + \beta_1 x_{1i} + \beta_2 x_{2i} + \beta_3 x_{3i} + \mu_i$ What is the betas' estimator, ...
23 views

Perfectly elastic supply

How would you algebraically write a perfectly elastic supply? Will it be infinite at price = 4? (The choice of the number 4 is completely arbitrary)
22 views

Percentage/proportion of published papers with DSGE models

I remember reading a few years back an article that showed an interesting graphic with the percentage/proportion of published papers with DSGE models across time. I've tried searching, but I get so ...
24 views

Balanced Growth Path Calculation

Consider an extension of Alesina - Rodrik paper 'Distributive politics and economic growth' (1994). Instead of wealth taxation, impose a labor income taxation with a slight change in the model ...
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Did Eisenhower, and his economic team, use a Keynesian economic policy, or a modified form, or not at all?

There is a big debate about this in my graduate political/economic history class. Any input will be appreciated, as well as suggested books or peer-reviewed journal articles. Thank you.
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Recommendation on economics books for a statistician

I have mainly an statistics/informatics background and i have basically not knowledge in economics. What some good books to star given my background? Edit: My principal interest is stock market ...
32 views

Why is the opportunity cost 0 in this case?

My book says that the opportunity cost of purchase of a specialized equipment that has no alternative use is zero and hence such an expenditure is a sunk cost. However, while calculating the user cost ...
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Financial Economics and Corporate Finance

In pg 4 of Principles of Corporate finance (Allen et al, 2017), in the context of explaining financing decisions are less important that investment decisions, there is a line that says: "Financial ...
20 views

Okun coefficient interpretation

I'm wondering how to interpret Okun’s coefficient. Say you have $y^c = -1*u^c$. This means that a 1% increase in the cyclical unemployment gap will produce a 1% decrease in the cyclical output gap. ...
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How do treasury bill auction work?

So i am having a couple of issues understanding the auctions of treasury bills. I know that the treausury accepts the bids offering the highest price. The treausury accepts the competitive bids in ...
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Under what conditions should I use a Social Accounting Matrix Model vs. Multimarket Model vs Computable General Equilibrium Models?

What are the differences between the SAM, multimarket and CGE models. When should I use one over the others?
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How can I model the impacts of improved agriculture technologies and food aid in a multimarket model?

Given a multimarket model for staple agricultural commodities wheat, rice, maize and sorghum, in a low-income economy, Im trying to figure out how I can use the multimarket framework to look at the ...
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Is oil supply really inelastic in the short term

Is oil supply really inelastic in the short run? Though it remains evident that in the short run, the known capacities of oil can't be increased and hence we can assume that there remains a upper cap ...
21 views

discount function with logarithm

I have a function f(x) in which there is log function $f(x)=log(1+ax)-bxg(x)$ I need a discount function g(x) with which the function f(x) is concave and the value of x is not too complex. I ...
21 views

what is exactly total bid quantity and total ask quantity?

this is the definition formulated by me: Quantity total bid: It’s the sum of currently open (remaining untraded and active) orders on the bid side. Quantity total ask: It’s the sum of currently open ...
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I'm trying to solve Hull's 7.2 problem for swaps. The problem says that: Well, my question is why Company X would need to make a swap contract if it has a good 9.6% interest rate in dollars (and it ...
25 views

What impact does deficit spending have on economic inequality?

Taxation schemes can be classified as progressive (the tax rate is higher for higher income brackets), regressive (the tax rate is lower for higher income brackets), or neutral (the tax rate is the ...
36 views

Difference between 2 ways of measuring sales against inflation (Compare Variation and Deflate)

Let's say we have these data: $p_{t-1}$, price index at time $t - 1$ = 100 $p_t$, price index at time $t$ = 120 $s_{t-1}$, sales at period $t - 1$ = 110 $s_t$, sales at period $t$ = 154 Then which ...
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In The Paradox of Active Management, the author argues that in the event of a shift from Active to Passive management, Bid/Ask spreads and market liquidity will be affected, In our scenario, the ...
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CPI Bias with consumers using computers extensively

I was studying Microeconomics from Microeconomics by Pindyck and Rubinfeld where it was written that CPI calculated on Laspeyres index has overstated the cost of living for consumers who use computers ...
26 views

Can a progressive policy be solely funded by a regressive or even proportional tax?

Under what criteria a regressive or proportional tax can be used to fully fund a welfare program or policy that it's progressive (i.e., one that benefits lower-income people more) in nature? Are there ...
22 views

Forecasting in Real and Nominal Prices

I have a question about how to a create price forecast for a good in nominal and real terms. Using crop prices as an simple example where you believe the price of a crop is related to a stock-to-use ...
20 views

Are foreign currency exchange rate transitive?

For a given period, if USD strengthened against EUR by 5%, and EUR strengthened against GBP by 3%, does that imply that USD must have strengthened against GBP by ~8%?
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Is there a specific term to define costs “internal” & “external” to an industry?

I'm not referring to the typical definitions of industry (internal) & societal (external) costs but rather the costs that can be reduced by a member within an industry (to be competitive) and the ...