# All Questions

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### How to assess the effect of changing VAT collection policy to the cash ratio of businesses?

I want to measure the effect of different Value Added Tax (VAT) policies to the liquidity of a business. I am using a simple liquidity measure, the cash ratio. There are three VAT policies which I ...
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### What's the difference between true simultaneity and apparent simultaneity?

The definitions I find were: True simultaneity: Decisions can be made simultaneously by agents. Apparent simultaneity: Aggregation of causal relationship over agents over time. But I don't ...
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### What caused the equity of finance companies to grow so much in 1994

I recently saw this video and noticed something interesting. In a ranking of Top 15 US Companies by Shareholders' Equity in 1993, the only Financials company in the ranking was Berkshire Hathaway in ...
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### How to use schooling years information to better identify the returns to education

Assume that you have the dates of birth of the individuals in the dataset. Imagine that in 1985, the Ghanaian government has decided to raise the school leaving age from 10 to 15 years old. How would ...
21 views

### Methodology to sample points on a return-investment curve

How can I sample points on a return-investment curve? i.e., how can I get the revenue returned, given investments of $I_1, I_2, \dots, I_n$? Are there any methodologies for doing this? Example For ...
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### Greece national-accounts : deficit and debt doesn't seem coherent

I wanted to have a look at Greek's data to have an idea of the debt crisis' impact on various indicators. Two of those indicators are national debt levels (in GDP% or in absolute value) and ...
16 views

### Market mechanism design and decision rule based on a graph

I am doing a micro course right now. I came upon this question while studying and I was hoping for help/hints on how to solve it or what resources to consult to better understand the topic. the ...
30 views

### Does quantity demanded refer to all consumers or individual consumers?

When looking at points along the demand curve, is each quantity corresponding with each point referring to the total quantity demanded by all consumers in a market or the quantity demanded by ...
14 views

### Supply elasticity of finite (non-renewable) resources

What is the elasticity of supply of a finite (non-renewable) resource that cannot be replaced (i.e. fixed stock)? Intuitively it seems like it should be inelastic, yet I can also reason elastic.
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### Second welfare theorem problem

I would like to get a better understanding of part c of the following problem. It appears to me that Walrasian allocations do not change but I want to confirm whether I am right or not. Thanks. ...
21 views

### weakly preferred consumer bundles

I am currently studying consumer choice and saw that weak preference refers to when an individual prefers or is indifferent to two bundles (such as bundle A and bundle B). I was wondering what is ...
22 views

### Certainty equivalent and risk premium

I'd like some guidance on the below practice question on uncertainty in consumer theory. I think I am confused on the certainty equivalent & risk premium or I'm not understanding the question. ...
29 views

### Why decreasing co-state variable (over time) is Compulsory?

I have a short question. In the continuous time infinite horizon optimal control maximization problem Like $$\max \int^{\infty}_0 u(c_t)e^{-pt}dt$$ I use current hamiltonian function and I obtain ...
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### Diff in diff on model generated data

I have a structural model calibrated to N different locations and am running a series of counterfactual experiments. When I present the results for each experiment for each of N locations in tables, ...
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### What is the economic interpretation of the solution of this optimal control problem?

I have the following optimal control problem $$\max_{c_t} \int^{\infty}_0 e^{-p_it}\ln(c_t(i))dt$$ subject to $$\dot{w_t}(i)=rw_t(i) -n_ic_t(i)$$ $$w_0(i)=w_0>0$$ I have some wealthy and ...
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### How monetary profit is possible if aggregate prices exceed public purchasing ability?

When firms produce products, they pay households for labor. Later households use the earned money to purchase those same products... but since households purchasing ability is equal to firms' ...
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### Who is the first one to equate “rational” with “complete and transitive”?

MWG taught that, suppose that the menu is finite, "rational" is the same as "complete and transitive". But it seems that it does not cite any sources. Who said this first? vNM said in 1944 that their ...
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### which is an example of demand curve that is always inelastic/elastic?

Which class of functions have the property of being always elastic?and instead always inelastic?
57 views

### EMH: Difference between market price and fundamental value?

I am confused by the relation between stocks market prices and fundamental (or intrinsic) values stated by Efficient Market Hypothesis. How these deviates regarding to efficient market theory or are ...
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### Comparing cost of living of one state with that of other states [closed]

In the past I read something like this: If basic expenses for family went from 100€ to 200€ but its wage went from 200€ to 400€ it can expend more than before. Weighting the costs of living ...
22 views

### Any drawback from printing money to pay for national services such as the NHS? [duplicate]

Why can't we just print money to build national infrastructure services such as an additional hospital for the NHS? This would create growth, allowing more doctors and nurses to come through but more ...
28 views

### Correlation between nominal bond returns and growth

I read the following passage and the bolded section has me confused: In theory, assets earn a low (or negative) risk premium if they tend to perform well when the economy is weak. When growth ...
26 views

### Consumption Set in Arrow-Debreu

I'm very inexperienced in mathematical economics, so when I came across the idea of the consumption set in Arrow-Debreu, I was a little confused. So for each element x in consumption set X, what does ...
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### Difference type of crowding out effect in economics

In macroeconomics I came across two type of crowding out. First, in IS LM model where in classical case, when LM curve is vertical increase in government expenditures have no increase in output i.e. ...