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votes
1answer
530 views

Gini coefficients and median / mean income ratio

Simple question: If the GINI coefficient (market incomes) goes up, is it a necessary feature that the mean income rises relative to the median?
0
votes
1answer
524 views

S&P 500 total return excel sheet

Where can I find an excel sheet with total return (that is, with dividend reinvestment) of the S&P 500? I have only found an online "calculator" (not an excel sheet), or an excel sheet with ...
0
votes
1answer
38 views

What are the general charateristics of matching markets that make then different from regular markets?

I would like to know what exactly makes matching markets different from regular markets. If you could illustrate with examples to help me understand better, that would be nice. Thanks in advance.
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votes
1answer
362 views

Isn't the liquidity trap about real interest rates?

Here is a so-called thought experiment. Suppose the inflation rate is negative, the nominal interest rate slightly negative, and the real interest rate positive (call it $r$). I think people would ...
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2answers
696 views

Solving for price incease

The following table lists the basket of goods in the Consumer Price Index for the nation of Astro​ (Assume 2014 is the base​ year.) ...
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votes
2answers
37 views

How long do stock markets usually take to process complex new public information?

Here is a question that I've been thinking about for a while: Theoretically, assuming investors are rational, a stock's price will be equal to its its intrinsic value (present value of discounted ...
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votes
1answer
39 views

Optimal taxing in case of negative externalities

Suppose an individual $i$ has the utility function $U= f(x(i)) - k$(sum of all $x$ with index not equal to $i$) Where $x(i)$ denotes the miles driven by $i$, and $k$ is a positive constant. The ...
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votes
1answer
2k views

Quasi Fixed Input

What is quasi fixed cost? What is the difference between fixed and quasi-fixed cost? Is capital, land and labour considered a quasi fixed cost for a firm? I have read that when the firm wants to take ...
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1answer
45 views

Finding a Research Project

A professor at my college (I'm a rising sophomore) expressed interest in me working for him as an RA as I have had previous research experience prior to coming to college and I did well my freshman ...
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2answers
725 views

What is the danger of (China's) investment-led growth as opposed to consumption-led growth?

I keep reading that China must switch to consumption-led growth or productivity-led growth, that investment-led growth is 'dangerous.' I understand that it is probably not sustainable in the sense ...
0
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1answer
647 views

When the base year changes, does it affect data at current prices as well?

I'm trying to collect current GDP data for India from 1990-2016. But, India changed its base year in 2011. So, to get a continuous series, do I have to change the data to a common base?
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1answer
30 views

Where can I find historical (very old) USD printing data?

Where can I find historical/very old USD printing data? Charts can be useful, but I want numbers. It is for a project.
0
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1answer
32 views

Reference request about econometric analysis of Environmental Kuznets curve

I could not find from where to learn the application of Econometrics on data analysis relating to environmental Kuznets curve. Are there any books or articles which talk about the above?
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1answer
100 views

How to find the points on a budget line? [closed]

Hulk goes to the gym 20 times a month. His income is 1,000 per month and his visits to the gym cost $4 per visit. Draw Hulk's budget line for visits to the gym and all other goods, show the ...
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2answers
74 views

What is the name given to an exporting-only economy?

In international trading there can be an economy that only exports, but restrict the import to minimum or at all. I cannot recall what the name given to this type of economy.
0
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1answer
188 views

Do credit cards create more printed money

As far as I know, when people take a loan from a bank, most of the loan value is electronically printed money, i.e. money that did not exist before. Is it also what happens with consumer credit cards? ...
0
votes
1answer
103 views

What does the value of an industry mean?

In product pitches, a timeless line is "this is a $____ industry", but what does that really mean? Is that how much money the industry typically produces in a year? In a quarter? As some ratio of the ...
0
votes
1answer
288 views

General equilibrium - exchange economy with time and perishable goods

I am attempting to solve a general equilibrium problem from the textbook Jehle and Reny. However, I am slightly confused if my approach is correct. The question is as follows. Consider an exchange ...
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1answer
582 views

What is meant by “Exchange rate expectations are static” (In the Mundell-Fleming model)

When I was studying the Mundell-Fleming Model, I came across the assumptions : 1- Exchange rate expectations are static 2- Capital mobility is less than perfect I ended up with the following ...
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1answer
763 views

Sequential Bargaining

Consider a sequential game with two players who use the following procedure to share two desirable, identical and indivisible objects. Player 1 proposes an allocation in stage 1 which player 2 either ...
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2answers
58 views

Driving down the price of a good

I've been thinking about this situation lately: A normal good $x$'s price has become unreasonably high. Would it be a good idea for consumers to boycott (i.e. stop buying) $x$ in order to drive down ...
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1answer
198 views

Understanding the elasticity of demand for a monopoly

Question: Your are working for a firm that is a monopoly. It is producing using technology that exhibits obvious decreasing returns to scale. After working with them for a while, a co-worker makes a ...
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2answers
58 views

Expected Value of a Infinite Process

Assume $x_t$ is an unit root process. Write first difference of $x_t$ as $\Delta x_t$ =$\rho$ $\Delta x_{t-1}$+ $\epsilon_t$ Where $\epsilon_t$ is a white noise process. How can we calculate $ ...
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2answers
74 views

intuition about option values

What is the relationship of the option value and the pay off to an option? What happens if the option value > pay off? or if it is equal to the pay off? I read that in a put option , the option value ...
0
votes
1answer
61 views

Understanding the effects of government deficit on international trade

Understand that I'm a total novice with regard to economics. Also, while I ultimately have an axe to grind (doesn't everyone?) I'm not trying to do that honing here, I'm simply looking for a sanity ...
0
votes
1answer
277 views

What are the limitations that a country faces in increasing its Forex Reserve?

The Forex Reserve of a country remains in the locker of its central bank and does not earn any interest for that country. What are the measures that the central bank of a country can take to overcome ...
0
votes
1answer
298 views

GDP in expenditure approach

GDP calculated using expenditure apporach is like this: GDP=C+I+G+(X-M) However on this site: http://www.singstat.gov.sg/statistics/visualising-data/charts/share-of-gdp-by-expenditure The data is ...
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1answer
43 views

exchange rate and domestic money supply part II

This question is related to the answer to the question exchange rate and domestic money supply It is said that the 'CB purchases foreign currency on currency market'. Is it possible that some of ...
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votes
1answer
651 views

Nash Equilibrium and Dominant Pure Strategy when payoffs identical

What happens if the payoff is the same across strategies? I have some thoughts but I am not sure. $$ \begin{array}{c|cc} &C&D\\ \hline A& 1,1& 1,1\\ B& 0,1&1,-1 \end{array} $$...
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votes
1answer
51 views

Collar strategy for options trading [closed]

I am new to investing on the market so I am doing some research and studying. From what I can tell, the purpose of a collar strategy for options trading is to protect your gains you've made on the ...
0
votes
2answers
23 views

Have UK exports (goods and services) to Ireland declined in value since 2011?

Where can I find the relevant Office Of National Statistics data on UK exports to Ireland? I want to know if the value of UK exports to Ireland has declined since 2011 and if so, does anyone know why ...
0
votes
1answer
36 views

Link between supply of domestic assets and monetary policy

From Treasury's Oct'2016 FX policies report: Switzerland’s economic policy situation is distinctive given its relatively small stock of domestic assets, which limits monetary policy options to ...
0
votes
1answer
35 views

How to interpret illigal foreign currency (cash) transfers in terms of Balance of payments

There are a lot of examples of legal operations with trade balance and capital flows. Nonetheless, I've failed to find a clear explanations of how to interpret illigal (read, criminal) foreign ...
0
votes
1answer
2k views

Explanation of differential equation for Price Elasticity of Demand

I understand that Price Elasticity of Demand (PED) measures the percentage change in quantity demanded of a good with respect to a percentage change in its price. However, I don't quite understand ...
0
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1answer
261 views

The Great Depression vs The 2008 Financial Crisis

So I'm taking this finance course and my professor keeps talking about how the 2008 financial crisis was worse than the great depression. I have my doubts so my fellow economists, do you think the ...
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2answers
2k views

If there was world war 3, which stocks should I short? [closed]

With the Trump administration, Turkish dictatorship, North Korean nuclear weapons, and general tension around the world, we might think that there is a likelihood of something like a world war ...
0
votes
1answer
65 views

What is the effect on society of me choosing to make my own shoes, food, or clothing?

This question comes from someone who suggested brushing my teeth benefits the economy because it reduces demand for dentists, lowering the price. However, when I think more generally of making my own ...
0
votes
1answer
532 views

Homothetic function versus straight Engle curve

Homothetic functions can be defined as follow (Green, 1964, p.49): If two figures A and B are "homothetic", or "similarly placed" with reference to a point P [for example, the origin], then for any ...
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votes
1answer
110 views

How does the government launch of Tomahawk missiles against Syria affect the economy and governmental budget?

Last night an air strike was launched against Syria of about 60 Tomahawk missiles. At approximately $832,000 apiece, this airstrike cost the US gov't about 49 million dollars. Initially, this sounds ...
0
votes
1answer
145 views

What are some applications of Akerlof's 'lemons' in goods and services markets?

How can the idea of Akerlof's 'lemons' be applied to goods and services markets (that doesn't include second-hand cars)?
0
votes
3answers
165 views

Since it doesn't change the money supply, how can an “expansionary” fiscal policy alone spur economic growth?

I understand how monetary policy can be used to heat up an economy by increasing the money supply, but how can a fiscal policy do so? When the government borrows money to increase spending, it is not ...
0
votes
1answer
318 views

Troubleshooting Utility Maximization with the Lagrange Method

I'm trying to solve a utility maximization problem through the Lagrange method. The utility function is something like $u(x,y)=x+B(y-a)$. However, I'm running into problems as x and y do not come up ...
0
votes
1answer
286 views

Wooldridge's Microeconomics book vs Cameron and Trivedi's textbook

I'm debating between 2 Microeconometric classes at my college, (I realize I'm fortunate to have a choice). One class uses Wooldridge's "Econometric Analysis of Cross Section and Panel Data" the other ...
0
votes
1answer
4k views

Interest Rate vs. Borrowing Rate - Difference

I have never studied economics so the question might be very basic one and would need understandable answer: I would like to know the difference between Interest Rate term and Borrowing Rate term? As ...
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5answers
135 views

What is a dollar, currently?

What is the definition of a dollar now without gold backing? It seems that a dollar is now just an entry in a book somewhere in some bank. Or it is the federal reserve note? Or is it both? I ...
0
votes
1answer
146 views

Example in which revealed preference doesn't imply preference

I'm studying Varian's Intermediate Microeconomics, in which the principle of revealed principle is stated as follows (for now we're assuming strictly convex indifference curves): Let $(x_1, x_2)$ be ...
0
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1answer
60 views

Proxy for debt service?

I'm trying to get info on debt service relative to GDP for Morocco. I know these sorts of figures exist for the US, Japan, etc., since a few authors use them, but Trading Economics does not seem to ...
0
votes
1answer
75 views

How can two countries of roughly the same size, population and GDP have such big differences in minimum wage?

We could answer this question theoretically, or give a real-world example of two such countries. Is there anything more interesting to say than: that's just something decided by the government? Could ...
0
votes
1answer
1k views

Negative Marginal Returns

In my economics class, we learned that in the short run, there are three stages of marginal returns: increasing, decreasing, and negative. As a firm adds the first few units of labor, specialization ...
0
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1answer
178 views

Meaning of innovation in the wealth creation process

Is there a formal definition or measure of wealth that captures the notion that with improving technology "life gets better"? A stupid example of what I mean would be the invention of the iPhone. I ...

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