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3 views

Why is discriminating monopoly better than competitive markets for producers?

In intermediate economics by Hal Varian, It is said that discriminating monopoly is better than competitive markets for producers. Why so?
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1answer
5 views

Falling Real Wages

Economist Lester Thurow said, "It used to be that if you were an American and relatively unskilled, you got an American premium, cause you'd work with more raw materials, better capital, better ...
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0answers
4 views

Over What Ranges Can Elasticity Estimates Be Applied

I am reading the following paper: https://onlinelibrary.wiley.com/doi/full/10.1111/1756-2171.12113 The paper attempts to estimate the elasticity of pharmaceutical innovation (measured by # of new ...
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1answer
9 views

What are some currencies that are not pegged and fixed?

Are there any currencies that are not pegged to the dollar or euro and are purely fixed exchange rates?
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1answer
13 views

Shouldn't national Stock Indices proportional to GDP of the country?

I was looking at Japan: Japan's GDP trajectory and Nikkei 225. It seems from 2011 - 2015 the GDP contracted but the Nikkei has gone up. Would there be a good explanation for this ?
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1answer
11 views

Bayes Correlated Equilibrium with complete information structure

Model Consider a game where a decision maker (DM) has to choose action $y\in \mathcal{Y}$ possibly without being fully aware of the state of the world. The state of the world has support $\mathcal{...
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1answer
16 views

Some basic questions on infromation asymmetry

How does asymmetric information and bid-ask spread are connected? For instance, economic theory tells us that, the more the problem of information asymmetry, the higher the spread is. What is the ...
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0answers
13 views

How can I describe a differential equation for a set of data? [closed]

I am trying to find a differential equation to describe private debt as a percentage of GDP from the following link? How can I accomplish this? Data Source
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16 views

What are the different types of Adjustable Rate Mortgages(ARMs)?

I'm aware of Hybrid ARMS that have a 7 fixed 1 adjustable composition and Convertible ARMs that can be converted to fixed rates but are there other types of ARMs? For example for this Ginnie Mae ...
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8 views

List of stock and bond indexes for countries

I am doing some master`s degree research and looking for the list of stock/bond indexes for developed and developing countries. So the excel-file I should gather in the end will look like this: ...
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0answers
14 views

Should I use start of quarter interest rate or end of quarter interest rate for time series regression?

Not sure what the correct procedure is since there is daily data for the period. Assume I can't find the average for the period.
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23 views

Unbiasedness of MoM estimator

Why is the method of moments estimator $g(\bar{Y})$ of $\theta$ only unbiased if $g(\mu)$ is a linear function of $\mu$? (Note: It is assumed that $\theta=g(\mu)$ for some function $g$ and $\bar{Y}$ ...
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7 views

Why did the central bank of China raised the amount of repos during the financial crisis?

According to the PBOC monetary reports, the total amount of repos conducted went from 1.27 trillion yuan in 2007 to 3.3 in 2008 and further increased to 4 trillion in 2009. It wasn't until 2012 that ...
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1answer
16 views

How can I control for trade between UK and Australia in my difference-in-difference trade model?

I am doing a report on whether environmental regulation has an impact on trade, using a difference-in-difference model and seeing whether the EU Industrial Emissions Directive had an effect on UK ...
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1answer
26 views

Does the UK have a trade agreement with Australia?

I'm assuming since the UK was a member of the EU, the EU was responsible for any kind of trade arrangements between the UK and Australia but I'm not entirely sure. Does the UK have an agreement with ...
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1answer
34 views

If a Chinese person wants to buy an iPhone or any international goods, which GDP per capita would be a better indicator?

Which GDP per capita of a Chinese citizen would better reflect their affordability- Nominal GDP per capita or PPP GDP per capita of China? My question is would PPP would matter much in case of buying ...
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11 views

How does China control tax havens / finance flight differently?

It is said that china tries to prevent its money leaving overseas, for example yuan holding officials can't expatriate millions abroad or smuggle diamonds? How is that possible and efficient?
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0answers
12 views

Rescaling of WPI series [closed]

I want to re-scale the WPI series with a new base. Authorities have given the linking factor as well as they have re-scaled the series for previous 4-5 years (monthly basis). I need the re-scaling for ...
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0answers
13 views

Can “invisible” investing by the Chinese govt. create bubbles in the stock market?

In this link, they claim that the Chinese govt. secretly pumps money into the market as soon the market crashed due to Corona Virus. How is this different, in terms of long-term impact, from ...
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0answers
14 views

opportunity cost and comparative advantage

First, I apologize if this isn't the place to ask such question... but I'm in literal confusion. https://www.youtube.com/watch?v=HneRNVtahYw&t=462s at 7:42 in the video, its tells us that France ...
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1answer
23 views

Why would an investor choose to invest in one index fund as opposed to another?

Assuming no transaction costs or management fees, why would an investor choose to invest in a fund tracking the Nikkei 225 over say the S&P500. If I was quite bullish on Japan, and I made the ...
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0answers
39 views

Pricing Strategy for Product that Ships Across a Country

Not sure if this is the right place for this question. Assume I produce a grocery item that I want to sell across the country. If I sell my product to a grocery nearby, my shipping cost will be less ...
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24 views

What is implied by “No arbitrage” in this example?

Suppose that we are in one period model, where assets are bought (in positive and/or negative values) at $t=0$ and are redeemed for their value at time $t=1$. Furthermore, suppose that there are three ...
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0answers
17 views

Could a modern state be completely funded by a Single Tax in the form of a Land Value Tax (LVT)?

This is the idea of the Single Tax popularised by Henry George (1879). In the UK (in 2014) rents (both real and imputed) corresponded to 12.3% of GDP whereas tax receipts corresponded to 32.8% of GDP....
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1answer
26 views

How do I derive the aggregate demand function given two utilities functions?

Assume that we have two people with the same utility function of $U_i = x^{1/2} + y^{1/2}$ where $i=1,2$ and $I_i$ is the income. Let $P_x$ denote price of good $x$ and $P_y$ denote price of good $y$. ...
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15 views

Monetary Theory Money Model Help

the following is a monetary theory overlapping generations model question and I wonder whether I have the correct answer. Can someone please let me know? Thanks! Question: Suppose there is a fixed ...
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2answers
46 views

Derivation of a Demand Equation

A consumer's utility function is $U(x,y)=\sqrt x + y$. Assuming we have an interior solution, I need to show that the demand for $x$ does not depend on income. I know that the consumer consumes where ...
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1answer
16 views

Does lowering fed funds rate help US companies grow?

I would like to understand if lowering the fed funds rate would help US companies grow and why
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0answers
12 views

To what extent did tsetse fly affect African development today?

Based on the fact that the insect is unique to African ecology and its impact both on humans and livestock, can it be argued that the lag of Africa's development today is at least partially due to the ...
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0answers
11 views

Does filling the spot of a retiree count as a job created?

When a person retires, and the company hires someone to fill the job of the person that retired, does that count by the BLS(Burea of labor statistics) as a "created job"?
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20 views

Value relevance, informative information, Financial statements, IFRS 9

What are the theories that say that the disclosures in the annexes of the report and accounts are less relevant than the figures in the financial statements, is there anything? I've been looking for ...
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1answer
28 views

How to find the profit-maximizing output level?

Table 11 In this post, step 5 states the profit-maximizing output level is quantity 5. But in this case, $p=28$, $MC=30$, $p\neq MC$. Why it is the profit-maximizing output level? Step 4 states the ...
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35 views

Microeconometrics course vs time series

I am currently a graduate student in Operations Research and I would like to learn econometrics, as it is not a part of the core curriculum. I am comfortable with matrix algebra (many courses used ...
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22 views

Why did the sudden end of Japan’s economic boom and its economic decline occur just around the time of the dismantling of the Soviet Union?

Both happened at about the early 90s (or at the end of the 80s). Was there some kind of connection? Or was it just a coincidence?
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21 views

FOC - Fertility choice and economic growth Becker

I have a problem derivating the FOCs of the Becker-Barro model of fertility choice. I made the derivations of V (equation 3) subject to the constraint (equation 5) at times t and t+1. I can't get them....
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0answers
13 views

How to calculate bond price and the relationship between bond price and repo rate?

Suppose that there is a gilt Tr 7.5pc '06 in 2006 with interest yield 7,32% and redemption yield 4.31%. How can I compute the price of this gilt per 100 face value. The problem is that the numbers I ...
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1answer
43 views

How does an increase in the minimum reserve requirement affect the monetary base?

Monetary base is defined as currency+currency held by banks+deposits of banks at central bank. We assume that the current reserve is below the minimum reserve requirement. Which component of monetary ...
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0answers
13 views

Autonomous Vehicles and Modeling - Reference Request

Have there been any attempts to forecast the impact on traffic flows or travel behavior after the introduction of Autonomous Vehicles. I am not looking for specific stuff right now but just for good ...
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0answers
19 views

When does increasing government spending lead to economic growth and when does it lead to stagflation?

Obviously increasing government spending endlessly will lead to inflation. What I ask is: when can an increase in government spending, when the economy is in a recession, lead to economic growth ...
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1answer
14 views

Exogenous variables and money

What are the exogenous variables that drive demand for and supply of money? Are there variables in common between the two? I think I'm getting caught up with interest rates, as adjusted by the Feds vs ...
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0answers
24 views

On Demand Functions and Engel Curves

A consumer has utility function $U(x,y)=(x−2)y$, where $x≥2$ and $y≥0$. The price of $x$ is $P_x$, the price of $y$ is $P_y$ and the consumer's income is $I>2P_x$. ($x$ and $y$ do not have to be ...
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0answers
28 views

What policies can a government adopt to promote economic equality?

As per the Oxfam survey, Top 1% owns more than the bottom 50% of the population. There is also an enormous wage gap emerging, such as that our average CEO makes something like 200x much more than ...
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0answers
20 views

Regarding global economic slow down

I heard in news that world is going through,the economic slow doing may be because of us China trade war or any other reason. and India is one of the country which affected by this slowdown, but ...
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2answers
50 views

Can resource be considered scarce if its supply is limited, while quantity of the resource is practically unlimited?

Let's consider energy of our Sun for an example. The Sun will be able to give us lots of energy for millions of years (and even its annual energy output is enormous), it's practically unlimited energy....
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0answers
26 views

Relevance of central bank

Why do we need central bank ? surely the government can print currency and regulate banks by conducting audits through finance ministry and so on. Why do we need central bank ?
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1answer
20 views

Lending and interest rates

It states in my textbook that as interest rates are lowered it says lenders are the ones who gain from the decrease in interest rates. But isnt this not true? As lower interest rates imply the amount ...
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1answer
20 views

Negative interest rate on bond yeild

In Black Scholes model r is defined as risk free interest rate. What I have understood is that risk free comes from the yields on sale of government bonds. My ...
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0answers
22 views

Calculating elasticity between log term and non-log term

Given the following, I am asked to calculate the elasticity of wages with respect to age: $$𝑙𝑛(𝑤_𝑖)=𝛽_1+𝛽_2𝑎𝑔𝑒_i+𝛽_3𝑎𝑔𝑒^2_𝑖+𝛽_4𝑌_𝑖+𝛽_5𝑇_𝑖+𝛽_6𝑀𝑎𝑟_𝑖+𝜖_𝑖$$ How does one ...
0
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1answer
25 views

Calculating elasticity between terms in a regression equation

Given the following regression: $ln(w_i)=\beta_1+\beta_2age+\beta_3age_i^2+\beta_4Y_i+\beta_5T_i+\beta_6Mar_i+\epsilon_i$ I am asked to calculate the elasticity of wages with respect to age. Is the ...
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1answer
27 views

Why is it important to look at all three different ways when looking at the macroeconomy of a country?

we have and use three different ways of deriving the Gross Domestic Product namely Output, Income, and Expenditure (or final consumption) methods but why is it important to view the GDP from all three ...

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