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37 views

PMI - Purhasing Managers Index

I need the PMI time series for an econometic project but it seems I can't get it for free on the internet. Does anyone know where can I download it for free? Also a proxy for this series would be ...
0
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2answers
10k views

Why does the real wage = W/P?

Im reading about labour markets, and the notes mention that the real wage 'w' = W/P, where W = the nominal wage, and P = the price level. Could someone please use some 'W' and 'P' as an example to ...
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1answer
191 views

What would the determinant of the input-output matrix represent? What is the intuition?

I know that the determinant of a 2x2 matrix represents the oriented area of the parallelogram represented by the vectors in the matrix. For 3x3 or higher order matrix it represents the oriented volume....
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1answer
22 views

Which institutions are in the eurodollar market?

My main question is: how much of the eurodollar market is claims issued by depository institutions or Bank Holding Companies? It's about a $4tn market, but who's in it? Who is funding themselves in ...
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1answer
2k views

How the presence of increasing returns to scale lead to market failure [closed]

How the presence of a sector with increasing returns to scale in a "perfect" economy may lead to market failure ? Can sb explain for me with the support of charts ?
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1answer
1k views

If government impose price control, what happens?

I have this MCQ homework that I would like your opinion about Suppose government chooses to impose a price control on a good. Which of the following is NOT a potential consequence of the restrictions ...
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2answers
82 views

Are there strains of economics that are “no (political) economics”? [closed]

To support my belief in the arbitrariness of economic theory and thought, since different economic systems have their own rules, theories etc., which contradict the rules of other systems and which ...
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1answer
3k views

CAAR t-test for event-study

I have a set of data that I have gathered for an event-study. I computed the CARs, CAARs (cumulated average abnormal returns) and now I have to do a t-test to test if CAARs are significantly different ...
0
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1answer
684 views

Self policing incentive in GST

Amongst several advantages of GST(Goods and Services Tax) I read one as that it prevents tax evasion through self policing incentive.But self policing incentive is already provided in VAT.So what's ...
0
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1answer
417 views

USD/CAD fx: What's the difference between Buying USD and Selling CAD?

Beginner question here. I'm Canadian, and my investement account is, by default, in CAD currency. Recently I wanted by buy a US stock so I had to convert some of my CAD money in USD money. There ...
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1answer
68 views

The Economical “justification” of mass killings

Throughout history people have engaged in wars and mass killings. I'm sure similar stories exist in all parts of the globe, throughout the world. So what is the story? If the world revolves around ...
0
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1answer
39 views

If central banks become shareholders, where can investors go?

The ECB is buying corporate bonds. It could eventually also buy shares. What would be left for investors to invest in? Letting bank shareholders pay for bailouts resulted in crashes of their shares. ...
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1answer
6k views

GNP, GDP, GNI, GNDI and their relationships?

GDP - Gross Domestic Product GNP - Gross National Product GNI - Gross National Income GNDI - Gross National Disposable Income We know that GNI=GNP, and that GNP=GDP+Net income from factor ...
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1answer
278 views

Securities traded in different currency

Excuse me if this is not the site to ask this question but I read in meta that you have a accounting tag so here we go. If I made a buy of an ETF in two different exchanges with different currencies ...
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2answers
270 views

What's the role for official intervention in the Balance of Payments?

If the Balance of Payments (BP) is defined as $$BP=\text{Current Account}+\text{Capital Account}$$ where: $$\text{Current Account}=X-M+\text{Net Income Interest}$$ and $$\text{Capital Account}=\...
0
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1answer
55 views

Monetary Policy and international reserves— interpretation of the estimated coefficient

I have a problem in interpreting a coefficient in my regression below: I am estimating the following regression in the spirit of an event study analysis with daily data: $\Delta ER_t = \beta_1 ...
0
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2answers
53 views

Different values for US Public Debt, why?

In this OECD link we have the US General government debt. The value is close to 120% of GDP. However, the wikipedia has the US Federal Gov debt at 80%. Why is there such a difference? What debt is ...
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1answer
37 views

If we add up all the income while finding GDP of a country, is income counted multiple times?

Suppose 9 others and I are government employees. We get salary which will be counted while calculating GDP. Let's assume that we 10 are the only customers of a shop (for simplicity). The shopkeeper's ...
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2answers
253 views

The relationship between structural budget balance and cyclically adjusted budget balance?

What is the relationship between structural budget balance and the cyclically adjusted budget(CAB) balance? I know that $PB=\textit{CAB}+AS$, where $PB$ is primary budget, and $AS$ are the automatic ...
0
votes
1answer
350 views

How to calculate constant GDP in international $ from nominal GDP in local currency units

I want to calculate a constant GDP serie from 1995 till 2014 based on nominal GDP expressed in Yuan (Chinese currency). I already get stuck on how to first make a constant GDP serie based on Yuan, ...
0
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1answer
69 views

price elasticity of output, makes sense?

I was wondering, in a log-log model of output, labour and commodity price where output is the depedent variable, does it make sense if the coefficient on the price variable is interpreted as the "...
0
votes
1answer
93 views

If an employee works overtime (and gets paid for it), how does this affect a nation's GDP?

GDP = Consumption + Government Expenditure + Investment + Exports - Imports My cases are: (1) If the employee is getting paid for his extra-work, his consumption would increase. (2) This employee ...
0
votes
2answers
119 views

Why is the total wealth of the world not a conserved quantity?

I have read that the GDP of the world is growing. I do not understand how this is possible. If I make profits out of a commodity or a service, somebody pays me for it. Hence, their wealth has to drop. ...
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2answers
593 views

How to have same utility function for two persons?

I have a question regarding utility functions: Utility can be defined as follows: $U=1+e^{\frac{x}{RT}}$ U:Utility x: What we want to find the utility for (Certain equivalent) RT: Risk tolerance ...
0
votes
1answer
310 views

Income Elasticity of Demand for Higher Education

My model has been given as: $$\ln (H_ed) = 18.08 - 0.53\ln Pop -2.01 \ln Distance + 0.47\ln RGD $$ Where (Hed) is higher education, pop is population, and RGD = Real GDP per capita. I have been ...
0
votes
1answer
45 views

Why would investors from other countries want to invest in a country with a large CA deficit?

According to my textbook, the current account and financial account must balance; therefore, a country w/ at large CA deficit will need to fund this by a financial account surplus (i.e. they need to ...
0
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1answer
149 views

The question is related to topic consumer surplus [closed]

Suppose the demand function is 12-3p=q and price falls from 3 to 1. How much is the change in consumer surplus?
0
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2answers
518 views

How is the matching principle implemented with double entry accounting? [closed]

I understand that the accounting matching principle requires incurring the expense in the same period as the revenue. But I'm confused how one would go about doing this in double entry accounting. ...
0
votes
3answers
435 views

Questions on comparing GDP between various countries

What is the difference between OER vs PPP? What fundamentally drives them? Shouldnt an arb opportunity exist and wouldnt that difference then go away? My understanding of OER is the official nominal ...
0
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1answer
125 views

Volatility of investment: Joint-Volatility of mutually independent variables

I´ve been trying to compute a volatility of invesment with currency hedging and I have a question. Let's take this example. We have our money in a fond copying the S&P500 index, which has 16% ...
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1answer
1k views

Can the Gross Value Added be negative? [closed]

Can the Gross Value Added be negative when calculated using the production approach?
0
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1answer
48 views

Does the Tax Allowance Benefit Everyone (Regardless of Their Income)? [closed]

Note: This question is in the context of the UK and its policies. I understand that if your income is below the tax allowance (£11,000), you pay no income tax. However, I think my textbook is also ...
0
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1answer
20 views

Clarification on the impact of a change in the Bank Rate (UK)

I'm currently revising for my AS economics exam and I am going over Monetary Policy. In a handout, I've read the following phrases which I am a little confused about... "A cut in the base rate, ...
0
votes
1answer
151 views

Why does an increase in money cause a proportionate increase in price level according to classical/neoclassical economists?

First I am not sure what classical economists say but doesn't increase in Money supply decreases interest rate and cause investment to expand and thus GDP rises. Therefore the aggregate demand ...
0
votes
1answer
39 views

How to model best combination of resources

I don't have an economics background, I come from CS. I am sorry if this question seems weird. We want to model the combination of a set of resources to either answer the cost of the model, minimize ...
0
votes
1answer
108 views

How to calculate change in GDP using valued added?

Suppose that Roots buys 5 million dollars in leather produced this year in Alberta and 1 million dollars in zippers produced last year in Toronto to make 9 million dollars worth of leather jackets in ...
0
votes
1answer
47 views

How to distinguish Full-time (FT) employment and Part-time (PT) employment when calculating employment rate?

Which of the following is true for the Canadian labour force data for June, 2015, for unemployment, Full-time (FT) employment, and Part-time (PT) employment? A) Unemployment fell because FT ...
0
votes
1answer
259 views

Determine price and cost of intermediate good

Consider a world where an intermediate good is produced using a linear production function in a competitive market: $$ Y = qAL$$ where $q$ is the price of the intermediate good, $A$ is productivity. ...
0
votes
1answer
962 views

Robinson Crusoe Production Economy [closed]

Robinson Crusoe’s preferences over coconut consumption, C, and leisure, R, are represented by the utility function U(C, R) = CR. There are 48 hours available for Robinson to allocate between labor and ...
0
votes
1answer
27 views

Delay in the transmission of knowledge to poorer countries

Assume the world consists of two regions, the North and South with the following production functions and technology lags in the south by $\tau$ years: $$ Y_N = A_N (t) (1-a_L) L_N; \; \; \dot{A}...
0
votes
1answer
545 views

Significance of Y-axis in Aggregate Supply curve (AD-AS model)

This question is considering an AD-AS model, with Price on the Y-axis and Real GDP on the X axis. The AS is composed of the Keynesian (horizontal), intermediate (upward sloping) and classical (...
0
votes
1answer
1k views

Government Spending vs. Investment Spending

What is the difference between government spending on physical capital and investment spending by government on physical capital?
0
votes
1answer
434 views

Duality Proof - Consumer Theory

For solving this question, which assumptions/axioms should be used and should Lagrange multipliers be equal or different? Think of an agent with utility function u() and wealth w. Assume that u() is ...
0
votes
1answer
402 views

Effect of positive inflation shock on the exchange rate

How does a positive inflation shock affect the exchange rate? Does the exchange rate appreciate or depreciate? I am looking for an intuitive explanation.
0
votes
1answer
54 views

Who paid the difference on a warrant if i am winnnig

I am discovering the mechanism of a warrant but there is still something that i can't understand. Let's take a simple example a call warrant with a strike of \$10. I buy it when the underlying ...
0
votes
1answer
264 views

Can budget lines be discontinuous?

It's been awhile since I've taken introductory microeconomics. I read budget lines can be discontinuous awhile ago but am suspicious as to such a concept being discussed in intro micro classes ...
0
votes
1answer
29 views

Saving increasing in interest rate

Romer equation 2.55 on the Diamond model, says: Let $s(r)$ being the fraction of income saved, $r$ the interest rate,$\rho$ the discount rate, and $\theta$ the household's willingness to shift ...
0
votes
1answer
548 views

Representing these lexicographic preferences by non-continuous utility function?

I have the following preferences and I am wondering whether I could represent them by a utility function: $R_1 \succ R_2$ <-> $R_1\leq Q$ and $R_2 > Q$, $R_1 \succ R_2$ <-> $R_1 \leq Q$ and ...
0
votes
1answer
942 views

What textbook can I use to understand engineering economics?

I'm an Engineering Physics student and this semester I took the course "Engineering Economics" as a requirement to complete the management sciences credits in my program, I need a good textbook to ...
0
votes
1answer
919 views

Given the supply and demand function what is the difference? [closed]

Given some unspecified demand and supply functions. I need to calculate quantity and price after taxation, but what is the difference between having a tax of 20% of total revenue and 20% of profits ($...

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