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14 views

Origine of the GDP difference between WEO (IMF) and GEP (World Bank)

If one looks to the past world GDP growth from the "World Economic Outlook" of the International Monetary Fund and from the "Global Economic Prospect" of the World Bank one will systematically find 0....
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12 views

how does price floor affect consumers and tax payers

When price floors are set and government buys the surplus, it tends to protect farmers from the instability in the sector. Is this a fair policy on all stake holders? What implication does this policy ...
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20 views

What is “industrial capitalism”?

What's the difference between "industrial capitalism" and "agrarian capitalism" and "mercantilism" and the "industrial revolution" and the 20th century ideas of "Keynesianism"? Is agrarian capitalism-...
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1answer
46 views

Proof: Risk averse; Certainty Equivalent smaller than expected value

I would like to show for a randomly distributed variable $x$ with CDF $F(\cdot)$ , given a Bernoulli utility function $u(x)$ the following property holds: The certainty equivalent, $CE(\cdot)$, is ...
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8 views

Where to find information on tariffs when importing candles into the U.S.?

I am wondering where I can find information on tariffs when importing scented candles from States like China, India, Vietnam, Thailand into the U.S.? If the candles are soy wax and are packaged in ...
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18 views

Best way to measure company size relative to world GDP

I'm working o a model where corporate revenue / world GDP is a dependent variable of some stuff (based on the model proposed in this paper: http://www.scielo.br/scielo.php?pid=S1807-76922009000200002&...
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15 views

Characterizing nations in global commodity market

I'm not an economist, so I'm looking for help making sure I'm not reinventing the wheel, or if I am, that it's at least round. I've been set the task of modeling a multi-step supply chain using UN ...
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21 views

Do low bond yields make QE ineffective

The next recession is coming up soon and I've been wondering how effective our expansionary monetary policy will be. The interest rate doesn't have a ton of room to be lowered and bond yields are half ...
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12 views

How do Pension Fund capital flows operate?

I'm trying to figure out a method for calculating the impact to markets of outflows from pension plans. More specifically, if we imagine a theoretical huge and underfunded pension plan that is ...
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22 views

Autonomous spending

"The term $\left(c_{0}+IQ+G-c_{1}T\right)$ is that part of the demand for goods that does not depend on output here ($c_{1}$ is mpc)." Can someone please explain how will you interpret government ...
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18 views

Why the historically narrow asset class purchases from QE

Let's begin by mapping out some context by assuming the following goals of implementing QE: prevent dire systemic liquidity concerns reach inflation targets manage expectations in the private sector ...
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4 views

Why would QE tapering depreciate a foreign, volatile currency?

I'm busy reading the overview in The Oxford Companion to the Economics of South Africa (written in 2014), and on page 11 it says The rand is expected to remain volatile and face depreciation risk ...
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19 views

Why might firms be averse to idiosyncratic risk?

Under the CAPM and other theories, a widely held corporation should be averse only to systematic risk, correlated with other investments in the economy, not idiosyncratic risk like a CEO dying or a ...
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9 views

Societal benefit of Securitisation (eg Asset Backed Securities)

I was reading about the benefits and harms of securitisation. A research piece suggested "Reducing overreliance on the banking system" with 2 sub-points: Corporates can access to the funding sources ...
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16 views

Accounting of common stock and capital surplus for banks

I am trying to understand the accounting involved with bank capital and am a bit confused about the common stock and capital surplus lines on balances sheets. I would like to know if the following ...
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16 views

Predicting long term asset returns

I am currently trying to form an overall asset allocation strategy which combines base strategic allocation and tactical shifts. My model already incorporates the tactical shifts using various factors ...
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0answers
44 views

Production technology and efficiency

I have been practicing some questions on production function and efficiency and I came across the following questions. For question 1 what I did is, the efficiency of firm A in q1 = production of ...
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14 views

Factor cost market price basic price

Sir Basic price = Factor cost + net production tax Market price = Basic price + net product tax Then how do we say that market price is factor cost + net indirect tax? Only product tax is a part of ...
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15 views

Nominal and real government expenditure

I just need to know that how to make a data series of real government expenditures using nominal government expenditure data series.
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1answer
57 views

Why do prices go up when the central bank increases money supply?

From my understanding, when the money supply curve shifts to the right, interest rates go down, it follows that the price level decreases and the prices should go down? Thanks in advance.
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10 views

How to interpret the (expected) exposure and CVA of an option or a single share

I have a quick (hopefully simple) question regarding the interpretation of the expected exposure of a call option and a single share. I've done some computations on the formula for the expected ...
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29 views

Should I include lags in an LLC unit root test?

I have panel data (N = 10, T = 20), which I intend to run a series of regressions on. I first want to see if my data are stationary in levels or in differences. To do this, I have been performing ...
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1answer
46 views

How can capitalism be improved? [closed]

Many people want to try socialism because of valid criticisms of capitalism. So, are there any good ideas on improving the problems of capitalism before we go down the path of socialism?
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8 views

Currency board, why the fluctuation in local currency

I have very basic question about currency boards: Assume that a country floats a new local currency "N" with the currency board model. It uses USD as the reserve currency. To begin with 1 N = 1 USD. ...
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0answers
37 views

By what mechanism do large economies affect world price with tariffs?

Large economies can affect world prices by applying import tariffs. Is this because they definitionally comprise a substantial portion of global consumption, and hence by shifting production ...
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1answer
41 views

Industrial Economics

I am currently struggling trying to find the short-run equilibrium price, output per firm, and profit per firm if $190$ firms supply the market. I am given $p=102-1/2Q$ and $C(q)=5q-6q^2+3q^3$. ...
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22 views

Would a perishable currency work in a financial crisis today?

I read about perishable currencies in the following article Now my question is if there have been any studies on this and if this may work in modern financial markets?
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1answer
49 views

What are the economics of bike sharing companies?

Bike sharing seems to have originated in China. And it has spread to the UK. And at least a decade on it continues to spread into the provinces. So it has longevity. So what are the economics of ...
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1answer
31 views

Euro BUND Future CTD Bond

I'm trying to understand valuation of the Euro BUND Future. As to my understanding, the price of the future should be: The price of a government bond issued by the Federal Republic of Germany That ...
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0answers
18 views

Why is a little inflation good for the economy? [duplicate]

This is a slightly general question. It's often said that slight inflation keeps the wheels of the economy running. Why is that the case?
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14 views

Replicate Simple fiscal policy rules for small open economies(Kumhof-Laxton)

I am developing research document that deals with welfare analysis driven by a fiscal policy based on fiscal rules for a small and open economy . This research is based on the document “Simple fiscal ...
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12 views

Stochastic frontier analysis in a unit out put production function. Taking logs is causing issues?

I wish to perform stochastic frontier analysis to calculate inefficiency of firms, but for a unit output isoquant ( imp) now y'=1, k'=k/y and l'=l/k. Now, these values lie between 0 and 1 (including 0)...
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39 views

Minimum observations for an econometric SEM

Good day for all: I have an econometric SEM with three equations similar to: $$ A = \beta_0 + \beta_1 B + \beta_2 G + \beta_3 H + u_1 \\ B = \beta_4 + \beta_5 C_{-1} + \beta_6 D_{-1} + \beta_7 E_{-1}...
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20 views

Interpreting regressions results: different scales and variables interaction

I want kindly ask if someone can help me interpreting the results of regression that I need for my master thesis. The model is this : countries are indexed by i and time by t. Dependent variable ...
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37 views

Should a Price Elasticity of Demand model exclude items that sold out or marked down from the original price

Consider a Price Elasticity of Demand model built with linear regression to estimate the Percent Change in Quantity Demanded given a Percent Change in Price specifically for specialty items which have ...
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1answer
31 views

How to calculate cost of equity?

So i have this question on leverage and cost of capital: Leverage and the cost of capital Gamma Airlines has an asset beta of 1.5. The risk-free interest rate is 6%, and the market risk premium is 8%....
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1answer
41 views

In a social accounting matrix, what does Capital refer to?

In the process of building a social accounting matrix for Panama, I am trying to understand what capital refers to. The Panamanian National Accounts have tables on capital, but they describe gross ...
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21 views

What is the optimal fiscal transfer rate between regions in a currency union?

I'm aware of the theory of optimal currency areas, and that both the Euro and the US dollar* are technically not optimal. This would tend to cause their optimal monetary policy to diverge over time. ...
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27 views

Why should houses have the same price for a given supply

So I'm reading Varian intermediate microeconomics and in chapter one it's about housing. Suppose we have a inner ring and a outer ring in a city where there is a university. In the inner ring supply ...
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24 views

Growth Model Choices

In a typical macro growth model, a set-up usually concerns with the following trade-offs or choices to be made in each $t$: (1) $c_t$ v. $c_{t+1}$, consumption today versus tomorrow. (2) $c_t$ v. $1-...
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19 views

Question about the effect on economic productivity due to a hypothetical wealth distribution requirement

Assume a sovereign state that functions like a joint stock corporation does: it will be comprised of shareholders and its "stateshares" will have a market value since they are tradeable. Now assume ...
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26 views

optimization problem for two individuals

Two flat mates 1 and 2, rent a flat and play their own music on the only CD player owned by flat-owner. They both like their own music, but dislike the music played by the other. Given the timing ...
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37 views

two period consumption problem

Ms. A earns 25,000 dollars in period 1 and 15,000 dollars in period 2. Mr. B earns 15,000 dollars in period 1 and 30,000 dollars in period 2. they can borrow money at an interest rate of 200% and can ...
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1answer
53 views

Stokey, Lucas (1989) p 11 FOC

My Lagrangian is: $L=\sum\limits_{t=0}^T \beta^tU(f(k_t)-k_{t+1})+\sum\limits_{t=0}^T\lambda_t(f(k_t)-k_{t+1}).$ My FOC for $[k_{t+1}]$ is: $\beta^tU'(f(k_t)-k_{t_1}^*)(-1)-\lambda_t^*+\beta^{t+1}U'...
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0answers
35 views

Given a Walrasian equilibrium, compute all intitial endowments that lead to given Walrasian equilibrium

If you would be so kind to take a look at the following problem:* Consider an economy with two agents Stan ($S$) and Laurel ($L$) and two goods: Cans of coke ($C$) and Pretzels ($P$). The total ...
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0answers
16 views

Beta convergence: data uncertainties

Maybe these questions are silly for many of you but I’m trying to conduct a beta convergence analysis using data from the Penn World Table, and I have run into some uncertainties. For the dependent ...
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0answers
13 views

Related Literature about Exports

I am working on my master thesis, where I investigate the impact of the Russian embargo on Georgia's exports. I have already identified my dependent variable, as well as the variables of interest. ...
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0answers
26 views

Constrained Optimisation: Why is it that when I merge constraints, I get different results?

The problem that I am given is the following: $ \max \ln c_0 + \beta \mathbb{E} [\ln c_1 ] \\ \text{ s.t. } c_0 + x_g q_g + x_b q_b = y_0\\ c_g = y_g + x_g\\ c_b = y_b + x_b $ Where $y_0$, $ y_b$ ...
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2answers
27 views

GDP Deflator and Economics Well-Being

The question is regarding GDP deflator. nominal & real GDP 2015, and GDP Deflator; 800, 400, 200 nominal & real GDP 2014, and GDP Deflator; 400, 400, 100 As far as I understand the increase ...
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0answers
18 views

Subgame perfect Nash equilibrium with incomplete information [duplicate]

Take the following two-stage game with incomplete information and simultaneous actions in each state. (1) In the beginning of stage 1 players 1 and 2 do not observe the value of $\epsilon$ but they ...

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