All Questions

Filter by
Sorted by
Tagged with
0
votes
0answers
34 views

Given a demand curve determine the optimal total amount and price of $q_1$ and $q_2$

Given a demand curve for a monopolist $$ P(Q) = 120 - 3Q $$ where $Q = q_1 + q_2$ with two fabrics with the following marginal cost $$ MC_1(q_1) = 10 + 20q_1 \\ MC_2(q_2) = 60 + 5q_2 $$ I have to ...
0
votes
1answer
32 views

Why does Ricardian Equivalence not hold when there are different borrowing and lending rates on the market?

If you can propose any explanation (intuitive, graphical or algebraic), I will appreciate it
0
votes
0answers
12 views

How do transactions in different currencies work?

Very basic question but I have not much knowledge in this field so sorry: Say I have a bank account and over the past year there were transactions in different currencies. I am guessing that a ...
0
votes
1answer
28 views

Why does a loose Fed policy reduce the downward pressure on the currencies of emerging markets?

To start off, my background is not in economics but in Computer Science. I recently read in the Economist that a looser Fed policy removes downward pressure on the currencies of emerging markets. Is ...
0
votes
1answer
21 views

Positive productivity shock with a fall in output

I am modeling a two-country world. Within each country there exists a representative infinitely-lived agent, a representative final good producer, a continuum of domestic monopolistic competitive ...
0
votes
0answers
12 views

How do I convert change over a ten-year period into annual growth rate?

I am working on an econometrics project where I need to find the impact of climate change on agriculture in India. The project requires me to use an existing econometric model from some peer reviewed ...
0
votes
0answers
26 views

What happens if you cannot lend more than what you have?

This is hypothetical but what would happen if you cannot lend more money than you have? Say you have £100, the maximum you can lend is £100. But somehow you lend £200 to Joe, and Joe spends all of it ...
0
votes
1answer
38 views

What caused “excess liquidity” in equity market, when CPI was deflationary at the same time period, which caused 'market crash in 1929' in USA?

To begin with, my question is NOT about the reasons of "the great depression" or "market crash" which led to the great depression. Rather, my question is about the reasons for the 'excessive cash ...
0
votes
0answers
14 views

How can I calculate returns for each three investment strategies?

Assume that the price of DF stock went from a price of $104 on March 2 to 146 on April 1. With a current stock price of 146, there is a call option available on the DF stock with an exercise price ...
0
votes
2answers
45 views

How to find opportunity cost if each choice has more than one important effect?

Let me start with an example where I DO understand how to find opportunity cost. Suppose I have choice to either work for firm A (\$1000 wage) or for firm B(\$2000 wage) or for firm C(\$500 wage). If ...
0
votes
0answers
12 views

Inequality and recessions

I was reading about Marx's Crisis Theory. On one hand, there is this idea of the falling surplus. But on the other hand, he relates income inequality to the business cycle. Have his ideas regarding ...
0
votes
0answers
8 views

How does interest rates impact investment

How does a decrease in interest rates decrease investment rates? This is how I believe a liquidity trap works, not sure if it is correct. Thank you
0
votes
0answers
12 views

Imports/Exports in the equation of exchange

From the equation of exchange: $MV=PY$, where $M$ is the money aggregate, $Y$ is the real output, $P$ is the price level and $V$ is the velocity of money, we derive $\% \Delta M + \% \Delta V = ...
0
votes
0answers
11 views

Is it correct that no portfolio can be more efficient than the market portfolio?

I'm reading Finance for Executives, Sixth Edition, by Gabriel Hawawini and Claude Viallet, chapter 3. Here they state the following (my emphasis): "The market portfolio contains all assets in ...
0
votes
0answers
6 views

How to fit data in DSGE?

I'm completely new to these models. So after I specified steady-state equations, how do I fit my existing time series. In Bayesian approach do I just need to find prior mean, std error and ...
0
votes
0answers
23 views

Why do people care about voting control in companies?

I read a lot of companies who care about who gets voting control over the company. I don't see how this matters. Equity seems like the only thing that you should care about. You can give the voting ...
0
votes
0answers
12 views

What's Term Auction Facility and how does it address the liquidity problem

I have read https://en.wikipedia.org/wiki/Term_auction_facility and https://www.investopedia.com/terms/t/term-auction-facility.asp Under the program the Fed auctions collateralized loans with terms ...
0
votes
1answer
28 views

Individuals vs. groups as decision makers

In economics, why do people focus on the individual rather than groups of individuals as decision-makers? Wouldn't considering actions decided by a group of individuals reduce the chance of socially ...
0
votes
0answers
8 views

analyzing municipality school district finances

I live in a township which has relatively low property taxes but higher property values. The school districts are in the upper quartile with respect to standardized scores. There is no high school. ...
0
votes
0answers
7 views

Show the tranformation of CES production function and find the cost function [duplicate]

Suppose the CES function is given in this form $Q = [(\alpha K)^\rho + (\beta L)^\rho]^{\frac{\gamma}{\rho}}$ How to show the converge to Cobb Douglas of form $Q = K^{\alpha}L^{\beta}$ when $\gamma=...
0
votes
0answers
24 views

Why can goods be reallocated when there is market failure?

Hanley, Shogren, and White (2007) states that "A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. A wedge exists between what a private ...
0
votes
0answers
20 views

Necessary Goods, Price Elasticity, Long-Term Calculations

My question is a conceptual one, though it arose from a concrete calculation that I'm working on. I'm looking at the economic viability of thermal retrofits, and this author suggests including the ...
0
votes
0answers
13 views

Are remittances included in the calculation of GNP?

GNP is defined as value of final products and services produced by the residents of a country. As per this definition, it seems remittances won't be included in a country's GNP but it would reflect in ...
0
votes
0answers
10 views

Weakly Dependent Time Series | Common Error

I am watching a video, that mentions for the following time series: $x_t=\epsilon_t+\theta\epsilon_{t-1}$ $\textrm{Corr}(x_t,x_{t-1})≠0$ Then it mentions if we have anything greater then 1 such as $...
0
votes
0answers
25 views

Are there any studies that examine the relationship between welfare spending and unemployment?

Basically I want to know if there are any studies that examine whether or not people on welfare are disincentivised to work, or if they are "trapped" by welfare.
0
votes
1answer
19 views

Effect of a depreciation on foreign interest rate?

According to the interest rate parity condition , if there is a depreciation of the domestic exchange rate, then the domestic interest rate will increase and the foreign interest rate will decrease. ...
0
votes
0answers
21 views

How does the trade problem in Ricardian model of int'l trade work?

Sorry if this question seems fragmented; I have minimal background in economics, I just grabbed some notes and began studying. The scenario is given as: "Suppose Germany needs to make a 1 billion ...
0
votes
0answers
19 views

Elasticity of substitution, marginal rate of substitution and price ratio

so there is a problem I do not know how to tackle: The is an utility maximisation problem and the solution to the Lagrangian leads to:$$\frac{C_1}{C_2}=(1+\rho)^\frac{1}{\sigma}(\frac{P_1}{P_2})^\...
0
votes
0answers
17 views

Taxes on Family leave pay

I don't know if this is the correct forum for this question, but do we have to pay taxes on checks from the government that were paid from taxes in the first place. For example, like Social security ...
0
votes
0answers
17 views

Taking the partial derivative of the demand function

Define the demand function which maximizes x -> U(x) as: $\sum_{i=1}^n$$p_i$$\zeta_i$(p, I) = I According to my textbook if I differentiate this with respect to $p_j$ I will obtain, $\zeta_j$(p, ...
0
votes
1answer
18 views

Net exports term in aggregate expenditure [duplicate]

This might be a basic question, which I don't yet understand. The aggregate expenditure (i.e., in my understanding, the total amount of inflation factored (i.e. real) money spent in the economy by its ...
0
votes
0answers
12 views

How does identical capital-output ratios imply identical rental prices of capital?

In the context of the Solow model, I need to show that if two countries have the same capital output ratio then they have the same rental prices of capital (they have same production functions). I ...
0
votes
0answers
21 views

Ramsey Model Market Clearing Condition

I have a problem understanding the market clearing condition for aggregated equilibrium in the Ramsey model. Market clearing implies that all resources are used up, hence: $Y_t=C_t+I_t$ , where $Y_t$ ...
0
votes
0answers
18 views

Which one of these sources best represents fiscal deficit data?

I'm currently recollecting data for an econometrics model I want to build later on with a panel data model. However, sometimes it is difficult to find certain information. For example, I want to ...
0
votes
1answer
63 views

Math based proof for currency changes (microeconomics)

This isn't part of my homework but I am genuinely interested in the mathematical proof behind this question (this is my line of work currently). I tried to work through it but after 2 hours gave up. ...
0
votes
1answer
20 views

Difference between Luxury/Premium/Value fashion segments? What does “value” mean here?

I was reading this article on Quartz: https://qz.com/1485141/just-20-fashion-companies-are-making-almost-all-of-the-industrys-profits/ I do not understand the following graph shown: What does "value"...
0
votes
0answers
22 views

If the payroll tax were eliminated on incomes below $30000 what would happen?

If you canceled all payroll taxes below $30000 / $60000 single / married what would happen? I know that this could increase firm profits, or increase wages, or the number of jobs, or decrease prices ...
0
votes
1answer
37 views

Gvernment deficits, by driving up interest rates, can contract the economy?

I don't grasp that boldened sentence. According to IS-LM model, rise in interest rate does cause decrease in Y. IS-LMentary - The New York Times What use is this framework? First of all, it helps ...
0
votes
1answer
32 views

Job Search and the Investment Problem [closed]

I don't know what to take as the cost of accepting the job. Kindly guide me through deciding how to frame the equation.
0
votes
0answers
17 views

Finding cost function

A price taking firm makes machine tools Y using labour and capital according to the following production function $$Y=L^{0.25}K^{0.25}$$ Labour can be hired at the beginning of every week, while ...
0
votes
0answers
20 views

Applying Econometrics to Monetary Economics

I've been given a problem in which I am told that GDP is a function of the supply of money, prices and demand, $$Y = (M/P)^\delta$$ Taking logs, $$\log(Y) = \alpha + \beta \log(m - p) +u$$ ...
0
votes
0answers
32 views

Given $f(x_1,x_2) = \min\{x_1,x_2\}^\alpha$ find the profit-maximizing factor demands, supply function and profit fuction

Given $$f(x_1,x_2) = \min\{x_1,x_2\}^\alpha$$ I have to find the profit-maximizing demand functions, supply function and profit function but I am not sure how to when the function is given as it is. ...
0
votes
0answers
16 views

Intertemporal Slutsky and Endowment

To make sure I'm understanding Slutsky's equation and intertemporal choice correctly: given a choice between consumption today and consumption in the future, an increase in the interest rate will ...
0
votes
1answer
59 views

How's a levered hedge fund effectively selling a gigantic put option on its ability to finance its own positions?

I grasp the basics of a put option. John C. Hull. Options, Futures, and Other Derivatives (2017 10 edn). pp 8-9. A put option gives the holder the right to sell the underlying asset by a certain ...
0
votes
1answer
35 views

Monetary policy: increasing interest rate

What happens to the quantity of treasury bonds when central bank sells short-term bonds? The overall question for the assignment is: Suppose that the central bank of a country decides to increase the ...
0
votes
0answers
7 views

'Constrained optimisation' for mutually exclusive goods?

Taking the standard approach to constrained optimisation, where we maximise utility subject to a budget constraint with some allocation on the consumption of two goods, does it make apply the same ...
0
votes
0answers
23 views

Production Possibility Frontier with 3 Goods

I want to make PPF Curve with 3 goods. Assumption : Economy that can produce three goods, Cloth $(C)$, Food $(F)$, Wine $(W)$. Two factors of production Capital $(K)$ and Labor $(L)$ So the ...
0
votes
0answers
6 views

FDI, FPI relation with interest rates

I understand how a rise in interest rate might lead to an inflow of capital into debt securities, however wouldnt these Foreign Portfolio Investments (FPI) remove their funds from equity. And for ...
0
votes
0answers
4 views

Reason for the increase in aggregate demand due to the existence of black money

How can existence of black money amd black assets due to corruption, tax evasion etc., increase the aggregate demand? Can anyone explain this with an example?
0
votes
0answers
23 views

According to human capital theory, in which country will citizens be more likely to go to college?

Assume that in country A college tuition is 10,000 per year, citizens save 5% of their income for retirement, and there is a mandatory retirement age of 60 years old. In country B, the tuition for ...

15 30 50 per page
1
171 172
173
174 175
199