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16 views

How does investment lead to generation of jobs?

I quote from India's Economic Survey 2019 (an official document) - While the claim is often made that investment displaces jobs, this remains true only when viewed within the silo of a specific ...
15 views

treatment of non-consecutive periods in panel and ʀ SFA

ɪ am estimating a Stochastic Frontier Analysis (SFA estimated by MʟE) model for a panel of seven periods. ɪ want to know if ɪ can use all the periods in the estimation procedure and how are they ...
46 views

Why was the Glass-Steagall Legislation enacted?

I realize that the part of the reason the Glass-Steagall act was enacted was to ensure that banks do not invest customer's deposits into risky securities, but what was the rationale for separating ...
10 views

If the government introduces import quota will prices change for imported goods

I am currently going through an introductory course to microeconomics. We are discussing how government interventions result in inefficiencies and dead-weight losses. One of the questions in concern ...
24 views

How the Balassa-Samuelson affect real exchange rate?

According to standard Balassa-Samuelson effect, when the productivity increases in the tradable sector (GDP), price increase can be observed in non-tradable sector and this can lead to appreciation of ...
43 views

which policy (fiscal or monetary) is better to stabilize the cycle?

I am currently studying for a test and the following sentence "In an open economy with high capital mobility, monetary policy is preferable to fiscal policy to stabilize the cycle", the "answer" is ...
11 views

Do re-distributive taxes burden the economy, assuming the Ricardian equivalence does not hold?

An example of such a re-distributive tax would be an income tax on all Americans to fund a pension for all stay-at-home parents working to raise their children.
32 views

Argue that no further mixed Nash Equilibria can exists

I'm looking at the following Normal-Form Game: ...
30 views

Why don't we have many-to-many lending yet?

Trying to research this for some time, but can't really find anything relevant. As it currently stands borrowing can be one-to-one: 1 customer borrows money from 1 bank. And can be one-to-many: 1 ...
25 views

When Balassa-Samuelson effect increases, real exchange rate depreciate?

I researched several literatures related with Balassa-Samuelson effect and according to literatures, as Balassa samuelson effect increases, real exchange rate appreciates. However according to the ...
16 views

If PPP Exchange rate is 0.291, what does that mean?

I've normalised deflators for countries A and B. If the Price level of Country A/ Price level of country B = .291, does that mean that on average for every dollar a person in Country B spends, for the ...
6 views

In simple terms, what does the bank liquid reserves to bank assets ratio indicate in terms of world development?

From this website: https://www.indexmundi.com/facts/indicators/FD.RES.LIQU.AS.ZS I am very new to economics/finance and I would appreciate an easier-to-understand explanation of this term
57 views

Calculating equilibrium in a cobb-douglas long run, perfect competition scenario

Supposed there are a fixed number of 1000 identical firms in a PC industry, with each producing the same fraction with the same production function $$q_{i} = \sqrt{K \cdot L}$$ And market demand is ...
54 views

How to calculate PPP Exchange Rate using GDP deflator?

I'm doing a project and I'm asked to find Purchasing Power Parity exchange rate. The way the teacher says to do it is to divide my countries GDP deflator by the US GDP deflator over a time series. Is ...
21 views

How to calculate inter-annual variation of inflation for a 3 months period?

I have the monthly indexes taken from the National Institute of Statistics of my country (below), then I can calculate its inter-annual variation easily: ((index month year - index same month year - ...
19 views

Does anyone know how to find disposable income data? [duplicate]

I'm doing a macro project and I need to find disposable income data over a 25 year period. My professor said that this metric data is available directly on the World Bank website. I've searched ...
31 views

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What are the income and substitution effects of deficit-financed government stimulus in comparison to marginal rate tax cuts?

What are the income and substitution effects of taxation in a simple way ?
20 views

Regressing two unit root variables

I am supposed to explain the rate of customer defaults by some macroeconomic variables, such as unemployment, GDP growth etc. For simple linear regression, I have promising results: ...
45 views

Negative interest rates and banks

What effects do negative interest rates from a central bank have on banks? What are the takeaways from negative rates in Europe and Japan?
11 views

Risks Quantification (soft question)

Can anyone please recommend literature (books, papers, whatever) on the topic of risk quantification? By risk quantification I mean financial assessment of e.g. credit or market risk. Free sources ...
20 views

Why is having lots of silver and not raising/decreasing taxes leads to inflation in a country?

In The Spanish Empire, Silver, & Runaway Inflation: Crash Course World History #25, it is claimed that "In ..., the silver was pouring into Spain, and because they were collecting same taxes as ...
17 views

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Rate of convergence and asymptotic dominance in $\Vert x \Vert \gg \Vert(\hat\beta-\beta)\cdot u\Vert$

Let $\Vert A \Vert$ denote the spectral norm of a random matrix. Let $x$ and $u_k$ be N$\times$T matrices. Denote $\beta \cdot u = \sum_{k=1}^K\beta_ku_k$, where $\beta$ is a K-vector and $\beta_k$ a ...
48 views

Israel as an Asian Tiger

The Asian Tigers are Asian countries who underwent rapid industrialization and maintained exceptionally high growth rates in the second half of XX century. The question is: are there any objective ...
16 views

Can anybody explain to me Nett Gross, Adjusted Nett Gross and Total Nett Gross through an example? I am new to this subject and from an engineering background. This knowledge is required for my ...
48 views

Maximizing units under a budget constraint and increasing costs

Consider two columns. Column A has total cost per day, Column B has units bought that day. The marginal cost of each unit is increasing because of limited supply. My goal is to estimate total ...
85 views

Change in the marginal utility of leisure with respect to a change in consumption

I am reading a paper that derives a theoretical retirement model. There is a utility function and a budget constraint forming an optimal control problem. The solution to this problem states that \...
43 views

What is a monetary policy shock?

I am trying to understand some basic stuff about New Keynesian models and monetary policy. Despite that almost every single paper on monetary policy talks about monetary policy shocks, I still don’t ...
52 views

Cross-sectional t test & standard deviation

I've got a question regarding the cross-sectional t-test when determining the significance of CAAR in an event study with a sample of 538 transactions. When calculating the standard deviation of CAAR ...
185 views

Why do interest rates move together?

Why do interest rates (mortgage, LIBOR, Treasury yields, etc.) move together? What is the fundamental reason behind that? From my understanding, what drives it is the Federal Funds Rate, which is the ...
13 views

Does climate and resources explain nearly all variance in gdp

Is there any value to institutional explanations. Or is institutionalism made up.