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258 views

Why don't economists recommend voluntary childlessness to fight poverty?

Please see the titled question. Poverty obviously demands pressing solutions, let alone a stopgap. Dasgupta beneath refers to "the best Desta’s world can do": isn't Voluntary childlessness ...
287 views

What is economics?

It has been disturbing me since the first year of college that the meaning of economic is express too much as it is too less. "Study of scarcity, utilize the limited resources to satisfy unlimited ...
33 views

Do the efficiency savings of mergers indicate a type of waste or inefficiency in a market?

In this BBC News article about the merger of Tata Steel and Thyssenkrupp, the following figure is reported: The merged group anticipates it will make costs savings of between £350m to £440m a year. ...
76 views

What is the best example social norm effect economy?

Here is my example. I read the paper called "Social norms and Energy Conservation" (2010) by Hunt Allcott, about the energy conservation of households by providing them with the amount of energy ...
134 views

Interrelationship between inflation and foreign capital flow

For the below let's assume domestic currency is ₹ and foreign capital is in \$Foreign Capital Inflow => ₹ Appreciates (Because of more \$) But consider this, Foreign Capital Inflow => More ₹ in ...
105 views

Anything written on the process behind “multiplicative” production function?

Intuitively, one might make a naive first guess that the production function of the economy, or of a firm, should be a "leontief" production function: "for example, you need both a factory and a ...
559 views

Does Average Total Cost (ATC) include implicit opportunity costs?

Does the average total cost include opportunity costs? If so, are these opportunity costs considered fixed costs or variable costs? How are they calculated.
204 views

Okun's law nominal GDP growth

Does Okun's law also work for nominal (not real) GDP growth?
40 views

Revealed preferance: elementary question

When the market prices are Rs 5 per apple and Rs 6 per orange a person buys 16 apples and 28 oranges. When the prices are Rs 4.4 per apple and Rs 6.4 per orange ,the person buys 20 apples and 25 ...
113 views

Do minimum wage laws bring more bad than good? [duplicate]

Let me begin by saying I know nothing about economics. In the past couple of days I've been listening to some lectures by Milton Friedman. They are of non-technical nature. In one of them he makes an ...
28 views

What is the government's ideal rate of growth for property prices?

If property prices raise too quickly, it can price people out of the market, cause mortgage stress and financial hardship and create a property bubble. If property prices fall too quickly, it can be ...
49 views

Do current Central Banks need to target a monetary aggregate as they set interest rates for a target inflation? [closed]

On reading a textbook, the author state that after the 80's, and the serious consequences of thinking that inflation could be controlled by just targeting a monetary aggregate, modern central banks(CB)...
67 views

Doesnt the fact that cash reserves go down in recessions contradict Keynesianism?

It seems cash reserve is procyclical. Also anyone have the financial cash reserve data?
79 views

What would be the economic effects of a reduction in the general level of protectionism on the Australian economy?

Protectionism methods including: tariffs, subsidies, quotas, local contents rules and export incentives Would would be the effects of a reduction of these methods, not complete free trade.
114 views

Why are Americans at the top of nearly every field?

I live in India, and having spent several years in America before returning, I noticed that Americans dominate in nearly every sphere of human activity. For example, the US seems to be blessed with ...
216 views

EMH: Difference between market price and fundamental value?

I am confused by the relation between stocks market prices and fundamental (or intrinsic) values stated by Efficient Market Hypothesis. How these deviates regarding to efficient market theory or are ...
53 views

Strictly increasing function transformation

I have utility function given by: $U(x_1, x_2) = \begin{cases} x_1+x_2 & \text{if$x_1+x_2<6$} \\ 6 & \text{if$6\...
95 views

Private Investment Impact on Bond Yields

From Japan to the US to Germany, we are currently seeing longer term bond yields falling at an alarming rate. I tune into a fair bit of economic commentary, and can often come to some sort of ...
92 views

How are the price signals of stocks in the stock market centralized?

We can look up the price of a stock, like that of Google, and it gives a particular figure. I would like to know how the price signal is "centralized". What I mean is: if the trades happen between ...
187 views

Free market vs high income [closed]

While answering this question I was doing some research and found that the high-income world has Free Markets. Is it that because they are high-income, they have free markets, Or, is it that their ...
46 views

270 views

Does working abroad cause less unemployment? Or is it actually harmful (directly or opportunity cost)?

This question is from subjective origins but is (supposed to be) objective. The context of this question arises from people in third world countries going abroad to work. Often they are seen as money-...
77 views

How does profit correlate with the duration of options?

To wit, do you profit more off options, the shorter-term they are like 0 DTEs? I know that option premium correlates negatively with duration. Pre-suppose you think some biotech will discover a ...
27 views

What is homebody economy? [closed]

What is this thing named homebody economy? It seems to be related with the virus It refers to working at home or maybe at online shopping?
35 views

Why can't someone have their money restored if someone they paid in advance goes bankrupt?

A friend paid a travel company €3000 for a holiday in Australia. However the travel company went bankrupt so now her €3000 is lost. She has been informed by the liquidator that the company had such ...
133 views

What amount of Quantitative Easing will cause hyperinflation?

You all know that Quantitative Easing shifts the LM and AD curves right, so I haven't taken the time to redraw this picture. What's the maximum amount of Quantitative Easing that the Federal Reserve ...
116 views

How high of a carbon fee would reduce global emissions by 50% in 15 years?

OVERVIEW OF THE EMF 32 STUDY ON U.S. CARBON TAX SCENARIOS https://www.worldscientific.com/doi/pdfplus/10.1142/S201000781840002X About half of the EMF 32 models met a 50% reduction in carbon ...
295 views

Finding the optimal tax

I have a problem regarding the last two questions of this exercises because I can not understand how to set up my model in order to find the optimal tax the optimal quantity to be as there was not a ...
83 views

Do billionaires like Bill Gates have access to their entire net worth or it is symbolic?

I want to know if these people can spend or have access to all this anytime they want, without harming their businesses, or if there are bounds related to how much money they can spend/have access to. ...
339 views

Implication of first-order stochastic dominance

Use the utility index $U(x) = x$ to prove that if the distribution of $F$ first-order stochastically dominates distribution $G$, then the mean of $x$ under $G$ cannot exceed the mean of $x$ under $F$. ...
26 views

What is the tax rate U.S.Gov takes from individual income

How much should the person must get? and is it taken from any person who works in US? My country is paralyzed to impose this tax due to oligarchs heavy influence. I just wanted to gain some knowledge....
66 views

Do governments really need to tax us, when they can create money at will?

I feel a contradiction between Prof. Howard Chernick's answer and Redditor "galivet"'s comment? Who's correct? Chernick has B.A., Johns Hopkins University, Economics, 1969 Ph.D., ...
34 views

Why are US equity prices and inflation inversely correlated?

Many comments on this r/stockmarket Reddit thread hypothesize an inverse correlation between USD value and US equity prices. Why would this be true in theory? It's not true in reality, right? Has the ...
59 views

Why's Federal Reserve buying individual corporate bonds, when corporations have been selling them successfully?

On Jun 15 2020, the Federal Reserve is expanding its Secondary Market Corporate Credit Facility into corporate credit to now buy individual corporate bonds, on top of the exchange-traded funds it ...