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Results tagged with microeconomics
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user 7593
Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).
5
votes
2
answers
382
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What are the textbook-like obvious advantages and disadvantages of tipping?
I just came from a coffee place with tipping and now I'm in one without tipping... prices are higher, but there is not tipping. It's not obvious why some places get rid of tipping and others don't. I …
- 2,678
1
vote
Accepted
Because Sunk Costs can encode information, should Sunk Costs really be ignored?
It's all about the precise idea these authors are trying to communicate:
A) Mankiew is explaining that we are sometimes too stuborn: we sometimes make a bad investment and then feel some vindication …
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1
vote
How to model the change in fossil fuel price?
Principles to take into account:
A) Price elasticity: Demand for fuel is very inelastic because its relatively hard to store and the machinery installed to use it is very much fixed. Therefore, the p …
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2
votes
How does the ban on surge pricing affect the companies, customers and the economy?
This is a difficult but important question:
a) At the heart of it is whether the markets are competitive or not. In competitive markets, prices reflect demand and supply so changing prices is the nat …
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4
votes
Accepted
How do interest rates affect the distribution of wealth?
Good question! But difficult to answer.
A) Typically, economists think of most interest rates as being set by markets. Under that assumption, you can't change rates by themselves because the market w …
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2
votes
Accepted
Binding constraints at second-best optimum
I think its not a complex issue:
a) You need to keep the high type agent from pretending to be the ow type agent, so you give him an extra compensation from showing his high type. But this nice deal …
- 2,678
2
votes
Producer's cost for buying full solution vs. buying parts
Some economists (Oliver Hart and John Moore are among the most prominent) have developed a "theory of the firm" which could help address some of the issues involved. One of the considerations in that …
- 2,678
1
vote
0
answers
41
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What are the currently accepted methods to estimate a firm's productivity?
While there are a lot of methods one can think of, like computing the ratio of profits to assets or profits to sales, apparently it is a difficult problem.
It would be useful to know how effectively …
- 2,678
1
vote
0
answers
24
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Is there a simple way to write a model with firms/sectors with different demand elasticities?
I would like to write down a model where there are firms with different demand elasticities: For some firm's total profits increase and decrease a lot with increases and decreases in demand for their …
- 2,678
1
vote
Accepted
Where do computational economists work
The most useful way of thinking of a Computational Economist is one that will be able to estimate economic models in a quantitatively meaningful way. This makes them very useful for central banks whic …
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0
votes
Accepted
Studying growth in US and Sweden, what variables should I watch out for in a regression?
"Solow's Growth Accounting"
A first pass idea is what MIT's Bob Solow proposed many decades ago: to do a growth accounting exercise. You'd like to know how much physical capital changed and how much …
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