39 votes

The efficacy of death penalty in reducing violent crimes

The literature on this issue flip flops. The first seminal study by Sellin (1959)¹ did not find any significant effect, but early literature was riddled with methodological errors. Ehrlich’s (1975)² ...
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  • 1,384
17 votes
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Has the Nash Equilibrium led to any significant economic discoveries?

Two areas that have been profoundly affected by game theoretic research stemming from Nash's contribution are Oligopoly theory There are actually a few examples of what would come to be known as ...
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  • 16.6k
12 votes

Has the Nash Equilibrium led to any significant economic discoveries?

You're not alone in your skepticism of the relevance of game theory. Some of the greats, including Gary Becker, were at times dismissive of the practical/empirical importance of game theory (see the ...
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  • 9,107
10 votes

Has the Nash Equilibrium led to any significant economic discoveries?

This is only half a joke : Nash-equilibrium gives a very good prediction on the relative size of groups of foraging ducks on a pond when two food sources are established at opposite sides of the pond....
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9 votes

The efficacy of death penalty in reducing violent crimes

The death penalty as a deterrent to crime is ineffective is the prevailing view amongst researchers and experts in the field of criminology. Some studies would indicate that there is no correlation ...
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8 votes
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Current knowledge about the empirics of consumer theory

The primary literature concerned with this type of question (at least where classical results break down) is behavioral economics. There's a great general compilation of papers put together by the ...
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  • 1,040
5 votes
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Evidence on economic impact of 2015 European refugee/migrant influx

I didn't see the evidences on the recent European immigration, but the event is similar to the Mariel Boatlift story in Card (1990): The Mariel immigrants increased the population and labor force ...
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5 votes
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"Tightness" of political elections and public attention

Yes, you should look at the regression discontinuity literature in political economy that uses close elections as the identification strategy. For example, see http://sekhon.berkeley.edu/papers/...
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  • 198
5 votes

Is the development of "developing countries" evidence against the idea that former colonial powers owe their headway to exploitation?

The recent development of many "developing countries" and "emerging markets" does not mean that Western colonial powers did not exploit them in the past. Emerging economies owe their modern GDP ...
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  • 257
5 votes
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Conventional Monetary Policy and Income Inequality

Well, certainly you'll see literature saying it is possible to make monetary redistributive. This paper by Brunnermeier and Sannikov (2012), Redistributive Monetary Policy, says that deflation can ...
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  • 6,409
4 votes
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Is the development of "developing countries" evidence against the idea that former colonial powers owe their headway to exploitation?

To complement @rocinante answer the argument described in the question silently assumes that growth can happen only if you steal from somebody. So if the past colonies cannot steal from anybody, they ...
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4 votes
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Cyclicality of Real Wages? Counter, pro or acyclical?

Are Wages Procyclical? Here's the entry from Table 1 in King and Rebelo (2000; Resuscitating Real Business Cycles). The variable of analysis is log-wages, detrended with HP filter. It has a std, ...
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  • 10.4k
4 votes

Do welfare payments for children incentivise having children?

For example, "Assessing the Impact of the Maternity Capital Policy in Russia" (2014): Starting in 2007, the federal government has pursued an ambitious pro-natalist policy. Women who give birth to ...
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4 votes

Have there been attempts to measure the value of specific taught skills?

Have there been any empirical attempts to estimate the value of being taught specific skills - for example, phonics or solving algebraic equations? If I may be brazen enough to challenge the basis of ...
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  • 7,685
4 votes
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A question on the accuracy of economic forecasts

Regarding Forecasts in General Economic forecasts as any forecasts can be sometimes wrong, however that does not mean they are always wrong and many times people just don’t really understand how to ...
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  • 41.6k
4 votes
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Calculating Tobin's q from the financial statements of publicly listed companies

Tobin's q is defined as the ratio between the market value of the firm over the replacement cost of its assets. If you use WRDS, you can calculate it as follows: Tobin's q = (AT + (CSHO ∗ PRCC_F) − ...
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  • 15.9k
3 votes
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Practical examples of fair division algorithms being used

The easiest generalization, of envy free sharing of a heterogeneous cake between two cake eaters is quite common. My family growing up frequently used the you divide and I choose method for sharing a ...
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  • 15.9k
3 votes
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Empirical Data on Demand for Minimum-Wage Jobs in the USA

Neumark and Wascher have a paper that surveys recent empirical work on the effects of the minimum wage in detail. It includes a number of tables that nicely summarise the results of a large number (...
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3 votes

Replicate Romer and Romer (2004) results

Sorry for any confusion in my previous answer but there are 2 steps to this process 1) tracing out the impact on the $\Delta$y's and the lags of the shocks and then 2) accumulating the shocks to get ...
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  • 426
3 votes

Competition and welfare - empirical evidence

Here is a fact sheet by the OECD about the effects of competition. It is mostly concerned with growth and productivity, but also discusses the effects on poor consumers and prices. It cites a wide ...
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3 votes

How much can we trust macroeconometric analysis?

I do not think that macroeconomic analysis would be 'less trust worthy'. In the same ways as you can solve the issue of omitted variables and reverse causality in microeconomics you can do it ...
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3 votes

How many utility functions can a person have?

Utility functions provide identical orderings of bundles of consumption under positive monotonic transformations. Therefore, if an individual's preferences are representable with a utility function ...
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  • 15.9k
2 votes

Gali and van Rens: The Vanishing Procyclicality of Labor Productivity

A napkin theoretical exploration of the issue, to find possible directions to look for explanations, could go like this: According to the paper, the volatility of output and productivity has fallen....
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2 votes

Are profits procyclical?

My reading is yes, it is procyclical in levels and margins. This paper uses industry and firm data to look at price cost mark-ups and firm profit margins in U.K. manufacturing and services. In ...
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  • 15.9k
2 votes

Current knowledge about the empirics of consumer theory

I'll do the opposite and tell you something that we do not know a lot about: The elasticity of substitution between consumption and leisure. While many Macro models provide calibrations for that, ...
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  • 10.4k
2 votes

Current knowledge about the empirics of consumer theory

Another interesting issue could be on intertemporal elasticity of substitution and risk aversion. There are lots of experimental studies that you can find easily on econbiz or in similar websites. ...
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2 votes
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Economic examples of (sub)martingales

Applying the Law of Iterated Expectations on the defining property of a sub-martingale $E(X_{t+1}|X_1,\dots,X_t)\ge X_t$ we have that $$E\Big[E(X_{t+1}|X_1,\dots,X_t)\Big]=E(X_{t+1}) \geq E(X_t)$$ ...
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2 votes

Do welfare payments for children incentivise having children?

I'm not really an expert on the subject, but for welfare reforms I've been suggested to read Grogger and Karoly: "Welfare Reform: Effects of a Decade of Change" (2009) in the past. I believe it ...
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