Questions tagged [nonexpert]

For questions that are not about formal economic or econometric models and techniques, their implementations using programs and languages or do not include references to, are not about data standards, or are not based on academic sources.

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11 views

Reference for “Sustainable competitive advantage” and “Strong Balance sheets”

Sustainable competitive advantage are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long-term position over competitors. In ...
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34 views

How many ways to call dependent and independent variables?

The words "dependent variables" and "independent variables" are the cornerstones of every regression. However, I am collecting the alternative ways to call these two terms. Because ...
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0answers
14 views

Reference for the impact of consumer pressure on firms' competition? [closed]

I am looking for justification or reference for the impact of consumer pressure (consumer bargaining power, or consumer satisfication) on firms' competition.
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26 views

Why laws that country implements also depend on “economic conditions of a firm’s country”? [closed]

In this discussion, @1muflon1 mentioned that laws that country implements also depend on "economic conditions of a firm’s country" (Dong, 2019) Is there any reference or explaination for ...
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1answer
35 views

Why different law implementation dates is less susceptiable to concurrent but unrelated economics shocks?

Leuz,2016 documented that an international setting that measures regulatory effects in multiple countries at different points in time is also less susceptible to concurrent but unrelated economic ...
2
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1answer
26 views

What is the economic word for firms buy material in credit?

I am looking for the word relating to firms' account payable, meaning that firms buy the materials from suppliers without paying money immediately.I need the word to search on google scholar for some ...
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1answer
100 views

Is The Money Masters (1996) correct in its main thesis?

The Money Masters is a 1996 documentary film that discusses the concepts of money, debt, taxes, and describes their development from biblical times onward. Its main points were summarized by a ...
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2answers
378 views

What is the difference between ATE and ATT?

I saw ATE and ATT in some discussions regarding DID settings recently. ATE is the Average Treatment Effect while ATT is Average Treatment Effects on Treated. I am wondering the difference between ...
2
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1answer
52 views

Is there any simple explanation or alternative word for “unmeasured covariates”?

When reading a DID paper, I faced a common phrase "unmeasured covariates", for example In a similar manner, the coefficient on $P_t$ captures the combined effects of any unmeasured ...
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1answer
32 views

Why is the Social Security tax split midway between employer and employee?

On page 99 of Hidden Order, David Friedman writes: Social Security taxes are paid half by the employer and half by the worker. How would the effect of the tax change if it were collected entirely ...
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1answer
32 views

If prices stay the same, how's lending money the same as lending real goods?

I was watching American TV. They interviewed an economist from Ivy League university. He said It's called a real interest rate because if prices stay the same, lending money is the same as lending ...
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31 views
+50

Are “organizational slack” and “organizational capability” opposite?

I saw the words "organizational slack" "organizational capability". I am wondering if they are opposite to each other. For example, can I say "a firms experience less ...
2
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1answer
37 views

Does it make sense to talk about Bitcoin 'inflation' when little to no goods and services are listed in Bitcoin currency?

I think of inflation as a generalized increase in the price levels of a basket of goods and services. I should add that my understanding presumes that inflation should be measured in the same currency ...
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2answers
81 views

Why so many suppliers of inexpensive ordinary products

There are a very large number of suppliers of common, inexpensive products, and I am wondering why a few large companies don't simply provide all the supply? I am not thinking of food or clothing or ...
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14 views

Are these two different cases when it comes to Forex Reserves?

In a forex reserve, what is the difference between "Buying US Dollars to pile up reserves" and "Using FPIs, remittances or exports to build up reserves" ? How differently do they ...
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1answer
59 views

Trigonometric Cost Function [duplicate]

I've been reading on producer theory and came up with a ridiculous question. Has anyone tried to model costs with a trigonometric function? would it work with the assumptions we need? Thanks!
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1answer
23 views

Is 'price hike' synonymous with 'price rise'?

Since my childhood I have a belief that in economics price rise and price hike synonymous with each other. Moreover, the Collin dictionary strengthens by belief: Hike But what you experts have to say--...
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1answer
26 views

What does “sample period” in this case mean?

Dasgupta,2019 documented that the treated group comprises all firms that are headquartered in countries that have passed a leniency law by year t. The control group comprises firms in countries that ...
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1answer
36 views

Does Progressive Taxation Actually Follow The Decreasing Marginal Value of Wealth?

From my understanding, the application of a progressive income tax (increasing rate based on income level) follows from the assumptions of: "Equal Sacrifice" - everyone's "sacrifice&...
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0answers
17 views

How has the Chinese freight industry developed during last year?

The last year has been filled with so many unfamiliar circumstances such as Covid-19, and now with the rising tensions as well, I'm wondering how the Chinese freight industry is developing during ...
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1answer
43 views

Marginal Utility vs Cost of production

I have a confusion. Marginal utility is always decreasing and people will not be happy to pay 2 times of price for 2 times of a coffe but I guess the price of producing 2 times of coffe will be the ...
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1answer
31 views

What makes a shareholder a “shareholder of record”?

In public companies filling some reports with the SEC (10K for example), there is a mention of the number of shareholders of record. Example: "As of April 20, 2021, we had approximately 40 ...
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2answers
71 views

The difference between capitalism and communism [closed]

I'm mostly a software developer, and we like to assign structures containing fields to things. For capitalism; if every thing had an owner field, an ...
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1answer
21 views

Does savings always equal investment? Are there any cases where savings could be removed from the economic system altogether and break the balance?

Assuming a closed economy, does savings always have to equal investment? If an individual produces a certain amount of a resource and saves it, that becomes part of the savings of the economy. However,...
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1answer
23 views

What was the annual real growth rate in the US from 2010 to 2015?

If we look at the US M0 money supply after the global financial crisis (GFC): we see that it doubled from 2010 to 2015. If we look at the Consumer Price Index in the same period: it rose by 8%. So ...
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2answers
71 views

Can an appreciating currency lead to inflation?

If a currency, e.g. the rupee (INR), is appreciating against, say, the USD, it possibly means that there is a high demand for the former. India could have net exports, high remittances, increasing ...
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1answer
74 views

Can we successfully pursue the goals of environmental sustainability and reduction of income inequality at the same time (and, if so, how)? [closed]

Environmentalists tell us to reduce our carbon footprint by, among other things, reducing our traveling and consumption of long-hauled goods. But people living in small-market export-oriented ...
3
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1answer
86 views

Can inflation show up in assets without necessarily being reflected in classic inflation indexes?

I have been having an argument with a friend of mine who obtained an economics degree in college. I have been arguing that increased money supply from the fed has led to inflation in asset prices, ...
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1answer
49 views

What was the US monetary policy like in the 70s?

Today the US inflation target is roughly 2%. However in 1974 the inflation rate was 11% and in 1980 it was 13.5%. What monetary policy did they follow at that time that allowed the inflation to rise ...
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27 views

Are return on investments “sticky”?

From what I understand in an economic downturn the wages are "sticky". This results in increased unemployment. To combat this the central bank according to monetarism lowers the interest ...
2
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1answer
27 views

Why the stock market went up when the currency being weakened?

From Bloomberg Market Concept (BMC), in 2013, Japan is traditionally a heavy exporter, especially automobiles. When the yen being weakened, the Japanese automobile being more attractive because it ...
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0answers
16 views

Can the monetary policy affect wealth inequality? [duplicate]

I think that it is often assumed that monetary policies have little or no impact on inequality. At least in the public the monetary policy is not seen as a political question the same way that fiscal ...
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0answers
32 views

Why the ageing population creates problems for a country to fund old-age social protection program and what solution do we have?

Senior citizens are considered as one of the vulnerable groups and therefore, they need some social protection during their old age. However, we also face the worldwide trend of an ageing population. ...
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1answer
62 views

During QE what prevents the banks from selling government debt to invest in the stock market instead of lending out the money?

This is how QE is supposed to work: The fed buys government debt from banks. This lowers the long term interest rates and businesses and consumers borrow more, which is good for the economy. But what ...
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1answer
28 views

How is it not arbitrage that EURIBOR (EUR) is around -0.5% and LIBOR (USD) is around 0.5%?

Why can I not borrow $1B of EUR at EURIBOR (pays me 50bps per year), convert it to USD (also pays me 50bps per year), lend it out at LIBOR, and collect a 1% spread? Am I missing somethign obvious? ...
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1answer
26 views

What does negative surprise mean?

I have a look at the meaning of "negative surprise" from google but there is no clear explanation so far. When listening to Bloomberg Market Concept, in the picture, Surv(M) < Actual, ...
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1answer
59 views

Could the Feds objectives be adjusted to decrease or at least not increase wealth inequality?

The US congress "has assigned the Fed to conduct the nation’s monetary policy to support the goals of maximum employment, stable prices, and moderate long-term interest rates."(1) It seems ...
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1answer
43 views

What empirical evidence is there of distortions when capital gains taxes are introduced or raised?

I have heard that introducing capital gains taxes would create distortions in investments, and that the optimal tax rate for capital gains is actually 0. My question is what observed evidence is there ...
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10 views

Inter country currency exchange [duplicate]

This is probably a stupid question as I don't know much about economics, please bear with me. My question is; why can't a country insist on the worth of their currency relative to the dollar. For ...
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1answer
47 views

Why does central banks lowering interest rate incentivize more borrowing?

I'm a layman trying to understand how the US monetary system works. I'm particularly interested in how the Federal Reserve can create inflation without printing new dollars and putting them in M1. My ...
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1answer
57 views

Are returns from secondary capital market funds (stocks and bonds) a form of unearned income?

If I own a bunch of market funds which hold securities from secondary capital markets (stock and bond markets), am I partaking in unearned income/economic rent? Let me clarify what I my question is ...
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18 views

What is the total that the US Government has spent on Economic Stimulus in 2020 and 2021 so far?

How much has the US government spent on the Economic Stimulus during this "time of covid"? Bonus points if it includes (and itemizes) indirect spending like spending on Covid Testing and ...
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1answer
51 views

What is causing the difference between USA financial indexes and perceived economy?

While the world is facing economic problems since the spread of Covid-19 in Feb 2020, the main indexes in the world (S&P500 and NASDAQ100) reached and exceeded twice their maximum levels. I ...
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1answer
670 views

Are spectrum auctions a tax?

According to Wikipedia, A spectrum auction is a process whereby a government uses an auction system to sell the rights to transmit signals over specific bands of the electromagnetic spectrum and to ...
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0answers
10 views

Has the loan of securities from a retail investor to a well-established US broker ever resulted in a financial loss to the retail investor?

Retail investors may opt to loan some of the shares to their brokers: In theory, one of the risks is that the broker and the collateral may have some issue, leaving the retail investor with a ...
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8 views

Is importing included in the value of the final product that is calculated in GDP

I have been arguing with my friends about wheather imports are included in the gdp or not. For example, I have a locally built device that is worth 900\$. Then I imported a chip worth 100\$ and ...
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1answer
189 views

consumer surplus decreasing

MRU has the following question on a quiz: Suppose the government forced all bread manufacturers to sell their products at a “fair price” that was half the current, free-market price. To keep it ...
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1answer
76 views

If I fill a vending machine with \$0.50 sodas and sell them for \$1, am I creating 50 cents of wealth for the economy?

This is a very simplified example. If I fill a vending machine with sodas that cost \$0.50 each and someone comes along and pays \$1 for it, am I creating an extra \$0.50 of wealth for the economy? ...
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1answer
44 views

Why has China's integration into the global economy caused it to slow it's output?

In the following passage, what does it mean to be integrated into the economy and why does this mean that now China and India are integrated into the economy that their output has slowed down? In the ...
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21 views

What Interest Rate used to calculate opportunity cost?

What Interest Rate used to calculate opportunity cost (Calculating Future Value/Present Value)? Usually in the textbook it said that the rate used is government bonds interest rate(since it's risk ...