heh
  • Member for 2 years, 4 months
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What are examples for the phenomenon that more (or better) information makes everybody worse off?
10 votes

This sounds glib, but The Internet is an ongoing example. In economic models where access to information is an explicit factor, we often gloss over the fact that mere exposure to information about ...

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Why does the Solow Model matter for undergraduate students?
10 votes

I second/third/whatever the objection to the "ideal careers" put forth here. Data Analyst - Most of these jobs will go to comp-sci graduates, especially as artificial intelligence and machine ...

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Alternatives to avoid sanctions
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4 votes

You have most of the explanation here - the only missing piece is that as the de facto reserve currency of the world, almost all global trade is conducted in US dollars. Typically what happens is ...

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Why cannot I compare AIC values obtained from nonlinear least squares and the ordinary least squares?
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4 votes

In short, because AIC takes the log of the max value of the likelihood function. Except under strong conditions there is no a priori reason to assume that these values will be the same after log-...

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Why do some businesses choose scarcity as their business model instead of raising the price to meet the demand?
3 votes

Your question is somewhat ill-posed as stated, because none of your examples are good instances of businesses creating artificial scarcity. Each of them are businesses that face real capacity ...

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Why is oil being traded in U.S. dollars?
3 votes

why would they force to trade in U.S. dollars instead of just taking the oil from their country by force? One of the basic tenets of power is that $control$ is superior to $ownership$. War is ...

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Utility function is given as U(x1, x2) = 10x 0.5 1 + 5x2
3 votes

The MRS represents the rate of exchange between goods x and y that would leave the agent indifferent to trading the two. It is the slope of the indifference curve for a given value of utility U. To ...

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Unit Elasticity Calculation Question
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2 votes

You have to use the midpoint method to resolve this (if I recall correctly). https://quickonomics.com/how-to-calculate-price-elasticities-using-the-midpoint-formula/ The reason I may not recall ...

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Why can't I find masks for the corona virus?
2 votes

Exacerbating the short-run supply matter, these kinds of masks aren't actually for healthy people to keep pathogens away. They're for sick people to keep from spreading pathogens. So not only is "...

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Why does price elasticity of demand formula work?
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2 votes

Why are dividing the change in quantity and price by the averages of the quantity and price change? Is that a way of calculating the percentage change? Yes, elasticity is a measure of proportional ...

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What would happen to US economy before US government lose control over its national debt?
2 votes

It depends. Mathematically, you just need GDP to grow at the same rate as the debt grows, and then you can sustain deficit spending indefinitely. But this simply shifts the line of questioning to "...

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Benchmarking an Energy Investment
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2 votes

It may be more "profitable" to present your analysis here for detailed discussion. It is particularly relevant to tell us what sort of retrofit you are considering (Insulation upgrade? Triple-pane ...

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How to estimate Robot density in a country?
2 votes

Daron Acemoglu has written a fair bit about the impacts of automation on labour markets. Bearing in mind that mechanization and "robotization" are different in important ways (with that importance ...

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Fixed costs in the long run
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2 votes

You should quote directly from the book you're citing, because I think you might be mis-reading it. At the Econ101 level, there are two important frames for thinking about fixed costs: one is that in ...

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Equations of "rational mechanics" and general equilibrium
2 votes

Pareto believed economics could be studied with the same mathematical rigor as physics, so it's quite possible he was speaking to the similarities between mathematical economics and classical ...

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What does it mean to "kickstart the economy"?
2 votes

In short, the belief this reflects is that cheap money is spent more freely. Since GDP counts the sum-total of value-added transactions in the economy, in principle this means that monetary policy ...

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Does the case of strategic complements always result in a situation where the Stackelberg leader is worse off?
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2 votes

It depends on what you assume the firms know about each other. Under full information / rationality assumptions, with identical firms, second-mover advantage disappears because the first-mover will ...

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Model of economic cycles consistent with efficient market hypothesis
2 votes

The EMH applies to assets, not just stocks, and its implications are more relevant for investors who own part of the market - not the entire thing. This is important, because it's the difference ...

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Why do the gross return of wealth and wealth move in opposite direction?
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2 votes

Per our comments above, I believe the expression you have is incorrect. Your confusion is worsened by some poor terminology use. Gross return can be written as $R = 1 + \frac{a}{w}$ where $w$ is ...

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How to show that the estimator is consistent?
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2 votes

Remember that consistency describes how the estimator behaves in the limit as N asymptotically approaches infinity. Assuming no errors in your math up to this point, you need to consider how your ...

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Penance strategy game theory
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2 votes

I see two ways to produce histories with multi-state deviations (not including the degenerate case in which all states defect): Multiple states defect in different periods. This possibility is ruled ...

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Local non-satiation in economics
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2 votes

The Wikipedia article shows it graphically. But here, you're leaving out the important bit: "The property of local nonsatiation of consumer preferences states that for any bundle of goods there is ...

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Does recent gasoline price sensitivity data show that HR 763 Carbon pricing insufficient for the transportation sector?
2 votes

No, it is not sufficient proof. There are a host of possible drivers of "vehicle miles per-capita" that are not causally connected to the price of fuel. You would need to make a good-faith effort to ...

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Why is discriminating monopoly better than competitive markets for producers?
1 votes

You're looking for an answer while it's clear you are very early in your studies and will get to this stuff in due time. With that said, here is some loose intuition about why a monopoly is better ...

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Shouldn't national Stock Indices proportional to GDP of the country?
1 votes

One of likely many contributing factors is the definition of GDP. Consider the humble iPhone, produced by Apple contractor FoxConn. FoxConn is headquartered in Taiwan, while Apple is headquartered in ...

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Perfectly competitive firms. Economies of scale
1 votes

Adding to Bill Clark's answer, imagine that in addition to entry/exit decisions, you add to your model the decision to merge with another firm. When economies of scale are present, there are ...

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Does Efficient Market Hypothesis make anticipated monetary policies useless?
1 votes

It is important to understand that the Efficient Market Hypothesis is not a law. It is a hypothesis in the truest sense - it relies on a number of important assumptions to hold before it can be ...

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Is there a relationship between stock market hedge fund leveraging and the repo market?
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1 votes

"I can't use the stock I bought as collateral in the repo market right?" In principle, you can. Repos can and do happen between non-government actors, with any AAA-rated paper being preferred, but a ...

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Why would an investor choose to invest in one index fund as opposed to another?
1 votes

There's a lot to unpack here. It is increasingly the case, especially among passive strategies, that transaction costs and management fees are the primary dimension along which funds are ...

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Finding Relevant Literature on JSTOR and Beyond
1 votes

The "impact" question is difficult. You can do better than Google Scholar using e.g., Web of Science, but that's subscription-based and it's hard to disentangle article impact from journal impact. ...

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