Top new questions this week:
|
|
In countries where corruption run deep to the point it is not considered illegal; can such payments be considered as transaction costs?
|
|
I’m confused on how to determine if utility functions represent the same preferences. The question is as follows: Which of these utility functions represent the same preferences as $u(x,y) = \sqrt(xy)$…
|
|
I am looking for an applied financial econometrics textbook. There are plenty of textbooks that present time series models used in financial econometrics but few of them put any emphasis on …
|
|
This is my first post on stack exchange. I am high school student having good grasp of high school physics concepts. Recently I heard about econophyics- i.e. application of physics laws to the …
|
|
I am moving this discussion from this comment section to a full question. Consider a binary policy $D_{it} \in \{0,1\}$ that is not randomly assigned to some units in period $t=\tau$. We have …
|
|
Question from Intermediate Microeconomics by Hal Varian: Suppose that preferences are concave. Is it still the case that the substitution effect is negative? This is my point: If preferences are …
|
|
I would like to know if you could help me to solve this exercise from Acemoglu’s book “Introduction to Modern Economic Growth” Exercise 2.1 : Show that competitive labor markets and …
|
Greatest hits from previous weeks:
|
|
I want to derive the Euler Equation for the following: $$max \sum\limits_{t=0}^{T} = \beta^{t}U(C_t)$$ $$s.t. C_t+K_{t+1} \leq f(K_t) , t=0,1,2,…,T-1$$ $$-K_{T+1} \leq 0$$ I’m a bit confused …
|
|
Given this question: National income is increasing by 1.5% a year and population by 2.5% a year. What is the rate of growth of per capita income? Attempt: Since per capita income is GDP/ …
|
|
Yesterday we had a question about the alleged underpayment of women in work, asking why employers would hire fewer cheaper female workers and would instead hire a larger number of expensive male …
|
|
In most Microeconomics textbooks it is mentioned that the Constant Elasticity of Substitution (CES) production function, $$Q=\gamma[a K^{-\rho} +(1-a) L^{-\rho} ]^{-\frac{1}{\rho}}$$ (where the …
|
|
So I have an exam in a bit, I understand that to find the optimal choice you have to equate tangent of the two indifference curves. However, if the other indifference curve is a perfect complement, …
|
|
Can anybody explain to me the income offer curve? Is it a relationship between $x_1$ and $m$? If the budget equation is $p_1x_1+p_2x_2=m$? With income being the variable $m$?
|
|
Wikipedia states: Exogenous Preference — one that comes from outside the model and is unexplained by the model. Endogenous Preference — preferences then cannot be taken as given, but are affected …
|
Can you answer these questions?
|
|
Setup: Say I have a store and I have 50 bottles that I want to sell. Outside this store there are 100 people who want water bottles and each differs in the price they are willing to pay for a water …
|
|
In Bayesian Nash equilibrium’s (BNE) definition, players calculate expected payoffs accroding to the posterior $\phi_i(\theta_{-i}|\theta_i)$, namely, they don’t update their beilief according to …
|
|
I am currently looking through Mankiw “Economics” (5th edtion). I have come across this statement on page 664. When talking about lowering taxes to stimulate the economy [lowering taxes, …
|
