Economics Stack Exchange
Economics Stack Exchange

Most Popular

more tags
1500 questions
10
votes
3 answers

Money in the animal kingdom

Animals living in packs must have ways to decide how to distribute their goods among the pack members. Just like prices can appear in an exchange economy, prices could appear in pack economy. Though money can serve many different functions, are…
JJ O
  • 201
  • 1
  • 6
10
votes
1 answer

Perfect Bayesian Equilibrium

I've been given a question which I'm struggling with: Take the standard Prisoner's Dilemma game and consider it is played twice. (Players observe the outcome of the first game before playing the second). Consider beliefs in terms of which node…
Brian
  • 431
  • 3
  • 7
10
votes
2 answers

What's quantitative easing?

From what I understand after reading mainstream media, quantitative easing increases the supply of money in the economy without direct government spending (fiscal policy). It seems to have all the benefits of monetary policy (decreasing interest…
Huey
  • 205
  • 1
  • 7
10
votes
1 answer

Lab experiments for a course in standard contract theory

I am teaching a course in contract theory based on the textbooks by Bolton/Dewatripont and Laffont/Martimort. I would like to briefly present some lab experiments to illustrate basic insights of standard contract theory. Unfortunately, the textbooks…
dan84
  • 101
  • 2
10
votes
7 answers

Mathematical Micro/Macro Economics Textbook Recommendation

I was formerly an economics major and now also majoring in mathematics. I want a textbook that is rigorously based on mathematics; not just using mathematics whenever the author wants, but in a more unified way to explain a concept. I've learned…
Taxxi
  • 203
  • 3
  • 6
10
votes
3 answers

Do a group of economic agents really act as if they are rational?

When questioning the rational choice hypothesis, I often get responses that are similar to the followings: "Individuals may sometimes make irrational decisions, but a large group of economic agents would act as if each of them is making rational…
user141240
  • 480
  • 2
  • 12
10
votes
2 answers

What are the causes of negative real interest rates?

I am familiar with the real interest rates equation which states that real interest rate = nominal interest rate - expected inflation rate. What I am failing to fully grasp, however, is why would lenders be willing to provide a supply of loans for a…
ThomasJ
  • 177
  • 6
10
votes
2 answers

Simulating Real Business Cycle

Basically I need to replicate Hartley's 'A User's Guide to Solving Real Business Cycle Models' (http://www.econ.ucdavis.edu/faculty/kdsalyer/LECTURES/Ecn235a/Linearization/ugfinal.pdf). Specifically, I want to simulate the dynamical system implied…
Sarunas
  • 203
  • 1
  • 6
10
votes
7 answers

Why does economics escape Godel's theorems?

I've seen many professors say that Godel's incompleteness theorems don't apply to economics. Of course I've seen others like Yanis Varoufakis who has on record said that many economics papers defy the basic principles of logic, while also saying…
Guest
  • 149
  • 1
  • 3
10
votes
2 answers

Why are utility functions typically assumed to be concave?

Why is it usually required that utility function be concave? Is it because concavity is a necessary (or sufficient?) assumption for a unique equilibrium? Can someone please spell this out for me? Thank you. Edit: To clarify, I'm interested in the…
Ohad Osterreicher
  • 125
  • 1
  • 6
10
votes
2 answers

Does 'ethical investing' have any effect?

Some mutual funds make a point of only investing in ethical companies (eg avoiding arms companies, polluters, human rights violators, etc). Or other organisations pressure funds to stop investing in particular industries/companies. (example). Some…
dwjohnston
  • 2,036
  • 14
  • 31
10
votes
4 answers

Why is economic growth measured exponentially rather than linearly?

If economic growth is indeed highly desirable (see this question), why must this growth be exponential? With finite resources, exponential growth might hit limits rapidly (or be impossible?). Why not express growth in linear rather than exponential…
gerrit
  • 1,754
  • 11
  • 26
10
votes
3 answers

In the US, do high wages in regions like New York and California offset the high cost of living?

It's well understood that the cost of living in New York City vastly exceeds the cost of living in, say, rural Louisiana. It is also well understood that wages in New York City vastly exceed those in rural Louisiana. My question is: who comes out…
Matt Korostoff
  • 301
  • 2
  • 10
10
votes
1 answer

Applications/generalizations of a theorem of Debreu

I would like to know how the last theorem in Debreu's paper "Neighboring economic agents" (La Decision 171 (1969): 85-90; reprinted in G. Debreu, Mathematical Economics: Twenty Papers of Gerard Debreu (1986), pp. 173-178) has been used: Theorem. For…
Jefferson Huang
  • 278
  • 1
  • 6
10
votes
2 answers

What makes a company too big to fail?

I have read the too big to fail Wikipedia and as far as I understand, a company is too big to fail (and thus will receive government bail-outs) if it's failure has a significant impact on an important industry or the economy as a whole. Is my…
Carson
  • 201
  • 1
  • 5
1 2 3
…
99 100