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1500 questions
9
votes
1 answer
No Ponzi game condition and transversality condition are the same?
Given the following non-stochastic planning problem with finite horizon,
\begin{align}
&\max_{\{k_{t+1}\}}\sum^T_{t=0}\beta^tU[f(k_t-k_{t+1})] \\
\text{s.t. } & 0\leq k_{t+1}\leq f(k_t)\\
& k_0 >0 \text{ (given)}.
\end{align}
I found that in order…
PhDing
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9
votes
4 answers
Why, in supply and demand curves, does price go on the y-axis?
I know it doesn't actually matter which axis is which, but it seems less intuitive me. When I see a supply and/or demand graph, I always have to flip it in my head to feel like I really get what's going on.
It just seems like if you have one…
David Bahry
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9
votes
2 answers
Imperfect vs incomplete information
What's the difference? To illustrate, please give examples of
A game with perfect but incomplete information; and
A game with complete but imperfect information.
Related.
user18
9
votes
3 answers
Core elements of Marxist Economics
I am interested in understanding the differences between mainstream economics and marxist economics. For that, a guide about what is central to the marxist economic theory (not political or cultural theory) would be highly useful.
What are the core…
luchonacho
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9
votes
3 answers
What happens to a country with lot of debt?
As far as I know, debt is a way to get hands on extra money which will burden the future governments.
What if every successive government keeps adding to the national debt?
Isn't it like free money? You can win by developing the country and keep…
Yashas
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9
votes
1 answer
Financial Smart Contract on Ethereum: can an Ether Futures contract be priced in Ether?
BACKGROUND
This is more in the wheel-house of economics than programming, but after a few different titles, I thought it best not to skirt around the root of my question OR create a oddly phrased USD based question; when I'm actually asking about…
HodlDwon
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9
votes
3 answers
Why does the Brexit cause a fall in crude oil prices?
Oil prices have also fallen sharply in the wake of the referendum
outcome, with Brent crude down 5.2%. The price of Brent crude fell by
\$2.68 to \$48.24 a barrel, its biggest fall since February. At the same
time, US crude was down 5.4%, or…
Konerak
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9
votes
3 answers
Is there an alternative metric to GDP that measures a country's assets rather than flows?
The Gross domestic product measures the value of all final goods and services produced in a period.
This has some limitations. For example, if a car hits a lightpost and both need to be repaired and some parts replaced, that contributes to the GDP,…
gerrit
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9
votes
2 answers
Why is UK infrastructure so expensive?
Current official estimates for the proposed UK railway line High Speed 2 are £42.6 billion for a 192 km line, or around £222 million (€287 million) per km (if my calculations are correct). A 2020 review suggests it could even cost as much as £106…
gerrit
- 1,754
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- 26
9
votes
2 answers
Would healthcare costs increase (in the long term) if all smokers quit?
According to research by Jan J. Barendregt, M.A., Luc Bonneux, M.D., and Paul J. van der Maas, Ph.D.:
RESULTS
Health care costs for smokers at a given age are as much as 40 percent higher than those for nonsmokers, but in a population in which no…
JonathanReez
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9
votes
4 answers
Limits to Growth: Is environmental collapse by 2030 a likely scenerio?
According to a simulation from 1972, the results of which were published in 'The Limits to Growth' environmental collapse is due mid 21st century. The Guardian reports that Dr. Graham Turner reran the simulations using recent data and the collapse…
BrunoMuraca
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9
votes
1 answer
How do I calculate price elasticity of demand using historical price and quantity data?
I work for a company that produces retail items and I am tasked with calculating the price elasticity of demand for a subcategory that shall remain unnamed. I have 5 years of monthly market data that shows market price as well as ounces sold. My…
Granntttt
9
votes
3 answers
Quasilinear Utility: Pareto Optimality Implies Total Utility Maximization?
I read that if we have quasilinear utility for all consumers, then any pareto optimal allocation maximizes the sum of utility levels of all consumers. That is:
$\textbf{What we know:}$
$$1)\quad u^i(m^i,x^i)=m^i+\phi^i(x^i)\; \quad \forall…
DornerA
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9
votes
2 answers
Examples of Factors in the ICAPM
The intertemporal capital asset pricing model (ICAPM) is different from the CAPM in that in the ICAPM, utility is conditioned on some set of state variables. The ICAPM results in a multifactor pricing model of the market if investor care about…
jmbejara
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9
votes
4 answers
Mathematical open problems that (when answered) might unlock MAJOR mathematical (micro)economics/finance/econometrics discoveries
Are there any (specific) math open problems that mathematical (micro)economics / finance / econometrics researchers wish mathematicians could solve for their discoveries to flourish? If positive, which math open problems are related to which applied…
LuaLua
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