Most Popular
1500 questions
8
votes
6 answers
Why can't the Land-Value Tax (in some cases) be passed on to tenants?
According to https://en.wikipedia.org/wiki/Land_value_tax:
Because the supply of land is essentially fixed, land rents depend on what tenants are prepared to pay,
That doesn't make any sense. If more people want to live in a particular place,…
RonJohn
- 218
- 2
- 8
8
votes
2 answers
How is momentum justified as a common risk factor?
Momentum as a common risk factor?
This question is partly a follow-up to another question found here. In this other question it was noted in momentum is difficult to explain as a common risk factor in factor pricing models like the intertemportal…
jmbejara
- 9,345
- 5
- 30
- 80
8
votes
3 answers
Does immigration help to sustain welfare in rich European countries?
There is a lot of discussions about immigration and its effect on economies lately in Europe, so I'd like to ask a question. Is it true that immigration helps to sustain welfare in rich European countries? For example, in the case of pensions, since…
DeltaIV
- 213
- 1
- 5
8
votes
1 answer
How are ties broken in a second price sealed bid auction?
Say there are two people who evaluate an object at 5 dollars and a third who evaluates it at 4 dollars playing a second price sealed bid auction. The first two bid 5 dollars and the third bids 4 dollars. How is the tie broken and how much do they…
Joseph Arnaud
- 83
- 4
8
votes
2 answers
Could leisure be considered a Giffen good?
One of my microeconomics fellow students asked this and it got me thinking. The leisure demand curve is a mirror of the labour supply curve. In the section where the Income Effect is greater than the Substitution Effect, would leisure be considered…
GonzaloXavier
- 81
- 1
- 3
8
votes
1 answer
Which of Anscombe-Aumann's axioms imply the Sure-Thing principle?
Consider an Anscombe-Aumann setting, and assume that a preference relation satisfies all original Anscombe-Aumann's axioms (rationality, continuity, independence, and monotonicity).
If we restrict attention to pure horse races (that is, acts without…
Oliv
- 3,232
- 11
- 25
8
votes
1 answer
Competition and welfare - empirical evidence
Consider the following claims:
less competitive markets deliver worse outcomes for consumers,
less competitive markets deliver lower social welfare,
less competitive markets deliver higher prices/lower quality.
These might be considered fairly…
Ubiquitous
- 16,925
- 4
- 37
- 84
8
votes
4 answers
Why is it good to create jobs?
I was reading this article on planned obsolescence, which states
On a macroeconomic scale, the rapid turnover of goods powers growth and creates reams of jobs
In context, it's implied that this is good - it is good to have people working to…
Mark Eichenlaub
- 183
- 5
8
votes
2 answers
Why don't public transport networks have more routes to each terminal in order to reduce the number of transfers?
When using public transport, we often need to transfer to a different route during of the journey. These transfers have costs – I can think of the following, but there may be more.
If we're reading, working, etc. on board, we need to stop, losing…
Yngve Høiseth
- 181
- 3
8
votes
3 answers
Are there any examples of tariffs working?
Nations have imposed tariffs on goods for many reasons throughout the ages. Are there any examples of a tariff actually succeeding at its intended goals?
When I research tariffs, I find countless arguments that they never one have worked, and I…
Cort Ammon
- 481
- 2
- 9
8
votes
3 answers
Can a monopoly INCREASE the market surplus compared with a competitive market?
Monopolies are often blamed for DWLs(Dead Weight Losses), while competitive markets believed to work without DWLs (assuming zero taxes/subsidies and zero externalities).
But I think I found an example when ABSENCE of a monopoly (in this case - a…
KarmaPeasant
- 1,135
- 9
- 27
8
votes
2 answers
Why is the inverted yield curve a good predictor of impending economic recession?
The inverted yield curve has often been cited as a good predictor of impending economic recession. What are the reasons to explain why is it a good predictor? Is the inverted yield curve a cause or symptom of recession?
curious
- 545
- 2
- 10
8
votes
1 answer
Pure exchange economy: Set of multiple equilibria endowments
Initial endowments which can result in multiple equilibria in a pure exchange economy are explained here. Given a pure exchange economy, that is given the utility functions (which fulfil the usual properties) and total amounts of each good, what are…
Giskard
- 29,387
- 11
- 45
- 76
8
votes
2 answers
Understanding the shape of a Marginal Cost Curve
My class IB has just discussed allocative efficiency and hence consumer and producer supply. They explained the concepts with a diagram like this:
It all made perfect sense to me until it was mentioned that the supply curve can also be seen as a…
Andy
- 205
- 2
- 5
8
votes
2 answers
What causes the "imperialism of economics" and how did it start?
Wikipedia defines "economics imperialism" as follows:
Economics imperialism (often economic imperialism) in contemporary economics refers to economic analysis of seemingly non-economic aspects of life, such as crime, law, the family, prejudice,…
jmbejara
- 9,345
- 5
- 30
- 80