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1500 questions
7
votes
1 answer
Differing Inflation Rates for Separate Income Groups; Literature?
So here's a few ideas that have been floating around my head since undergraduate university. It seems that money owned by the highest net wealth owners is always moving around and making a return, but only in markets that don't particularly affect…
Kitsune Cavalry
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7
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Dynamic Bertrand competition when players take turns
Consider the following game:
There are two players, $i\in\{1,2\}$
Time is discrete and runs to infinity during periods $t=\{1,2,\ldots\}$
At eat point in time, players have a price $p_i(t)\in\mathbb{R}_+$
Initialise the game with $p_1=p_2=p(0)$.
In…
Ubiquitous
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7
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1 answer
What are good dataset alternatives to estimate value functions?
Suppose we want to estimate for many goods in the economy (or classifications thereof) the preferences of each household for these goods. We may want to restrict the analysis to specific utility classes, e.g. translog or CES utility. Naturally, we…
HRSE
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2 answers
Which utility function yields a constant price elasticity of demand function?
How do I know which utility function I can use to find an isoelastic demand function, e.g., $x(p)=Ap^a$?
And similarly, which cost function can I use to find an isoelastic supply function?
Does it work through trial and error, or is there a…
Thomas V.
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2 answers
What determines the outcome of a price war, and why isn't that outcome reached instantaneously?
Mary is making a hefty profit manufacturing and selling widgets. Jim has some money laying around and he is trying to figure out if he shouldn't start manufacturing some widgets too.
In this example assume that the marginal cost to produce a widget…
ZKe
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7
votes
2 answers
Why did the Federal Reserve change the data about USA GDP?
This is the data published on 20 March 2013 FOMC meeting:
(http://www.federalreserve.gov/monetarypolicy/fomcprojtabl20130320.htm)
20 March 2013,
Change in real GDP (actual):
year 2008: -3.3%
year 2009: -0.1%
year 2010: +2.4%
year 2011: +2.0%
year…
reinardhz
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7
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1 answer
Instrumental variables vs control function: Which approach and why to handle endogeneity?
I'm curious if anyone here can summarize the differences between the I.V. and control function approach to handling endogeneity. I think endogeneity is usually addressed using the 2SLS or IV approach and, having briefly studied the control function…
123
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7
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1 answer
From Discrete to Continuous time: Total Differential
I'm trying to derive an HJB from a discrete time setting. At some point, I am left with
$$ \lim_{\Delta\to 0} \frac{v(c_{t+\Delta}, u_{t+\Delta}, t+\Delta) - v(c_{t}, u_{t}, t)}{\Delta}$$
and am not sure what to do. If $\Delta$ was only in one…
FooBar
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7
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5 answers
How is the interest on fractional reserve money creation paid?
In fractional reserve banking commercial banks create money when they make loans. When these loans are paid back the account is zeroed, the created money disappears, but the bank is still entitled interest. Where does the money to pay the interest…
dw1
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1 answer
Evidence on economic impact of 2015 European refugee/migrant influx
At the time of writing (September 2015), Europe is dealing with a large influx of refugees/migrants. Many are fleeing violence in Syria and elsewhere, others come from Africa and the Middle East in search of economic opportunity.
I am interested in…
Ubiquitous
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7
votes
2 answers
Are lotteries auctions?
I heard one professor of my university say that "lottery is a kind of auction. So we can predict it! Then we could get a lot of money!"
Since he is in the mathematics department, and I know little about that matter, I couldn't answer to my gut…
Darae-Uri
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7
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2 answers
Consumer surplus in case of perfectly inelastic demand
How do we define consumer surplus in the case of perfectly inelastic demand?
This question was inspired by the comments following this answer. For a graph of inelastic demand please also see the linked question.
A motivation for a definition would…
Giskard
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7
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2 answers
What is the difference between "Social Choice Theory", "Public Choice Theory", and "Collective decision-making?
I need to know the difference between Social Choice, Public Choice and collective decision-making. Also, Is public choice, social choice the same as collective choice? Thank you
Christopher Tamina
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4 answers
Can destruction be profitable?
We often see news that some company destroys items they couldn't sell in time.
Also we can see news of supermarkets destroying food just because it's not fresh although it's perfectly edible.
If someone destroy goods, he would get $0 for it or even…
Calmarius
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7
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3 answers
Is there a journal for replications in experimental economics?
Is there a journal that publishes replications (failed and successful) of (published) experiments? And, if not, why not?
And what about failed experiments (i.e. experiments with insignificant results)?
I think replications of experiments are very…
The Almighty Bob
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