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Do stock markets price in existential risk (i.e. global nuclear war)?
Question Moved from Money StackExchange:
https://money.stackexchange.com/questions/74002/do-stock-markets-price-in-existential-risk-i-e-global-nuclear-war
Q: Do stock markets price in existential risk?
The Cuban Missile Crisis in November 1962…
Justas
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7
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Testing Roberts's Law: data request on CEO pay and company characteristics
I posted here regarding sources for Roberts's Law.
In this paper it gives a clear qualification of what Roberts's law is. (Page 9, ...Cross-sectional prediction..)
..In a given year, the compensation of a CEO is proportional to the size of the firm…
EconJohn
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7
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How can median wages be significantly different in two neighboring countries with open borders?
As an example, take Germany and Czech Republic. Both are members of the EU and therefore trade barriers between the two countries are minimal. However the median salary in Germany is nearly 3 times as much as in Czech Republic. How can that be?
Are…
JonathanReez
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7
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How come the CBO reported the Federal Deficit for FY2014 was \$483 Billion when debt went up by \$1.1 trillion?
The Monthly Budget Review: Summary for Fiscal Year 2014 states that the deficit was \$483 billion.
Treasury Direct shows Total Public Debt Outstanding increasing over the same period from \$16.7 trillion to \$17.8 trillion.
Why is there such a huge…
Paul
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7
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3 answers
How does an increase in the price of "non-wage-goods" increase employment?
Keynes (1936, Chapter 2) says that based on the classical theory, "there are only four possible means of increasing employment", the fourth of which is:
an increase in the price of non-wage-goods compared with, the price of
wage-goods, associated…
user18
7
votes
1 answer
Understanding Envelope Theorem
Can someone please verify whether or not my knowledge is accurate.
From what I understand, the intent of the envelope theorem is to make a shortcut from indirect utility to the expenditure function. That being said, what you can do once you have…
Irina
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2 answers
Have there been attempts to measure the value of specific taught skills?
I'm aware there is a body of research concerned with measuring the returns to schooling in general, and there are theoretical pronouncements about what the most valuable things to learn at school are.
Have there been any empirical attempts to…
David J
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7
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2 answers
Doesnt convexity prevent thick indifference curves aswell?
It is standard in many micro textbooks when analyzing the relationship between preference axioms and the shape of the utility function (and consequently the shape of indifference curves), to attributed the "non-thickness" of indifference curves to…
thekiciminister
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7
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Are goods that are wasted counted into the GDP of a nation?
If x apples are produced in an economy, and only x - y are consumed (y apples get rotten at different stores in the country), is the value of these wasted apples considered as a part of GDP?
WorldGov
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What may have caused these blips in the value of Euro vs. US dollar
I was looking at the USD/EUR exchange rates a few minutes ago (Saturday evening, Eastern Time Zone here in USA) at xe.com and noticed some sharp blips on it from earlier today.
The graph looked as shown below.
The times (on the X-axis) are in the…
x457812
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7
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1 answer
Why is the Chilean economy so much better than the rest of the countries in South America?
Why does Chile have a better economy than all of the other countries in latin America?
It is labeled as a high income country by the IMF,
It is the only Latin American country that is part of the US Visa Waiver Program
It is one of two Latin…
j.jerrod.taylor
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7
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3 answers
How did Brexit wipe $2 trillion off world markets?
I read here (https://www.theguardian.com/business/live/2016/jun/24/global-markets-ftse-pound-uk-leave-eu-brexit-live-updates) and elsewhere that Brexit wiped \$2tr off world markets.
How did that happen?
Is this equivalent to \$2tr worth of a…
Kostas
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7
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2 answers
Why should the statistical value of life exist?
In areas such as insurance pricing and government policy analysis, it is often necessary to assign human life a monetary amount in order to compare it with other monetary amounts. So economists have a measure called the statistical value of life,…
Keshav Srinivasan
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7
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1 answer
(Preference Relation/Set) Continuous $\succsim$ imply closedness of upper and lower contour sets
[ADDED/MODIFIED] : I have put my proof where the commodity space is simply $\mathbb{R_+}$(e.g. nonnegative reals) for simplicity below. Please share your 2 cent. I have put words to aid my own understanding...
I am trying to understand that an…
Frank Swanton
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3 answers
Why does a buyer value a dollar in a small purchase (e.g. TV) differently to a dollar in a large purchase (e.g. car)?
I am referring to how buyers will haggle over 200 when purchasing an item worth, say, 500 but not bat an eyelid paying an extra 5000 on, say, a house.
I am seeking a very brief explanation of this phenomenon or the official name (if it has one).
wanageeska
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