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1500 questions
6
votes
2 answers
If the price of oil and energy goes down, why does CPI go up?
Today, StatsCan revealed that Canada's CPI rose by 1.3%. They are attributing it to lower energy prices, led by the fall in the gasoline index (down 12.6% since one year ago).
From my understanding, an increase in Canada's CPI means Canadian…
Nixu
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6
votes
2 answers
How much would it take to end global extreme poverty?
E.g., according to this page, Jeffrey Sachs estimated that it would take $175bn/year for 20 years to do so.
What are some other estimates?
user18
6
votes
1 answer
Did the Marshall Plan cause Western Europe's economic expansion after WWII?
It is widely accepted, that the Marshall Plan had a major role in the economic recovery of Western Europe after the end of the Second World War.
The reality is that the total economic support was less than 7% of the 1946 GDP (PPP) of the region. How…
Sogartar
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6
votes
2 answers
Effect of property tax on rent
Suppose the government puts a tax on all apartment owners (e.g. a certain percentage of the apartment value), whether or not the apartment is rented. Will this tax cause an increase in rent?
From an economics point of view, it seems the answer…
Erel Segal-Halevi
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6
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2 answers
Ricardo's theory of comparative advantage for many countries
In textbooks on economics the Ricardo theory of comparative advantages is explained on the example of two countries with two goods. I suppose, there must be generalizations of Ricardo's theory for several countries with several goods. Can anybody…
Sergei Akbarov
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6
votes
3 answers
More complex than simple and multiple regressions?
I am currently in an Econometrics class that requires us to write a research paper that showcases our skills in regression/ modeling. What is slightly more complex than simple and multiple regressions that I may be able to learn and utilize in my…
milk
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6
votes
3 answers
Establish demand curve with infrequent sales
I sell variations of an item on eBay. It is an unusual commodity which I purchase in bulk lengths and then cut to various sizes. They come in about 20 types, which I then sell as 10 different lengths, giving a total of 200 variations.
My goal is to…
Jodes
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6
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3 answers
Effect of a US Federal Reserve rate hike on the Dow Jones Industrial Average
There is speculation that the Federal Reserve of the United States will raise interest rates by 0.25% in the near future. What is the expected effect on the stock market if interest rates do rise by that amount? More specifically, what is the…
user3386109
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6
votes
2 answers
Modified core for cooperative games
In the core of cooperative games, the total cost of forming a coalition is shared by all members in a coalition (efficiency). However for my problem I only require that all members are individually rational in the coalition - that is, if the utility…
Bravo
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6
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1 answer
Stiglitz: movement capital vs labor, effect on living standars
Stiglitz argues that increasing free movement of labor would be a much more effective way of increasing living standards, compared to free movement of capital (see for instance this video).
Does someone know which theoretical frameworks have been…
desval
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6
votes
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Taylor Rule: Relationship between interest rate and inflation
Q. According to the Taylor Rule, what should the central bank do to stabilize the economy after an increase in oil price?
My points:
Increase in oil prices (1970's) raises the price of production for producers and hence shifts the AS curve to the…
James Baker
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6
votes
1 answer
If all indifference curves are parallel lines, then preference has linear representation
Given a continuous preference relation $\succeq$ over $X=\mathbb{R}^2_{+}$ where all sets:
$$
I_x\equiv\{y\in X:y\sim x\}
$$
are lines on $X,\forall x\in X$, and are parallel to $I_y,\forall y\notin I_x$.
How can I show that $\succeq$ has a linear…
Guilherme Salomé
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6
votes
1 answer
Envelope Theorem
Say I'm solving for consumption given income, and we assume that an interior solution exists:
$$ \max_c U(c, Y)\\
C(Y) = \arg\max_c U(c, Y)\\
$$
However, there is no closed-form solution for $C(Y)$. But I know it is cont. differentiable. Now I am…
FooBar
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6
votes
3 answers
Accounting for machines in the labor theory of value
I have read that the Labour Theory of Value holds that the value of a good or service is determined by the total amount of labour involved in its production. To account for this properly, we must count not only the labour directly involved in…
Ubiquitous
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6
votes
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When was fractional reserve banking introduced?
According to Wikipedia's history of banking article:
Modern banking practice, including fractional reserve banking and the issue of banknotes emerged in the 17th century.
The article on fractional reserve banking seems to suggest that the Bank of…
Mr. Bultitude
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