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1500 questions
6
votes
2 answers
Is it true that $\frac{dL}{dq}=1/\frac{\partial q}{\partial L}$?
Marginal costs MC is defined as $MC=\frac{dC}{dq}$. Taking into account that $C=wL+rK$,
$$MC=\frac{dC}{dq}=w\frac{dL}{dq}+r\frac{dK}{dq}$$
Recall that marginal product of labor $MP_{L}=\frac{\partial q}{\partial L}$ and marginal product of capital…
ji borrob
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6
votes
1 answer
Does vNM rationality depend on the good chosen?
The von Neumann-Morgenstern theorem states that, assuming a person's preferences under risk satisfy certain rationality axioms, then there exists a utility function u, the von Neumann utility function, such that the person will tend to maximize the…
Keshav Srinivasan
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6
votes
3 answers
Who regulates the balancing of the books for commercial banks? How? Is it public information?
I've just read Money Creation in the Modern Economy, an article published by the Bank of England. This article brings about a lot of questions in my mind. This article talks about money being created through commercial bank loans, and that central…
Alexandru
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6
votes
1 answer
How is monetary policy sustainable, or even fair, in the current economy?
I've just read Money Creation in the Modern Economy, an article published by the Bank of England. I'm trying to wrap my head around this from multiple points of view, since it brings about a lot of questions in my mind. This article talks about…
Alexandru
- 273
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6
votes
1 answer
Equilibrium with Externalities: Solving without FOC
I have a general equilibrium problem, where households given objective function $U(c,n)$ solve for working hours and consumption $n, c$, and firms use labor to produce a consumption good - their objective function is $V(n)$. There are potentially…
FooBar
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6
votes
0 answers
Biggest breakthroughs in Economics in 2023
I recently went through a few videos by Quanta magazine, talking about what, in their opinion at least, are the biggest breakthroughs in Mathematics, Computer Science, Physics and Biology/ Neuroscience.
Now, they do not have a video on what they…
Ishan Kashyap Hazarika
- 1,879
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6
votes
1 answer
Generalized KPR: Frisch Elasticity
Consider the following version of KPR preferences (with $l$ being leisure):
$$ U(c,l) = \left(\left(c\right)^\gamma l^\omega\right)^{1-\sigma}$$
I'm after the Frisch elasticity:
$$ \frac{\partial(1-l)}{\partial w} \frac{w}{1-l}$$
Note that…
FooBar
- 10,712
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6
votes
2 answers
Are there some sucessfull pro-natality economic policies?
Many people are warning against demographic decline in the Europe and USA. Is there any evidence that economic policies or subsidies can help increase birth rates?
Ezekiel
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6
votes
3 answers
Quantitative Easing in Africa
I am currently doing a research work on quantitative easing and can't find any example of it occurring in Africa. Have any African central banks ever used QE?
guest0690
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6
votes
3 answers
Do claims in economics require proofs?
My professor stated four axioms in class
Scarcity
Rationality (aka purposive behavior)
Stable Preferences
Equilibrium
I don't understand what these axioms are for. I am used to axioms with distinct mathematical properties (eg definition of a…
Stan Shunpike
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6
votes
2 answers
Has Stack Overflow been economically beneficial to programmer productivity?
Has Stack Overflow an overall positive impact on programmers productivity?
On one side, it takes time and effort to ask and answer questions -- thus decreasing productivity.
On the other side, more and more programmer questions are answered and…
Sklivvz
- 161
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6
votes
2 answers
Why life expectance is growing faster than retirement age? - source needed
Need sources of information about "Why is life expectancy growing faster than retirement age?"
Is there any literature about "why the increased quality of life and medicine in rich countries doesn’t increase the ability to work for older people?"
Y.N
- 163
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6
votes
2 answers
Integrate a sufficient statistic
I have a few mathematical problems with the paper Moral hazard in teams 1982. How do I get from (2) to (1) by integrating and why is the qualification necessary "for almost all"
$$g(y,a)=h_i(y,a_{-i})*p_i(T_i(y),a) \qquad (1)…
contracttheory
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6
votes
3 answers
Are logarithmic values used in finance?
In engineering (in particular, in fiber optics), the logarithmic form of representing numbers is often used. It is convenient if the value sequentially passes through a series of points with input and output. And at each point, the output value is…
Arseniy
- 163
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6
votes
1 answer
Shopping example in Kőszegi / Rabin (2006)
In "Section IV Shopping" of Kőszegi / Rabin (A model of reference-dependent preferences, QJE 2006), the example of consumer buying a pair of shoes is given.
They claim that "her disutility from spending on the shoes is between $(1+\eta)p$ and $(1+…
bonifaz
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