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1500 questions
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Do Human Resources use information on applicants' child rearing effort as a signal
In Spence's Job Market Signaling paper (a non-paywalled version is available here) firms observe applicants' educational investment. From these signals the firms glean information on the "type" or productivity of the applicants, the idea being that…
Giskard
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6
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2 answers
Shapley value — any real world applications?
The Shapley value has been around for seven decades now. It is intuitive, tractable, and has many desirable properties. To my surprise, however, its actual applications in the real world are not readily available (as defined by a simple Google…
Herr K.
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6
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Should Prices (or Price Indices) be modelled with deterministic trend?
I always face a dilemma on whether to assume prices to have a time trend or not while modelling. It is also partly a statistics problem. Let me explain. Assume I have time series, $y_t$ of price of a commodity which on plotting appears to be having…
Dayne
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Consequences of hyperbolic discounting
In reading the Wikipedia article about hyperbolic discounting, I read that it says that hyperbolic discounting created strange consequences:
But note, the time inconsistency of this behavior has some quite perverse consequences.
Is it just that…
jmbejara
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6
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3 answers
Understanding Vernon Smith's 1962 "An Experimental Study of Competitive Market Behavior"
Vernon Smith's 1962 paper "An Experimental Study of Competitive Market Behavior" simulates a market using students (who have piece of paper giving their reservation prices). In one of the experiments, the demand/supply curves look like the graph on…
IssaRice
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6
votes
2 answers
What is the service equivalent of an economic 'bad'?
In general conversation, the terms "goods and services" are often used together. In economics, these terms have the following meanings:
Goods:
In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer…
stevec
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How are economic principles applied to non-financial models, such as a democratic election?
Economic agents make decisions in particular models. These models do not need to be related to financial contexts, and economics can be used to describe how agents will act in any other field in which humans act.
As an example, how would economic…
curiousdannii
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1 answer
Why hasn't JPE formally retracted Emily Oster's article "Hepatitis B and the Case of the Missing Women" (2005)?
Amartya Sen (1992) argued that there were more than 100M "missing women" worldwide.
In "Hepatitis B and the Case of the Missing Women" (2005), Emily Oster argued
that hepatitis B can account for about 45 percent of the “missing women”: around 75…
user16353
6
votes
1 answer
Ambiguous definition of Substitution and Income effect?
Consider the (schematic) indifference curve diagram of two good-quantities Q1, Q2:
According to Wikipedia we call the vector AB' the substitution effect and the vector B'B as the income effect.
I now wonder why I could not, instead of translating…
axsk
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What are the economic drivers of urbanisation?
It is regularly argued that urbanisation drives economic growth (e.g. here).
I wonder which are the drivers that lead to urbanisation in the first place?
I believe the historical case of the industrial revolution and the contemporary case of…
sba222
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Minimum wages - what is the effect?
Does anyone know a good review on the debate on effects of minimum wages?
I am interested both in academic and non-academic sources. I have searched a lot but there is so much material written on minimum wages that it seems a bit like a jungle.…
user270396
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6
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3 answers
Does returns to scale always lead to economies of scale?
I can tell the difference between returns to scale and economies of scale, but then I still don't know if returns to scale ALWAYS leads to economies of scale?
Please could you help me?
Katie
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What is the point of considering only pure strategies in a game? How could you restrict people from thinking about mixed strategy?
In an experimental setting, how could you effectively incentivize the subjects to not to adopt mixed strategy?
I would like to re-emphasize that the question in concern is "how to prevent people from using mixed strategy" such that only pure…
High GPA
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votes
2 answers
How to estimate if goods are complementary or substitutes when one good is always offered for free?
Usually whether two goods are complementary or substitutes can be measured by estimating cross-price elasticity of demand. If cross-price elasticity of demand is negative the two goods are complements and if the cross-elasticity of demand is…
1muflon1
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The decline in the number of domestic servants
does it mean that the market mechanism does not work—that the offer
of the going rate of wages does not secure a servant because servants
do not move to the highest bidder? This complaint—which would
be far from unanimous—would have economic…
Giskard
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