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1500 questions
6
votes
1 answer
S=I in a closed economy
In a closed economy, the national income identities imply that $$S=I$$
However, the intuition is not clear to me. The saving is the part of national disposable income that is not consumed. $I$ is the sum of residential and nonresidential investment.…
ChinG
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6
votes
3 answers
Why do we consider purchase of house by households as investment?
According to what I have read, investment is the expenditure on creation of capital goods, which means that it is done by producers.
Then why do we treat buying of house by households as investment when they are not doing any production?
In the…
Jonathann
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6
votes
1 answer
Why stochastic dominance is "stochastic"?
I think the CDF is pretty much fixed, so the FOSD (first order stochastic dominance) is pretty much non-stochastic. Why does it have a "stochastic" in its name?
High GPA
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6
votes
3 answers
Why use marginal rather than average tax rates in incentive analysis?
Why do tax analysts worry about marginal tax rates, not average effective rates, in looking for incentive effects of taxes
Crysyal Mason
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6
votes
1 answer
What are some good advanced level textbooks on public economics?
I'm taking a public policy course and the textbooks that were recommended for the course are way out of sync with the course material. These are:
Gruber, Public Finance and Public Policy
Stiglitz, Economics of the Public Sector
Which are all well…
Pablo Derbez
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6
votes
3 answers
What does a stock market index stand for?
I know that a stock market index (like S&P, NIKKEI, etc.) is computed from the prices of selected stocks, but I was wondering why the name of the currency is almost never expressed. For example, if the S&P price is 2927 points I assume those are…
AbateFaria
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6
votes
2 answers
Literature on the effects of third-party certification on industrial dynamics?
Is there any comprehensive theoretical studies on how third-party certification adoption may affect industrial performance/dynamics of an industry?
WU Long
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6
votes
6 answers
Why does supply equal demand?
My question is simple: in theory, why should we expect the total quantity that firms want to sell to be (at least approximately) equal to the total quantity that consumers want to buy?
As I understand it, the standard explanation is something like…
user17900
6
votes
3 answers
What's unique about the Chicago School's Methodology?
What is the methodology of the Chicago School and what makes it unique among economic schools of thought?
Steve S
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6
votes
2 answers
Tests of rational inattention
Can you provide a reference regarding a revealed preference test(s) of rational inattention models, as proposed by Sims, ergo, using a mutual information measure as the cost of putting attention. And if possible can you briefly explained it. A link…
user157623
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6
votes
2 answers
Real wage stagnation and union membership
In the United States, wages in real terms have seen very little change over approximately five decades:
(source: http://www.pewresearch.org/fact-tank/2014/10/09/for-most-workers-real-wages-have-barely-budged-for-decades/ )
The reasons for this are…
BurnsBA
- 183
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6
votes
1 answer
Utility Maximisation Subject to Income and Time Constraints
The consumption of economic goods often takes time. Consider, for example:
Transport services, eg flights, rail journeys;
Leisure goods, eg watching a film, visiting a park.
I would like to explore models of consumer or household behaviour in…
Adam Bailey
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6
votes
1 answer
Uncovered interest parity and asymmetric capital controls
To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries.
But this cannot be directly applied to India because of capital controls. While foreigners are relatively…
Jyotirmoy Bhattacharya
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6
votes
1 answer
What type of graph can be hepful to explain the type of errors that should be used?
I have a regression of wage on several variables, such as education, marriage and so on. I want to explain that it would be a better idea to use cluster errors, since we expect the wage to be correlated with abilities for each person, but I want to…
Carlos N
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6
votes
2 answers
Instrumental Variable Paper for Minimum Wage
I am trying to write a paper dealing with minimum wages and employment. I understand there is simultaneity bias between these two variables so I must come up with an instrument. Does anyone have any ideas for instruments? I am also wondering if…
kbry118
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