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1500 questions
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What would happen if the US defaults on its debt?
As has been widely discussed already, the situation in Greece is considered more serious than in the US, as they have dollar-denominated debt and can only print Greek currency. The US, has the benefit of World Reserve Currency status. All of that…
Arash Howaida
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How do you strategically vote to put someone in last place?
I watch a dumb reality TV show which has a certain number of contestants to start with, and every week one contestant is eliminated. Here's how the elimination process works. Every week a certain number of contestants is nominated for elimination.…
Keshav Srinivasan
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6
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2 answers
Does Abatement Cost Mean Cost of Reducing Emissions with Output Held Constant?
In the economics of pollution control, frequent reference is made to 'abatement cost' and/or 'marginal abatement cost'. Is it normally implicit in the use of these terms in economics that output is held constant? In other words, that the cost…
Adam Bailey
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2 answers
Unintended consequences from "fixing" the US financial system
Last year, I read the book The Bankers' New Clothes: What's Wrong with Banking and What to Do about It. The book explained some of the causes of the recent financial crisis of 2007-2009 and gave some steps to prevent a similar crisis from occurring…
Mathematician
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Why do co-ops dominate in certain markets rather than more-conventional enterprises?
Why do co-ops dominate in certain markets rather than more-conventional enterprises?
For example, the US dairy processing market seems to be dominated co-ops like Land'O Lakes and Dairy Farmers of America, while meat processing (a…
user809695
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What is the difference between a free market and a perfectly competitive market?
I am trying to find the distinction between a free market and a perfectly competitive market, and I can't find the right definition on what makes them different. Can someone give me a clearly expressed definition on what makes one different from the…
The Artist
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votes
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Gini index vs Herfindahl index: one increases while the other decreases
I am comparing two vectors of values which indicate portfolio weights in monetary units at two different dates.
I wanted to quantify if the concentration in the portfolios changed. So I moved on with calculating the Gini index and the Herfindahl…
user436994
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6
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1 answer
What statistics and linear algebra book do i need before reading Hayashi's econometrics
What statistics and linear algebra book do I need before reading Hayashi's Econometrics?
Basics linear algebra book seems too simple for the linear algebra part, and
Casealla's statistical inference is missing out detail/too basic for the…
Victor
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3 answers
Computational economics
What exactly is computational economics? For example, does certain software for calculating/predicting/visualizing cost of manufacture falls under computational economics?
Quirik
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6
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1 answer
Quantum Game Theory
This is a request for recommendations. I want to learn quantum game theory. Can anyone suggest where to begin with, some reading materials. (I am well versed in Non-Cooperative Game Theory, so you can assume my aptitude.) That would be very helpful.…
QED
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6
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Deriving and using the pricing equation
I'm a mathematician who's trying to learn some economics from Cochrane's Asset Pricing book.
I don't have any background in economics.
In chapter 1, he derives the basic pricing equation
$$ p_t = \mathbb{E}_t \left[ \beta \frac{u'(c_{t+1})}{u'(c_t)}…
user357269
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6
votes
1 answer
What are the fundamental economic proofs
We had a question on this site for Fundamental equations in economics. What I'd like to know is what are the most important proofs needed in economics?
EconJohn
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6
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2 answers
Fixed vs pegged exchange rate: What's the difference (if any)?
I am told very firmly by an economist that a pegged exchange rate is NOT the same thing as a fixed exchange rate. So what, if any, is the difference between the two?
Addendum: Here's one webpage about the difference. I am looking for simple…
user18
6
votes
3 answers
What is the equation $\mathbb{E}[mR]=1$?
I have just joined this Stack Exchange site and I was reading the following question: What are the foundational equations of Economics?. I have seen a couple of times the following equation in that post:
$$\mathbb{E}[mR]=1$$
I have a certain idea of…
Daneel Olivaw
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8 answers
Would insurance plan be necessary if we had instant access to credit?
Assuming one could instantly have access to an loan to cover his recent loss/accident at an affordable interest, would it make sense to pay premium for an insurance plan?
I was thinking that it would make more sense to save the premium money and use…
Leandro Machado
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