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1500 questions
6
votes
1 answer
Can integrals be interpreted simultaneously as aggregates and averages? (Mas-Colell et al. 1995, Proposition 4.C.4)
I'm currently reading chapter 4 of Mas-Colell, Whinston, and Green (1995).
I have a problem with the way integrals are treated. For instance, Proposition 4.C.4 (p.113) states that when wealth is uniformly distributed on $[0,W]$, the aggregate and…
Belisario
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6
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1 answer
What are the advantages and disadvantages of second price auctions?
I am reading https://en.wikipedia.org/wiki/Vickrey_auction about second price auctions.
It seems counterintuitive to me that the winning bidder pays the
bidding price of the runner-up bidder, rather than their own winning
bidding price as in first…
Tim
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6
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1 answer
Weak Axiom of Revealed Preference
Maybe this is a well-known fact that I have somehow overlooked or forgotten etc., but I found myself curious recently if there are any conclusions about WARP holding over different dimensions for a given choice structure.
So, if I have a utility…
123
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6
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1 answer
Omitted variables in gravity model
I'm trying to construct a gravity model for EU trade flows using a panel dataset, but am suffering from what appears to be a persistent omitted variable problem. My residuals display a queer log-like, almost polynomial type pattern when plotted…
Robert Brown
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6
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1 answer
Errata for Wooldridge graduate econometrics book
Does anyone know where I can find an errata to the 2nd edition (2010) of «Econometric Analysis of Cross-Section and Panel Data» by Wooldridge? I've tried the accompanying website, but I could not find it.
Any help would be appreciated
An old man in the sea.
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6
votes
1 answer
Impact of election outcomes on individual's mood? Behavioral Finance
I am currently working on my thesis in behavioral finance. My topic is about short term stock returns after the elections. One paper ("Sport Sentiments and Stock Returns") proves that the losing country in a sports game exhibits much lower short…
Teroid
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6
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1 answer
Infinite Horizon Transversality Condition
This question is an extension of Endogenous Growth: Balanced Growth Path with CRRA Utility
however, this question asks about a specific concept used in that question, and I think it would be helpful to have a question dedicated to this concept.
We…
DornerA
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6
votes
3 answers
Understanding Tertiarization of the Economy
Trying to understand some of the core mechanics of tertiarization in developed economies.
According to the WorldBank,
"As incomes continue to rise, people’s needs become less “material”
and they begin to demand more services—in health,…
Benji Decker
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6
votes
1 answer
Labour markets and supply-side policies: too much stress put on the WS push factors?
In reading several macro textbooks, it seems that most of the supply-side policies tend to be focused on the labour supply side (wage setting curve), instead on the firm/labour demand side(price setting curve).
In most textbooks, this whole…
An old man in the sea.
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6
votes
2 answers
Can savings and poverty coexist?
Many governments try to decrease savings in the economy so that recessions do not occur. Does it make sense for savings and poverty to coexist though at significant scales?
Let's say a population was both in widespread poverty and they had savings.…
Christopher King
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6
votes
1 answer
Estimating elasticity of substitution in nested CES functions
I have aggregate data on $L_t, K_t$ and $X_t$, and want to estimate elasticity of substitution parameters, $\gamma$ and $\sigma$ for these factors. Assuming the production function takes the following form: $$Y_t=(A_lL^{\gamma}+[A_kK_t^{\sigma}…
london
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6
votes
1 answer
Isoquant creator
I was wondering if anyone had an idea about the first author to have mathematically computed an isoquant or at least the first occurrence of a drawn isoquant ? My best guess would be F. Edgeworth in Mathematical Psychics: An Essay on the Application…
Alexis L.
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6
votes
2 answers
What fraction of new businesses die out within a year?
Is there a simple way to figure out how many new businesses appear and disappear each year in the US economy?
It seems a key question to figure out how the economy is changing over time, although I suppose the data is potentially messy...
Fix.B.
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6
votes
3 answers
Why teach Arrow's impossibility theorem?
As part of a Macro class on social welfare, I am about to teach a very brief introduction to Arrow's impossibility theorem.
The classic demonstration of this involves three voters choosing between three alternatives, whose preferences are as…
LondonRob
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6
votes
2 answers
Why could interest rates go up if Brexit happens?
I was reading this article, George Osborne says Brexit would drive up mortgage rates:
George Osborne has issued a stark warning that mortgage rates will
rise if Britain leaves the European Union.
The chancellor said he thought it was likely…
Trajan
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