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1500 questions
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3 answers
Bayes-Nash equilibrium and correctness of beliefs
Define a Bayesian game as follows: $$G = \left\langle I, \left(A_i,T_i,(p_{t_i})_{t_i \in T_i}, u_i \right)_{i \in I} \right\rangle$$
$I$ is the set of players
$A_i$ is the action set for player $i$,
$T_i$ is the set of possible types for player…
Shane
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Criticism of "Modern Political Economics" by Varoufakis, Halevi, Theocarakis
The book "Modern Political Economics" is quite critical about "neoclassical economics", the basic claim being, if I understand correctly, that the models which "neoclassical economics" (armed with mathematical insights starting from John F. Nash Jr,…
John Donn
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What is the difference between VAT and corporate tax
Many times I hear that VAT (value added tax) is a "good" tax, while corporate tax is a "bad" tax/ However, both taxes take a cut from the difference between the income of a company and its expenses, and seem therefore to be economically equivalent.…
eyal
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What makes the Balance of Payments (BoP) to imbalance?
Theoretically the capital account balance should fully offset the current account balance and the BoP should be zero for any economy. What causes the imbalance or discrepancy in the overall BoP ? What makes countries run BoP surplus or deficits ?
Sub-Optimal
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Why does the Dutch disease cause the value of the currency to increase?
I was just reading about the Dutch Disease and it causes that the value of a country's currency increases when said country suddenly finds natural sources of oil. Why is that?
user6507
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Game with predatory player (reference request)
I am interested in a multiplayer game where one player gains utility, not just by winning, but by seeing one other player (chosen in advance) lose (or come in last place if the game has an ordered finish). Obviously, the best case scenario for this…
DornerA
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Is it possible for a Central Bank to escape from a deflation trap by 'hiding' information?
I'm reading this book on macroeconomics.
When determining the nominal interest rate, the Central Bank has in mind its real interest rate goal. By the Fisher Equation: $i_t=r_t+\pi^{E_{CB}}_{t+1}$, since at time $t$, I would need to know the price…
An old man in the sea.
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Prediction market based on LMSR: Sell, or buy other side?
Consider a prediction market with two outcomes (Yes and No) and a scoring rule based on Hansons’s LMSR, i.e. ln(ea+eb), where a and b are the number of Yes resp. No shares sold.
Assume that I have previously bought 10 Yes shares, but now I changed…
Joachim Breitner
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2 answers
Is inequality increasing? Does it correspond to increasing social harm?
I have a series of related questions.
My understanding is.
Economic wealth (ie. GDP) per capita is increasing around the world. We can refer to this as 'the pie is getting bigger'.
At the same time, inequality (the distribution of the pie) is…
dwjohnston
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3 answers
When is a utility representation differentiable?
We know that if we start with a connected, separable product space $V_1\times,...,\times V_n$ and a complete, transitive, and continuous preference relation $\succsim$ on this product space, that there exists a continuous! utility representation…
HRSE
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Consumption-Leisure Elasticity
The macro-literature insists on a consumption-leisure elasticity of 0 to match the balanced growth fact of constant labor supply.
Is there any paper that tries to evaluate this elasticity using micro-data, for a representative subsample of the…
FooBar
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A feasible rational payoff that is not an equilibrium payoff in the repeated game
The textbook I am currently reading claims that, in an infinitely-repeated game with discount, there might be a payoff vector which is feasible and individually-rational, but it is not an equilibrium payoff vector in the repeated game. The example…
Erel Segal-Halevi
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5
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1 answer
What is an equilibrium generated by replication?
Sorry this might be a little too rudimentary for you, but I'm not an Econ background. When I was doing exercises for MGW chapter 17 "Positive Existence of Equilibrium" I came across the following statement
The consumers preferences are strictly…
Kenneth Chen
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What is an economic bubble?
How do one know whether an appreciation in the price of an asset is a bubble or not? For example, during the 2007-2008 crisis, there was a housing bubble, which is only mainly agreed upon when the bubble actually starts to burst. Beforehand,…
Kun
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What were the factors that caused the Philips curve to stop working during the 1970s?
Philips curve says that inflation and unemployment were inversely correlated. In the 1970s, stagflation happened. If Philips curve hold true, stagflation is impossible.
What were the factors that caused the Philips curve to stop working during the…
curious
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