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What are the assumptions made about fixed points in the dynamics equations of Recursive macroeconomics?

I am new to Macroeconomics, but I understand the basics of Recursive Macroeconomic models--following the Ljungqvist and Sargent book. So I get the basic recursive problem to find a vector of consumption $c_t$ and labor $h_t$ that optimizes the…
krishnab
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When does it make sense to use variational methods, versus dynamic programming, versus nonlinear control methods so solve DSGE models

I come from a statistics and applied math background, but have been looking at some problems related to macroeconomic DSGE models lately. So I am still trying to understand the ideas and economics concepts, but I have a pretty good grasp of linear…
krishnab
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How can the Euribor 1-week rate be less than the ECB deposit rate?

Here is my understanding: The European Central Bank (ECB) deposit rate is the interest rate the ECB gives a bank for holding a deposit with them. Currently this rate is -0.5%. Which means that it costs the bank money to put a deposit with the ECB.…
Claudiu
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Proving Pareto-efficiency with MRS

Given three people with the same utility function: $$ u_A(x_1,x_2)=u_B(x_1,x_2)=u_C(x_1,x_2)=\sqrt{x_1x_2} $$ Prove that the following allocation is Pareto efficient: $$ x_A=(2,2),\: x_B=(3,3),\: x_C=(1,1) $$ I read my prof's answer to this question…
Yeet
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What are the economic peer-reviewed journals devoted to literature review?

I am looking for economic/econometrics journals committed to publish just (or mainly) literature review. So far I've found: Journal of Economic Literature Journal of Economic Surveys What are some others?
Oalvinegro
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Looking for a paper on game theory as a beautiful thing, not needing immediate purpose

I am looking for a paper I am sure to have read a while ago, but cannot recall its title. The message was that we should not judge game theory (or economic theory in general?) by its ability as an "applied science", improving our understanding of…
Bernd
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Does Russian Ruble strengthening mean the sanctions did not hurt Russian economy?

After imposing the sanctions to Russia, 1 USD skyrocketed to 139 Rubles, but now it is back to the pre-war exchange rate. Moreover, it kept decreasing almost every day recently. Does this mean that the Western sanctions on Russia did not work as…
Archil Zhvania
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Equation 3.3.8 in Mostly Harmless Econometrics

Suppose that $S_i$ is continuously distributed, not necessarily non-negative. The conditional expectation function of interest is $h(t):=E[Y_i|S_i=t]$ has derivative $h'(t)$. Equation 3.3.8 of Mostly Harmless Econometrics is: $$\frac{E[Y_i(S_i-…
Michael Gmeiner
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Solving cass-koopmans planning model with python value function iteration

edit: sorry, I used stack exchange first time, so I didn't know I can type python code. you can now copy and run the code. I'm practicing solving economic model using python programming. I refer to https://python.quantecon.org/optgrowth.html…
dueun
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Repeated games without a beginning and an end

I'm interested to know results on repeated games indexing each stage game by $\mathbb Z$ which contrast with those indexed by $\mathbb Z_+$. It seems to me this could be quite different from repeated games with a starting stage, because there's no…
Metta World Peace
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Have there been attempts to estimate the costs of obesity?

I have two groups. One is 1.6 to 2.1 times more likely to be obese than the other group. I've also compared the body mass index and found that the group of people in question have higher body mass indexes. This would be expected based on previous…
Paul Burchett
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Why do some game theory textbooks explicitly require preference relations to be reflexive?

A binary relation on a set of outcomes is called a preference relation if it is complete and transitive. Completeness of course implies reflexivity. But the authors of some game theory textbooks add reflexivity as an additional condition in their…
VARulle
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Solow Model with DRS and Human Capital

This is a self study question. I am novice at this and have only basic knowledge of solving such problems. \begin{align} Y &= AK^\alpha H^\beta \\ \dot{K} &= s_KY - \delta K \\ \dot{H} &= s_HY^\psi - \delta H \\ \end{align} Given, $\alpha + \beta…
Dayne
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Core-Equivalence Theorem (Debreu-Scarf Theorem) Intuition

The theorem states that if preferences are strictly convex and strongly monotone, then the Core eventually shrinks to the Competitive equilibrium as you replicate the economy enough times. How is this happening intuitively? Is it that you can form…
Rumi
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How do I change the base year of real GDP using the GDP deflator and nominal GDP?

I'll use the US as an example. I have three data series nominal GDP $(Y)$ real GDP in 2005 USD $(\bar{Y})$ the GDP deflator $(d)$, with 2005 as the base year, so $d_{2005} = 100$ I want to change the base year to 2000. Are these calculations…
M T
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