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1500 questions
5
votes
1 answer
Adjusting GDP for Environmental and Resource Impacts
It is widely recognised that GDP as conventionally measured does not reflect an economy’s impact on the environment and its consumption of natural resources. There have been various attempts to develop broader measures of economic performance via…
Adam Bailey
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5
votes
1 answer
What is the relationship between the HJB and "Hamiltonian"? Why is the Hamiltonian H(p) inside the HJB?
Deterministic Optimal Control Problem
$
V(a_t)
=
\underset{c}{\max}
\int_{\tau =t}^{\tau = \infty} e^{-\rho (\tau - t) } u(c_{\tau}) d\tau
$
s.t.
$
\frac{da}{d\tau} = \left( r a_{\tau} - c_{\tau} \right) $
CV Hamiltonian:
$H^{CV} \equiv u(c_t)…
Albert Zevelev
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5
votes
1 answer
Strategic form representation of extensive form games
Proposition. Every finite extensive form game is associated with a unique strategic form representation.
I think this proposition is true. But how do we prove it rigorously?
Herr K.
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5
votes
2 answers
Understanding subscripts in first order conditions of dynamic optimization problems
Suppose we have a simple maximization problem as described in Equation 1.1 here or here. This leads us to the Lagrangian Equation 1.3: $$\begin{align*}\mathcal{L} &= \sum_{t=1}^\infty \beta^{t-1}\left\{u(c_t) + \lambda_t \left[ f(k_t) + (1 -…
Konstantinos
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5
votes
1 answer
Do 'liquidity pools' effectively determine market price?
First, lets be clear - I'm not pitching a crypto here, and I'm not seriously interested in Safemoon, which seems to be a pyramid scheme.
However, I was investigated Safemoon, and discovered this concept of liquidity pools and decentralised…
dwjohnston
- 2,036
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5
votes
1 answer
What are the main differences among xtreg, areg, reghdfe?
Normally, when I run regressions for panel data in Stata using these three commands (xtreg,areg, reghdfe), the results regarding the coefficients of variables are quite similar; the only differences are about the R-square and intercept. I am…
Phil Nguyen
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5
votes
0 answers
In experiments of 2-by-2 games where the dominant action benefits both players, do people frequently choose the other action?
Sayers et al look in Some descriptive aspects of two-person non-zero-sum games at variations of the prisoner dilemma. They had two participants (α and β) pressing press either a black (1) or a red (2) button. In one example they used the matrix:
In…
Christian
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5
votes
3 answers
Is it true that the Federal Reserve is not federal and has no reserves?
The Money Masters is a 1996 documentary film that discusses the concepts of money, debt, taxes, and describes their development from biblical times onward.
Its main points were summarized by a redditor thusly:
Essentially this documentary talks…
MWB
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5
votes
1 answer
Is Firing Costly in the US?
I suppose that it doesn't cost most firms much to get rid of cheap labor, and that high wage workers typically have contracts that imply high compensations in case of firing.
But what about the remainder? Since Macroeconomics is mostly about the art…
FooBar
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5
votes
1 answer
Missing values in economic time series
I am trying to run a time series analysis on some variables - GDP being my dependent variable, and my independent variables are oil revenues, government expenditure, exports and FDI inflows. My data contains missing values for some years for at…
Bimz
- 61
- 1
5
votes
3 answers
Why are asset pricing models equilibrium models?
I have several times heard scholars refer to asset pricing models (such as the CAPM) as a type of equilibrium model. Why exactly is this the case? Does this simply mean that equilibrium is a necessary condition we need to accept for the model…
Constantin
- 623
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5
votes
2 answers
Why could China, much poorer than US, lend so much money to US?
The GDP per capita of China is only a fifth of that of US.
But China has lent more than a trillion dollars to US.
How could the much poorer China lend so much money?
Where did those money come from?
user4013
- 53
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5
votes
1 answer
Derive and Decompose The Aggregate Elasticity of Substitution in CES Economy
The paper is Oberfield & Raval 2021.
Consumers have standard Dixit-Stiglitz preferences consuming the bundle
$$Y= \left(\sum_{i \in I} D_{i}^{\frac{1}{\varepsilon}}…
Alalalalaki
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5
votes
1 answer
What shoud we do when the expected treatment overlaps control sample in DID?
In a generalized Difference-in-Differences in Dasgupta,2019 paper, he documented that
control countries did not have a leniency law introduced over 2 years
before to 5 years after the introduction of the leniency law for the
treated countries.
And…
Phil Nguyen
- 1,130
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5
votes
2 answers
Demand for minimum of $4$ different goods
The consumer has the utility function with $4$ goods $$U=\min\left \{ \sqrt{x+y},z+w \right \}$$ The prices are $p=(3,2,2,1)$ with wage $m=1$.
Find the demand.
So far I have observed that it is perfect complements BUT it must be between the 4…
user879295
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