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Economics' position in the hierarchy of sciences (hard vs soft)

As a student of Economics, I often listen to the claim that Economics is a "soft science" and that its results may not be too reliable etc. The explanations are often based on personal opinion. I have newly come to know that rigorous academic…
Ishan Kashyap Hazarika
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Certainty equivalence when the utility is semi-continuous instead of continuous

Let $U:\mathbb R^2\to\mathbb R$ be a utility function. If $U$ is strictly increasing and continuous, then it is well known that for any $(x_1,x_2)$ there exists a certainty $(c,c)$ such that $$U(x_1,x_2)=U(c,c).$$ If we assume that $U$ is strictly…
High GPA
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Proof Based Math Education in Economics

One of the things I've experienced as a graduate student is really the lack of math being a main factor in holding me back from approaching more advanced materials in microeconomics and macroeconomics. Often I find myself playing a lot of catchup. I…
EconJohn
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What has been the reception of Posner & Weyl’s claim that property rights lead to market power?

Posner & Weyl claim that property rights lead to monopoly rents: Property Is Only Another Name for Monopoly Radical Markets Have their claims been elaborated, tested, or peer-reviewed? In situations with assets with unique attributes that cannot be…
sba222
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Question on the Definition of A Numeraire

I'm familiar with the idea of a numeraire when prices come in the form $\frac{p_x}{p_y}$, but I'm still trying to figure out what the more general notion of a numeraire is. For instance, if all that I'm given is $p_x,p_y,$ and $m$: what is supposed…
CalculusHelp72
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Does immiserizing growth exist outside of theory?

For a course in international trade, our professor touched on the idea of immiserizering growth. He emphasized that immiserizing growth was a theoretical outcome from specialization of trade and did not provide the class with examples on the global…
Mathematician
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Up-to-date survey of panel data models

I am looking for an up-to-date survey paper or a book chapter on panel data models. I know there are excellent textbooks out there like Wooldridge "Econometric analysis of cross section and panel data" (2nd edition, 2010) and Hsiao "Analysis of…
Richard Hardy
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How can I model my problems with math?

I want to ask a question about mathematical economics. When I read an article about economics, I see lots of mathematical equations. I can solve them without any help. But I can't create my own mathematical equations. For example, this guy created…
mfc
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Is investment in real estate a real investment?

In the book The Financial Crisis and the Free Market Cure in chapter 3 author said that investment in real estate is not really investment. It is jobs that create houses not houses that create jobs Author motivated it as: when we investing in…
Andrew Sasha
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Derivative of definite integrals - how did MWG arrived at this result? Microeconomics

For a wage as a function of profit: $w(\pi)$ and profit $\pi \in [\pi_{min},\pi_{max}]$, the owner of a company sets the minimum wage to satisfy the following condition: obs $e = \{e_l, e_h\}$ but in this case effort is observable and contractible,…
Victor Dahan
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Is it true that if marginal cost is constant, then average variable cost is also constant and equals marginal cost?

I'm inclined to think yes because marginal cost only depends on variable cost (fixed costs don't matter), but I'm not 100% certain. Basically, my thought process is that marginal cost of producing one additional unit is the change in total variable…
Will
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Skepticism about the claims of instrument variable validity/exclusion through a statistical test—the Arellano-Bond Test

I am an applied researcher and occasionally come across papers that have panel data and that use dynamic models with both a fixed-effects term and lagged DV (or multiple autoregressive terms): $y_{it} = \beta_0 + B_1X_{it}+\alpha y_{i(t-1)}+\delta…
Student
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What is the definition of Eurodollar?

What are Eurodollars? How are they distinct from plain old dollars? Asking as an interested but non-specialist outsider, though I do know what demand deposits are and am familiar with the conversation regarding fractional reserve banking.
ianb
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In a game with alternating moves and complete information, the Nash equilibrium cannot be a non-trivial mixed equilibrium?

Where I can find a simple proof for this fact? For example, a trivial bimatrix game with alternating move has the following payoff matrix: \begin{array}{|c|c|c|} \hline & 1 & 2 \\ \hline U & (0,0) & (0,0)\\ \hline L& (0,0)& (0,0)\\…
High GPA
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What determines whether slavery is economically efficient in industrialized/modern era economies?

Various forms of slavery were nearly universal before the industrial revolution. After industrialization, it would naively seem forced labor would continue to be widespread, as there is no way to compete against it. But it only remained or became…
user1441998
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