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Economics : Recent Questions and Answers (Page 11)

Find answers to your questions about Economics or help others by answering their Economics questions.

Monetary policy rate and fiscal deficit

A colleague in work mentioned today that Chile is keeping a flat monetary policy rate given "there is a higher expected fiscal deficit". If there is an expected fiscal deficit...

Asked on 08/20/2021 by SheilaZen29

1 answer

Why are Americans at the top of nearly every field?

I live in India, and having spent several years in America before returning, I noticed that Americans dominate in nearly every sphere of human activity. For example, the US seems...

Asked on 08/20/2021

1 answer

What's the economic argument (if any) for taxing dividends as ordinary income?

My (limited) understanding is that dividends and share repurchases are economically very similar: while share repurchases are slightly less direct, both transactions are effectively ways for publicly traded companies to...

Asked on 08/20/2021

1 answer

GDP accounting: Insurance spending belong to which part of GDP?

We know that $GDP = C + I + G + NX$, where $C$ is household consumption and $I$ is private investment. I don't know whether insurance...

Asked on 08/20/2021 by user28763

0 answer

Symmetric mixed-strategy equilibrium: Entering markets [Solved]

Question: Suppose three identical, risk-neutral firms must decide simultaneously and irreversibly whether to enter a new market which can accommodate only two of them. If all three firms enter, all...

Asked on 08/18/2021 by peachyloaf

1 answer

robinson economy with production

Facing a little bit of a problem with this questions, did a similar one BUT the utility function was not linear and got MRS dependent on goods (was not just...

Asked on 08/17/2021

2 answer

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Decades ago a factory job could support a wife and kids until retirement and they offered insurance, benefits, etc. Now, no more unions, those jobs as well as tech and...

Asked on 08/17/2021 by Bruno1993

16 answer

Year Fixed Effects in a Dynamic OLS Regression with Cointegrated Variables

I am estimating a dynamic OLS model since I have variables that are non-stationary, but cointegrated. In addition, the data is a standard time-series (i.e. one observation per one time...

Asked on 08/17/2021

2 answer

Positive productivity shock with a fall in output

I am modeling a two-country world. Within each country there exists a representative infinitely-lived agent, a representative final good producer, a continuum of domestic monopolistic competitive firms (owned by consumers),...

Asked on 08/16/2021 by Alex Ruiz

1 answer

New Keynesian Phillips Curve (NKPC) derivation in Clarida, Gali & Gertler (2002) using Rotemberg

I have some issues in deriving the NKPC in Clarida, Gali & Gertler (2002) that you can find here.I'm asked to derive the NKPC by combining...

Asked on 08/16/2021

0 answer

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