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Economics : Recent Questions and Answers (Page 2)

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

Contribution by each factor

Must admit it has been many years since I have done advanced calculations or anything remotely like it, so please bear with me.I have problem that I hope to...

Asked on 11/20/2021

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 11/18/2021

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 11/18/2021

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 11/18/2021

0 answer

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 11/17/2021

1 answer

Policy ineffectiveness proposition

Suppose, the Aggregate supply is given by the Lucas Supply Curve - $y_t = ȳ + b(P_t - E_{t-1}P_t) + μ_t$ where $μ_t$ is stochastic supply shock (following...

Asked on 11/13/2021

0 answer

How to optimize this dynamical system? Needing guidelines

I'm trying to solve a growth model, where the author indicates is a dynamical system.I want to ask if someone would help me with some guidelines of how to...

Asked on 11/10/2021

0 answer

What are the correct utility functions?

It is common to talk about utility functions. For example in a universe with only two goods, we might assume each person (or group of people) carries a function ...

Asked on 11/10/2021

2 answer

How to determine covariant stationary values?

I am trying to determine the values for when this ARMA model is covariance stationary. I have the model: $z_t = a + Bz_{t-1} + u_t + u_{t-1}$ I...

Asked on 11/07/2021

1 answer

Is Adam Smith's "stock" an archaic version of "capital"?

In The Wealth of Nations, Adam Smith uses the word "stock" many times, but not with the meaning we ascribe to it today (supply of an asset, inventory). I take...

Asked on 11/07/2021

1 answer

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