Economics questions and answers


Should the control variables in an econometric regression be correlated with both the dependent and the primary independent variables?

If, for instance, my dependent variable is some happiness index, and my independent variable is a dummy for whether they experienced some randomly occurred natural disaster. I am trying to analyze the effect of having experienced that disaster on the happiness index. I am using a fixed effects model. I ....

Austin Austin: 8 hours ago


What is business cycle frequency?

I am reading a paper by Michal Andrle, Jan Brůha, Serhat Solmaz (On the sources of business cycles: implications for DSGE models). The authors use data at a quarterly frequency for their empirical analysis. But they also have this statement in their paper, 'Our empirical approach boils down to a ....

Violet Violet: 12 hours ago


The Next Breakthrough of Growth Economics

Romer has once said, that the growth economics has not had a breakthrough after his work of endogenous model of 1990's. What could somehow prove his saying is that we rarely see the theoretical invention in growth economics area in the recent years but large quantity of empirical study, with ....

Carson Carson: 16 hours ago


Count panel models for endogenous regressors

I have a count variable as the dependent variable and several continuous regressors on the RHS. The dependent variable and some regressors are supposed to be endogenous to unobserved factors. I have a set of IVs for the endogenous regressors. I have two questions: Is there any model for count ....

Carson Carson: yesterday


Contract curve for firms with linear utility functions

I am attempting to find a contract curve for a production economy with two linear utility functions. Normally, I would find the point where the Marginal Rate of Technical Substitution were equal for the two firms. However, in this case, this does not seem to work (I end up getting ....

Alice Alice: yesterday


Do large public companies ever "quit while they're ahead"?

Large public companies (e.g. S&P 500) seem to end their lives in one of two ways: either they're acquired (or taken private), or they go bankrupt. Theoretically it seems like there should be a third option: to wind up the company and return assets to shareholders (as Michael Dell famously ....

Beau Beau: yesterday


Lancaster's Characteristics Theory

In 1966 Kevin Lancaster proposed a new Economic Theory based on product characteristics instead of product utility. I would like to know the status of this theory nowadays among economists specifically those dedicated to Economic Theory. Thank You ....

Ivy Ivy: yesterday


Where to find information to establish causation between economic policies and economic data?

I've merely taken a few economic courses in college -not an economics major-, so my knowledge regarding the field is limited. Lately I've been interested in learning about the economic impact of government policies, particularly in the USA and as easy as it is to find data on median household ....

Noah Noah: 2 days ago


How was the year 1925 chosen as a dividing point in the history of economic thought?

The JEL codes ( divide "History of Economic Thought" into "through 1925" and "since 1925". What is the significance of the year 1925 in the history of economic thought? Or was this just some cutoff point that was quite arbitrarily chosen? ....

Alexander Alexander: 2 days ago


Does it make economic sense for only some universities in a certain area to pay their sports scholars?

Apparently ‘Athletic scholarships are common in the United States, but in many countries they are rare or non-existent.’ But are there countries where there are some universities that offer sports scholarships while other universities in the same country don't? We can shrink country to city, town, district, etc if you ....

Kennedy Kennedy: 2 days ago