In a Solow model with competitive markets, what is alpha (α)?
If capital can move easily across countries in search of the…
If capital can move easily across countries in search of the highest rate of return, then a higher tax rate on capital tends to reduce equilibrium worker wages.
Consider a Baby Solow economy where TFP = 1, capital starts…
Consider a Baby Solow economy where TFP = 1, capital starts off at K0=1, the savings rate is 50%, and the annual depreciation rate of capital is 10%. What is the steady-state capital stock?
Dietz reports in Fully Grown that corporations appear to mov…
Dietz reports in Fully Grown that corporations appear to move their innovative activity from state to state partly in response to tax rates.
In an economy with a simple Cobb-Douglas production function…
In an economy with a simple Cobb-Douglas production function and competitive markets, the worker’s equilibrium share of output is (1-s), 1 minus the nation’s savings rate.
Across countries today, nations with higher population tend…
Across countries today, nations with higher population tend to have higher levels of GDP per person.
Rates of firm entry and firm exit have increased over the la…
Rates of firm entry and firm exit have increased over the last few decades.
Which component of GDP is most volatile from year to year?
Which component of GDP is most volatile from year to year?
In the land of Implicatia, national output is always 500 Imp…
In the land of Implicatia, national output is always 500 Implications per year, every year. Implicatians (the people of Implicatia) imported 100 Implications and exported 200 Implications in 2023. In 2024, Impliciatians imported 175 Implicatians instead. Between 2023 and 2024, did that rise in imported Implications tend to decrease GDP in Implicatia?
Positive reinforcement can feel pleasurable because of the “…
Positive reinforcement can feel pleasurable because of the “pleasure centers” in our brain that respond to it. What neurotransmitter is associated with feelings of pleasure?