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Question - Individuals in a given village have incomes described by the following equation: y = A + ε + θ, where A denotes risk-free income, ε denotes an idiosyncratic (individual-level) shock and θ denotes a village-level shock.
(a) Suppose full insurance were possible within this village. How would this affect individual income?
(b) Name two advantages and two disadvantages of limiting insurance to (within) the village.
In testifying before Congress, then Federal Reserve Chairman Ben Bernanke said that the sequester "could create a significant headwind for the economic recovery." What did Bernanke mean by a "headwind"? Why would the sequester create a headwind fo..
The sampling plan was designed to obtain equal numbers of responses from small, medium, and large companies. In preparing an analysis of the survey results, do you think it would be reasonable to proceed as if the responses represented companies o..
the implications of the barriers to entry/exit, the efficiency of this market, profit maximization, elasticity, an explanation of why advertising is more important in this market structure compared to the other types, and any other important chara..
What is the incumbent's marginal cost function for a given capacity? Derive the incumbent's marginal revenue function. For k1 = 5, what is the incumbent's best-response function?
The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are:
The superintendent of a Texas school district wishes to better understand how economic factors affect inequality in academic achievement across the district.
Suppose college graduate earn$25 an hour and high school graduates earn $15 an hour. Suppose too that the marginal product of college graduate at Jonson Tools is five hammers per hours, while the marginal product of high school graduates is four hamm..
In 1998, the Syndicated Bank Loan market (defined as loans having more than two bank lenders) was a vast and cheap source of debt financing for U.S. corporations. This market was characterized by a large number of financial institutions that aggressi..
Create a list of five best practices that any organization could use to leverage a compensation system for positive impact.
Where X denotes a particular measure (e.g., urban population) and its values represent the value for each country in the sample. What are some potential advantages and disadvantages of the index?
Insen code to implement the following structured design immediately after each design comment. Assume that the following structured design is just a small.
Can anyone tell me if there is a fear of a terrorist attack inside of the Home country, what may happen to the autonomous net exports? Will it increase or decrease?
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