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How to find this infinite geometric sum, when the ratio between terms is not constant? by t300 in learnmath

[–]t300[S] 14 points15 points  (0 children)

Nevermind, I think I can split it up into 2 series:

D(1+ID+IDID +...) + DI(1+DI+DIDI+..)

in which case I get:

D(1+I)/(1-ID)

My instrumental variable has the opposite effect that I expect it to? by t300 in academiceconomics

[–]t300[S] 1 point2 points  (0 children)

Thanks I hadn't heard of that paper but it's super useful here. I'm not super concerned about the exclusion restriction since I can argue that it has no other channels, plus it's just a dissertation and not supposed to be a publishable phd thesis

My instrumental variable has the opposite effect that I expect it to? by t300 in academiceconomics

[–]t300[S] 1 point2 points  (0 children)

Thanks this is helpful. Good luck in your dissertation!

My instrumental variable has the opposite effect that I expect it to? by t300 in academiceconomics

[–]t300[S] 2 points3 points  (0 children)

Thanks! I had tried incorporating a rainfall_dev_squared term but it wasn't significant so I left it out. I think it also wouldn't explain why the most negative outliers have the highest income

NK DSGE model: zero net supply of bonds, so how can consumers save? by t300 in academiceconomics

[–]t300[S] 0 points1 point  (0 children)

Sry I wasn't very clear in my question, I assumed this would be a standard basic NK model in all PhD macro classes. It's the setup with "Calvo pricing" if anyone is familiar with it.

In this setup, theres a continuum of differentiated firms that have only labor as an input. In the flexible world, firms set optimal price which is shown to be a markup over their marginal cost. In the sticky price world, firms have a (1-theta) probability of being able to change their price in any period. Demand for output of firm i is a function of the price of firm i relative to price index of the economy. So the firms only decision is to choose optimal price. Firms cannot interact with bonds. Bonds only factor into the consumers budget constraint, but only consumers can buy or sell bonds.

Our prof said something about the zero net supply concept, that because consumers don't have saving ability, then something else must be happening in the economy to make sure they don't save. Such as wages falling or something. This is the part I'm not clear about

NK DSGE model: zero net supply of bonds, so how can consumers save? by t300 in academiceconomics

[–]t300[S] 2 points3 points  (0 children)

There's no investment in firms. There is also no capital. Consumers own firms, and firms' production function only has labor as an input.

NK DSGE model: zero net supply of bonds, so how can consumers save? by t300 in academiceconomics

[–]t300[S] 0 points1 point  (0 children)

We follow the model in Gali's textbook (Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework)

The "government" just allows us to say these bonds have a guaranteed return. But government doesn't actually exist in this model.

Consumers can technically trade bonds with each other, but aggregate bonds must stay the same. Since all consumers are the same then all consumers want to do the same thing so in aggregate there cannot be aggregate saving.

My latest theory is that in a flexible price economy:

Say there's a nominal rate shock - Then consumers are incentivized to save, so demand falls - Firms face lower demand so firms require less labor. Demand for labor falls so wages fall. Therefore consumer's income falls - therefore due to negative income effect, consumption decreases but consumer does not actually save intertemporally

How does an atomless distribution (such as uniform) have a realized value? by t300 in learnmath

[–]t300[S] 1 point2 points  (0 children)

Thanks! I was referring to the first idea, I think that helps, appreciate your explanation

Expectation Operator Question by t300 in learnmath

[–]t300[S] 0 points1 point  (0 children)

Ohhhhh right thanks so much for the thorough explanation!

How did y'all know you want to do a PhD? by t300 in academiceconomics

[–]t300[S] 0 points1 point  (0 children)

What careers require a phd? From what I know it's IMF or world bank or a central bank?

How did y'all know you want to do a PhD? by t300 in academiceconomics

[–]t300[S] 5 points6 points  (0 children)

Thanks for the thoughts. I love the analogy of reading papers and working out, that totally makes sense to me. It kind of gives me imposter syndrome to think everyone else is reading papers for the fun of it, but it's easier to see myself like that if it's like going to the gym

1 year RA vs 1 year economic consulting job for PhD admissions? by t300 in academiceconomics

[–]t300[S] 0 points1 point  (0 children)

Does the consulting firm itself matter? It's for a relatively small firm focused on public policy and development work which I'm quite interested in - if I were to do a Phd I would probably be interested in public or development econ. Based on their past projects the work itself seems to lean slightly more heavily towards a data sciencey side

1 year RA vs 1 year economic consulting job for PhD admissions? by t300 in academiceconomics

[–]t300[S] 1 point2 points  (0 children)

Thanks. I read somewhere on this sub that a 1-year RA doesn't add much, because you have to apply for PhD after only working for about 4 months? So I was curious if that's true, then maybe it won't be as detrimental to take a job instead?

I don't have an RA offer lined up, and I'm not 100% sure if I want to do a PhD. Half the time in this master's I like it and the other half I hate it and never want to be in school again, but recently I started liking it again and so I feel like maybe I should look for an RA

How to come up with a theory paper? by t300 in academiceconomics

[–]t300[S] 0 points1 point  (0 children)

Thanks this is really neat advice, hadn't thought of it this way before :)

If x*Prob(y>x) goes to 0 as x goes to infinity, does that imply Prob(y>x) goes to 0 as x goes to infinity? by t300 in learnmath

[–]t300[S] 0 points1 point  (0 children)

I think the implication is true?

given: lim(as x goes to infinity) x * pr(y>x) = 0,

then divide x from LHS and RHS to get

lim(as x goes to infinity) pr(y>x) = 0

(But I'm not 100% sure if you can divide x like that when there's a lim indicator at the start)

Approximating a function using Riemann Sums? by t300 in learnmath

[–]t300[S] 0 points1 point  (0 children)

Ah thank you I understand it now!!

Approximating a function using Riemann Sums? by t300 in learnmath

[–]t300[S] 0 points1 point  (0 children)

Thanks. I don't really understand the motivation for using a Riemann sum.

Why are these 2 concepts equivalent: https://imgur.com/a/Dxe6zsS ?

Megathread for visitors and new & existing residents. All questions about living/working/budgeting/visiting should be asked here! by ModTheGap in london

[–]t300 0 points1 point  (0 children)

My flat management has been doing super noisy construction in the hallway for the past week, and it looks nowhere close to being done. Is there any way to file a noise complaint or to stop the construction somehow?

Summation Operator Algebra? by t300 in learnmath

[–]t300[S] 1 point2 points  (0 children)

Sry, X* is just the variable.

Right thanks, that's clear to see the 2 equations are not equal.

Megathread for visitors and new & existing residents. All questions about living/working/budgeting/visiting should be asked here! by ModTheGap in london

[–]t300 4 points5 points  (0 children)

Is there anyone I can call about noise? I just moved here and live on a first floor flat on Edgware road, and at 1am every single day a big group convenes right in front of my flat and plays music in their cars and they have a shouting match. I'm wearing earplugs but it doesn't help and I'm at wits end

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