Is Welfare affected more by inequality than economic growth?

Whether if welfare is affected by inequality or growth is one of the “hot” topics in economics. It is stated from economic theory that Welfare can be affected in two potential ways by these situations. A positive effect over Welfare from economic growth, and a negative effect of Welfare by increases in inequality. Some new …

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M&S Research hub announces for the “Economic Posting Contest”

M&S Research hub announces for the “Economic Posting Contest” Authors of the 2 winning posts will receive 100 USD and 50 USD respectively, besides public exposure of their blog/profiles and publicizing their work over wide academic and social networks. We invite students, researchers, public officials, junior and senior academicians to submit their work to John …

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Endogenous co-regressor… Not what you think!

In classic econometrics textbooks and classes, we often associate endogeneity to the correlation or relationship with the error term from a regressor. This is correct and fully agreed upon across authors and professors. But there’s some kind of new endogenous behavior that may not be correlated with the error/residual only, and it may be a …

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Government and Transparency: An Applied Econometric Case for Colombia

In modern times, there has been an integration of the technologies of information and the public sector, which are strictly correlated with the development of open government policies across the world. This is an increasing concern in empirical approximations from the field of Public Economics, in the sense that we can ask several questions regarding …

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Modeling Asset Prices with Geometric Brownian Motion in Python

One landmark theorem in Financial Economics is the Efficient Market Hypothesis (EMH). This theorem posits that in an arbitrage-free market, we can model an asset’s present price as the discounted expected future price: We can take the natural logarithm to show that the natural logarithm of asset prices follows a random walk – the best …

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حاجات اتعلمتها فى الغربة 2

انا كنت كتبتلوا من فتره عن الحاجات اللى اتعلتها فى الغربة وكنت بصراحة بكتب و مش متوقعه ان فيه حد يقرا اللى كتبتبه اصلا, لقيت انه اتقرا كتير و الناس اتخيلت اني كمان كاتبة و مشهورة مع ان دي كانت اول مره اكتب فيها حقيقي المهم انا عجبنى الموضوع لاني حسيت اني ممكن افيد بصورة …

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Threat to validity of regression analysis – Omitted Variables Bias

Most of the readers of this blog would be familiar with ordinary least squares estimator and regression models. Let us talk about one source that can cause these estimates and models to be biased and inconsistent. This is especially important when we think about the causal relationship of interest or the relationship which being studied. …

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