# Questions tagged [mathematical-economics]

The application of mathematical methods to represent theories and analyze problems in economics.

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### How can difference equations with an infinite summation be represented in matrix form?

I have derived the microeconomic foundations of a dsge model and I've obtained the IS and NKPC. I would like to represent them in matrix form to study the system. However the problem is that both ...
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### Interpolation of Gini Index?

Is there a conventional curve used to interpolate the Lorenz curves that model the distribution for calculating the Gini coefficient? Is it polynomial? But why? Which degree?
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### Why are NNP/GNP loosing there significance?

It is a well known fact that NNP and GNP are loosing their significance with time. I tried to find a solution to this issue and in a book I found the following statement: "NNP and GNP are ...
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### What model did the MONIAC use?

Phillips designed a hydraulic computer to model the UK economy in 1949; 12-14 copies were built. What model did it compute with? How have modern models of the UK built on that work?
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### homothetic functions in economics

Are there any results in economics that require function to be homothetic? The textbook I am using (Essential Mathematics for Economic Analysis) says that function is homothetic when " $f(x)=f(y)$...
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### Can we model risk with only probability?

Sorry for the confusion! I am adding an example to see if it helps: For example, consider a gamble A, with payoffs {a,b,c,d}, whose probability of each payoff being realized is equal (so 25% each); ...
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### Would some help me fill in missing steps from a textbook exercise left for the reader

Question: Suppose $C_t=(1-s)Y_t-\lambda G_t$ where $s>\sigma$ as in the basic Solow model. Out of the government expenditure , proportion $\phi$ is invested in public capital formation. Hence we ...
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### Are there any analysis of what is the net benefit of NASA program to US economy?

I am looking for some study that tries to calculate whether the NASA program on a net basis benefits the US economy. The program is very expensive, but it generates lots of patents, research, jobs and ...
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### How to find $\phi$, that denotes the correlation of signals among informed traders?

Since I do not have an answer on Quantitative Finance in my question I cross-post here the problem to tag some other categories The following assumptions are part of the paper of Back, Chao and ...
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### What are the advantages of using demand systems estimation? How is this different from individual demand estimation for product?

I am unable to understand how is demand systems estimation is different from simple demand equation estimation. What's the best resource for getting a history line of demand systems?
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