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# Questions tagged [mathematical-economics]

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

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### Which areas of mathematical knowledge are required for understanding different genres of theoretical economics literature (and at which level)?

I would like to know which mathematical skills are most important to understanding different types of theoretical economics literature. An ideal answer would list disciplines used for different '...
131 views

### Interchangeability between knowing an event obtains with probability 1 and knowing an event obtains with absolute certainty?

In the literature of interactive epistemology, for a player, knowing an event obtains with probability one and knowing an event obtains with absolute certainty are different. Is there a nontrivial (...
3k views

202 views

### Does rioting impair the economy?

In this article, the author looks at some of the indirect effects caused by the rioting in Ferguson, Missouri after the jury's decision not to indict the police officer. He explains that the rioting ...
2k views

### Macroeconomics Textbook on New-Keynesian models

I'm looking for textbooks that explain the New-Keynesian models, without taking shortcuts on the mathematics, that would go in depth on the derivations of the formulas. I appreciate rigour, and ...
385 views

### How to solve a linear forward-looking equation $x_t = \beta E_t[x_{t+1}] + k$ where $\lim_{t \to \infty} x_t = 0$ and $0<\beta < 1$?

How does one solve a linear forward-looking equation $x_t = \beta E_t[x_{t+1}] + k$ where $\lim_{t \to \infty} x_t = 0$ and constant $k,\beta \in \mathbb{R}$, $0<\beta <1$?
177 views

### Rationality and Common Belief in Rationality in Brandenburger & Dekel (1987)

One of the fundamental results in epistemic game theory is that the solution concept of correlated rationalizability gives exactly those action profiles that are compatible with rationality and common ...
741 views

### Complete Markets in Continuous Time

In the standard discrete time economies with a finite number of states, $n$, a complete markets economy is simply an economy with $n$ independent assets (Think Ljunqvist and Sargent Chapter 8). This ...
893 views

### What is the calculable effect of counterfeiting on an economy?

I'm curious whether one can numerically calculate the effect that counterfeiting has on an economy. As I understand it, counterfeiting essentially amounts to theft of the wealth of everybody holding ...
84 views

### Is there always at most one full-support extreme symmetric equilibrium?

Given a ($n$-player) symmetric game and two equilibriums $s_1,s_2$, is it true that if the support (the set of strategies with positive probabilities) of $s_1$ is identical to the support of $s_2$ ...
2k views

### Use of mathematics and imprecise definition of terms

As a postgraduate student of economics I've been trying to expand my mathematical "toolset". While doing so I've talked to engineers, physicists and mathematicians, many of which have disdained the ...
158 views

78 views

### Simulations Using Binomial Coefficients

In closed loop toy models with a fixed money supply, what are the downsides of calculating probable outcomes with a binomial coefficient? For example, given a toy economy where trades yield a profit ...
8k views

### Is complex analysis used in economics?

It's frequently useful in physics and engineering applications; are there any applications in theoretical economics? (If not, were there any attempts at incorporating CA that just never caught on?) ...