Questions tagged [model]
The model tag has no usage guidance.
23
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Water Economic Metaphor - Evaporation / Condensation
I was considering economics, and how a lot of economics tends to use a water metaphor as a descriptive mechanism. Ex: market liquidity, "investment evaporated", "market flows around ...
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How do I find the best response for a Stackberg duopoly with price leadership, specifically for the question below
Consider a market served by two firms, firm $1$ and firm $2$. Suppose that the (inverse) demands for the two firms are given by
$P_1=1-q_1-aq_2$
$P_2=1-q_2-aq_1$ with $a$ belongs to $(0,1)$.
In ...
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1
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PER CAPITA SPENDING - IS THERE A MODEL?
In 1975 the world population reached 4 billion people.
In 2023 it reached 8 billion
In 1975 the US population was 211 million.
Today it is 340 million.
Considering that:
1- we now have more people, ...
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optimal delegation model extension
for my seminar paper I need to extend the model of optimal delegation, I have no idea how I can evaluate my ideas (because my professor keeps ignoring me) , can someone say if the idea of the ...
2
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1
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Frameworks and models in economics
A framework is not a model of a specific system,
but a way of formulating and studying a
variety of systems. Classical mechanics,
quantum mechanics and statistical mechanics are all really frameworks. ...
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Is there a labor vs leisure model with work experience?
I find the labor-leisure model with utility functions interesting, but I find it lacks the factor of work experience, which is very important in the real life labor market.
This is a reason people why ...
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Monopoly Board Game Situation Modeled With Game Theory
Three players are playing the board game Monopoly. All properties are acquired, and only Player A has completed a color group. This also leaves Player A with very little cash. Player B and Player C ...
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Why do we omit the integral when deriving the f.o.c.’s in long-run growth models such as Romer (1990)?
For example when solving Romer’s model (1990) in continuous time, for the firm producing final goods, its production function is:
$ Y(t) = \int_{0}^{M(t)} (A(t) L_Y)^{1-\alpha} {x(i,t)}^{\alpha} di$,
...
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Infer collective prices based on individual prices
Given a neighborhood with $m$ trash removal companies currently serving $n$ neighbors, each paying $p_m$ for the service, how would an economist calculate an expected price, $p_e$, in the event that ...
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Revisiting development of Solow Model with no population growth and no technical progress
Consider an economy descried by the production function: 𝑌 = 𝐹(𝐾, 𝐿) = 𝐾0.3𝐿0.7.
a) Derive the per-worker production function.
b)Assuming no population growth or technological progress, find the ...
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1
answer
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Habit forming Model & State Variables
Taking the habit formation model of consumption, as a standard dynamic programming problem.
Bellman Value Function for Habit Model
Max$\sum_{t=1}^Tβ^tu(c_t - γc_{t-1})$ $\qquad \qquad (1)$
s.t.
$w_{t+...
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1
answer
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Simulation of a dynamic search and matching model
I want to simulate a search and matching model very close to the canonical model developed by Pissarides. I am interested in representing the trajectory of the unemployment rate when the unemployment ...
- 31
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1
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Lagrangian for the utility-mazimization of a household in a Menu Cost model, first order condition to Ci?
I need to solve the partial derivative to C_i of the integral provided below. I'd be more than happy for some help.
Based on the book's answer, we get:
Can someone explain how do we get there? And ...
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Parameters of ENV-GROWTH model for SSPs' GDP projection?
I'm searching to reproduce the ENV-GROWTH model used for the Shared Socioeconomic Pathways (SSPs).
The ENV-GROWTH model is a IAM used by OECD OECD website. It has been detailed in the Long-term ...
4
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1
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How to use Leibniz Rule of integration to find interest rate in Expanding Variety model
I'm studying growth theory from Barro/Sala-i-Martin and I stumbled upon a problem where some more advanced level of calculus is required in chapter 6 (Models with Expanding Variety: p. 294 eq. 6.18).
...
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Decoding Endogenous vs Exogenous - Parameter vs Decision Variable - and Independent vs Dependent
this is a topic that i feel is very implicit in a lot of economics, but is some times brushed over in interest of getting strait to the model or the maths. But often i realise i don't actually know ...
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How to handle multiple lagrange multipliers in a maximization problem?
Let's assume a standard household maximization problem of the form:
\begin{align}
\underset{C_t}{max} \sum_{t=0}^{\infty} \beta^t U(C_t)
\end{align}
subject to a standard Budget constraint:
\begin{...
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0
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Help me understand the shock process in this DSGE model
I'm looking at the model proposed in Hansen2020.
The not linearized model features a shock equation looking like this:
$A_t = \bar{A}*e^{\epsilon_t}$ , where $\bar{A}$ is the steady state of $A_t$ and ...
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Industry-specific control variables
I am writing about bank-lending to a specific industry and how that could be affected by the level of carbon intensity of a given industry within the EU. I have some thoughts on this:
Trying to think ...
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37
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2 intercepts in a probit model about WTO/GATT concessions?
I am currently reading a research paper(Developing Countries and General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement by Marc L. BUSCH and Eric REINHARDT) and in the part ...
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1
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How do we know Solow has DRS and Harrod-Domar has CRS from the definitions of the models?
This may be a stupid questions as I am just studying undergrad economics honours but how do we know that the solow model has diminishing returns to its input and harrod-domar has constant returns to ...
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Model for how the shifting of industries affect job creation
I am working on my Master's thesis (International Relations) and I want to argue, backed with data, that when an industry gets bigger in terms of production, efficiency, in detriment of another ...
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Help with Macroeconomics Question: IS-LM Model [closed]
I know this is supposed to be a simple question, but I need to check the answers for it and as it was a past exam question I do not have the results for it.If anyone can help out, that would be ...
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