Questions tagged [real-analysis]
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7
questions
3
votes
1answer
40 views
Concavity of Cobb-Douglass Utility Function on Non-Open set
My textbook argues that the Cobb-Douglass utility function $u=(x1)^a(x2)^b$ with $a,b>0$ and $a+b<1$ is concave on $R2+$ by computing the Hessian and showing it to be negative semidefinite for ...
0
votes
0answers
29 views
Relationship between strictly convex preference and convex preference
Let X be a convex subset of linear topological space and let binary relation >=
be a complete preordering.
prove: If preference relation is strictly convex and continuous, then it is convex.
Since ...
0
votes
2answers
23 views
Real wages fluctuation as per classical economics
I have just started studying Macroeconomics and have noticed that as per the Classical economics, the real wage level will always remain same because any change in price level in the market is ...
0
votes
0answers
28 views
Calculating elasticity between log term and non-log term [duplicate]
Given the following, I am asked to calculate the elasticity of wages with respect to age:
$$ππ(π€_π)=π½_1+π½_2πππ_i+π½_3πππ^2_π+π½_4π_π+π½_5π_π+π½_6πππ_π+π_π$$
How does one ...
0
votes
1answer
40 views
Calculating elasticity between terms in a regression equation
Given the following regression: $ln(w_i)=\beta_1+\beta_2age+\beta_3age_i^2+\beta_4Y_i+\beta_5T_i+\beta_6Mar_i+\epsilon_i$ I am asked to calculate the elasticity of wages with respect to age. Is the ...
1
vote
0answers
22 views
What problems arise when the minimum wage is directly linked to the inflation rate?
For example if the minimum wage is 10, and the inflation for the year is 3%, then next year the minimum wage is 10*1.03 =10.30. the next year, inflation is 5%, so the minimum wage becomes 10.82.
The ...
1
vote
1answer
81 views
Supporting Hyperplane Theorem and quasiconcave utility function
My notes says that if $u(.)$ is strictly quasiconcave and differentiable, by the supporting hyperplane theorem, there exists $p >>0$ and $w \geq 0$ such that $ x = x(p,w)$ $\forall x$. I am ...
