Questions tagged [self-study]

Questions about self-studying economics, including curriculum design, study strategies, resources, etc.

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Assumptions on preference relation

This question is from Harvard seminar problem set (Q-3 part b) https://www.studocu.com/en-us/document/harvard-university/economics/mandatory-assignments/econ2020a-14-ps01-please-give-as-much-...
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1answer
72 views

Find Pareto optimal allocations and the core for the following economies

Find Pareto optimal allocations and the core for the following economies. There are two consumers and two goods. Utility functions are $u_1(x_1,y_1)= 10x_1-(y_1-2)^2$ and $u_2(x_2,y_2) = 10y_2 − (x_2 −...
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1answer
101 views

Finitely repeated Prisoner’s Dilemma with switching cost

I'm doing this finitely repeated Prisoner's dilemma with switching costs but I have trouble showing the fact that $\varepsilon$ had to be $1 < \varepsilon < 2$. I do see why and that it is a ...
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1answer
52 views

Question on overlapping generations

My question is from over lapping generations Question is as follows I found that $$k(t+1)= \frac{\beta(1-\alpha)}{(1+\beta)(1+n)}A(t)k(t)^{\alpha}$$ How can I deal with A(t) to find the steady state $...
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1answer
40 views

Exchange economy find core

Find Pareto optimal allocations and the core for the following economies Consider an exchange economy with two agents and two goods. Let consumption sets are the nonnegative orthant. Agent 1’s utility ...
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1answer
28 views

Transitional Dynamics of consumption per capita in solow model

I can write the transitional dynamics of output per capita as follows $$y=f(k)$$ Take its derivative with respect to time t $$ \dot{y} =f’(k) \dot{k}$$ Divide it by $k/k$ $$ \dot{y} =f’(k) \frac{\dot{...
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30 views

Practical guide to Structural Equation Modeling

I am currently self-learning Structural Equation Modeling. I have studied some theory and also a bit about the software implementation, but not enough to practically conduct an SEM study. I wanted to ...
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1answer
41 views

Counter example for strong and weak Pareto optimality

We know that strong Pareto efficient is equivalent to weak Pareto efficient if we have continuous and strongly monotone preferences. Please give me an example which we don’t have continuous and ...
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1answer
70 views

Properties on conditional demand correspondence from the textbook of Mas-Colell et al

I have a question on the properties of conditional demand correspondence Let $z(w,q)$ be the conditional factor demand correspondence, i.e. the solution of the cost minimization problem \begin{align} \...
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32 views

Second welfare theorem and non-continuous preferences

Are there any monotonic and strictly convex preferences that are not continuous but the second welfare theorem does not hold for them?
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104 views

Find pareto optimal allocations

Consumer 1: $U_1(x_1,y_1)=x_1y_1$ Consumer 2:$ u_2(x_2,y_2)=min\{x_2y_2 , 4\} $ Initial endowments e1=(1,4) and e2=(4,1) I want to find Pareto optimal allocations and show its edgeworth box My ...
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105 views

Question on General Equilibrium: how to write offer curves?

QUESTION: Consider simple two-person, two-good economy in which agents’ utility functions are given by $U_1(x_{11}, x_{21}) = min\{x_{11}, x_{21}\} $, and $U_2(x_{12}, x_{22}) = min\{4x_{12}, x_{22}\}...
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4answers
90 views

Why should $dp_2=dm =0$ in this problem?

I am studying Essential Mathematics for Economic Analysis and in chapter 12 problem 10 there is a problem that I can solve but I do not understand why the solution works. The problem asks us to ...
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2answers
51 views

Math needed for economic research [duplicate]

I'm currently studying economics and am interested in getting into economic research. I'm aware of how math based economics research is. I have done some 1st math courses (probability, linear algebra, ...
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28 views

Types of Economies of Scale

Context: Delegation informed prime Minister that textile sector is working at fullest capacity due to government policies. They further said the energy package, timely refunds and other facilities had ...
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1answer
106 views

Finding the conditional input demand function

Find the conditional input demand function and cost function for the given production function $$f(a,b,c,d)=\min\{ a,2b\} + \max\{3c,4d\} $$ In The solution, The production function is defined as $f(x,...
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1answer
46 views

These two estimators are equal?

I have a question so basically. I have two model $$y= X_1b_1+X_2b_2+u$$ And $$X_2=y\beta_1+X_2\beta_2+v$$ I want to show $b_1=\beta_1$ Are these estimators are equivalent? $$b_1= (X_1’M_1X_1)^{-1} X_1’...
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22 views

The instrument in “The Colonial Origins of Comparative Development”

I am hoping to understand when an instrument is appropriate. For the purposes of this question, I'm considering a simplied version of the model in AJR (2000): $$\begin{aligned}\text{GDP} &\sim \...
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40 views

Best way to learn economics for an interested layperson with a mathematical background

What's a good way for a mathematically-literate layperson who's interested in seriously learning economics? I suppose the quick answer is "read a textbook", but 1) textbooks are boring, 2) ...
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1answer
48 views

A question from MWG 2F12

This question is from MWG if walrasian demand function is generated by a rational preference relation then it must satisfy weak axiom. I cannot prove this statement. How can I do?Thanks alot.
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1answer
51 views

IS LM CURVE QUESTİON

For keynesian model, Describe how, if at all, each of the following development affect the IS and/or the LM curve, and the equilibrium (r; Y ): Investment demand becomes less sensitive to the interest ...
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1answer
22 views

Keynesian model functions

In The Keynesian economy, I have the following model Here, the production function $F(N,K) = Y/K = A(N/K)^{1.10}$ and by the labor demand function $F_N(K,N)= N/K= b_0(w/p)^{b_1}$. right? That is, ...
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1answer
51 views

Proof on weak axiom of revealed preferences

I read the following statement. “ A utility maximizer with strictly convex and strongly monotonic preferences satisfies weak axiom of revealed preferences.” How can I prove or show this? I cannot ...
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20 views

Question on Dichotomous system

In The Classic economy, we consider the following macroeconomic model $$Y=F(K,N)$$ where $F_N>0$, $F_K>0$, $F_{KK}, F_{NN}<0$ and $F_{NK}>0$ $$F_N(K/N)=w/p$$ The labor supply function is $$...
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1answer
112 views

Determining subgame perfect Nash equilibriums

Question Three houses share exclusive access to a beach, but it is dirty due to trash washed ashore. A beach clean-up exercise costs $100$, but has a value of $200$ to each household. A clean-up ...
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1answer
86 views

How to calculate the ideal maintaining time of a machine?

I have a question regarding a cost calculation problem: I have the following curve, which shows, that with increasing number of tasks without maintaining a machine, the error probability for the ...
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0answers
71 views

What's the difference between Gregory Mankiw's “Macroeconomics” 4th ed. and 10th ed.?

I am planning to use Gregory Mankiw's Macroeconomics (not to be confused with his Principles of Economics) for self-studying macroeconomics, along with David Weil's Economic Growth. As you can see, ...
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62 views

Policy ineffectiveness proposition

Suppose, the Aggregate supply is given by the Lucas Supply Curve - $y_t = ȳ + b(P_t - E_{t-1}P_t) + μ_t$ where $μ_t$ is stochastic supply shock (following standard normal error properties). Aggregate ...
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1answer
44 views

Which countries have the comparative advantage in Ricardo's example?

I am a complete beginner here trying to learn through Khan Academy. I found some data that correspond to Ricardo's explanation of comparative advantage. According to Wikipedia "England has a ...
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0answers
26 views

Calculation of theoretical futures value

we form a stock index by using only two stocks in the index. One of the stocks is the Stock-A. The current selling price of the stock-A is 103 dollars and the second stock is the stock-B. The current ...
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16 views

How can I calculate returns for each three investment strategies?

Assume that the price of DF stock went from a price of $104 on March 2 to 146 on April 1. With a current stock price of 146, there is a call option available on the DF stock with an exercise price ...
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32 views

Production Possibility Frontier with 3 Goods

I want to make PPF Curve with 3 goods. Assumption : Economy that can produce three goods, Cloth $(C)$, Food $(F)$, Wine $(W)$. Two factors of production Capital $(K)$ and Labor $(L)$ So the ...
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1answer
41 views

Understanding distortions in investment in human capital

I am currently reading Economics of The Colour Bar by WH Hutt, and I'm having trouble understanding this bit he has written: “But when the price of any commodity is raised above the free market level, ...
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1answer
151 views

An overview of 4 books for an undergrad course in Mathematical Economics

I plan to self-study, at an undergraduate level, Mathematical Economics. It covers 3 main topics Introduction to economy science Microeconomy Macroeconomy Each of these have lots of sub-topics. ...
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1answer
37 views

Why does a firm in a perfectly competitive market not need to cover fixed costs in the short run?

While studying, I came across the solution that in some cases only the produces surplus, PS, needs to be positive, however not the profit, $\pi$. That means that if $PS \geq 0; p \geq AVC$, whereas, e....
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1answer
113 views

Job search theory in discrete time

Let us assume that there is a labor who lives in discrete time universe and discounts future payoffs with the discount factor $b\in (0,1)$. And we assume that this labor is at period $t=0$ at first. ...
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1answer
47 views

Market impact function

I have the following Dynamical system for market impact function $$p_{t+1}-p_t=a(d_t-s_t)$$ $$s_{t+1}-s_t=bp_ts_t-cs_t$$ $$d_t=y-rp_t$$ where $s_t$ is quantity supplied, $d_t$ is quantity demanded, ...
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0answers
60 views

Behavioral Dictator Game

I am doing a self study on behavioral economics and I am trying to solve behavioral version of the dictator game with following utilities for person 1 and 2. $$ u_1( \sigma_1, \sigma_2 ) = \...
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38 views

Why decreasing co-state variable (over time) is Compulsory?

I have a short question. In the continuous time infinite horizon optimal control maximization problem Like $$\max \int^{\infty}_0 u(c_t)e^{-pt}dt$$ I use current hamiltonian function and I obtain ...
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1answer
55 views

Intertemporal budget constraint notion

Let $W$ denote the investor's wealth $B$ is the the investment in the risk free asset (suppose that the risk free rate is taken to be zero) and $X$ is the investment on the risky security which has ...
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63 views

Writing constraint

A firm accumulates useful knowledge $k$ by investing in R&D activities. Specifically, if the firm invests $r > 0$ dollars into R&D, the stock of useful knowledge grows by about $2\sqrt{r}$ ...
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58 views

Finding optimal path in continuous time

I have the following optimal control problem $$\max_{c_t,l_t} \int_0^{\infty} [ln(c_t)+\theta ln(1-l_t)]e^{-pt}dt$$ st. $$\dot{k_t}=k_t^{1/2}l_t^{1/2}-c_t-\beta l_t$$ $$k_0>0$$ I do big part of ...
2
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0answers
90 views

Bliss point hamiltonian function

I have the following utility function $$u(c_t)=g(c_t-b)^2$$ for constants $g,b>0$ Edited: in order to be bliss utility function, It must be g is negative. But in the question g is given to be ...
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1answer
31 views

Why do the gross return of wealth and wealth move in opposite direction?

I have a short question: Why does the gross return of wealth decrease as wealth increases? Why do the gross return of wealth and wealth move in opposite direction? $$R=1+(a/w^2)$$ where a is non-...
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3answers
355 views

Books friendly to self-studying Industrial Organization

I'm currently an undergraduate freshman looking for resources to self-read Industrial Organization. I've read Varian's undergraduate book cover-to-cover and have a decent understanding of basic game ...
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1answer
210 views

Study guide (and…) for “Intermediate Microeconomics with Calculus” by Varian

I have been googling study guides, solution manuals and other helpful material made by professors. But I have not found anything useful. Q: Do you guys know anything that will make the book easier ...
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2answers
311 views

Corner solution of the maximization problem

Answer Hello, I upload the actual question with my 8-pages answer. Please can you check it. Is there a corner dissolution for $c=\gamma$. Please share your ideas. Thanks.
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0answers
105 views

Revenue maximization problem

There are $N>0$ Households in an economy. The government has aim to maximize a weighted average of income by imposing tax on the rich people and redistribute the tax revenue to the labor ones. ...
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2answers
236 views

Question on Central bank loss function interpretation

How do you interpret this central bank’s loss function: $$L(\hat x, \pi)=\alpha \hat{x}^2+(\pi-\pi^T)^2$$ where $\alpha >0$ and $\hat x$ is output gap. Phillips curve is $\pi = \theta \hat{x}+\...
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1answer
204 views

Central bank loss function (I did a solution, but it doesn’t totally make sense I guess)

I have question on central bank loss function. We know that the central bank loss function is $$L(\pi, \bar{Y})= (\pi- \pi^e)^2+\beta \bar {Y}^2$$ And we know that fisher equation is $$i=r+\pi^e$$...