Questions tagged [self-study]
Questions about self-studying economics, including curriculum design, study strategies, resources, etc.
186
questions
1
vote
0answers
22 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 −...
4
votes
1answer
73 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 ...
0
votes
0answers
24 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 $...
0
votes
1answer
35 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 ...
0
votes
1answer
25 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{...
1
vote
0answers
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 ...
2
votes
1answer
26 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 ...
6
votes
1answer
68 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}
\...
0
votes
0answers
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?
1
vote
2answers
90 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 ...
0
votes
1answer
69 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}\}...
3
votes
4answers
86 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 ...
0
votes
2answers
49 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, ...
0
votes
0answers
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 ...
1
vote
1answer
61 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\} $$
In The solution, The production function is defined as $f(x,...
0
votes
1answer
46 views
These two estimators are equal?
I have a question so basically.
I have two model $$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’...
0
votes
1answer
20 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):
$$\begin{aligned}\text{GDP} &\sim \...
1
vote
0answers
40 views
Best way to learn economics for an interested layperson with a mathematical background
What's a good way for a mathematically-literate layperson who's interested in seriously learning economics?
I suppose the quick answer is "read a textbook", but 1) textbooks are boring, 2) ...
0
votes
1answer
48 views
A question from MWG 2F12
This question is from MWG
if walrasian demand function is generated by a rational preference relation then it must satisfy weak axiom.
I cannot prove this statement. How can I do?Thanks alot.
-2
votes
1answer
46 views
IS LM CURVE QUESTİON
For keynesian model,
Describe how, if at all, each of the following development affect the IS and/or the LM curve, and the equilibrium (r; Y ):
Investment demand becomes less sensitive to the interest ...
1
vote
1answer
22 views
Keynesian model functions
In The Keynesian economy,
I have the following model
Here, the production function $F(N,K) = Y/K = A(N/K)^{1.10}$ and by the labor demand function $F_N(K,N)= N/K= b_0(w/p)^{b_1}$.
right?
That is, ...
2
votes
1answer
46 views
Proof on weak axiom of revealed preferences
I read the following statement.
“ A utility maximizer with strictly convex and strongly monotonic preferences
satisfies weak axiom of revealed preferences.”
How can I prove or show this? I cannot ...
1
vote
0answers
19 views
Question on Dichotomous system
In The Classic economy, we consider the following macroeconomic model
$$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$$
The labor supply function is $$...
4
votes
1answer
110 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 ...
2
votes
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 ...
3
votes
0answers
47 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, ...
0
votes
0answers
50 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 ...
0
votes
1answer
41 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 ...
0
votes
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 ...
0
votes
0answers
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 ...
0
votes
0answers
30 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 ...
1
vote
1answer
40 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, ...
2
votes
1answer
143 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. ...
0
votes
0answers
16 views
Arbitrage checking (one step price tree)
I have a questions on arbitrage. These questions are from my lecture notes. And I don’t understand their some points.
Ex1: there is a single step market as follows
here, there are two securities ...
0
votes
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....
1
vote
1answer
99 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. ...
0
votes
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, ...
2
votes
0answers
57 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.
$$ u_1( \sigma_1, \sigma_2 ) = \...
0
votes
0answers
38 views
Why decreasing co-state variable (over time) is Compulsory?
I have a short question.
In the continuous time infinite horizon optimal control maximization problem Like
$$\max \int^{\infty}_0 u(c_t)e^{-pt}dt$$
I use current hamiltonian function and I obtain ...
0
votes
1answer
54 views
Intertemporal budget constraint notion
Let $W$ denote the investor's wealth $B$ is the the investment in the risk free asset (suppose that the risk free rate is taken to be zero) and $X$ is the investment on the risky security which has ...
1
vote
0answers
63 views
Writing constraint
A firm accumulates useful knowledge $k$ by investing in R&D activities. Specifically, if the firm invests $r > 0$ dollars into R&D, the stock of useful knowledge grows by about $2\sqrt{r}$ ...
2
votes
0answers
57 views
Finding optimal path in continuous time
I have the following optimal control problem
$$\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$$
I do big part of ...
2
votes
0answers
88 views
Bliss point hamiltonian function
I have the following utility function
$$u(c_t)=g(c_t-b)^2$$ for constants $g,b>0$
Edited: in order to be bliss utility function, It must be g is negative. But in the question g is given to be ...
1
vote
1answer
31 views
Why do the gross return of wealth and wealth move in opposite direction?
I have a short question:
Why does the gross return of wealth decrease as wealth increases?
Why do the gross return of wealth and wealth move in opposite direction?
$$R=1+(a/w^2)$$ where a is non-...
4
votes
3answers
311 views
Books friendly to self-studying Industrial Organization
I'm currently an undergraduate freshman looking for resources to self-read Industrial Organization. I've read Varian's undergraduate book cover-to-cover and have a decent understanding of basic game ...
0
votes
1answer
189 views
Study guide (and…) for “Intermediate Microeconomics with Calculus” by Varian
I have been googling study guides, solution manuals and other helpful material made by professors. But I have not found anything useful.
Q: Do you guys know anything that will make the book easier ...
0
votes
2answers
279 views
Corner solution of the maximization problem
Answer
Hello, I upload the actual question with my 8-pages answer. Please can you check it. Is there a corner dissolution for $c=\gamma$. Please share your ideas. Thanks.
1
vote
0answers
104 views
Revenue maximization problem
There are $N>0$ Households in an economy.
The government has aim to maximize a weighted average of income by imposing tax on the rich people and redistribute the tax revenue to the labor ones.
...
0
votes
2answers
221 views
Question on Central bank loss function interpretation
How do you interpret this central bank’s loss function:
$$L(\hat x, \pi)=\alpha \hat{x}^2+(\pi-\pi^T)^2$$
where $\alpha >0$ and $\hat x$ is output gap.
Phillips curve is $\pi = \theta \hat{x}+\...
1
vote
1answer
191 views
Central bank loss function (I did a solution, but it doesn’t totally make sense I guess)
I have question on central bank loss function.
We know that the central bank loss function is
$$L(\pi, \bar{Y})= (\pi- \pi^e)^2+\beta \bar {Y}^2$$
And we know that fisher equation is $$i=r+\pi^e$$...
