Questions tagged [self-study]
Questions about self-studying economics, including curriculum design, study strategies, resources, etc.
199
questions
0
votes
0answers
26 views
How to derive consumer expenditures in EMEA 14.2.5
I am working on a problem 14.2.5 from EMEA by Sydsaeter, Hammond and Strom.
Consider the consumer demand problem:
$$ \max_{x,y} U(x,y) = \alpha \ln(x-a) + \beta \ln(y-b) \text{ s.t. } px+qy=m \tag{*} ...
0
votes
0answers
22 views
Coming up with a self self teaching curriculum in economics?
I'm a college grad- engineer by trade and wanted to learn about economics. Since I don't know much about the subject I'm not sure exactly how to progress with learning the field. I've started with ...
-1
votes
1answer
52 views
Find the set of Pareto efficient payoffs in game theory [closed]
Here I want to find Pareto efficient payoff set.
The answer is (C,β), (B, β), (C, δ)
But I don’t understand why? Please explain clearly this answer. Thanks a lot
1
vote
2answers
99 views
Best book to self-study microeconomics
What textbook(s) (and other resources) would you recommend to someone who wants to self-study microeconomics to an advanced (graduate) level starting from 0 (i.e. no formal background in economics)?
I ...
0
votes
0answers
33 views
calculation of the real domestic return of a foreign stock
I would like to calculate the real domestic return of a foreign stock
What I know
Real price is $$P_{Real, t} = \frac{P_{Nominal, t}}{CPI_t}$$
where CPI is consumer price index.
And I know that the ...
2
votes
1answer
182 views
consumer surplus decreasing
MRU has the following question on a quiz:
Suppose the government forced all bread manufacturers to sell their
products at a “fair price” that was half the current, free-market
price. To keep it ...
4
votes
1answer
74 views
Stochastic AK model derivation
Consider the following version of the stochastic Ak model written as a Bellman equation:
$$v(A,k)=max\ log(c)+\beta E[v(A',k')|A]$$
$$s.t\ k'+c\leq Ak$$ and non-negatitvities.
$A$ is a stationary ...
2
votes
0answers
31 views
Stochastic AK model with uncertainty [duplicate]
Consider the following version of the Ak model:$$V^*(A_0,K_0)=max\sum\beta^t\sum P(A^t)\frac{c_t(A^t)^{1-\sigma}}{1-\sigma}$$ st$$ k_{t+1}(A^t)+c_t(A^t)\leq Ak_t(A^{t+1})$$ and non-negativities
$A_t$ ...
1
vote
0answers
19 views
maximization program with a discount factor in monopoly with learning by doing
I would know something about the multiproduct monopoly. In the case with independent demands and costs dependents, it is in the case with only 1 physical good sold out of 2 periods. For example (...
0
votes
1answer
184 views
Why marginal benefit is decreasing as more and more pizzas are being produced?
I'm taking one of my initial courses in Economics on my own and currently reading Economics by McConnel, Brue and Flynn. On the page 13, the book is trying to explain about Optimal Allocation. They ...
0
votes
1answer
34 views
What is the producer surplus given the price the consumer paid + price they are willing to pay, and the marginal cost of producing the product?
Linda is willing to pay $6 for a cereal box. Linda bought a cereal box for $4. The marginal cost of producing that cereal box ...
1
vote
1answer
56 views
Why there is no supply on monopoly markets?
We learned in the class that monopoly markets do not have supply curve. Our textbook (Microeconomics and Behavior, page 388 from, R. Frank) says:
A monopolist has no supply curve
and it explains it ...
1
vote
0answers
40 views
Will the outcome of a game always be a Nash Equilibrium?
Consider this game between two players. This game has two Nash Equilibria: (U, C) and (D, R). Suppose we ask the players to play this game once. What should our prediction of the game's result be?
If ...
0
votes
1answer
54 views
Is there a book or notes that explain all about inflation? [closed]
Is there a book or notes or papers (but for easy understanding please) that explain all about inflation?
Not at a research level but student level.
From what is previously needed to define and ...
-1
votes
1answer
31 views
Demand and Supply Curve Shifts
I Study economics independently at Marginal Revolution University.
But I am stuck with few of the very first Concepts. Those are:
Demand and Supply curve Shifts in Isolation.
Demand Curve Shifts:
When ...
0
votes
1answer
43 views
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-...
1
vote
1answer
85 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
109 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
1answer
53 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}$$
How can I deal with A(t) to find the steady state $...
0
votes
1answer
40 views
Exchange economy find core
Find Pareto optimal allocations and the core for the following economies
Consider an exchange economy with two agents and two goods. Let consumption sets are the nonnegative orthant. Agent 1’s utility ...
0
votes
1answer
33 views
Transitional Dynamics of consumption per capita in solow model
I can write the transitional dynamics of output per capita as follows
$$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{...
0
votes
0answers
32 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
51 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 ...
5
votes
1answer
75 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
33 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?
0
votes
1answer
119 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
115 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
94 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
57 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
29 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
207 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
49 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?
$$b_1= (X_1’M_1X_1)^{-1} X_1’...
0
votes
1answer
23 views
The instrument in “The Colonial Origins of Comparative Development”
I am hoping to understand when an instrument is appropriate. For the purposes of this question, I'm considering a simplied version of the model in AJR (2000):
$$\begin{aligned}\text{GDP} &\sim \...
0
votes
0answers
41 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
55 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
23 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
77 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
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 $$...
4
votes
1answer
120 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
87 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
107 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
69 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
45 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 ...
1
vote
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, ...
3
votes
1answer
173 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
1answer
38 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
114 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, ...
