Questions tagged [self-study]
Questions about self-studying economics, including curriculum design, study strategies, resources, etc.
208
questions
4
votes
1answer
92 views
Cheap talk with mechanics
Sorry in advance for asking too many questions. I am just seeking for some minor help and check if what I'm thinking is acceptable.
A customer R takes his car to the mechanic S. The mechanic can
...
1
vote
0answers
59 views
Job Market Signaling
My Solution is this
Separating equilibrium
High type worker chooses $e_H = e^* >0$
Low type worker chooses $e_L =0$
Firms believes that if education is $e^* >0$ then the worker is high type and ...
1
vote
1answer
92 views
Finding consistent but inefficient GMM estimate
Consider the following linear model
$$y_t = x_t' \beta +u_t$$
where $t =1,...,T$ and $x_t = (x_{1t} x_{2t} ... x_{kt})'$ , $ \beta$ is $k \times 1$ vector of unknown coefficients, $u_t$ is an iid ...
2
votes
2answers
112 views
Learning Economics in Three Dimensions
I am trying to teach myself microeconomics via video series. I have a fairly good mathematics foundation, currently studying Partial Differential Equations and having gone through all the prereqs you ...
3
votes
1answer
34 views
BNE: Incomplete Information Cournot
Consider two risk-neutral firms that compete in quantities (Cournot). The aggregate inverse demand is given by $P(Q) = 3-Q$. Each firm can only observe its own cost. Find a symmetric BNE.
The constant ...
1
vote
2answers
45 views
Rule for Number of Strategies in Bayesian Games
Is there a general rule for finding the number of strategies (denote as $S$) for each player in a Bayesian game? I think it's related to the number of types (denote as $T$) and the number of actions (...
0
votes
0answers
26 views
Cournot nash equilibrium
The market demand for a good is described by the inverse demand function $P(Q) = 120 - Q $ where $Q$ is total quantity demanded and $P(Q)$ the market price. Two firms $i =1,2$ have identical cost ...
1
vote
0answers
50 views
Better Model for Dynamic pricing - Stackelberg model or Bertrand model
Objective - I am building a dynamic pricing tool for airline tickets which will consider the competitor prices. Taking competitor price as reference, this tool will price the ticket. Also instead of ...
1
vote
0answers
27 views
Fluctuations in income
Consider the following income fluctuation problem. An agent lives for two periods, 0 and 1, and faces stochastic income in period 1. We are given this utility maximization problem: $$\text{max}\ U(c_0)...
0
votes
0answers
38 views
How to derive consumer expenditures in EMEA 14.2.5
I am working on a problem 14.2.5 from EMEA by Sydsaeter, Hammond and Strom.
Consider the consumer demand problem:
$$ \max_{x,y} U(x,y) = \alpha \ln(x-a) + \beta \ln(y-b) \text{ s.t. } px+qy=m \tag{*} ...
0
votes
0answers
36 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
60 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
154 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
34 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
205 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
90 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
21 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
203 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
37 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
77 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
62 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
37 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
46 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
105 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
117 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
59 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
55 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
40 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
35 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
98 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
87 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
36 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
156 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
137 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
104 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
76 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
30 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
307 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\} $$
In The solution, The production function is defined as $f(x,...
0
votes
1answer
50 views
These two estimators are equal?
I have a question so basically.
I have two model $$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
24 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):
$$\begin{aligned}\text{GDP} &\sim \...
0
votes
0answers
49 views
Best way to learn economics for an interested layperson with a mathematical background
What's a good way for a mathematically-literate layperson who's interested in seriously learning economics?
I suppose the quick answer is "read a textbook", but 1) textbooks are boring, 2) ...
0
votes
1answer
57 views
A question from MWG 2F12
This question is from MWG
if walrasian demand function is generated by a rational preference relation then it must satisfy weak axiom.
I cannot prove this statement. How can I do?Thanks alot.
-2
votes
1answer
57 views
IS LM CURVE QUESTİON
For keynesian model,
Describe how, if at all, each of the following development affect the IS and/or the LM curve, and the equilibrium (r; Y ):
Investment demand becomes less sensitive to the interest ...
1
vote
1answer
24 views
Keynesian model functions
In The Keynesian economy,
I have the following model
Here, the production function $F(N,K) = Y/K = A(N/K)^{1.10}$ and by the labor demand function $F_N(K,N)= N/K= b_0(w/p)^{b_1}$.
right?
That is, ...
2
votes
1answer
157 views
Proof on weak axiom of revealed preferences
I read the following statement.
“ A utility maximizer with strictly convex and strongly monotonic preferences
satisfies weak axiom of revealed preferences.”
How can I prove or show this? I cannot ...
1
vote
0answers
21 views
Question on Dichotomous system
In The Classic economy, we consider the following macroeconomic model
$$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
123 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
90 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 ...
