Questions tagged [surplus]
The surplus tag has no usage guidance.
15
questions
0
votes
1answer
29 views
Consumer Surplus [closed]
Is there a case where the consumer surplus being negative does not mean that the producer surplus increases? Is it true that as consumer surplus increases, producer surplus decreases and vice versa?
1
vote
1answer
33 views
Does cornering a market has any “bad” economic consequence?
(Not sure If this question is suited for here or it should be asked at money or law SE)
As the title reads, Does any specific economic inefficiency arises when someone corners or tries to corner a ...
5
votes
1answer
164 views
Derivation of Surplus in Paul Romer's paper on “mathiness”
In this paper by P. Romer https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20151066
I'm wondering the Surplus $S$ was derived.
By using the given condition I found that $$q_0=m^{-\tfrac{1}{a+b}}N^{-\...
1
vote
1answer
84 views
Deadweight Loss Due to Taxes Represented on a Graph of the Market?
Let's say a market is operating at equilibrium, with MSB=MSC, and a tax is imposed on the market. This would shift the supply curve to the left and cause a deadweight loss represented by the triangle ...
2
votes
4answers
240 views
How can people save in a equilibrium economy?
Two people on a desert island:
John produces 100kg potatoes and sells them to Paul for \$100. Paul catches 100kg fish and sells it to John for \$100. GDP is \$200\$, right?
Next year, they improve ...
1
vote
2answers
45 views
Why is the Total Current Account Balance of World positive and does it mean that the world has a net Trade Surplus?
I wondered if it was possible for all countries to have a Trade Surplus - which turns out to be impossible because the total value of imports in the world must be equal to the total value of exports ...
0
votes
1answer
61 views
Question Regarding Equilibrium Price & Surplus
So here's an example of a standard Supply & Demand Relationship for an Individual Supplier:
As a supplier, for 1 dollar, I'll produce 1 unit of something. For 2 dollars, I'll produce 2 units, for ...
1
vote
0answers
44 views
Terminal and annual surplus distribution in participating life insurance
I consider a participating life insurance contract which is fair if $P_0 = e^{-rT} \mathbb{E}^{\mathbb{Q}}\left[ L(T) \right)$ ($\mathbb{Q}$ denotes the risk-neutral measure), where $P_0$ is the ...
1
vote
1answer
57 views
How to find the market equilibrium by surplus maximisation when there is a consumer subside?
Let's assume a market with linear demand and supply functions, let's say $Q_d = 20 - 4p$ and $Q_s = -4 +8p$ respectively.
We can easily find the market equilibrium by either setting $Q_d = Q_s$ (or $...
2
votes
1answer
148 views
When to prefer maximisation of surplus and when instead to prefer minimising differences in price and q to find market equilibrium?
Two alternative approaches to compute a market equilibrium (in static analysis) are either to minimize the differences (either using abs() or a quadratic diff) between supply-demand quantities and ...
0
votes
1answer
135 views
Difference between automated and living labor pertaining to surplus value
In the Marxist concept, animals, machines and slaves are incapable of producing surplus value. They only produce as much as they have to in order to function, and no more. Doesn't this also describe ...
11
votes
3answers
4k views
Is scalping tickets harmful?
IMHO, scalping tickets is no different from legitimate arbitrage unless manipulative.
Iirc, arbitrage increases surplus and hindering scalping is setting a price ceiling which leads to deadweight ...
17
votes
3answers
5k views
What does Yanis Varoufakis mean by “surplus recycling mechanism”?
Yanis Varoufakis, the current finance minister of Greece, talks about a "surplus recycling mechanism", a term he coined and uses to describe (as I understand it) a relief valve for economies running a ...
4
votes
2answers
12k views
Difference between 'surplus' and 'welfare'
I see these two terms used interchangeably but I have the feeling they are not exactly the same. My gut feeling tells me this:
1)
Surplus is the additional aggregate utility from the existence of one ...
6
votes
1answer
240 views
Objections to total surplus as tool for welfare measurement
I think people would agree that the most common tool for welfare measurements in economics is the notion of total surplus.
Throughout it's history, total surplus has been criticized several times ...
