# All Questions

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### non-ponzi condition

What Is The Differences Between R(T) And R(S) In No-Ponzi Condition In Ramsey Growth Model?
1 vote
99 views

### Information asymmetry references and it's relation to freemarkets - reference request?

Is there any reading I can do of what information asymmetry can do to free markets?
48 views

### A monopolist has decreasing average costs, setting the price equal to AC will lead to?

1)what will happen to the Output compared to the situation where MR=MC ? 2)what will happen to the Output compare to Competitive Output? Attempt at Soln. : 1) 2) so definitely quantity of o/t for ...
23 views

### Ramsey no ponzi condition

Please help me understand how to create these functions, sometime they use "t" denote, sometime use "r" denote that make me feel confuse. Function (17) and from (19) to (23)
35 views

### Ramsey model problem

Explain the no-Ponzi game condition throughout the function. Does the constrain function: also reflect include the No-Ponzi condition?
47 views

### Debreu's ordinal representation theorem is unique up to a positive monotonic transformation, what is the source?

In Debreu's 1954 ordinal utility representation theorem, the utility is unique up to a positive monotonic transformation. While the uniqueness result is well-known, I fail to find a proper reference. ...
26 views

### Deadweight loss and consumption externalities

here's the problem and my solution so far: In this case, the Marginal Private Benefit (MPB) is given by the equation MPB = 100 - 4q and the Marginal Social Cost (MSC) is given by the equation MSC = ...
49 views

### Nash Equillibrium - Depend On The Opponent's Strategy?

Say I have the following pay-off matrix: For a one-shot game, it is easy to see, that (low, low) is the only Nash Equillibrium in the payoff-matrix. However, say we're playing an infinitely repeated ...
1 vote
64 views

### Does emerge of cryptocurrency cause inflation?

I'm very newbie at economics, so the question may does not sound a good question. I define value, any type of goods and services I can acquire in an economic deal. If I assume whole amount of value ...
1 vote
119 views

### Why is the Modigliani-Miller theorem logical?

Quoting this SE question, who put it nicely, the M&M theorem basically states that: ...in a no-frictions world, two identical firms have the same enterprise value, regardless of their financial ...
63 views

### Mankiw Chapter 5 and Price-Specie Mechanism

I've recently been reading through Mankiw's Macroeconomics, 7th edition. In Chapters 3 & 4 describe the Classical theory, which pretty much exactly lines up with the model that Keynes outlined in ...
54 views

### utility functions of perfect complements

if preferences are described and in this case the preferences are perfect complements, we want to find an utility function that describes the preferences so we can draw an indifference curve. the ...
49 views

### If wage is equal to P x MPL then where is the profit of the firm?

Excuse me if the question is too simple... Wage = Price x MPL (Marginal Productivity of Labor) I wonder how we can come to this conclusion as there is nothing left for Profit. I mean let's suppose ...
15 views

### Delegation to a Biased agent

Can somebody give an example for a biased agent who want to put more time in information acquisition then the principal?
53 views

### why is the MRS same for everyone?

If the consumers are optimizing and at interior solutions and facing the same prices, then the MRS=p1/p2 will be the same for everyone no matter the preferences and income. but why? I don't understand ...
1 vote
69 views

### How the saving rates were derived in Azariadis (1996)'s Impatience Trap?

The household maximizes his lifetime utility function according to $$\max_{c_1, c_2} v(c_1, c_2) := \frac{1}{\beta(c_1)} \log c_1 + \log c_2 - A(c_1, c_2)$$ subject to  \beta(c_1) = \begin{cases} ...
46 views

### Estimating the form of a utility function on two or more commodities

I am looking for experiments for estimating the form a utility function of a consumer on two or more commodities. In particular, I would like to know e.g. if the utility function of a consumer is of ...
1 vote
46 views

### Does a per-unit tax shift the demand curve too when dealing with an inelastic supply curve?

I’m studying Tax Incidence from Stiglitz’s ‘Economics of the Public Sector’, and it says that the tax incidence doesn’t change whether I use a shift in the demand curve or one in the supply curve. ...
11 views

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### How to find a Walrasian equilibrium for this production economy?

Consider a production economy with 2 consumers and 2 firms. There are 3 goods: leisure $l$ and two goods $x,y$. The utility function of both consumers are $u_i(l_i,x_i,y_i)=l_i(x_i)^2(y_i)^2$ and the ...
15 views

### How do I construct an analysis on the following question in applied financial econometrics?

I want to know how to make a thorough analysis by comparing the following regression outputs. The regressions are estimated using the Arbitrage Pricing Theory (APT) with the second one testing for ...
12 views

### Determining macroeconomic events

Which of these events are macro economic events: 1)unemployment has increased over the past month 2)the pharmaceutical society invents a new medicine 3)the interest rates are decreasing for all ...
30 views

### Help with Solow model

I need help with the following question, I would really appreciate any help. For the general case of any production function, the differential equation for k(superscript dot) looked as follows: k(...
40 views

### Deriving Unit cost function

Unit cost function is the minimum cost to produce one unit of output. The solution to the above problem is: where ai(w,r) is the amount of labour needed to produce 1 unit of good i at factor prices (...
24 views

### How do I show that it's optimal to invest in equal amount of 2 risky assets via mean-preserving spread?

Suppose a risk-averse investor with differentiable Bernoulli utility $u$ and wealth $w$ that can be allocated between asset $X$ and $Y$. Both $X,Y$ have positive expectations. If the investor invests ...
13 views

### Basics of MRS. Interpretation and constant utility

I am sure this question has been asked before but I didn't know what to search for since its a quite long question. Say, I have a utility function U = sqrt(x)*sqrt(y) and the MRS = y/x. Say I have y = ...
39 views

### Do developed countries defraud trillions of dollars from developing countries?

According to the Guardian, rich Western countries defraud large amounts of money from poor countries, much more than they give in development aid. If we add theft through trade in services to the mix,...
48 views

### Cost Minimization

Guys in the following optimisation problem why are we not considering the partial derivate of K and L in the Lagrangian in the first two equations
19 views

### Are the country adjectivals official in currencies?

Currencies are often named with a country adjectival in front, for example "Argentine Peso". Is the choice of adjectival official when alternatives exists? For example for argentina there is ...
4k views

### Would poorer countries be better off by cutting off all trade with rich countries?

This question is related to another thread, but rather than hijack that thread I am posting my angle on it here. In relation to this Guardian quote If we add theft through trade in services to the ...
133 views

### help with nested integrals in common agency public goods paper

I'm trying to derive the example function used in a paper I am reading and am stuck. Please help. Below is the equation. For now, all I am requesting is someone to help me solve for p. More details ...
38 views

### Pure exchange economy: What if a consumer can set prices?

I'm trying to solve the following problem: Consider an exchange economy with 2 consumers and 2 goods. First, consumer A sets the price, then consumer B maximizes utility according to the price. Then ...
402 views

### In what way do developed countries steal trillions of dollars from developing countries?

According to the Guardian, rich Western countries 'steal' large amounts of money from poor countries, much more than they give in development aid. If we add theft through trade in services to the mix,...
28 views

### Finding data set for econometrics project

I'm thinking of doing my undergrad research project on investigating the impact of happiness on stock market participation in the US stock market. However, I am struggling to find a data set. Does ...
12 views

### data on US college spending

I am writing a research paper on college spending and profit optimization. I need data on US colleges' expenditures, revenues, and the total number of students. Since I am not from the US I am not ...
1 vote
69 views

### Trying to understand Walrasian equilibrium (Brown & Matzkin 1996)

I'm trying to understand page 6-7 of the Brown & Matzkin paper. Here is an example: Consider a 2-person, 2-good pure exchange economy $E=(u_i,w_i)_{i=1}^2$ where both utility functions are ...
22 views

### Is this situation Pareto Optimal

"If either player is receiving his maximum payoff, then that outcome is Pareto optimal." Is this True,False or Uncertain. Solution: I guessed it false because we dont know the exact Utility ...
1 vote
24 views

### Deriving euler equation and transversality condition

$U(c_t)=\sum_{t=0}^{\infty}\beta^t(\{u_0c_t+\frac{u_1}{2}c_t^2\})$ subject to $c_t+k_{t+1}\leq f_0 k_t$ I need to find the euler equations and the transversality conditions. I have currently tried ...
30 views

### AIC Calculation

Our object is calculating AIC, and we are unsure whether we can use our measure below when calculating AIC. The following are the data from the experiments and our method to calculate the information ...