New answers tagged general-equilibrium
0
votes
Accepted
Is a balanced BOP (without taking the official reserves account into consideration, desirable in the real world?
I think you are thinking of the current account?
Neither direction of imbalance is generally desirable.
A current account deficit means you owe goods and services to other countries, which is bad ...
- 837
0
votes
Accepted
Production economy general equilibrium
Only the households.
Constructing the maximization problems for equilibrium:
Feasibility conditions:
The amount of total labor used by industries $x$ and $y$ is not more than the amount of total ...
- 27.2k
3
votes
Accepted
Question on the conditions for the existence of a Walrasian equilibrium
When confronted with situations like this its always nice to remember the key statement of the Sonnenschein Matel Debreu Theorem which is:
Any function $z(p)$ which satisfies homogeneity, continuity ...
- 7,880
2
votes
Accepted
Find the set of Pareto efficient allocations
We'll consider three cases:
For $\alpha \in [\frac{1}{2}, 2]$, there are only two Pareto efficient allocations: $\big\{\big((2,0),(0,2\alpha)\big), \big((0,2\alpha),(2,0)\big) \big\}$
For $\alpha >...
- 5,452
2
votes
Accepted
A question on the simple Keynesian model
In Keynesian model investment is saving.
By definition saving is (assuming no government taxes or spending to simplify math):
$$S=Y-C \tag{*}$$
Next GDP in a close economy with no government spending ...
- 45.1k
Top 50 recent answers are included