2
votes
Accepted
What is wrong with this tax revenue formula?
There is nothing wrong with the formula.
According the textbook (McAfee Introduction to Economic Analysis pp 72) this is not tax on quantity supplied but ad valorem tax on supply. Hence;
$$\underbrace{...
- 57.7k
2
votes
Take intermed or advanced series for phd application
The intermediate series will probably have a lot of definitions and more basic stuff. E.g., I imagine intermediate macro covers the IS/LM model, whereas advanced covers things like DSGE models.
If ...
- 3,768
1
vote
Accepted
Obtain profit-maximizing supply curve (an exercise)
The producer's problem is
$
\begin{align*}
\max_{l \in \mathbb{R_+}} &\; pq - wL \\
\text{subject to} &\;
\begin{alignedat}[t]{1}
q & \leq f(L) \\
f(L) & = L\alpha
\end{...
- 26
1
vote
Obtain profit-maximizing supply curve (an exercise)
Note that our production function is $Y=\alpha L$ where Y is the number of widgets produced, then
our objective is to maximise profits of the of the entrepreneur so,
The Profit Maximisation problem ...
- 11
1
vote
Lucas Model 1988, deriving the elasticity
I have made some partial progress towards the result, but there is still some discrepancy between what I am getting and the stated result. I've written out my thinking in case it might be helpful to ...
- 837
1
vote
Accepted
Aggregation and Labor Shares in a Static Model
I believe the conceptual problem is that you are considering the share of labour associated with high and low-skilled workers separately. What $s_j^L$ actually captures is the share of sector $j$'s ...
- 837
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