New answers tagged

2 votes
Accepted

what to learn to write a comprehensive strong paper?

This depends on exact subfield or even topic you are interested in. For example, there are people who only work on theory, and there you only need strong math background and nothing else. If you work ...
1muflon1's user avatar
  • 52.9k
1 vote
Accepted

About Proof of Theorem 20.8 in Mathematics for Economists by Simon and Blume

Looks rigorous and complete to me. And it is indeed clearer than the corresponding proof in Simon and Blume.
VARulle's user avatar
  • 6,355
1 vote

Economic models that are useful to understand macroeconomics

If you look just for a simple mathematical models you can have a look at Blanchard et al Macroeconomics European Perspective. It covers all the concepts you mention perhaps with exception of ...
1muflon1's user avatar
  • 52.9k
0 votes

About The Bayesian Conditional-Probability Systems in Myerson's Game Theory: Analysis of Conflict

The point of conditional probability systems is to have probabilities even defined conditional on events that have probability zero. A normal probability distribution corresponds to $\mu(\cdot\vert\...
Michael Greinecker's user avatar
2 votes

Showing that reward function is bounded (dynamic programing)

The function $u(F(x)-y)$ is not necessarily bounded on $A$. For example, if $u(x) = F(x) = \sqrt{x}$ then: $$ u(F(x)-y) = \sqrt{\sqrt{x}-y}, $$ Taking $y = 0$, this gives $u(F(x)) = \sqrt{\sqrt{x}}$, ...
tdm's user avatar
  • 9,757
2 votes

The Solow growth model

The answer: it is an assumption Solow-models usually assume that $f$ fulfills the Inada conditions, points 3. and 4. of which state $$ \begin{equation*} \lim_{k \to 0} f'(k) = \infty \\ \lim_{k \to \...
Giskard's user avatar
  • 28.4k
2 votes

The Solow growth model

Because $\delta k$ is linear function, so the slope of the function is always constant, whereas $sf(k)$ is typically nonlinear function exponential function like $f(k)=k^\alpha$ with $0<\alpha<1$...
1muflon1's user avatar
  • 52.9k
3 votes

Solow Model in disrectly and continuously

The discrete time law of motion is given by $k(t+1) = (1-\delta)k(t) + s f(k(t))$ This can be rewritten as: $$ (k(t+1)-k(t)) = s f(k(t)) - \delta k(t). $$ Now, take a Taylor expansion of order 1 of $k(...
tdm's user avatar
  • 9,757
1 vote

CRS assumption in solow model

One way to conceptualize constant returns to scale is by envisioning multiple plants employing the same technology, where it is feasible to initiate as many plants as desired to produce the desired ...
Amit's user avatar
  • 7,513
3 votes

CRS assumption in solow model

From an economic point of view, the assumption of Constant Returns to Scale can have several reasons, and they are not specific of the Solow model. I can quote what Solow himself says about Constant ...
BakerStreet's user avatar
  • 3,037
2 votes
Accepted

About Theorem 1.1 in Game Theory: Analysis of Conflict by Roger Myerson

Let's first have a look at the left hand side of the equation. Take an outcome $y$ and a state $r$. There are two cases: If $y$ is not the worst outcome in state $r$ then the lottery gives: $$ \left(\...
tdm's user avatar
  • 9,757
2 votes
Accepted

Proof: Any Strictly Increasing Function is Equivalent to A Homogeneous Function of Degree One

The only thing you need to change in your proof is what you suggest yourself in the second-to-last sentence under "my question". Your proof shows that $g\circ f$ is homogeneous of degree 1 ...
smcc's user avatar
  • 577
2 votes

Quasiconvex and quasiconcave utility function

Every concave (convex) function is quasiconcave (quasiconvex). Any nondecreasing transformation of a quasiconcave function is quasiconcave (i.e. if the function $f$ is quasiconcave and $g$ is a ...
smcc's user avatar
  • 577

Top 50 recent answers are included