# Tag Info

Accepted

### Solow residual with cost minimization, calculus (Roeger, 1995)

Equation (4b) in the paper gives: $$\Delta mc_t = \frac{E_t N_t W_t}{Y_t G(.)}\Delta w_t + \frac{E_t K_t R_t}{Y_t G(.)} \Delta r_t - \Delta e_t. \tag{I}$$ Next we also have equation (5) in the paper:...
Accepted

### Does Debreu's representation theorem of ordinal utility require Hausdorff topology?

No. However, the problem can be reduced to representing preferences on a Hausdorff space. Instead of trying to represent a complete preorder on a set, one can try to represent linear orders on the ...
1 vote

I made a very elementary error in forgetting that $f_i(v_i=P_j-\gamma_iq_j,\gamma_i) = f_i(\gamma_i|v_i=P_j-\gamma_iq_j)\text{Pr}(v_i=P_j-\gamma_iq_j)$. This is not the same as $f_i(\gamma_i|v_i=P_j-\... 0 votes ### Does continuous preference imply upper-hemi continuous demand correspondence? I think I find the solution: this short paper includes a generalized version of Berge's Theorem https://www.jstor.org/stable/2526431?seq=1 The binary relation is used instead of utility. The binary ... 2 votes ### Demand correspondence is both upper and lower hemi-continuous; is the preference continuous? If the commodity space is$\mathbb{R}^2_+$and the preference is Lexicographic, then with the standard budget sets$B=B(p_X, p_Y, M) = \{(x, y) \in \mathbb{R}^2 | p_Xx + p_Yy \leq M\}$where$(p_X, ...

It would help if you would explain what MSC and MPC are (thankfully Google lens finds it) MPC = Marginal Privat cost F0 is where the cost are starting to become affected by external costs (...
1 vote
Accepted

### How to compare the price elasticity of demand from different points by looking at the graph?

There is no general way of determining elasticity from graph, however linear demand function has a property where demand is infinitely elastic at the top and then elasticity monotonously decreases (in ...

### When can I assume that a variable is exogenous?

$Performance_i = \beta_0 +\beta_1 Attend_i +\varepsilon_i$ It may be that healthier snacks do not affect attendance, but I would be very concerned making an assumption of the form \$Cov(Attend_i, \...
1 vote

### Checking negativity condition in demand system model

Estimating demand equations with OLS is never done due to some major problems (endogeneity, assumptions of homogeneous coefficients for all consumers, assumptions of a linear demand curve). Most ...
1 vote

### What does it mean to control for a variable?

Summarised explanation: Controlling for a variable essentially means you're measuring an independent variable and accounting for its presence to negate/remove its flow-on effects on other variables ...

Top 50 recent answers are included