The economics tag has no wiki summary.
10
votes
2answers
303 views
Can someone explain Cremer-Mclean's astonishing result in auction theory?
In mechanism design/auction theory, there is a famous result by Cremer and Mclean that if agents'/bidders' valuations are even slightly correlated, then all the surplus can be extracted by the ...
3
votes
1answer
374 views
What's the most straight-forward way to prove Walras's Law?
Walras' Law states that summation of pi Ei(p) = 0 for all pi.
We define Ei(p) = xi(p) - qi(p) - Ri.
What are the next steps that I should take?
1
vote
1answer
210 views
How to show that Roy's identity holds in the case of a monotonic increasing transformation?
I know that by Roy's identity, the Marshallian demand for a good (i) is $x^*_i = -\frac{V_i}{V_y}$, where $V(Y,P)$ is the indirect utility function, $V_i=\frac{\partial V}{\partial P_i}$, and ...
0
votes
2answers
1k views
Given supply and demand curves, and a tax, how can I find the tax burdens and revenue?
Suppose we have the following system of equations:
$Q_s=-20+3P$
$Q_d=-220-5P$
$Q_s=Q_d$
Say we want to find the tax burden of the consumer, the tax burden of the firm, and the total revenue ...
1
vote
1answer
93 views
Optimization price per unit
I have no idea how to do this, I tried a lot of things but they don't make sense and I have too many variables.
A manufacturer has been selling lamps at the price of \$6/lamp, and at this price ...
1
vote
0answers
76 views
question from economics [closed]
i have following problem and please help me,here is problem:
With increased acsess to wireless technology and lighter weight, the demand for laptop computers has increased substantially. Laptops have ...
-3
votes
1answer
155 views
Accounting Help: Year-End Adjusting Entries [closed]
The following selected accounts appeared in the unadjusted trial
balance of Help Industries:
Accounts receivable $176,000
Prepaid rent $69,000
Prepaid insurance $36,000
...
2
votes
0answers
210 views
Nash equilibrium question
(Hotelling’s voting model) Consider a population of voters uniformly distributed along the ideological spectrum from left (x = 0) to right (x = 1). There are two candidates i = 1,2 for a single
office ...
2
votes
1answer
65 views
Incomplete “round trip” of taking a minimum, then a maximum, from a positively skewed distribution
Let's say you have a distribution that is either symmetric or positively skewed (and defined over 0-1). Call it F.
Then, you find the distribution of the minimum of n>1 draws from F. Call it Fmin.
...
1
vote
1answer
440 views
Proof involving a convex set
So, the problem is actually from a microeconomics class. The problem is this:
If preferences are represented by a utility function $u(x,y)=xy$, show that these preferences are convex.
Now in case ...
1
vote
1answer
145 views
Economic optimisation problem
Here is the question:
Consider a car-owning consumer with utility function
$$u (x) = x_1x_2 + x_3 (x_4)^2 ,$$
where $x_1$ denotes food consumed, $x_2$ denotes alcohol consumed, $x_3$
denotes kms of ...
1
vote
1answer
1k views
How do I graph this budget constraint?
How do I graph the following conditions? We are in two good life, spinach and sprouts, spinach on x axis, sprouts on y axis. If you consume 10 or less servings of spinach, you pay \$5 for each. Above ...
-4
votes
1answer
151 views
Economics formula
This is an economics question, but if I can get the correct answer to this formula I can answer the question. Any help is appreciated, thanks!
If the demand $Q_x^d$ for a product given the price ...
-1
votes
0answers
88 views
Economics Question - quotas and tariffs [closed]
I am getting confused with the two; quotas and tariffs.
I understand the difference, but I don't see how it benefits local or foreign manufacturers. I think local manufacturers would prefer quotas ...
0
votes
3answers
288 views
Economics supply and demand question
If the market demand for shoes is given by $QD = 10000-250P$ and the supply is
$QS = 5000$, what is the equilibrium price of shoes? How many pairs of shoes will be sold?
Thanks in advance.
2
votes
1answer
224 views
Statistics with overlapping periods
I've been having a lot of discussions about finance recently in which people will point to some results using overlapping time periods and claim a high degree of statistical significance. For ...
8
votes
5answers
1k views
Motivating linear algebra for economics students?
I'm a tutor for the introductory linear algebra course at my school; this course is required for most upper division economics classes, so a lot of my tutees are economics majors.
This is a typical ...
1
vote
2answers
268 views
Engineering Economics - Annual Cost Question
My question is as follows:
1.) An earth compactor costs $38,000 and has an economic life of 9 years. However, the purchaser needs it for only 1 project that will be completed in 3 years. At the end ...
2
votes
0answers
83 views
Optimal tax Rate
Assume you have two countries A and B, with a tax rates $T_A$ and $T_B$. The tax is redistributed to each people equally. Hence if you live in A and you make $I$ as income then you will finally ...
2
votes
1answer
234 views
Production Function
Yes.. I know this is a math forums but there is no economics.stackexchange.com :(.
Since this is also a math problem, I thought I'd post it here. Please help.
An undeveloped economy produces goods ...
10
votes
1answer
298 views
A (mathematically) sound investment strategy
It is common wisdom in the investment community that a long-term investor saving for his future would do well to invest in high-risk/high-return assets when he is young, slowly switching his portfolio ...
1
vote
0answers
263 views
Maximizing two codependant profit equations for Bertrand Model Oligopolies
For this problem I was given the Fixed Cost, Marginal cost, and demand curves for two firms (x and y). So far, from this information I derived the profit (π) function for each firm.
...
3
votes
2answers
293 views
Finding best response function with probabilities (BR) given a normal-matrix representation of the game
We are given players 1, 2 and their respective strategies (U, M, D for player 1, L, C, R for player 2) and the corresponding pay-offs through the following table:
$\begin{matrix}
1|2 & L & C ...
1
vote
1answer
137 views
Optimizing Group Spending
I have always thought that groups of individuals that spend more money(as opposed to save) have more money in the long run. My reasoning is that if a particular group spends money, then each dollar ...
1
vote
1answer
231 views
Find a price vector p for various prices of industries.
( Leontief input-output model ) Suppose that three industries are interrelated so that their outputs are used as inputs by themselves, according to the $3 \times 3$ consumption matrix
A = ...
1
vote
1answer
147 views
Normal distribution probability
just a quick question dealing with probability. The annual returns on stocks and treasury bonds over the next 12 months are uncertain. Suppose that these returns can be described by normal ...
5
votes
1answer
221 views
Measure of value of resources in a competitive game
Let we have a competitive survival game in which a player has choice between different resources to earn. The question here is which resource should he prefer to maximize the chance of survival. I ...
2
votes
2answers
342 views
Are the Karush-Kuhn-Tucker conditions applicable when one or more of the constraints are nonlinear?
I am just beginning to read about the use of "Concave Programming" methods and use of the Karush-Kuhn-Tucker conditions to identify the maximum value of a non-linear objective function subject to ...
4
votes
1answer
468 views
Lower hemicontinuity of the intersection of lower hemicontinuous correspondences
I have been stumped for long by this exercise (3.12(d)) from Stokey and Lucas's Recursive Methods in Economic Dynamics. Would greatly appreciate any hints.
Let $\phi: X \to Y$ and $\psi: X \to Y$ be ...
10
votes
10answers
2k views
Which 4 maths courses to take as an Economics PhD student?
I am doing a PhD in economics and I have the chance of taking one subject a semester in the maths department (I would like to do more, but "unfortunately" I have to work on my thesis). I want to have ...
14
votes
4answers
3k views
What exactly does it mean for a function to be “well-behaved”?
Often in my studies (economics) the assumption of a "well-behaved" function will be invoked. I don't exactly know what that entails (I think twice continuously differentiability is one of the ...
