For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.
Questions tagged [economics]
1602 questions
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Engineering Economics
Suppose that a college graduate earns about 78% more money per hour than a high- school graduate. If the lifetime earnings of a high-school graduate average $1,200,000, what is the expected value of earning a college degree?
I did (1,200,000)(1.78)…
Solenn
- 100
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1 answer
Microeconomics Tax incident: unit tax imposed to consumer or producer
I come up with a thought that if there is any difference in term of imposing a tax to consumer or producer, I searched for the answer and there is some logic messing up..
let Pd be the consumer price; and Ps be the producer price
Suppose the Unit…
Chris LAM
- 13
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1 answer
Calculating "deseasonalised sales y" when forecasting 2004Q1-2004Q2
I'm currently having difficulty calculating values for the deseasonalised sales column. How do you go about doing it for 2004Q1-2004Q2?
Btw in case you are wondering:
$$2004Q1$$
$$First MA = {\frac{20+12+9+7}{4}} = 12$$
$$Centered MA =…
methuselah
- 283
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2 answers
Given supply and demand curves, and a tax, how can I find the tax burdens and revenue?
Suppose we have the following system of equations:
$Q_s=-20+3P$
$Q_d=-220-5P$
$Q_s=Q_d$
Say we want to find the tax burden of the consumer, the tax burden of the firm, and the total revenue generated for the government for some excise tax t.
Do…
Justin
- 2,813
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1 answer
Compound Interest similarity
You have just purchased a car with a $£20,000$ price tag. The dealer offers to let you pay for your car in $5$ equal annual instalments, with first payment due in a year. If the dealer finances your purchase at an interest rate of $10\%$, your…
Aj1990
- 1
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0 answers
Gross Substitutes under continuous perturbations
Let $v_i(S)_{i \in [n], S \subseteq G}$ be a collection of Gross Substitute valuations. I am wondering if I can add a small perturbation to each valuation and still get Gross Substitute valuations. Essentially, is there a small interval for each…
Eager Student
- 577
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1 answer
I need som help with price ratios.
Okay, so I'm doing some econ. homework and I'm supposed to draw a graph where the
relative price of $P$ is $4 T/P$. Thing is that my brain stops working anytime I try to think about ratios.
I know that it's supposed to be a line connecting some…
HistoryMajor
- 11
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1 answer
Expressing the sum / average of two AR(1) processes as an ARMA
I've got the following problem. I have two AR(1) processes (which are the returns on assets)-
$$r_{1t} = \phi_1r_{1,t-1} + u_{1t},$$
$$r_{2t} = \phi_2r_{2,t-1} + u_{2t},$$
We have the following weighted portfolio of these two returns as:
$$rp_t =…
Phil Whittington
- 101
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1 answer
Simple PPF question
Econoland and Free Enterprise are two economies each producing two goods: airplanes (A) and grains (G). Currently the two economies do not trade with one another. The table below provides information about the amount of labor needed to produce one…
OGC
- 2,305
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1 answer
Showing public returns to be greater than private returns mathematically
Take this headline
"OECD figures show public benefits more than individuals from tertiary education."
How would I present this mathematically, to show that public returns are greater than private returns?
user192944
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votes
1 answer
Present Worth with Salvage Value
I would like to know how to consider the "Salvage Value" in the following question while calculating the present and future values.
here is the question:
We are planning to build a new bridge. Construction is to start in 2015 and is expected to…
-1
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1 answer
Equilibrium level of income question
Question:
In the 2012 tax year,
Consumption= (85% of income after tax) + (Autonomous Consumption)
Taxation rate= 20%
Autonomous consumption= 175 million
Investment= 485 million
Government Expenditure= 1100 million
a) find equilibrium level of…
user116487
- 103
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1 answer
Engineering Economics Question: Uniform series present worth question
The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $3.3 million per mile. If the effective life of the fence is 10 years, determine the equivalent annual cost of a/an 13-mile long fence at an interest rate of…
Manav Shah
- 11
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1 answer
Ice-cream seller on a beach, continuation)
Unlike the problem from the trainer version, here the locations of the sellers are fixed but the prices are not. Suppose that a beach is a segment of length l and is uniformly occupied by bathers who wish to buy an ice-cream. The pleasure from…
-1
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1 answer
Supply/Demand Shift (Find New Equilibrium)
Starting: supply curve $y=x+10$ and demand curve $y = -x+30$ with equilibrium at (10, 20).
The problem states that DEMAND shifts leftwards by 3 units and to find the new equilibrium. My professor did not specifically state the two equations, but a 1…
mathguy
- 927