showall your workJ
valuePV, rater/period,n periods,andlet futurevalueaftern
periods denoted FVo ,please
A) FV" by discrete
B) FV" by continuous
C) Givena c
IntertemporalModels, Dynamic Economic Systemsand Dynamic Optimization
in Micro and Macro Econ.
Intertemporalmodels are modelsinvolving different points in time, e.g.past,presen!
Dynamic models are modelswith variableschangingover time
ChapterL C. UnconstainedOptimization single-indeE:ndent-variable
REF: Silberberg Sue,n
This sectionandoptimizationin general, skeletalform:
Chapter III. G. Macro Growth Theory: dynamic optimization using Calculus of Variations &
Pontryagin's Optimal Control Theory.
Growth Theory was popular in 1930-40and enjoyeda revival in 1950-70because the
popularity of Keynesianeco
ChapterItI. H. Bellman's Dynamic ProgrammingDP
Dynamic modelscanbe continuousor discretetime. In math econ,most dlmamic
modelsare continuoustime & main tools are differential equationsand optimal control.
However, there are many discretetime econmodels,es
Ex, node A is pivotal for the pair of B and E.
Ex, node B is pivotal for the pair of A and C, the pair of A and D, and the pair of C and G.
The node X is pivotal for every pair of nodes.
Nodes B, C and D are gatekeepers.
2. Comparative Advantage
Ch 2: Should Nigeria Strive for Self-Sufficiency in Food?
The Nigeria Problem
Application to Nigeria
So What Actually Happened to Nigeria
Where We Are
Most countries are
8. Who are the WTO, and
What Do They Have
Against Dolphins ?
A model of international trade policy setting
WTO and its most important principles
Free trade areas/agreements (FTA)
WTO and a
for the nal exam of Applied Econometrics 2014
Problem 1 Multiple Choice
Please choose the answer(s) that you think is(are) appropriate.
1. 1. To decide whether the slope coecient indicates a large eect of X on Y, you look at
a. size o
Solution for non-graded exercises:
4.9. (a) With= 0, 0 Y , and Yi 0 Y . Thus ESS = 0 and R2 = 0.
(b) If R2 = 0, then ESS = 0, so that Yi = Y for all i. But Yi 0 + 1 Xi , so that Yi = Y for all i,
which implies that 1 = 0, or that Xi is consta
Non-graded Exercises 2
9.9 Both regressions suffer from omitted variable bias so that they will not provide reliable estimates of the
causal effect of income on test scores. However, the nonlinear regression in (8.18) fits the data well, so
that it could
Chapter C. Continuous
j" f(x) dx
v : f(l.r,),
y : f(x)
Chapter D. m-dimensional
know how to solvedifferentcategories differentialequations,
morefrom the system
Dr. Bei QIN
Brief Overview of the Course
Economics suggests important relationships, often with policy
implications, but virtually never suggests quantitative
magnitudes of causal effects.
What is the quantitative ef
4. Trade and Large
Corporations: Kodak versus
A company with global reach: A shop advertises Kodak products in the town of
4.1 Big Players in the Game of Trade:
Background on Kodak, Fuji, and the
3. Why Do Americans Get
Their Impalas from
New Trade Theory
3.1 Impalas on the Horizon
3.2 Increasing Returns More Generally
3.3 How to Tackle Europe: Trade versus FDI
3.4 Monopolistic Competition and Intra-Industr
6. Is Free Trade a Rip-off
for American Workers?
The Hecksher-Ohlin Model
Globalization and Wage Inequality: The four facts
The Heckscher-Ohlin Model
A more general H-O model
5. Why Did the North Want a
Tariff, and Why Did the South
Call it an Abomination?
The Ricardo-Viner Model
The American History
Specific-factor Model with Trade
7 . Why Doesnt Our
Government Want Us to
Import Sugar ?
Trade Policy Analysis
Sugar in the US
What is an optimal policy
A simple model for tariff analysis
Positive analysis: Effects of tari
We needthe following specialdeterminants matricesfor optimizationmodels.
Jacobian J | : determinant
formedby all ls orderpartial derivatives
functionaldepencfw_enoe both linear andnonlinearf
optimizationin Mathematics Economics
Linear Algebra(with economicapplications illustration)
Reviewof equilibriummodels(S & D curves)andmathpreliminariesincluding
ChapterII. Main Micro Econ Issueswithin Math Econ Framework
A. Microeconomics: main theory is Price Theory dealing with the efficientresource
allocation using market mechanism. The main theme is Adam Smith's Invisible
Hand Theorem (: FundamentalTheorems o
2850-6305 time0900 1800
A word of caution:
I find that studentscan gra
10.7 (a) Average snow fall does not vary over time, and thus will be perfectly collinear with
the state fixed effect.
(b) Snowit does vary with time, and so this method can be used along with state fixed
11.1 (a) The t-statis