showall your workJ
[Please
MathEcon2009ReviewTest
l. Givenpresent
valuePV, rater/period,n periods,andlet futurevalueaftern
periods denoted FVo ,please
be
by
derivetheformulafor:
A) FV" by discrete
compounding;
B) FV" by continuous
compounding.
C) Givena c
ChapterIII.
IntertemporalModels, Dynamic Economic Systemsand Dynamic Optimization
in Micro and Macro Econ.
Intertemporalmodels are modelsinvolving different points in time, e.g.past,presen!
future.
Dynamic models are modelswith variableschangingover time
firnctions
ChapterL C. UnconstainedOptimization single-indeE:ndent-variable
for
(2001)Chapter4
REF: Silberberg Sue,n
&
(1985)Chapter
Takayama
1
(1993)
Takayama
Part2
in
This sectionandoptimizationin general, skeletalform:
Unconstrained
multivariatefirncti
Chapter III. G. Macro Growth Theory: dynamic optimization using Calculus of Variations &
Pontryagin's Optimal Control Theory.
i) Brieflntroduction
Growth Theory was popular in 1930-40and enjoyeda revival in 1950-70because the
of
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
1.
(a)
Ex, node A is pivotal for the pair of B and E.
(b)
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.
(c)
The node X is pivotal for every pair of nodes.
2.
(a)
Nodes B, C and D are gatekeepers.
(b)
All node
2. Comparative Advantage
Ch 2: Should Nigeria Strive for Self-Sufficiency in Food?
International Trade
John McLaren
1
The Nigeria Problem
Ricardian Model
Application to Nigeria
So What Actually Happened to Nigeria
Where We Are
Agenda
2
Most countries are
8. Who are the WTO, and
What Do They Have
Against Dolphins ?
International Trade
John McLaren
1
Agenda
The Debate
A model of international trade policy setting
WTO and its most important principles
Free trade areas/agreements (FTA)
Border Puzzle
WTO and a
Sample questions
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
the
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.
1 =
=
(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
DynamicModels- DifferentialEquations
UI.
Chapter C. Continuous
lculus
Review
/
;^
integral
fferential
definite
I
I
b
j" f(x) dx
i(*) d*
1-variable
v : f(l.r,),
y : f(x)
I
1" orderderivative
t
\
1" orderpartialderivative
dy/dx: f'(x)
af af
2"dorderderivati
linear& nonlinear
differentialequations
III.
Chapter D. m-dimensional
of
we
know how to solvedifferentcategories differentialequations,
Sincewe already
morefrom the system
stability(equilibrium)aspect.
systems
coverm-dimensional
(3
differentialnions)
diff
Applied Econometrics
ECON6001A/B
Dr. Bei QIN
1/90
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
Fuji
International Trade
John McLaren
1
A company with global reach: A shop advertises Kodak products in the town of
Safranbolu, Turkey.
4.1 Big Players in the Game of Trade:
Background on Kodak, Fuji, and the
3. Why Do Americans Get
Their Impalas from
Canada?
New Trade Theory
International Trade
John McLaren
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
International Trade
John McLaren
1
Globalization and Wage Inequality: The four facts
The Heckscher-Ohlin Model
Rybczynski Theorem
Stolper-Samuelson Theorem
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
International Trade
John McLaren
The American History
Specific-factor Model
Pure model
Mixed model
Tariff Effects
Specific-factor Model with Trade
Ag
7 . Why Doesnt Our
Government Want Us to
Import Sugar ?
Trade Policy Analysis
International Trade
John McLaren
1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Sugar in the US
What is an optimal policy
A simple model for tariff analysis
Positive analysis: Effects of tari
ChapterI.Il
Special
determinants matrices.
and
We needthe following specialdeterminants matricesfor optimizationmodels.
and
usedto test
Jacobian J | : determinant
formedby all ls orderpartial derivatives
I
functionaldepencfw_enoe both linear andnonlinearf
and
&
optimizationin Mathematics Economics
ChapterI. StaticEconequilibriummodels,
as
Linear Algebra(with economicapplications illustration)
A.
Reviewof equilibriummodels(S & D curves)andmathpreliminariesincluding
differentiation(Econof Finance).
Functions
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
Mathernatical
Econornics
Econ OZO3
July/2009
Wu
Dr. Joseph
Emailaddress:
iosephwu@econ.hku.hk
&
hoursTuesdays Thursdays
Officehours:0900-0930
Room904KKL Building
(any
hours)
2850-6305 time0900 1800
Telephone:
A word of caution:
I find that studentscan gra
Non-graded exercises
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
effects.
11.1 (a) The t-statis