EC111 MACROECONOMICS
Spring Term 2012
EC111 Class Exercise 17
1.
What factors determine exports and imports of goods and services?
2. An economy is described by the following relationships:
Consumption: C = 100 + 0.6(Y Td)
Investment: I = 200 r
Government
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
CAPITAL AND INVESTMENT
Like labour, capital is a factor input. But because capital takes time to install it is a
long run decision for the firm. The f
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
Market Failure
The competitive market mechanism has several important advantages:
It coordinates decentralised decisions by a very large number of eco
EC111 MACROECONOMICS
Spring Term 2012
Lecturer: Jonathan Halket
Week 17
Topic 2: National Income Determination
So far we have seen how the different components of National Expenditure add up to
equal national income or GNP. Different categories of expendi
1
IA156 : Methods of Economics
analysis
Lecture 2 (week 29)
Quadratic Functions
Anyarath Kitwiwattanachai (akitwi)
OUTLINE
2
1. Demand and Supply
2. Total Revenue Function
3. Total Cost Function
4. Profit Function
5. Rectangular Hyperbola
6. Average Cost
EC 202
Lecture notes 11
Monopoly
Mahmoud Fatouh
1
Monopoly
So far we have studied firms that take prices as given.
This may be a reasonable approximation when
there is a large number of firms in an industry
they all produce very similar goods
However, i
EC 202
Lecture notes 12
Price Discrimination
Mahmoud Fatouh
Hunting for Surplus
We saw that compared to
the total surplus available
when P = MC, the total
surplus under monopoly is
lower.
P
MC
Pm
Ps
A
B
D
MR
0
Qm
Qs
Q
A profit-maximising
monopolist would
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
THE LABOUR MARKET
Labour supply
Here we think about the individuals choice of how much labour to supply. In
consumer theory we took the individuals in
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
IMPERFECT COMPETITION
Under imperfect competition each firm has some market power (i.e. it faces a
downward sloping demand curve for its product) but
EC111 MACROECONOMICS
Spring Term 2012
EC111 Class Exercise 18
1.
What is meant by perfect international capital mobility? What does this imply about the
domestic interest rate?
2.
Suppose that we have an IS/LM economy with fixed prices and unemployment. T
EC111 MACROECONOMICS
Spring Term 2012
EC111 Class 19
Question 1.
The aggregate production function is Cobb Douglas, such that:
Where Y is real national income T is an overall efficiency (or technology) term, K is the
stock of capital and L is the stock of
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
Lecturer: Tim Hatton; Room 5B:313; email: hatton@essex.ac.uk
INTRODUCTION
The scope of economics
How society decides what, how and for whom to produce
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
Shifts in demand and supply
A shift in demand (due to something other than own price)
P
S
P2
D2
P1
D1
Q1
Q2
Q
The demand curve shifts from D1 to D2. T
University of Essex
Department of Economics
Session 2011/2012
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
THE THEORY OF CONSUMER CHOICE
Individuals choose to consume a combination of different goods. The choice depends
on the individuals preferences and
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
Consumer surplus
Consider the consumer choosing an amount of good X to maximise his/her utility,
and suppose that good Y is a composite of all other g
University of Essex
Department of Economics
Session 20011-12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
PERFECT COMPETITION
Perfect competition is one characterisation of the marketthe case where there are
many buyers and sellers. It is an extreme case
University of Essex
Department of Economics
Session 2011/12
Autumn Term
EC111: INTRODUCTION TO ECONOMICS
MONOPOLY AND REGULATION
Monopoly is the opposite extreme to perfect competition. In this case there is only
one (actual and potential) supplier of a g
EC 202
Lecture notes 13
Introduction to Game Theory
Mahmoud Fatouh
1
Strategic Interaction
In perfect competition, all buyers and sellers are
price takers. So each agent can make her
decisions without worrying about what others
are doing.
In monopoly, the
EC 202
Lecture notes 15
Oligopoly II
Mahmoud Fatouh
1
Commitment: Burning Ones Bridges
Commitment can help a player achieve a
higher payoff.
Red
Army
Green
Army
2
Burning Ones Bridges
Green Army
Fight
Red Army
Flee
Fight
2,2
6,3
Flee
3,6
4,4
3
Burning One
EC 202
Lecture notes 14
Oligopoly I
Mahmoud Fatouh
1
Oligopoly
When only a small number of firms compete in the
same market, each firm has some market power.
Moreover, their interactions cannot be ignored.
Each firm recognises that its decisions influen
Lecture 7: Comparative statics
Christian Ghiglino
Examples
The general Objective is: To know how the underlying parameters aect
the equilibrium of an economic system.
Example 1:
Suppose that we have a market where the demand and supply functions
are given
Lecture 1: Linear algebra
Christian Ghiglino
Why study matrices?
Consider the following macroeconomic model
Consumers expenditure: C
Investment: I
Equilibrium: Y
= C0 + bY ,
= I0 + aY ,
= C + I,
where the endogenous variables are C , I and Y .
The system
Lecture 2: More advanced notions of linear
algebra
Christian Ghiglino
Why study matrices?
So far the motivation was to solve systems of linear equations,
which usualy come up in static economic models:
Consider the following macroeconomic model
Consumers
Review of Probability
EC 252 Introduction to Econometric Methods
Abhimanyu Gupta
January 12, 15, 2015
1 / 44
Todays lecture: Review of Probability
Random variables
Distribution functions
Features of Probability Distributions
Expected value
Variance and st
Review of Statistics
EC 252 Introduction to Econometric Methods
Abhimanyu Gupta
January 19, 22, 2015
1
This weeks lecture: Review of Statistics
This weeks lecture proceeds in the following steps:
1. Key concepts: What is an estimator?
2. Criteria for judg
The Simple Regression Model
EC 252 Introduction to Econometric Methods
Abhimanyu Gupta
January 26, 29, 2015
1 / 45
Outline
What is Econometrics?
The simple linear regression model
Forming an estimator for the parameters of interest
Algebraic properties of
Multiple Regression Analysis: Estimation
EC 252 Introduction to Econometric Methods
Abhimanyu Gupta
February 3, 6, 2015
1 / 25
Outline
Limitations of the simple linear regression model
The multiple linear regression model
Denition
Estimation
Interpretatio
Multiple Regression Analysis: Estimation
EC 252 Introduction to Econometric Methods
Abhimanyu Gupta
February 9, 12, 2015
1 / 46
Outline
More on interpretation
The Expected Value of the OLS Estimators
Assumptions
Result: OLS is unbiased
Potential bias from