Problem set 4 Answers EC315 2013
Question 1. i) Derive the intertemporal budget constraint by substituting out Bf,2 and determine the rst order conditions for consumption, money holding and bond holding.
Rearranging the period 2 budget constraint:
Bf,2 =

Professor Mark Schankerman
EC313: Industrial Economics
EC 313: Problem Set 3 Solutions
1. A rm produces a product at zero unit cost and oers it for sale to a single
buyer. The seller does not know the buyer willingness to pay v but does
s
know that it is

EC313 Lectures: Industrial Economics
London School of Economics
Lent Term 2015
Professor Mark Schankerman
1
1
Strategic Interaction: Short Run Competition
1.1
Strategic Substitutes and Complements
We view the competitive game as played in two stages:
1. e

EC317 Labour Economics
Solutions Problem Set 13
Table 1:
Summary Statistics on Selected Variables using 1990 CPS
Men
Women
hourly wage
13.141
(7.915)
9.424
(5.325)
education
13.209
(2.738)
13.152
(2.301)
age
37.493
(9.862)
37.138
(9.804)
potential
experie

EC210 Part II Solutions to 2010 exam
Section A
Question 6
Suppose the central banks loss function is
L = (i i )2 + b(Y Y )2 ,
where i is ination, Y is output, and b is the weight attached to deviations of output from target
relative to ination deviations

CHAPTER 3:
DISTRIBUTIONS OF RANDOM
VARIABLES
3.1,3.2,3.4
NORMAL
DISTRIBUTIONS
Symmetric
Mean
Median
Mode
Unimodal
Bell shaped
NORMAL
DISTRIBUTIONS
Distributions
with various
means and SDs
can be
considered to be
normal, but
the overall
shape change

EC 313: Industrial Economics
Lent Term 2011
Professor Mark Schankerman
Problem Set 6
1. Suppose consumers are risk neutral and value a litre of milk at 3 if the cows that produced it were not given the genetically engineered bovine growth hormone rBGH and

Economics 315
London School of Economics and Political Science
International Macroeconomics
Lecturer: Dr. Keyu Jin, L.117, email: [email protected]
Oce Hours: Wednesday 15:0016:00
Textbooks:
1. Main textbook: International Economics: Theory and Policy, 9th

EC315 - Answers to Problem Set 7
Question 1
(a) Consider the model of sovereign default presented in lecture. A country borrows from foreign
investors to insure against output uctuations. The amount borrowed, L, is chosen at the start of
the period, befor

Problem set 3 EC315 MT 2013
1) Pricing to market and incomplete pass-through with linear demand.
Consider a monopolistic competition framework in which each rm faces the
following linear demand function:
y(i) = a b (p(i)
a) Assume that the production func

EC313: Industrial Economics, 2014-15
Teacher responsible:
Professor Mark Schankerman
Email: [email protected]
Tel: (0207) 955.7518
Office Hour: Wednesday 4:00-5:30
Course Description: This is a 3rd year undergraduate course in industrial economics.

Class 2: Problem Set 1 Solutions
1.
The profits of the monopolist are given by
, where
and
.
a)
. In this case, the monopolist solves
,
. The first order
conditions (FOC) are given by
Solution:
.
b)
. In this case, the monopolist solves
. Thus, the
monopo

1.(a). Suppose that UIP (uncovered interest parity) condition holds but the PPP
(purchasing power parity) condition does not hold. In the long run, where
prices are exible, by how much is the real exchange rate (dened as
the foreign price level to the dom

Professor Mark Schankerman
EC313: Industrial Economics
Problem Set 5
1. Two firms play a sequential game an incumbent, firm 1, and an entrant, Firm 2. At stage 1
firm 2 decides whether to enter (E) or not (N). Then firm 1 decides whether to fight (F) or
a

EC317 - Labour Economics
Problem Set 1 (Lent Term)
1. Jane has 3 years of college and earns $21 per hour, Pam has 2 years of college and earns
$19 per hour, and Mary has 1 year of college and earns $16 per hour. If we know that their
abilities are the sam

EC 313: Problem Set 2
1. Assume that demand for the services of a durable good for one period t is
Qt = 20 Rt where Rt is the rental rate per period. There is a monopolist who can produce the perfectly durable good at zero marginal cost.
Consumers and the

International Economics: EC315
Michaelmas term 2013
Solutions to problem set 5
Question 1: Use the IS-LM model to determine how a fall in the world interest rate will
influence domestic output under fixed and floating exchange rate regimes. How does your

Ec220 - Introducton to Econometrics
Problem Set 7
Answers
1. (a) Run an OLS regression of loggdp on risk. Comment on your result. Is the eect
you find large or small?
The coecient on risk is 0.505, and it is highly significant. The result suggets
that cha

TAXATION & CAPITAL INCOME
Camille LANDAIS
London School of Economics
Motivation
1. Capital income: 25% of national income, but distribution much
more unequal than labor income.
Equity motivation for K income taxation?
2. Capital income inequality stems f

Ricardian Model
Introduction
I This is the oldest part of classical trade theory.
I First developed by Ricardo (1817).
I Big Questions: Who trades with whom, what and how much?
I
I
Trade is due to dierences between countries (as in entire
classical trade

Trade, Development and Industrial Policy
1 / 25
Introduction
I So far we have largely considered models with no room
for industrial policy.
I Today we will think of the interaction between
international trade and domestic policy.
2 / 25
Introduction
I Arg

Discrete Mathematics
Lent 2009
MA210
Solutions to Exercises 4
n
0
(1) Define sequence (bn )n1 by bn =
+
n1
1
+ . . . , where we use
n
k
= 0 for k > n.
Verify that b1 = 1, b2 = 2, and that, for every n 3, we have bn = bn1 + bn2 .
Solution. Using nk = 0 for

Department of Mathematics, London School of Economics
Differential Equations
Amol Sasane
ii
Introduction
0.1
What a differential equation is
In any subject, it is natural and logical to begin with an explanation of what the subject matter
is. Often its ra

Surname
Centre
No.
Initial(s)
Paper Reference
5 5 4 0H
Candidate
No.
4H
Signature
Paper Reference(s)
5540H/4H
Examiners use only
Edexcel GCSE
Team Leaders use only
Mathematics A (Linear) 2540
Paper 4 (Calculator)
Higher Tier
Monday 2 June 2008 Afternoon
T

Mathematical Methods, Lecture Thirteen
13. Developing Geometric Insight, 1 of 2
13.1 Visualising the set R2 using position vectors
In Lecture Notes 3, we defined the set R2 as the set of all pairs (a, b) where a and b
are elements of R:
R2 = cfw_(a, b) |

Summer 2009 examination
EC202
Microeconomic Principles II
2008/2009 syllabus
Instructions to candidates
Time allowed: 3 hours.
This paper contains nine questions in three sections. Answer
question one (section A) and THREE other questions, at least
one fr