14.126 Game Theory
Final Exam
You have 24 hours from the time you pick up the exam (i.e. you need to return
your solutions by the same time next day). You can use any existing written
source, but you cannot discuss the content of this exam with others. Qu
14.128. Problem Set #3
1
Neoclassical Growth: Linear and Non-Linear
Speed of Convergence
Consider the neoclassical growth model with u (c) = c1 / (1 ) G (k, 1) =
k and depreciation rate .
(a) Using the linearized dynamics compute several tables showing th
1
Solutions Pset 3
1) Do some programing
3) Brock Mirman problem
a) Take V = a1 log k + a2 log + a3 . Then the max problem is
T V (k) =
T V (k) =
max
ln (Ak k0 ) + E [a1 log k0 + a2 log + a3 ]
max
ln (Ak k0 ) + a1 log k0 + a2 E log + a3
0k0 Ak
0k0 Ak
Th
Problem Set
1 (14.453)
Ivn Werning
a
September 7, 2006
1
Business Cycles Costs
Let utility be given by:
E
1
1
X
t u (ct )
t=0
where the instantaneous utility takes the standard CRRA specication u (ct ) = c1 /(1 ).
t
1.1
AR(1)
The consumption process is
c
14.453: Problem Set
3
Ivn Werning
a
1
Precautionary Savings in General Equilibrium
Let utility be given by:
E
1
X
t u (ct )
t=0
where u (c) =
1
exp cfw_ c . Assume the standard intertemporal budget constraint
At
1
= (1 + r) (At + yt
ct ) .
(note: we do n
MIT 11.487 Urban Public Finance in Developing Countries
Fall 2004
Prof. Annette M. Kim
Problem Set 4
Please read and study KSG case: The Tribasa Toll Road Trust and respond to the following:
1. Diagram the principal agents and the flow of funds for this t
Problem Set 1
1
Answers to the required problems
3.2
a) Take any three vectors x, y, z in Rl and two real number , R.
Dene the zero vector = (0, ., 0) Rl . To check that it is a vector space,
dene the sum of two vectors as the vector of the sum element by
Department of Urban Studies and Planning
Frank Levy
11.203 Microeconomics
Fall, 2009
Answers to First Midterm Exam
1) (30 points) The following is a true quote from a Wall Street investment banker describing
the shift in demand for financial professionals