ECON 3030 Homework 1
(100 points total)
1. (15 points) Bob consumes only apples and bananas. He always prefers more apples to fewer,
but he gets tired of bananas. If he consumes fewer than 29 bananas per week, he thinks that
1 banana is a perfect substitu
Exchange equilibrium,
Pareto efficiency,
and Welfare theorems
Endowments
So
far we assumed Bob gets m money
Now, instead assume Bob gets
endowments of both goods
Endowment
is a bundle that Bob starts
with:
B
B B
= (1 , 2 ).
Exchange
Two
consumers, A a
ECON 3030 Homework 0
(100 points total)
1. (10 points) Suppose the quantity of good is measured on the horizontal axis and good is
measured on the vertical axis. Let p denote the price of good and p denote the price of
good .
What is the slope of the budg
ECON 3030 Homework 4
(100 points total)
1. (30 points) Suppose the following model of a small local market for burritos works perfectly
in predicting the equilibrium: a demand curve, which is a downward-sloping straight line,
crosses at one point a supply
Lecture Note 10
More on Instrumental Variables / Returns to Education
(APChapters 3 and 6)
Economics 3120
Fall 2015
J. Berry
N. Kanazawa
Q. Yu
IV and Policy Evaluation
IV is a powerful tool for policy evaluation, particularly when the policy is not random
Market equilibrium and large exogenous shocks:
a historical example
1
Pre-Civil War (18201860)
price elas*city of demand for coFon from the
American South was approximately 1
2
Pre-Civil War (18201860)
the dema
Market equilibrium and proportional taxes:
a simple application
Tax revenues vary across countries (and time)
Optimal income tax rate?
I
I
A common argument:
I
if tax rates are too high,
I
people will work less, earn less (will be worse o)
I
and tax reven
Economics 4905 Spring 2016
Cornell University
Financial Fragility and the Macroeconomy
Problem Set 2
Due: Wednesday, April 20, 2016
1. Diamond-Dybvig Bank #1
The probability of being impatient is and the probability being patient is (1 ). The
type (patien
Technology:
a theory of production
Technologies
Think
of technology as a process by
which some inputs are converted to
some output
Technologies
Think
of technology as a process by
which some inputs are converted to
some output
E.g.
labor, a bit of brai