Topic: Microeconomics

Posts

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  How To Derive A Demand Function from a CES Utility Function

  Warning: Boring technical stuff that’s only here because I needed it for the model in the Helicopter Money paper, and there are no other good references online. All the existing resources on the internet that I’ve found are either vague or inconsistent with their σ/ρ notation (where \(ρ=\frac{σ-1}{σ}\) and σ . . .

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  The Significance of Profit: A Failure of Equilibrium, or a Success of Coordination?

  General equilibrium, we are told, is the benchmark for an economy – and in particular, a perfectly competitive general equilibrium. Departures from this standard are commonly called “market imperfections”. In such a state, no one can be made better off without making someone else worse off. In other words, all profit . . .

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  A Note on the Microeconomics of Time Preference

  Time preference is not a sui generis component of the rational choice model. In fact, the preference for present goods over future goods masks two quite different phenomena. This being the case, you don’t need behaviorism to see why we’re more willing to bring goods into the present than to . . .