Economic research

Analytical tools

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There is a typo in the last example equation for the Power Rule. The last x should be raised to the 8th power.

Optional, using calculus for marginal analysis.

In the Cobb-Douglas utility function presented in class, the exponents on the quantities of goods (b and 1-b) are assumed to be between 0 and 1 and sum to 1. b represents the relative taste (as a share of 1) of the consumer for the first good, and so appears in each demand function.

These lecture notes are very similar, but use a slightly more general form of the function in which the exponents (a and b) are between 0 and 1 but may not sum to 1. Here a/(a+b) represents the relative taste of the consumer for the first good.

These applets graph the total effects of price and income changes, and the decompositions of price changes into the substitution and income effects, as you slide controls for the prices and income. (Updated to fix the problem created by a change in Java.) The utility function is usually a particular Cobb-Douglass one, with one exception for a Giffen good.

News & analysis, current & past

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Related to a question on the chapter 5 problems.

Related to the chapter 4 assignment.

Other

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Optional: a Google map of Bollywood studios like the one linked to the Monopoly lecture slides of Hollyood studios.