Friedman, Milton. “The methodology of positive economics.” (1953): 259. Classic but perhaps outdated Sugden, Robert. “Credible worlds: the status of theoretical models in economics.” Journal of Economic Methodology 7.1 (2000): 1-31. Sugden, Robert; Sitzia, Stefania. “Implementing theoretical models in the laboratory, and what this can and cannot achieve.” Journal of Economic Methodology, Vol. 18, 2011, p. 323-343.
2019: These are relevant for the midterm
AUT: Lecture 3 - Axioms of Consumer Preference and the Theory of Choice (note, slightly different notation)
The readings from Autor's course (note these are class notes not an 'academic article') are core and not supplementary... 2019: Relevant to the midterm.
Waldfogel, Joel. “The deadweight loss of Christmas.” The American Economic Review 83.5 (1993): 1328-1336. Reinstein, David. “The Economics of the Gift.” (2014). D. Colander \Edgeworth’s Hedonimeter and the Quest to Measure Utility’’ Journal of Economic Perspectives, Spring 2007: 215-225.
These are indirectly relevant for the 2019 midterm
Loomes, Graham, Chris Starmer, and Robert Sugden, 1991.“Observing Violations of Transitivity by Experimental Methods”. jstor link Choi, Syngjoo, et al. “Who is (more) rational?.” The American Economic Review 104.6 (2014): 1518-1550.a.
2019: These are relevant for the midterm ... but you don't need to know all the technical details
For maths, see also Mathematical methods for economic theory … also free online!
the "Khan academy" https://www.khanacademy.org is highly recommended
Here Y has a diminishing MU, but for X MU is constant
Student asked:
I am confused because I thought that diminishing MRS meant that it declined as consumption increased? So if Y increases, surely MRS increases as well since MRS=Y?
Ahh, I see a typo here ... it increases as Y increases, which is what we call diminishing MRS. Unfortunately, the term 'diminishing MRS' is confusing the way economists use it, at least in these texts ... it means that as we move 'down' an indifference curve (less Y more X) we are willing to give up less Y to gain a unit of X. So as we move the other way we increase Y (and decrease X) and the MRS rises... when I have more Y I'm willing to give up more of it.
No, because if it were at such a point, it could raise its price and its revenue would increase and costs would decline.
Analogy: If I'm on a mountain and I see it is still sloping upwards, I am certainly not at the highest point.
If I am at a "point A" where I can improve my outcome (here, by raising revenue and reducing costs, then "point A" must NOT have been optimal. 'Never locate at point where you can clearly do better!'
Paying the vertical distance between B and D (sacrificing this amount of ‘other goods’) to obtain the second ticket will leave her at point D. This is on the same indifference curve aas point B so this leaves her equally well off. Thus this is the most she would be willing to pay for the second ticket.
Wang Chao:"can you expkain more?why not c to d? and why a is unachievable?"
DR: after buying the first ticket she is at point C. After this, paying vertical distance B-D (in other goods) puts her at point D, which makes her as well off as point B-- thus she is indifferent. She cannot choose point A because of the rationing policy.
No, because if it were at such a point, it could raise its price and its revenue would increase and costs would decline.
Just confirming - (d) IS the correct answer. If the firm can improve upon a choice then that choice must not have been an optimal choice. -DR
Mock mid-term exam
Students: Please comment on the questions (choose 1-2) you would like us to cover in tutorial, and if you like, let us know what questions or doubts you have.
Individual optimisation solved problem
This is a challenging problem. Knowing how to solve it and understanding what this means may help you both on the midterm assessment and the final examination
Individual optimisation solved problem
Student asked: Could something like this be on the final exam?
Answer: Yes
Student asked: Would you be able to 'avoid it by choosing a different question with less maths?'
Answer: Possibly/probably, but it's better to learn how to do it ... in case you don't like the other question either.
‘people buy less when the price rises, all else equal’.
I should say, 'when it rises because of a shift in the supply curve or because a monopoly seller chooses to raise prices'
Really the principle is that in aggregate people are willing to buy fewer units at this higher price.
(Left) when goods are perfect substitutes, there is no Substitution effect of a price change. For prices lll and l′l′l', the minimum-cost consumption that attains U1U1U_1 is the same point (A,B)
This is backwards -- left is perfect complements (I said 'substitute/) and right is perfect substitutes (I said 'complements'. Rest is correct, wiill fix this shortly.
common measure of the burden: ‘amount a person would be willing to pay to avoid tax’, for a given revenue raised *A step-by-step illu
This illustration needs a small correction --- y2, x2 should line up with the red dot. Will fix it.
2. That is, at this consumption plan he or she would be willing to give up 3 beer
THIS is a typo -- I'll fix it!
f*h'(r)
index 'h' here rather than 'n+h' because f*(r) does not take the (n-vector) x as an argument (it sets these optimally, conditional on the r-vector and computes the output).
Goals of this problem set: Re-acquaintance with mathematical approaches to Economics (e.g., simultaneous equations, graphing functions) Revising the supply and demand model and its implications, applying this to real-world problems, considering empirical approaches Understanding the logic of ‘difficult’ multiple choice questions (assessment tips) Discussing and writing a coherent response to applied Economics questions
It goes beyond this actually; I need to update the 'goals' section
Note: The lecturing ‘slides’ are posted contemporaneously to each lecture, but there is no need to look at them – this web-book (‘handout’ is king). OK, fine… the link to the slides is HERE, but don’t look at them. (If you do you will need to press ‘o’ to see the navigation map.
Those were behind the VLE -- the github hosted slides are
HERE ... etc
3 Math tools and empirical analysis - – coverage outline
slides start HERE
4 Utility and Choice (L2)
Relevant slides start HERE
2 Economic Models (L1-2)
Relevant slides starth here: https://daaronr.github.io/micro_econ_pandoc/selfc_s_intro_lecture_modules_selfc.html#/economics-and-economic-models-see-esp.-ns1
Alfred Marshall argued that a good’s price must equal both the cost to produce and the value (to consumers) of the last unit produced and consumed.
added some material below (orange) to give insight
With ‘single crossing’ (a fancy condition you can ignore in this module) there is a unique price where Qs(p)=Qd(p)Qs(p)=Qd(p)Q^s(p)=Q^d(p), and a unique quantity where the last unit’s value to the consumer equals its cost to produce.
I will elaborate on this a bit
1∗1
this should say 2x1 -- I'll correct it
GTA’s: Ten minutes, i.e., minutes 5-15 of of tutorial, perhaps (after introducing yourself etc).
Does the timing seem right?
Goals of this problem set:
we can add specific notes here
Not ‘output’ – ‘nets provided’ nor ‘paintings purchased’ (Total or marginal) impact per dollar = output per dollar ××\times impact per output
Ben Grodeck: I like the definition of Impact. It might be worth mentioning overhead costs and impact aren’t necessarily correlated (or at least not 100%).
DR: I would hope this is well-known in this audience, but you are probably right that it's worth mentioning. 'Overhead ratio' should not be (and does not seem to be) positively correlated to either the 'marginal impact of $1 donated on output' nor to 'marginal impact of $1 donated on ultimate outcomes'
Little giving to the most effective charities ‘Innumerate empathy’: key barrier to promoting effective giving?
Ben Grodeck: Is empathy innumerate? I thought as numbers got larger, people’s empathy actually decreased. (I see you mention this research later on in the presentation)
When Pandoc converts Markdown to another output format, it uses a template under the hood. The template is a plain-text file that contains some variables of the form $variable$. These variables will be replaced by their values generated by Pandoc. Below is a very brief template for HTML output:
where do we find the default (gitbook) template to be able to tweak it?
When used locally, this feature requires that reveal.js runs from a local web server.
not sure what this means.
Vague questions
incorporate examples
4.9 …Stating empirical results
sub-sub-section?
“Has the legacy of British institutions increased or decrease the level of GDP in former colonies?”
link actual papers of course
“how do risk-averse individuals choose among a set of uncertain gambles?
specific example?
Fields
add JEL codes and links
3.4 Theoretical vs. Applied (focus)
need more examples here!
The book is written in RMarkdown with bookdown. It is automatically rebuilt from source by travis. R4DS is a collaborative effort and many people have contributed fixes and improvements via pull request.
anyone other r4ds_slackers using bookdown?
Anyone in the Slack group interested in sharing comments directly on this page via this hypothesis tool? We can use the tag "r4ds_slackers"
e your thesis meaningfu
testing a note -- can anyone see this?
I'll try to find time to go through this; going to recommend it to my students at Exeter Uni, Economics. Anyone else on here seeing this?
just
test -- I will change this word to 'only'
This tool is designed to help you inform your marketing, improve retention of your donors and ultimately increase your income. It means you can target your donors in a really timely way, when you are most at risk of losing them and when they are most likely to donate, maximising your impact whilst still adhering to The Fundraising Regulations.
Henrik can you see these notes?
sample(1:6, 1)
are these interactive/Shiny? I can't get them to 'run'
A scatter plot represents two dimensional data
just testing a comment