已阅读5页,还剩32页未读, 继续免费阅读
版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领
文档简介
Chapter One,The Market - Appreciating Economic Modeling,天马行空官方博客:/tmxk_docin ;QQ:1318241189;QQ群:175569632,The Purpose of this Chapter,To begin to understand the art of building an economic model To begin to understand three basic elements of modeling in economics: Purpose Simplification through assumptions Value judgment,The Purpose of an Economic Model,The purpose of an economic model is to help provide precise insights (精确的洞察力)on a specific economic phenomenon. Thus: Different phenomena needs different model; Simplification by assumption is necessary,An Illustration: Modeling the Apartment Market,Purpose: How are apartment rents determined? Are rents “desirable”? Simplifying assumptions: apartments are close or distant, but otherwise identical distant apartments rents are exogenous (外生变量) and known many potential renters and landlords,Two Very Common Modeling Assumptions,Rational Choice (理性选择): Each person tries to choose the best alternative available to him or her. Equilibrium (均衡): economic agents interact with each other, resulting in an equilibrium, in which each person reaches an optimal decision given others decisions.,Modeling Apartment Demand,Demand: Suppose the most any one person is willing to pay to rent a close apartment is $500/month. Then p = $500 QD = 1. Suppose the price has to drop to $490 before a 2nd person would rent. Then p = $490 QD = 2.,Modeling Apartment Demand,The lower is the rental rate p, the larger is the quantity of close apartments demanded p QD . The quantity demanded vs. price graph is the market demand curve for close apartments.,Market Demand Curve for Apartments,p,QD,Modeling Apartment Supply,Supply: It takes time to build more close apartments so in this short-run the quantity available is fixed (at say 100).,Market Supply Curve for Apartments,p,QS,100,Competitive Market Equilibrium (竞争性市场均衡),Quantity demanded = quantity available price will neither rise nor fall so the market is at a competitive equilibrium.,Competitive Market Equilibrium,p,QD,QS,pe,100,People willing to pay pe for close apartments get close apartments.,People not willing to pay pe for close apartments get distant apartments.,Comparative Statics (静态比较分析),What is exogenous in the model? price of distant apartments quantity of close apartments incomes of potential renters. What happens if these exogenous variables change? Note: We are not analyzing the transition process or dynamic process.,Comparative Statics,Suppose the price of distant apartment rises. Demand for close apartments increases (rightward shift), causing A higher price for close apartments.,Market Equilibrium,p,QD,QS,pe,100,Higher demand causes higher market price; same quantity traded.,More Comparative Statics (Do Them Yourself),Suppose there were more close apartments. Or, renters income rises;,Elaboration of the Basic Model: Taxation Policy Analysis,Local government taxes apartment owners. What happens to price quantity of close apartments rented? Is any of the tax “passed” to renters?,Taxation Policy Analysis,Market supply is unaffected. Market demand is unaffected. So the competitive market equilibrium is unaffected by the tax. Price and the quantity of close apartments rented are not changed. Landlords pay all of the tax.,Imperfectly Competitive Market Case 1: A Monopolistic Landlord,Landlord sets a rental price p he rents D(p) apartments. Revenue = pD(p). He chooses p to maximizes p D(p), subject to D(p) = S (total number of apartments in his hands) Typically, his optimal p is such that D(p) S, that is, there are vacant apartments.,Monopolistic Market Equilibrium,p,QD,QS,Middle price,Middle price, medium quantity demanded, larger revenue. Monopolist does not rent all the close apartments.,100,Vacant close apartments.,Imperfectly Competitive Market Case 2: Perfectly Discriminatory Monopolistic Landlord,Imagine the monopolist knew willingness-to-pay of everybody, Charge $500 to the most willing-to-pay, charge $490 to the 2nd most willing-to-pay, etc.,Discriminatory Monopolistic Market Equilibrium,p,QD,QS,100,p1 =$500,1,Discriminatory Monopolistic Market Equilibrium,p,QD,QS,100,p1 =$500,p2 =$490,1,2,Discriminatory Monopolistic Market Equilibrium,p,QD,QS,100,p1 =$500,p2 =$490,1,2,p3 =$475,3,Discriminatory Monopolistic Market Equilibrium,p,QD,QS,100,p1 =$500,p2 =$490,1,2,p3 =$475,3,Discriminatory Monopolistic Market Equilibrium,p,QD,QS,100,p1 =$500,p2 =$490,1,2,p3 =$475,3,pe,Discriminatory monopolist charges the competitive market price to the last renter, and rents the competitive quantity of close apartments.,Rent Control (房租管制),Local government imposes a maximum legal price, pmax pe, the competitive price.,Market Equilibrium,p,QD,QS,pe,100,pmax,Excess demand,The 100 close apartments are no longer allocated by willingness-to-pay (lottery, lines, large families first?).,Value Judgement (价值判断),Which of the following is better? Rent control Perfect competition Monopoly Discriminatory monopoly But, what do you mean by “better”?,Pareto Efficiency (帕累托效率),Vilfredo Pareto; 1848-1923. A Pareto outcome allows no “wasted welfare”; i.e. the only way one persons welfare can be improved is to lower another persons welfare.,Pareto Efficiency,A Pareto inefficient outcome means there remain unrealized mutual gains-to-trade. Any market outcome that achieves all possible gains-to-trade must be Pareto efficient.,Pareto Efficiency,Competitive equilibrium: all close apartment renters value them at the market price pe or more all others value close apartments at less than pe so no mutually beneficial trades remain so the outcome is Pareto efficient.,Pareto Efficiency,Discriminatory Monopoly: assignment of apartments is the same as with the perfectly competitive market so the discriminatory monopoly outcome is also Pareto efficient.,Pareto Efficiency,Monopoly: not all apartments are occupied so a distant apartment renter could be assigned a close apartment and have higher welfare without lowering anybody elses welfare. so the monopoly outcome
温馨提示
- 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
- 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
- 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
- 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
- 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
- 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
- 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。
最新文档
- 服务合同主体变更协议书
- 整式(1)用字母表示数 课件 2023-2024学年人教版七年级数学
- 2021-2022学年湖南省十四校高一物理第二学期期末教学质量检测试题含解析
- 2021-2022学年河北省阜平一中高一物理第二学期期末考试模拟试题含解析
- 第三中学高二下学期期中考试语文试题(含解析)
- 宣化区七年级上学期语文期中考试卷
- 河南省创新发展联盟2024-2025学年高一上学期9月月考生物试题
- 珠海市前山区2024年一级造价工程师《造价管理》预测试卷含解析
- 山东省济南市莱芜区九年级上学期语文期中试题及答案
- 人教新版九年级下册《第9章 溶液》单元测试卷
- 2024年浙江省绍兴市生态环境局下属单位编外招聘4人历年高频考题难、易错点模拟试题(共500题)附带答案详解
- 2024年在九九重阳节茶话会的讲话(五篇)
- 2024年高考化学河北卷试卷评析暨2025届高考化学备考策略
- cecs31-2017钢制电缆桥架工程设计规范
- 合伙人行为规范和违规处理制度
- 总经理酒店开业致辞5篇
- BOE校园招聘简历表
- 我的家乡萧山
- 电力各种材料重量表总.xls
- 常用过去式过去分词表(整理)
- 培养指导青年教师证明材料.doc
评论
0/150
提交评论