Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Econometrics Expert

Galway, Ireland has 1,000 people. Every year they have a fireworks show on the Fourth of July. The citizens are interested in only two things, drinking milk and watching fireworks. Fireworks cost 1 gallon of milk per unit. People in Cowflop have identical utility functions Ui(xi, g)=xi+g1/2/20, where xi is the number of gallons of milk per year consumed by citizen i, and g is the number of units of fireworks exploded in the town's Fourth of July extravaganza. (Private use of fireworks is outlawed.)Solve for the absolute value of each citizen's marginal rate of substitution between fireworks and milk.Find the Pareto optimal amount of fireworks for Galway. The ANSWER for question 1 is 1/40vg, for question 2 is 625. Thanks

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M91795291

Have any Question?


Related Questions in Econometrics

Economics and quantitative analysis linear regression

Economics and Quantitative Analysis Linear Regression Report Assignment - Background - In your role as an economic analyst, you have been asked the following question: how much does education influence wages? The Excel d ...

Basic econometrics research report group assignment -this

Basic Econometrics Research Report Group Assignment - This assignment uses data from the BUPA health insurance call centre. Each observation includes data from one call to the call centre. The variables describe several ...

Question - consider the following regression model for i 1

Question - Consider the following regression model for i = 1, ..., N: Yi = β1*X1i + β2*X2i + ui Note that there is no intercept in this model (so it is assumed that β0 = 0). a) Write down the least squares function minim ...

Monte carlo exercisein order to illustrate the sampling

Monte Carlo Exercise In order to illustrate the sampling theory for the least squares estimator, we will perform a Monte Carlo experiment based on the following statistical model and the attached design matrix y = Xβ + e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As