Chapter 1 Introduction 1.1 What is econometrics? Application of st atistical and mathematical met hods to the analysis of economic Purposes 1. Testing economic theories 2. Policy analysis(simultaneous equations model, vector autoregressive model

一、单项选择 1、“一国两制”构想的提出是从解决()开始的。 A.香港问题 B.台湾问题C.澳门问题D.西藏问题 2、澳门特别行政区的回归于()。 A.1999年1月1日 B.1999年5月1日 C.1999年1月20日 D.2000年1月1日

一、单项选择 1、《关于香港问题的联合声明》的签署是在( )。A.1979年 B.1980年C.1982年D.1984年 2、我国外交战略的基本目标是( )A.互不涉内政B.互相 尊重主权和领土完整C.反对霸权主义,维护世界和平D.加强同第三世界的 团结与合作

1. Producer Theory 1. Technology yi =input of good i, y =output of good i, i= yi-yi=net output, y yn) is a production plan Production possibility set Y=technologically feasible production plans yE Rn) y E Y is technologically efficient if there is no yE Y s.t. y>y

This formula applies to any type of firms in the output market 1. Competitive Output Market Competitive industry: Many firms: Firms are independent of each other in decision making Identical product: Each firm faces a horizontal demand curve at the market price Free entry: Zero profit in the long run A competitive firm takes the market price as given. For a given market price p

Equilibrium price. Equilibrium allocation: x=xi(p,p·w2), Note: A p* for any >0 is also an equilibrium price. Offer curve: (p)(p, p. w;). The equilibrium is the intersection point of the offer curves. Excess demand function:

Production Plans with Multiple Outputs Lety≡(m,,…,ym) be a net output vector, YArn be a convex set,G:Y→R be twice differentiable Production possibility set:{y∈Y|G(y)≤0} Assumption 1.1. Gy (y)>0, Vi,yEY. Proposition 1. 12. Production frontier yEY G(y)=0 contains technologically efficient production plans Definition 1.1. Marginal rate of transformation

Optimization See Sydsaeter(2005, Chapters 2, 3)and Chiang(1984, Chapters 9, 11, 12 and 21) Positive definite matrix Definite matrices are directly related to optimization. A symmetric matrix A is positive semi- definite(A≥0) if rAr≥0,Vx; positive definite(A>0)

Corporate finance 1. Theoretical Approaches 1.1. Corporate Finance in Arrow-Debreu world Complete market, perfect market, perfect competition, symmetric information, private consumption Risk: risk sharing, risk pooling, technology shocks, individual vs aggregate shocks Lucas(1978): existence of equilibrium asset price Merton: continuous-time pricing model

Problem set 2 Micro Theory S. Wang Question 2. 1. You have just been asked to run a company that has two factories produc ing the same good and sells its output in a perfectly competitive market. The production