Academic literature on the topic 'Microeconomics – Mathematical models'

Cost and utility modeling of economics agents based on the differential theory is fundamental to the analysis of the microeconomics models. In particular, the first and second-order derivative tests are used to specify the desired properties of the cost and utility models. Traditionally, paper-and-pencil proof methods and computer-based tools are used to investigate the mathematical properties of these models. However, these techniques do not provide an accurate analysis due to their inability to exhaustively specify and verify the mathematical properties of the cost and utility models. Additionally, these techniques cannot accurately model and analyze pure continuous behaviors of the economic agents due to the utilization of computer arithmetic. On the other hand, an accurate analysis is direly needed in many safety and cost-critical microeconomics applications, such as agriculture and smart grids. To overcome the issues pertaining to the above-mentioned techniques, in this paper, we propose a theorem proving based methodology to formally analyze and specify the mathematical properties of functions used in microeconomics modeling. The proposed methodology is primarily based on a formalization of the derivative tests and root analysis of the polynomial functions, within the sound core of the HOL-Light theorem prover. We also provide a formalization of the first-order condition, which is used to analyze the maximum of the profit function in a higher-order-logic theorem prover. We then present the formal analysis of the utility, cost and first-order condition based on the polynomial functions. To illustrate the usefulness of proposed formalization, the proposed formalization is used to formally analyze and verify the quadratic cost and utility functions, which have been used in an optimal power flow problem and demand response (DR) program, respectively.

Microeconomics studies the economic behavior of individual decision-makers. To be able to make sound decisions in economics, the economist has designed mathematical models based on the differentiation of simple functions. Economics and mathematics are directly related as changes in quantities and variables affect the relationship and the direction of the consumer behavior to become better –off or worse-off. The main objectives of this study are microeconomic theories that may simplify or easily understandable through the mathematical calculation to illustrate the examples and calculate the equilibrium positions numerically. The study also aims to provide mathematical tools that manage to determine all the information necessary for decision making from a broad vision. The relationship between quantity and price may be better explained through mathematical notations. The supply and demand curve is designed to find the equilibrium point and it is better explained through mathematical equations. To explain, the methodology is used for a simple mathematical function of price with the help of a simple linear and nonlinear model of static analysis of the market equilibrium of Qd=Qs. This study concludes that it will greatly help college students, professionals, entrepreneurs, and in general anyone presents solved exercise and proposes problems, for the student to solve cases create graphs, table, and interpret and analyze results in the market and thus fixing the knowledge.

The article examines the place of economic theory in the structure of scientific knowledge and its role in creating human capital. The comparative analysis focuses on the way knowledge is organized in natural (physics) and social (economics) disciplines. It is suggested that theoretical economics lies at the core of economic science, and there is also a protective belt of «auxiliary hypotheses» (I. Lakatos) comprising a range of economic theories (from political economy to neo-institutional economics) appears. Their categorical foundation coincides with objective knowledge (in the terminology of K. Popper), which should include basic categories, logical and mathematical methods, micro-economic bases of analysis, etc. Microeconomics is aimed at building mathematical models that reflect the rational behavior of economic agents. Its in-depth study is the prerogative of «textbooks for scientists» (in the classification of B. Bolzano). Within the higher education system, ‘microeconomic theory’ is studied at the level of postgraduate studies, which means that the disciplines that form the core of the economic science should be studied more intensively at the Bachelor’s and Master’s levels. In Master’s programs, what comes to the fore is the ‘textbooks for business people’ or the economy of industrial markets. The economy of industrial markets and other similar disciplines based on the categorical foundation of microeconomics offer practically oriented training (case studies and know-how). The content of economic theories includes a worldview component, which largely coincides with implicit (personal) knowledge (in the interpretation of M. Polanyi). This is where originates the critical attitude towards previous theories and progressive trends in the development of economic science. The factor that contributes to the formation of the ‘economic way of thinking’ (textbooks addressed to wider public) in the senior classes of specialized schools or at the level of Bachelor’s programs.

This study developed models to solve problems of optimisation, production, and consumption in waste management based on methods of system analysis. Mathematical models of the problems of optimisation and sustainable waste management in deterministic conditions and in a fuzzy environment were formulated. The income from production was maximised considering environmental standards that apply to the field of macroeconomics and microeconomics. The proposed approach used MANAGER software to formalise and solve the problem of revenue optimisation with production waste management to optimise the production of oil products with waste management at a specific technological facility of the Atyrau oil refinery in Kazakhstan. Based on the combined application of the principles of maximin and Pareto optimality, a formulation of the problem of production optimisation with waste management was obtained and a heuristic algorithm for solving the formulated fuzzy optimisation problem with waste management was developed.

Abstract Motivation represents a foundation cornerstone on which analyses in a number of humanities and social sciences are built. For a long time, economists have seen motivation as connected with the act of giving, trying to interpret it in the context of the neoclassical economics assumptions. The objective of this paper is to find answers to the question of what mainly motivates the Czech population in their decisions to make a donation and whether there is any interdependence among such motives. We also ask what the relationship is between the determining motives and the rate or frequency of donating. The donation models that we analyze and use as the basis of our research are nowadays considered being the principal or at least interesting donation models commonly taken into account by economists in their work. We have only focused on selected microeconomics models to make the text clearly targeted; specifically, we are examining the public goods model, private consumption model investment model and impure altruism model. The data were collected through a questionnaire survey and analysed by means of mathematical-statistical methods that are commonly used in similar cases, such as descriptive statistics, the Pearson correlation coefficient and the ANOVA method based on the F-test. The empirical testing confirmed several assumptions connecting with this type of a research; however, our paper opened a space for a follow-up research, too.

The article examines the situation of appearance of a non-optimal capital-labor ratio on the basis of a comparison of the relative speed of the dynamics of indicators of labor productivity, capital productivity and capital-labor ratio in machine building industry of Ukraine in recent years. Mathematical determination of the optimal capital-labor ratio is substantiated on the basis of production functions taking into account dynamics of the most important indicators of economic activity, presented in value terms. Methodological and applied aspects of the use of the equimarginal principle from microeconomics are discussed to determine the optimal capital-labor ratio within the limits of substitutional production functions. It is proved that at the point of optimal capital-labor ratio, the marginal rate of replacement of production factors’ substitution is equal to one. The resulting conclusion is used as a basis for development of a procedure for finding optimum capital-labor ratio using econometric models, which adequately describe the relationship of time series of product sales, basic productive assets and labor costs based on substitutional production functions. The use of the proposed procedure for determining the optimal capital-labor ratio is carried out on the example of the Cobb-Douglas-Tinbergen production function, the dynamised CES-function and the linear function. The methodological recommendations on calculation of unknown parameters are presented for these functions, as well as the formulas of optimal capital-labor ratio with indicated extreme values of products sold and the total costs for basic production assets and labor payment. The obtained theoretical results are tested according to the data of Ukraine’s machine building. The hypothesis about non-optimal capital-labor ratio in 2007-2015 is confirmed in terms of volumes of sales of the industry production. It turns out that for the analyzed period of time, the basic production assets of machine building were relatively abundant compared with the payment of labor. In 2016-2017, a positive trend begins in dynamics of the capital-labor ratio in the industry to a certain reduction and a gradual approach to the optimal value.

This paper attempts to show how fuzzy set theory can be used to weaken some of the stringent, rationality assumptions used in classical micro-economics. The objective of the paper is to see whether by introducing fuzziness we arrive to new results or just only generalizations of classical micro-economic results. We discover that the axiom of completeness is not needed anymore. Using fuzziness will also allow us to better explain the existing gap between delimiting possible choices and making the actual choice. We also introduce the notions of a fuzzy indifference set with a measurable area. The fuzzy utility surface is also discussed. The demand curve is now 'thick'.
In the producer area, the classical hypothesis that maximum profit entails maximum utility of profit is now substantially weakened when introducing fuzziness.
Finally, we consider revealed preference within a fuzzy context.

Selection and adaptation paradigms have been jointly employed in the derivation of a theoretical model of firm evolution. This construct enabled researchers to explore: "why are there so many different kinds of organizations?". In that, evolutionary influences and adaptive firm behaviour were simultaneous forces that shape the survival of organizational forms over time. Such a notion was applied towards a dynamic programming context. This dynamic programming model was translated into a computer simulation such that an empirical representation of firm evolution was depicted.
The results from four computer simulations confirmed the selection and adaptation propositions described in this research. The simulations found evolutionary forces to be significant determinants to differentiating firm survival. While, adaptive firm behaviour only served to prolong organizational survivability with in the confines of the selection forces of the market.
Future organizational research should focus on expanding the dimensions of strategic adaptation, strategic, voluntarism, niche width dynamics, organizational inertia theory and organizational slack. By addressing these areas, a more comprehensive depiction of organizational evolution could be attained.

The research performed throughout this dissertation aims at implementing quantitative methods in order to assess economic and technological performances of firms, i.e. it tries to assess the impacts of the determinants of technological activity on the results of this activity. For this purpose, a representative sample of the most important R&D firms in the world is constituted. The micro-economic nature of the analysis, as well as its international dimension are two main features of this research at the empirical level.

The second chapter illustrates the importance of R&D investments, patenting activities and other measures of technological activities performed by firms over the last 10 years.

The third chapter describes the main features as well as the construction of the database. The raw data sample consists of comparable detailed micro-level data on 2676 large manufacturing firms from several countries. These firms have reported important R&D expenditures over the period 1980-1994.

The fourth chapter explores the dynamic structure of the patent-R&D relationship by considering the number of patent applications as a function of present and lagged levels of R&D expenditures. R&D spillovers as well as technological and geographical opportunities are taken into account as additional determinants in order to explain patenting behaviours. The estimates are based on recently developed econometric techniques that deal with the discrete non-negative nature of the dependent patent variable as well as the simultaneity that can arise between the R&D decisions and patenting. The results show evidence of a rather contemporaneous impact of R&D activities on patenting. As far as R&D spillovers are concerned, these externalities have a significantly higher impact on patenting than own R&D. Furthermore, these effects appear to take more time, three years on average, to show up in patents.

The fifth chapter explores the contribution of own stock of R&D capital to productivity performance of firms. To this end the usual productivity residual methodology is implemented. The empirical section presents a first set of results which replicate the analysis of previous studies and tries to assess the robustness of the findings with regard to the above issues. Then, further results, based on different sub samples of the data set, investigate to what extent the R&D contribution on productivity differs across firms of different industries and geographic areas or between small and large firms and low and high-tech firms. The last section explores more carefully the simultaneity issue. On the whole, the estimates indicate that R&D has a positive impact on productivity performances. Yet, this contribution is far from being homogeneous across the different dimensions of data or according to the various assumptions retained in the productivity model.

The last empirical chapter goes deeper into the analysis of firms' productivity increases, by considering besides own R&D activities the impact of technological spillovers. The chapter begins by surveying the alternative ways proposed in the literature in order to asses the effect of R&D spillovers on productivity. The main findings reported by some studies at the micro level are then outlined. Then, the framework to formalize technological externalities and other technological determinants is exposed. This framework is based on a positioning of firms into a technological space using their patent distribution across technological fields. The question of whether the externalities generated by the technological and geographic neighbours are different on the recipient's productivity is also addressed by splitting the spillover variable into a local and national component. Then, alternative measures of technological proximity are examined. Some interesting observations emerge from the empirical results. First, the impact of spillovers on productivity increases is positive and much more important than the contribution of own R&D. Second, spillover effects are not the same according to whether they emanate from firms specialized in similar technological fields or firms more distant in the technological space. Finally, the magnitude and direction of these effects are radically different within and between the pillars of the Triad. While European firms do not appear to particularly benefit from both national and international sources of spillovers, US firms are mainly receptive to their national stock and Japanese firms take advantage from the international stock.

Doctorat en sciences économiques, Orientation économie
info:eu-repo/semantics/nonPublished

This dissertation addresses three topics on applied microeconomics. First, we investigate issues of market power and tax incidence in the U.S. brewing industry. Since alcohol consumption can be addictive, we derive a structural econometric model of addiction from a dynamic oligopoly game. This model identifies the degree of market power in a dynamic setting and allows us to test the hypothesis that federal tax incidence differs from state excise tax. Results indicate that beer producers have a modest market power and an increase in federal excise tax is more effective to reduce consumption than state excise taxes. Second, we estimate the effect of sulfur dioxide (S0���) emissions regulations on the productivity growth and opportunity cost of 261 phase I generating units. The Clean Air Act Amendment (CAAA) of 1990 required units to reduce emissions to 2.5 pounds per mmBTU fuel input in the phase I period (1995-99). We calculate Luenberger productivity indicators using directional technology distance function for 209 units in 1990-1999. There is more potential to reduce pure technical inefficiency since it is the main source of inefficiency in phase I period. Productivity declined, hut it i not significantly different from the productivity growth of pre-phase I. So environmental policy is successful to reduce SO��� emission without sacrificing productivity growth. Opportunity cost declined, but the opportunity cost of scrubber and "other" strategy increase. Third, we estimate the regulatory effect on strategy choice of 257 phase I units using multinomial logit model. We assume behavioral cost is a function of shadow input prices, output, SO��� emissions and regulatory variables. Results suggest regulation significantly affect choices. Units located in high-sulfur coal states are more likely to choose scrubber, allowance or "other" strategy through shadow capital price effect. Allowance trade and sales restriction negatively affect allowance, scrubber or fuel switch strategy. Non-private units are more likely to choose allowance strategy while private units are likely to choose less uncertain scrubber and fuel switch. Units subject to stringent local regulation are more likely to choose "other" strategy and scrubber and units with substitution/compensation boilers are more likely to choose allowance and "other" strategies.
Graduation date: 2003

The three essays that comprise this thesis address the behavioral factors that impact resource allocation, more specifically trade and Foreign Direct Investment (FDI), around the globe. The first essay analyses the impact of language similarity on trade, measuring the effect on specific types of products. It extends earlier research on common language network externalities by measuring language similarity effect on bilateral trade from the point of view of the 10 most influential global languages. The findings provide evidence that the impact of language similarity is greater than that of language commonality, and both have a significant impact on bilateral trade. The results also show that language effect on trade varies within the 10 languages, and that this impact is product-specific: culturally sensitive products benefit from a greater language effect. The second essay is a macro level study of foreign direct investment (FDI). It uses an extended gravity model, data spanning 12 years (2000–2012), to shed new light on the impact on FDI of linguistic and technological similarities between countries. The model includes technological commonality, as measured by the aggregate production of intellectual property, at the country level. An analysis of 71 309 pairs of FDI relationships showed that language is positively associated with a high level of FDI. Technological differences do impede the flow of FDI between countries, and information flow is crucial for large flows of FDI. Information flow diminishes the negative impact of distance. The results also show different attitudes toward investment among high income and low income countries’ multinational corporations (MNCs). The third essay address Chief Executive Officer’s (CEO’s) demographic characteristics (e.g. age, education) which impact greenfield investment location decisions. Using a hierarchical model (e.g. binomial and linear), data spanning 10 years (2003–2012), the analysis of 49 138 global firm-level greenfield investments shows that CEO’s level of education is crucial to the decision of which country to select and the amount invested. The more educated a CEO is the more likely to invest in developing countries. The results also show that CEOs from developing and emerging countries (DECs) are more risk-prone than their peers from developed countries. They are also more likely to invest in countries considered risky. In addition, the results show that CEOs’ power is associated with less risky choices, that is, the more powerful a CEOs the more likely to invest in developed markets.
Os três artigos que compõem esta tese analisam os factores “comportamentais” que influenciam a alocação de recursos (e.g., comércio e investimento directo estrangeiro (IDE)) a nível global. O primeiro artigo analisa o efeito da similaridade linguística no comércio mundial e em particular em certos produtos. Esta análise é feita do ponto de vista das 10 línguas mais influentes a nível global. Os resultados desta análise oferecem uma interpretação inequívoca sobre o positivo efeito da língua no comércio. E ainda nos permitiu aferir da superioridade da similaridade linguística sobre a língua comum. Os resultados também demonstram que o efeito da língua é diferenciado entre as 10 línguas globalmente mais influentes e que este impacto é específico a certos produtos. Também verificamos que os produtos “culturais” são mais sensíveis ao efeito da língua. O segundo artigo é uma análise a nível macro do IDE. Para a análise referida utilizamos o modelo gravitacional, dados de 2000 – 2012 para analisar o efeito da assimetria de informação, similaridade linguística e tecnológica. Para índice de similaridade tecnológica utilizamos dados de propriedade intelectual a nível do país. A análise de 71309 pares de IDE entre países revelou o efeito positivo da língua sobre IDE. Verificamos que a diferença tecnológica impede o elevado fluxo de IDE e que o fluxo de informação é crucial para um elevado nível de IDE. Mais, verificamos que elevado fluxo de informação diminui o efeito negativo da distância. Ainda verificamos que a atitude em relação ao investimento varia consoante o nível de recursos dos países de origem. O terceiro artigo analisa o impacto das características demográficas dos gestores sob a decisão de IDE (i.e. greenfield). Usando modelos hierárquicos, dados de 2003 – 2012, a análise de 49138 dados de greenfield empresarial revela que o nível de educação dos gestores determina a escolha do país e o montante a investir. Também verificamos que quanto mais educado o gestor mais provável é investimentos nos países emergentes e em vias de desenvolvimento. Mais, também verificamos que os gestores originários dos países emergentes e em vias de desenvolvimento assumem mais riscos, i.e., é mais provável investirem em países emergentes ou em vias de desenvolvimento. Também verificamos que os gestores mais poderosos tendem a ter uma atitude mais conservador e assumir menos riscos.

A relação entre as exportações de um país e a taxa de câmbio da sua moeda foram desde sempre alvo de estudo económico, dada a tendência generalizada pela implementação de medidas de depreciação da moeda para aumentar as exportações. Esta tem sido desde sempre a principal arma utilizada por países com baixos níveis de desenvolvimento humano e industrial para forçarem o aumento do seu produto, contudo nem sempre os estudos comprovam que este comportamento é verdadeiro. Este trabalho tem como objectivo examinar a hipótese de a taxa de câmbio Yuan/ser um determinante das exportações de Portugal para a China. Isto será realizado através de um estudo econométrico, efectuando-se uma análise de estacionariedade e cointegração assim como a estimação de um modelo de vectores de correcção de erros. A conclusão a que se chega com este estudo é que as exportações de Portugal para a China são um fenómeno difícil de explicar usando a taxa de câmbio e que só são mesmo justificadas por acontecimentos comerciais pontuais.
Since a long time ago, the relationship between the gross exports of a specific country and his exchange rate have been a target of study, taking into account the monetary measures of depreciation of the currency to create an increase in the global exports amount. This behavior has been used by under-developed countries as a monetary weapon to try to force the increase of their GDP, but the studies not always prove that this behavior can be generalized. The main goal of this thesis is to analyze the hypothesis of the Exchange rate between Yuan/Euro be consider as a key factor to the global export amount of Portugal to China. For that we have used several econometric techniques, as stationarity and cointegration analysis as well as an estimation of vector error-correction model. The main conclusion of this study is that the global exports from Portugal to China are a difficult event to analyze when we use the exchange rate between Yuan/Euro as a key factor, and that can only be explained when we look through specific commercial events.

Esta dissertação faz uma análise empírica à relação entre o processo de financeirização e o consumo privado em Portugal entre 1996 e 2016. Foi estimada uma equação para o consumo total que inclui quatro variáveis de controlo (taxa de desemprego, taxa de inflação, taxa de juro real de curto prazo e taxa de juro real de longo prazo) e três variáveis usadas para medir o efeito da financeirização sobre o consumo privado (rendimento, riqueza habitacional e riqueza financeira). A financeirização apresenta dois efeitos contraditórios sobre o consumo privado. O primeiro está relacionado com o decréscimo do rendimento das famílias que provoca um efeito negativo sobre o seu consumo e o segundo está relacionado com o aumento da riqueza das famílias que provoca um efeito positivo sobre o seu consumo. Os resultados demonstram que a financeirização contribuiu de forma positiva para o aumento do consumo privado em Portugal, especialmente no período até à crise.
This paper makes an empirical analysis of the relationship between the financialisation process and private consumption in Portugal from 1996 and 2016. We estimated an equation for total consumption that includes four control variables (unemployment rate, inflation rate, real short-term interest rate and real long-term interest rate) and three variables linked with labour income, housing wealth and financial wealth. According with the financialisation concept, private consumption may be affected in two contradictory ways. The first is related with the fall of households’ income and exerts a negative effect on private consumption and the second is related with the growth of households’ wealth and exerts a positive effect on it. Our results show that financialisation exerted a positive effect on private consumption in Portugal, especially until the recent crisis.