专业课 尼科尔森微观基本原理与扩展全套资料 尼克尔森微观经济理论-基本原理与扩展 第九版答案 ch17

Chapter 17/Capital Markets v 95CHAPTER 17CAPITAL MARKETSThe problems in this chapter are of two general types: (1) those that focus on intertemporal utility maximization and (2) those that ask students to make present discounted value calculations. Before undertaking the PDV problems, students should be sure to read the Appendix to Chapter 17. That appendix is especially important for problems involving continuous compounding because students may not have encountered that concept before. Because the material on dynamic optimization is rather difficult, only one problem on it is included (17.10).Comments on Problems17.1A graphic analysis of intertemporal choices. Illustrates the indeterminacy of the sign of the interest elasticity of current savings. Part (c) concerns intertemporal allocation with initial endowments in both periods.17.2A present discounted value problem. I have found that the problem is most easily solved using continuous compounding (see below), but the discrete approach is also relatively simple. Instructors may wish to point out that the savings rate calculated here (22.5 percent) is considerably above the personal savings rate in the United States. That could lead into a discussion of the possible effects of social security.17.3A simple present discounted value problem that should be solved with continuous compounding. 17.4A traditional capital theory problem. Students seem to have difficulty in seeing their way through this problem and in interpreting the results. Hence, instructors may wish to allow some time for discussion of it.17.5Further analysis of forestry economics shows how replanting costs affect PDV calculations.17.6A discussion question that asks students to explore the logic of the U.S. corporate income tax. The case of accelerated depreciation is, I believe, a particularly effective example of the time value of money.17.7A present discounted value example of life insurance sales tactics. Students tend to like this problem and, Im told, some have even used its results when approached by actual salespeople. 17.8An intertemporal resource allocation example of the capital gains that arise from taxation of the capital gains from interest rate changes. 17.9A resource economics problem that shows, with a finite resource, monopoly pricing options are severely constrained.17.10A simple application of control theory to optimal savings decisions. Provides an alternative derivation of the “Euler Equation.” Final parts of the problem illustrate the significance of intertemporal substitutability.Solutions17.1a.Division of these first order conditions yieldsb. because c2 is a normal good with price . is ambiguous because the substitution effect predicts but the income effect predicts , a fall in the price of c2 raises total spending on c2 raises total spending on c2. Therefore, demand for c2 is elastic.c.Budget constraint has same slope as in part (a) and passes through c1 = y1, c2 = y2. If at optimal point c1* y1, the individual borrows in period 1 and repays in period 2. If c1* , U must fall as t increases, so c must rise. Alternatively, if r , U must rise over time, so c must fall.c.If U (c) = ln c U = 1/cso, ; that is, c follows an exponential path (either rising or falling).d.If , so or Because r) of consumption now depends on too. The less substitutable are various periods consumption (the more negative is d), the slower will be consumption growth. If (no substitution), c is a constant, as in the r = case.e.Because income is constant over this life cycle, wealth will be determined solely by consumption patterns.