![NBER WORKING PAPER SERIES INSTITUTIONS, RESTRUCTURING, AN]) MACROECONOMIC PERFORMANCE Ricardo J. Caballero](http://s1.studyres.com/store/data/008233527_1-ed061ad3ff6ca87f13b89bca2ffdf0c6-300x300.png)
Gross Capital Formation
... ownership rights can be enforced economic benefits may be derived by holding them, or using them, over time ...
... ownership rights can be enforced economic benefits may be derived by holding them, or using them, over time ...
Wk10
... • The person making decisions about how much to purchase tends to be the only one benefiting from the good, so only their preferences matter. Markets are not so good at providing efficient levels of the other types of goods. Why? • People can free-ride on public goods, enjoying the benefits from the ...
... • The person making decisions about how much to purchase tends to be the only one benefiting from the good, so only their preferences matter. Markets are not so good at providing efficient levels of the other types of goods. Why? • People can free-ride on public goods, enjoying the benefits from the ...
NBER WORKING PAPER SERIES Robert C. Feenstra
... (1940) was that the relevant price of a product before it is available is the “reservation price” for consumers, namely, a price so high that demand is zero. Once the product appears on the market then it has a lower price, determined by supply and demand. The fall in the price from its “reservation ...
... (1940) was that the relevant price of a product before it is available is the “reservation price” for consumers, namely, a price so high that demand is zero. Once the product appears on the market then it has a lower price, determined by supply and demand. The fall in the price from its “reservation ...
The Rise of Cost-Benefit Rationality as Solution to a Political
... formulated about 1950 called for a “purely objective analysis,” meaning one based on rational considerations that stood above all particular institutional circumstances. The methods of costbenefit analysis should be uniform and rigorous, to the point that they could stand up when challenged in commi ...
... formulated about 1950 called for a “purely objective analysis,” meaning one based on rational considerations that stood above all particular institutional circumstances. The methods of costbenefit analysis should be uniform and rigorous, to the point that they could stand up when challenged in commi ...
Microeconomics
Microeconomics (from Greek prefix mikro- meaning ""small"") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.This is in contrast to macroeconomics, which involves the ""sum total of economic activity, dealing with the issues of growth, inflation, and unemployment."" Microeconomics also deals with the effects of national economic policies (such as changing taxation levels) on the aforementioned aspects of the economy. Particularly in the wake of the Lucas critique, much of modern macroeconomic theory has been built upon 'microfoundations'—i.e. based upon basic assumptions about micro-level behavior.One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Microeconomics also analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.