UNIVERSITY OF SOUTHAMPTON ECON3010W1
SEMESTER 1 TAKE-HOME FINAL ASSESSMENT 2020-21
Duration: 24 HRS
START: 10:00 am, 27/01/2021 – END: 10:00 am, 28/01/2021
This paper contains 3 questions
uploaded onto the Blackboard website before this deadline.
with β ∈ (0,1).
The budget constraint is
ct + kt+1 ≤ wtht + (1 + rt − δ)kt, (2)
where all variables have the usual interpretation and δ ∈ (0,1). In each period t, static firms produce final goods with a neoclassical production function of labour and capital where A > 0, and and are the demands for labour and capital inputs.
Firms sell final goods and hire labour and capital from the household in perfectly competitive markets. Feasibility requires that
ct + kt+1 ≤ Af(kt,ht) + (1 − δ)kt. (3)
ditions for the problem of the household. 
Figure 1: An absence of double coincidence economy.
transactions with barter. 
transactions when good 1 is a commodity money. 
transactions when there is fiat money. 
with β ∈ (0,1). They also have a unit of time in each period, which they entirely devote to work for any positive wage because they have no disutility from it. So they supply ht = 1 if the salary wt > 0.
The budget constraint is
ct + kt+1 ≤ wtht + (1 + rt − δ)kt (5)
where ct,kt+1,ht ≥ 0 for all t and δ ∈ (0,1).
In each period t static firms produce final goods through the following production function
where K is the total capital stock in the economy. This enters separately into the production function from Kt which represents
the firm demand of capital input. Instead K is not an individual choice. As usual, α ∈ (0,1) and A > 0.
Firms sell final goods and hire labour Ht and capital Kt from the household in perfectly competitive markets to maximize profits given by
END OF PAPER
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more