Assign

nment # 01
Econo
omic Dyn
namics (8221) – Ph.D
D.(Econom
mics) - 20019

Matthematical Exercises
E Basic Concepts in
n Economic Dynamics

Q.1 Q.4
Deteermine if thhe given fun
nction is boounded aboove Differeentiate betweeen the conccept of a fuunction and a
and/oor bounded below:
b functioonal giving two
t suitable examples of
o each fromm
a) y = f ( x) = 2 x + 7 x ∈ ℜ+ Econom mic theory.

− −2
b) y = f ( x) = −x x ∈ ℜ, x ∈ ℜ+ Q.5
c) y = f ( x ) = α ⋅ ln (0.80 x + 5) x ∈ [−6.25,6.255] Let y(t)
t) represent the
t price of some
s good produced
p by a
firm at time t. Draw
w appropriate diagram(s) too highlight thee
[ ]
d) y = f ( x) = e −5 / x
−1
x ∈ ℜ, x ∈ ℜ+ effect of
o the imposiition of a pricce ceiling at date t = T onn

y = f ( x) = (5x − 2 x + 4)⋅ e
the dynnamic choice problem the firm faces.
−0.5 x
e) 3
x ∈ ℜ+
Q.6
Q.2 In a ceertain dynamiic choice prooblem, the ecconomic agennt
Deteermine the curvature
c off the follow
wing functioons wants to maximize the utility from f consumpption U [C (t )]
usingg the approppriate method
d: over a finite life horizon [0, T ]. The
T consumeer also derives
c (x )
a) y = f ( x ) = cos benefitt (utility) froom wealth owned
o at thee end of thee
[
b) z = f ( x, y ) = y 3 e −5 / x ]
−1 planninng period; B[W (T )] . The prroblem he facces is:

( ) ∫
T

c) z = f (v, w) = 0.75 v + 0.25 w

2
Max: V = e − ρ ⋅T B[W (T )] + e − ρ ⋅t U [C (t)] dt
t =0

⎡1 − 3⎤ ⎡ v ⎤ Where ρ is the ratte of discountt of future uttility. Converrt

d) z = f (v, w) = [v w] ⎢ ⎥⎢ ⎥
⎣4 2 ⎦ ⎣ w⎦ this Boolza Problem into a Lagrannge Problem.

e) z = f (w, x, y)
y = wx2 + xyy 2 + yw2 − 3w
wxy

Q.3
Diffeerentiate the following
f inteegrals with resspect to x:
a)
b)
c)
d)

Dr. Rubin
na Hassan
n