Exam-Utility Maximization

Introduction
though everyone keep asking how could i was still able to read comics during the final exam but i think i have my own theory here. and though (again) i haven't done any hypothesis testing to ensure this is valid, at least, it worked for me.

Literature review:
Leontief function of labor worked in Keynesian with sticky wages (Scarth, chapter 3, Classical and Keynesian Model) Nmin= Y1,Y2.


Theory:

U = min (S,C)

dU/dS > 0 ; dU/dC > 0

U'' (S) <>subject to 24 hours and leisure (other activities beside studying and comic-ing)


Economic Analysis:
well, i just assumed that during EXAM, utility is leontief function of studying and comic-ing. and the constraint for maximizing the utility is 24 hours per day and leisure time which is other activities beside learning.

i won't explain the maximization but i will explain how the mechanism is. utility is the combination of S and C. When I prefer S, it means the utility of S is very high but at one point it will diminish and the C will give me more utility.


Implication:
What I was doing in last exam was maximizing utility of comic-ing until it diminished and at that time i would need the utility from study-ing.


Empirical evidence and Critique:
The speed of diminishing marginal utility from comic-ing is way too slow--moreover, almost rigid, so it is not U'' (C) > 0 but U'' (C) is infinite. and the speed of diminishing marginal utility is way too fast.




Urrrrghhh. But still, effective then.

i love it, always

how sad that today is the last lecture of Advanced Macroeconomics with my inspiring lecturer. though i'll still have to bear with the its final exam on May 29 which i don't want to think about right now. i had great great great times learning chapters form William Scarth in this class *also Dornbusch, Barro, and Romer*.

starting with Microeconomics Foundation: firms in standard macro model, household in standard macro model, and labor market. Structural Equation: introduction of Expectation Augmented Phillips Curve for AS. Classical and Keynesian *with one s, of course* Model: labor market for AS. classical dichotomy, money-wage rigidity and price rigidity. Expectation: perfect oresight, rational expectation, forget another one.

and then go on with Rational Expectation and Lucas Critique: how not stupid are the agents, how microeconomic foundation underpinning macroeconomics in the behavioral assumptions (maximizing utility and minimizing cost). Intrinsic Dynamics: Ricardian Equivalence concept which doesn't change consumption behaviour in normal condition, Budget Deficits and Government budget constraint, also how it finance it (bond issuing or money creation). Open Economy: Mundell-Fleming model, nominal and fixed exchange rates, how exchange rates regime affect the effectiveness of economic policies. Growth Theory: Solow model (F,K,A), exogenous of technology, knowledge, etc., and the Sticky Wages, Menu-Cost, Union etc.

All I can say is I LOVE ADVANCED MACROECONOMICS!!!

finishing touch

i hope this one will be the real finishing touch of my political economics paper which i'm sure it won't be. I haven't put many data on it but it is already 5 pages with one space. Ugh... I have to think about manipulating the margin and the font.

well, i just put the game theory of international trade which Bang Dede taught me yesterday and also some flavours f the game theory by John McMillan. interesting, interesting. what i can conclude is international trade is the sexiest subject ever!!!