學習經濟模型五步驟 模型目的。 內生變數。 行為法則。 均衡。 外生衝擊 模型目的。 判斷是否為外生變數改變？ 判斷此外生變數之改變將影響哪些行為法則？ 判斷此外生變數之改變造成行為法則何種影響？ 模型目的。 Copyright © 2003 Pearson Education, Inc.

General Equilibrium Analysis Partial equilibrium analysis To study a single market General equilibrium analysis Takes account of the linkages between the two markets. Copyright © 2003 Pearson Education, Inc.

學習經濟模型五步驟 模型目的。 內生變數。 行為法則。 內生變數。 均衡。 外生衝擊 判斷是否為外生變數改變？ 判斷此外生變數之改變將影響哪些行為法則 判斷此外生變數之改變造成行為法則何種影響 內生變數。 Copyright © 2003 Pearson Education, Inc.

內生變數 Home wine production, QW, in gallons Home cheese production, QC, in pounds Copyright © 2003 Pearson Education, Inc.

學習經濟模型五步驟 模型目的。 內生變數。 行為法則。 均衡。 外生衝擊 行為法則。 判斷是否為外生變數改變？ 判斷此外生變數之改變將影響哪些行為法則 判斷此外生變數之改變造成行為法則何種影響 行為法則。 Copyright © 2003 Pearson Education, Inc.

The Basic Model:assumptions--1 ASSUMPTION1:All economic agents, in particular firms and consumers, exhibit rational behavior. ASSUMPTION2:There is no money illusion. Copyright © 2003 Pearson Education, Inc.

Money Illusion Money Illusion:A situation where individuals make decisions based on changes in some prices without taking into account changes in others. Relative Price:A ratio of two product prices. Examples of relative prices: If a price of a can of Coke is $0.5 and a price of a hot dog is $1 , then the relative price of Coke is the amount of hot dog that can be exchanged for one unit of Coke, which is 0.5. The relative price of a hot dog in terms of Coke is 2 cans of Coke per hot dog. Nominal price:A price expressed in terms of money. Copyright © 2003 Pearson Education, Inc.

Price Line (Terms of Trade Line) Shows us (for a given relative price) all the possible combinations of the two goods that can be purchased with a fixed amount of money : M=PCQC+PWQW QW QC Eg: M=200 , PW=10 , PC=20 40 20 M=400 PC PW – =-2 Slope = = = -2 Slope = =2 QW QC PC PW – =-2 PC PW - 20 10 M=200 12 4 10 5 QC QW Copyright © 2003 Pearson Education, Inc.

Assumptions--2 ASSUMPTION3:The factor endowments are fixed and the set of technologies available to each country is constant. production possibility frontier (PPF) :A diagram that shows the maximum amount of one type of good that can be produced in an economy, given the production of the other. Copyright © 2003 Pearson Education, Inc.