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A milestone in my understanding: Expected Future Profits
$$ \int_t^\infty e^{-\int_t^\tau r(s) ds} \pi(\tau) d\tau $$ One of my proudest achievements has been understanding this equation in the context of the Romer model, where $r(s)$ represents a stream of interest payments, and $\pi(\tau)$ represents a stream of profits. I was for some months daunted by this thing. But with the power of Wikipedia… Continue reading
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Solving the Romer Model in Baby Steps
I was first introduced to the Romer Model in a statics class, and ever since I have been fascinated with it. Romer (1990) is a mathematical story about how growth occurs under capitalism; technological change is the engine of growth, which is powered by the patent system and private monopolies. The patent system allows researchers… Continue reading
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Notes: Solving the Ramsey Consumer Problem
As part of my informal studies, I am currently working through Romer (1990). The paper uses the solution to the Ramsey-Cass-Koopmans model to provide an expression for consumption growth, $\frac{\dot{C}}{C}=\frac{r-\rho}{\sigma}$. The Ramsey model consists of a godlike consumer who tries to find their optimal rate of consumption over an infinite time, which can be found… Continue reading
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Planned Book Review: Marx’s Capital
My first book review is a very ambitious one, though one close to my heart. I’ve been wanting to get ahold of a paper copy of Karl Marx’s Capital for a long time, and now I have it. There is a free online version, but nothing really beats holding a book in your hand. It… Continue reading
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Definition: The Social Planner
The social planner is a benevolent technocrat whose job is to make everyone happy, rather than just maximise profit. Social planners are useful idea to economists, because they find the ideal policy, the yardstick which all other policies are measured against. Social planners attempt to enact changes by altering a single variable, such as a… Continue reading
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Welcome to my Research Blog
This is my research blog. I am fascinated with disaster and crises, and how to prevent them. I’ve been formally studying economics, but I also read into political philosophy, critical theories and history. I’ve come to the conclusion that most disasters are not natural, but a result of preventable human failures. My primary interests are… Continue reading