alexsandro

Economist’s Love letter‎
‎(Undergrad)‎

Darling!
Life without you is just like demand without supply. As lonely as Average ‎Product can be with out Marginal Product, unable to determine stages of production ‎and as sad as a Budget Constraint can be with out Indifference Curve, never to trace ‎an equilibrium. Every thing looks so upside down like a positively sloped ‎compensated demand and negatively sloped supply curve. Please tell me, who entered ‎your utility function as externality and disturbed its arguments in my disfavour. This ‎was completely an unanticipated shock for me. I don’t think our relationship is ‎spurious at all. I believe it’s more like a misspecification problem than spurious. Prior ‎to forecasting any thing about our future let us work in correlation with each other ‎towards a correctly specified model whereby all behavioural equations are a priori ‎realistic. I guess acknowledging the fact that at the moment our expectations regarding ‎each other cannot be driven by perfect foresight can work as a good starting point to ‎realize the illusion and its adoptive nature. I am confident; this will change the sign of ‎your decision multiplier in my favour.‎
Why do you have to make me jealous and cartel with other people? You should ‎understand that cartel never last forever. I know he does not enter into your utility ‎function as a positively related argument and you don’t love him at all. As I ‎understand it, it’s nothing but dumping. Please don’t do it unless it is something really ‎dictated by the fully specified model under adaptive expectation which I am sure is not ‎the case. ‎
I hope this letter from my side will work as a policy action to check some of the ‎misunderstandings resulting from lack of information and communication gap. I am ‎sure if you take some time, use your a priori intuitions, think over my nature and take ‎it as the only inference criterion you will strongly reject the null hypothesis of ‎breaking up your relationship with me against the alternative hypothesis of working ‎towards stable long run relationship. ‎

With bundles of love

Hayat Khan

‎

Economist’s Love letter‎
‎(Postgraduate/graduate)‎

Hi darling,
I don't know where to start from! ‎
When you were around all the happiness parameters were super consistent and life ‎was moving on a stable path, soon to converge and hit the new steady state of ‎marriage Life with out you sounds like Optimal Control problem without ‎Transversality Conditions unable to determine terminal point. Every moment with ‎out you is a disequilibrium phenomenon. The satisfaction time path is completely ‎divergent that is an indication of increasing marginal disutility of life over time. It ‎seems to me as if our relationship is no more white noise and Weak Law of Large ‎Numbers doesn’t apply at all. Even simple Central Limit Theorem sounds like a total ‎failure to find any distribution for our relationship. Let us try a martingale difference ‎where, on average, we don’t expect anything form each other or use Functional ‎Central Limit Theorem to work out the possibility of converging to a stable ‎distribution with super-consistent convergence rate. I think it’s not a hard bargain to ‎normally distribute our expectations around zero to get some plausible ‎critical values and test the null hypothesis of continuing our relationship against the alternative ‎hypothesis of breaking it down. I think the signals are sufficient enough to reveal full ‎information and define Rational Expectation Equilibrium. ‎
Darling! I am quite sure our relationship will prove a stable function of understanding ‎each other with no worries about Lucas Critique. Please don’t be sluggish in your ‎response or I will never reach a stable arm. Come over, it’s only your presence that ‎can overshoot my happiness and allow for a jump to the stable arm. Our relationship ‎may sound sub-optimal at this point of time but it definitely will prove optimal in the ‎future. Let us not build up on our previous mistakes otherwise we may not end up ‎anywhere like Ponzi game.‎

Love raised to the power infinity‎
Hayat Khan