Musgrave has tried to develop a system of demand curves to solve the equilibrium quantity of public good. This paper proves that his quantity appears both as exogenous and endogenous variables. The simultaneous solution for the quantity results in a demand curve underneath the horizontal axis....

This paper proves that paying incentive to bring a shirking worker back to work is a bad policy, for it only encourages more shirking. This paper suggests that Cheng was misled by his own mathematics complication

This paper proves that bargaining can be equivalently depicted in a utility possibility curve, to derive the same unfair Nash solution. This paper confirms that there is no simple solution for bargaining, and that the so-called social indifference curve does not exist

This paper points out that Becker's crime model is actually promoting crimes, that its crimes help government collect revenue, and that his punishment encourages more offences. This paper then indicates the proper procedure to work out a positive crime theory. Accordingly, thieves will commit...

This paper reveals some mistakes committed by Laffont and Triole (L&T). Such mistakes lead to disastrous consequence of very exaggerated payment, namely the whole output to a manager hired to make workers less lazy. When the manager also becomes very lazy and they hire another higher manager,...

This paper fixes a longtime unresolved deficiency in the spatial competition theory of not allowing production cost. The problem lies with the magical Hotelling equation. This paper turns this equation from being a stumbling block into a useful stepping-stone. It then shows how competition end...

This paper proves that consumer's surplus is not useless. It is the solution to the welfare maximisation problem, or that to the profit maximisation one, and so it also means producer's surplus. When it is already a profit measure, any further deduction, e.g., in the cost-benefit calculation,...

This paper disproves both the “natural” and the “monopoly” parts of natural monopoly. It then proves that decreasing average cost is not an advantage at all, but is merely a shameless excuse of asking for protection and bailout

This paper invokes Fisher (1907) to teach Smets and Wouters (2003) how to work out the consumption solution for their DSGE model. When they have simply used the marginal condition for estimation, they are too lazy. When the solution is worked out, DSGE reduces to a steady-state growth model,...

This paper proves that DSGE model by Kydland, Prescott and Plosser is the repetition of an earlier calculation procedure advocated by Solow, and that its “prediction” is nothing but tautology. Tautology reproduces the original parameters and data, and its fit is naturally perfect, but...