LaTeX Economic Model Writer

Purpose

This skill helps economists write and typeset economic models in LaTeX with proper mathematical notation, consistent formatting, and academic conventions. It covers utility maximization, equilibrium conditions, dynamic programming, and game theory models.

When to Use

• Writing the theory section of a paper
• Formalizing an economic model
• Creating lecture notes with equations
• Typesetting optimization problems and equilibrium conditions

Instructions

Step 1: Understand the Model Type

Ask the user:

1. What type of model? (Static optimization, dynamic programming, game theory, general equilibrium)
2. What are the agent types? (Consumer, firm, government, etc.)
3. What constraints apply?
4. Should it include proofs or just the setup?

Step 2: Use Standard Notation

Follow economics conventions:

• Utility: $U$, $u$, or $v$
• Production: $F$, $f$, or $Y$
• Prices: $p$, $w$, $r$
• Quantities: $q$, $x$, $y$
• Time subscripts: $t$, $t+1$
• Greek letters for parameters: $\alpha$, $\beta$, $\gamma$, $\delta$

Step 3: Structure the Model

Organize as:

1. Environment - Agents, goods, time horizon
2. Preferences/Technology - Utility functions, production functions
3. Constraints - Budget, resource, incentive compatibility
4. Equilibrium concept - Definition and conditions
5. Solution - First-order conditions, closed-form solutions

Example Output

\documentclass{article}
\usepackage{amsmath, amssymb, amsthm}
\usepackage{mathtools}

% Theorem environments
\newtheorem{definition}{Definition}
\newtheorem{proposition}{Proposition}
\newtheorem{lemma}{Lemma}

% Custom commands for economics
\newcommand{\E}{\mathbb{E}}          % Expectation
\newcommand{\R}{\mathbb{R}}          % Real numbers
\newcommand{\pd}[2]{\frac{\partial #1}{\partial #2}}  % Partial derivative

\begin{document}

\section{A Simple Consumer Problem}

\subsection{Environment}