Showing 1 - 10 of 53
In a dynamic general equilibrium setup, this paper highlights the role of vintages and creative destruction in business fluctuations. By stressing the forward-looking characteristic of the optimal scrapping rule, we use a standard rational expectations argument to show the constancy of the...
Persistent link: https://www.econbiz.de/10005669320
We consider the "and" communication mechanism that inputs messages from two players and outputs the public signal "yes" if both messages are "yes", and outputs "no" otherwise. We prove that no correlation can securely be implemented through finite or infinite repetition of this mechanism.
Persistent link: https://www.econbiz.de/10005478920
In decentralised market economies, supply-constrained equilibria may persist as coordination failures, sustained but not caused by price rigidities. This feature may be arbitrarily severe, even at prices com- patible with competitive equilibrium. The supply-constraints may originate in rational...
Persistent link: https://www.econbiz.de/10005043137
This paper follows Jones (2005) in his approach to deriving the global production function from microfoundations. His framework is generalized by allowing for dependence between the Pareto distributions of labor- and capital-augmenting developments. Using the Clayton copula family to capture...
Persistent link: https://www.econbiz.de/10005043370
We present and study a mixed integer programing model that arises as a sub-structure in any industrial applications. This model provides a relaxation of various capacitated production planning problems, more general fixed charge network flow problems, and other structured mixed integer programs....
Persistent link: https://www.econbiz.de/10005779529
In the empirical analysis of financial time series, multivariate GARCH models have been used in various forms. In most cases it is not well understood how the use of a restricted model has to be paid with loss of valuable information. We investigate the structural implications of two alternative...
Persistent link: https://www.econbiz.de/10005478902
Day-ahead energy market clearing relies on a deterministic equivalent model with a limited time horizon, which may lead to inefficient scheduling of generating units from the point of view of generators. For this reason, generators may wish to forgo the profit hedging offered by day-ahead...
Persistent link: https://www.econbiz.de/10010735619
Data envelopment analysis (DEA) is a powerful tool for measuring the relative efficiencies of a set of decision making units (DMUs) such as schools and bank branches that transform multiple inputs to multiple outputs. In centralized decision-making systems, management normally imposes common...
Persistent link: https://www.econbiz.de/10010927712
This paper proposes a real option capacity expansion model for power generation with several technologies that differ in operation and investment costs. The economy is assumed perfectly competitive and the instantaneous payoff accruing from the generation system is the instantaneous welfare...
Persistent link: https://www.econbiz.de/10010927715
A new formulation of the optimization problem implementing European market rules for non- convex day-ahead electricity markets is presented, that avoids the use of complementarity constraints to express market equilibrium conditions, and also avoids the introduction of auxiliary binary variables...
Persistent link: https://www.econbiz.de/10010752812