This paper documents the delayed adoption of a major technological innovation: the adoption of the diesel locomotive in the US railway industry. Contrary to other instances of major technological innovations, the delay in the adoption of the diesel locomotive was not associated with an initial...

This paper proposes and applies a method of moments to estimate dynamic decision models with corner solutions. The method extends previous results by Hotz and Miller (1993) and Pakes (1994), and it allows for unobserved state variables affecting both the continuous choice (interior solution) and...

El presente documento realiza un análisis del negocio del Gas Natural en Bolivia y de sus posibles impactos en las recaudaciones, exportaciones y el Producto Interno Bruto. Las principales conclusiones sugieren que, el sector de hidrocarburos se perfila como uno de los pilares para el...

Strategies for constructing a Markov decision chain approximating a continuous-time finite-horizon optimal control problem are investigated. Some simple, analytically soluble, examples are treated and low computational complexity is reported. Extensions to the method and implementation are...

Theoretical study identifying one modality with conditions necesary for the financial stabilization of an inherently unstable system; and 5040 other unstable dynamic modes. It draws on knowledge made available by the academic field of Control Engineering.

The relations between the riches of nations and the riches of Productive Knowledge (Technology) gains increasing acknowledgment among economists. Classical economists had assumed that the key to progress was the accumulation of homogenous capital goods. But, as P. Romer, among others, claims we...

This paper investigates the interplay of investment irreversibility, predatory behavior, and limited liability in a duopoly with aggregate demand uncertainty. We find that limited liability and investment irreversibility is likely to produce predatory behavior in very competitive industries in...

This paper presents a heterogeneous agent model of a sequential monetary production economy. A deterministic dynamic flow model is employed. The model is characterized by three classes of agents: a single homogeneous representative consumer, heterogeneous firms and a banking sector. There are...

Most economic models implicitly or explicitly assume that interactions between economic agents are 'global' - in other words, each agent interacts in a uniform manner with every other agent. However, localized interactions between microeconomic agents are a pervasive feature of reality. What are...

In this paper, we examine net investment during the early stages of transition using micro data on the population of medium and large industrial firms in the Czech Republic during the 1992-95 period. We examine the relevance of alternative models of investment and test if investment behavior...