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Evidence of Decreasing Internet Entropy : The Lack of Redundancy in DNS Resolution by Major Websites and Services

Bates, Samantha - 2018

This paper analyzes the extent to which the Internet's global domain name resolution (DNS) system has preserved its distributed resilience given the rise of cloud-based hosting and infrastructure. We explore trends in the concentration of the DNS space since at least 2011. In addition, we...

Persistent link: https://www.econbiz.de/10012453397

Rationally Inattentive Behavior : Characterizing and Generalizing Shannon Entropy

Caplin, Andrew - 2017

We provide a full behavioral characterization of the standard Shannon model of rational inattention. The key axiom is "Invariance under Compression", which identifies this model as capturing an ideal form of attention-constrained choice. We introduce tractable generalizations that allow for many...

Persistent link: https://www.econbiz.de/10012455030

Term Structures of Asset Prices and Returns

Backus, David - 2016

We explore the term structures of claims to a variety of cash flows, namely, U.S. government bonds (claims to dollars), foreign government bonds (claims to foreign currency), inflation-adjusted bonds (claims to the price index), and equity (claims to future equity indexes or dividends). The...

Persistent link: https://www.econbiz.de/10012456513

Behavioral Implications of Rational Inattention with Shannon Entropy

Caplin, Andrew - 2013

entropy cost functions that better match this feature of the data and that retain key simplifying features of the Shannon …

Persistent link: https://www.econbiz.de/10012459344

Sources of Entropy in Representative Agent Models

Backus, David - 2011

preferences, habits, and jumps. The metrics describe the pricing kernel's dispersion (the entropy of the title) and dynamics (time … dependence, a measure of how entropy varies over different time horizons). We show how each model generates entropy and time … approximations -- clarifies the mechanisms underlying these models. It also reveals, in some cases, tension between entropy, which …

Persistent link: https://www.econbiz.de/10012461438

Estimating Dynamic Games of Oligopolistic Competition : An Experimental Investigation

Salz, Tobias - 2020

We evaluate dynamic oligopoly estimators with laboratory data. Using a stylized en-try/exit game, we estimate structural parameters under the assumption that the data are generated by a Markov-perfect equilibrium (MPE) and use the estimates to predict counterfactual behavior. The concern is that...

Persistent link: https://www.econbiz.de/10012479289

Value versus Growth : Time-Varying Expected Stock Returns

Gulen, Huseyin - 2010

Is the value premium predictable? We study time-variations of the expected value premium using a two-state Markov switching model. We find that when conditional volatilities are high, the expected excess returns of value stocks are more sensitive to aggregate economic conditions than the...

Persistent link: https://www.econbiz.de/10012462660

Understanding Markov-Switching Rational Expectations Models

Farmer, Roger E.A. - 2009

We develop a set of necessary and sufficient conditions for equilibria to be determinate in a class of forward-looking Markov-switching rational expectations models and we develop an algorithm to check these conditions in practice. We use three examples, based on the new-Keynesian model of...

Persistent link: https://www.econbiz.de/10012463937

Optimal Monetary Policy under Uncertainty in DSGE Models : A Markov Jump-Linear-Quadratic Approach

Svensson, Lars E.O. - 2008

We study the design of optimal monetary policy under uncertainty in a dynamic stochastic general equilibrium models. We use a Markov jump-linear-quadratic (MJLQ) approach to study policy design, approximating the uncertainty by different discrete modes in a Markov chain, and by taking...

Persistent link: https://www.econbiz.de/10012464755

Understanding the New-Keynesian Model when Monetary Policy Switches Regimes

Farmer, Roger E.A. - 2007

This paper studies a New-Keynesian model in which monetary policy may switch between regimes. We derive sufficient conditions for indeterminacy that are easy to implement and we show that the necessary and sufficient condition for determinacy, provided by Davig and Leeper, is necessary but not...

Persistent link: https://www.econbiz.de/10012465691