Showing 1 - 10 of 171
This article analyzes the trade-off between ÏcautionÓ and ÏintensityÓ in the use of the control variable in a one-state one-control dynamic stochastic quadratic linear optimization problem with discount factor. It studies the effects that changes in uncertainty of the control parameter have...
Persistent link: https://www.econbiz.de/10005345590
Persistent link: https://www.econbiz.de/10005345405
We study the mechanism of inequality due to educational lock-in effects. Recent research on inequality such as Brock and Durlauf (2000a, b) and Durlauf (1999a, b, 2000) has emphasized the fact that the composition and behavior of groups to which a person belongs play an important role for...
Persistent link: https://www.econbiz.de/10005342984
Persistent link: https://www.econbiz.de/10005706651
This paper aims at integrating heterogeneous boundedly rational speculators into the classical cobweb framework in which the producers have naive expectations. The net supply available to consumers thus depends on the positions of the speculators who switch between technical and fundamental...
Persistent link: https://www.econbiz.de/10005345309
Three methods have been developed by the authors for solving optimal experimentation problems. David Kendrick (1981, 2002, Ch.10) uses quadratic approximation of the value function and linear approximation of the equation of motion to simulate general optimal experimentation (active learning)...
Persistent link: https://www.econbiz.de/10005537450
Effective monitoring of a minimum wage, requires that establishments potentially paying low wages are effectively identified. This paper investigates the identification of establishments paying low wages prior to the introduction of the British National Minimum Wage in 1999, through the...
Persistent link: https://www.econbiz.de/10005537786
Cosimano (2003) uses the perturbation method to approximate optimal experimentation problems in the neighborhood of the augmented linear regulator problem as formulated by Hansen and Sargent (2004) and Anderson, Hansen, McGratten and Sargent (1966). Cosimano and Gapen (2005) develop a computer...
Persistent link: https://www.econbiz.de/10005706327
Persistent link: https://www.econbiz.de/10005132825
A notion of forecast quality is defined that is appropriate when returns forecasts are used in a simple investment decision. The relation between the conditional distribution of returns and optimal point forecasts for a risk neutral investor is characterised and it is shown that the conditional...
Persistent link: https://www.econbiz.de/10005132887