In this note a one-state, one-control variable quadratic linear problem with robust control and discount factor is developed to examine the optimal response of the first-period control to changes in future model uncertainty. A change in future model uncertainty has an effect on the optimal...

The mixture of two already known soft computing technics, like Genetic Algorithms and Neural Networks (NN) in Financial modeling, takes a new approach in the search for the best variables involving an Econometric model using a Neural Network. This new approach helps to recognice the importance...

For modelling economic and financial time series, multivariate linear and nonlinear systems of equations have become a standard tool. These models can also be applied to non-stationary processes. However, the resulting finite-sample estimates may depend strongly on the specification of the model...

We derive the shape of optimal unemployment insurance (UI) contracts when agents can exert search effort but face different search costs and have private information about their type. We derive a recursive solution of our dynamic adverse selection problem with repeated moral hazard. Conditions...

The paper formulates the fertility choice of a representative working woman in the context of a two-period OLG model. The starting point is a young working woman faced with the dilemma of having to simultaneous rear children and participate in the labor force. Discrete variable equivalents of...

This paper builds upon the work by Tucci and Kendrick (2001) in which the authors develop a quadratic form version of the robust permanent income and pricing model described in Hansen, Sargent and Tallerini (1999). Then using the parameter values given on p. 18 of the HST paper they compute the...

We consider a kinetic equation approach to dynamical systems with finite memory, based upon a probabilistic approach given in Dorofeenko and Shorish (2004). This approach uses a master equation methodology to analytically model the dynamics of distributed systems with many heterogeneous agents,...

We seek to shed new light on the social process of political opinion formation from an evolutionary perspective.We propose a model in which heterogeneous citizens collectively learn and modify their opinions about the most convenient size of public expenditure for the economy. In Section 1, we...

This paper studies the optimal capacity and location of a sequence of landfills and points out the interactions between both decisions. The decision capacity has some spatial implications, because it afects the feasible region for the rest of landfills, and some temporal mplications, because the...

This paper considers a discrete-time model of a financial market with one risky asset and one risk-free asset, where the asset price and wealth dynamics is determined by the interaction of two groups of agents, fundamentalists and trend extrapolators. In each period each group allocates its...