Our goal in this chapter is to explain concretely how to implement simulation methods in a very general class of models that are extremely useful in applied work: dynamic discrete choice models where one has available a panel of multinomial choice histories and partially observed payoffs....

The aim of this paper consists of valuating a real biotechnology firm that is based on a portfolio of several drug development projects at different phases. They are patentprotected R&D projects and their values are obtained by implementing an extension of the real options approach in Schwartz...

This paper discusses a tool for optimization of econometric models based on genetic algorithms. First, we briefly describe the concept of this optimization technique. Then, we explain the design of a specifically developed algorithm and apply it to a difficult econometric problem, the...

The extension of the European Union with the last two “waves†of new members in 2004 and later in 2007 brought new opportunities for the countries in Eastern Europe, especially those linked with the usage of European funding to support public or private investments. It is obvious that...

This paper examines the panel data models when the regression coefficients are fixed, random, and mixed, and proposed the different estimators for this model. We used the Mote Carlo simulation for making comparisons between the behavior of several estimation methods, such as Random Coefficient...

This paper presents a new numerical algorithm for solving Sylvester equation involved in higher order perturbation method used for solution of stochastic dynamic general equilibrium models. The new algorithm is better than methods used so far (esp. very popular doubling algorithm) in terms of...

Abstract Behavioural finance has challenged many claims of efficient market hypothesis (EMH). Unfortunately many of these challenges are in the form of anecdotal evidence and lack quantification. This article uses market data together with some simple statistics to show that in practice certain...

National Statistics Offices, Central Banks, and any other organisms and agencies producing statistical information, disseminate data so that the individual information is sufficiently protected. At the same time, those entities aim at providing society with as much information as possible under...

Higher-order spatial econometric models that include more than one weights matrix have seen increasing use in the spatial econometrics literature. There are two distinct issues related to the specification of these extended models. The first issue is what form the higher-order spatial...

The p-median model is used to locate P facilities to serve a geographically distributed population. Conventionally, it is assumed that the population patronize the nearest facility and that the distance between the resident and the facility may be measured by the Euclidean distance. Carling,...