Showing 1 - 10 of 10
The simulation result of Nunes, Kuan, and Newbold suggests that it is possible to estimate a spurious break for a regression model with I(1) disturbances. In this note, we provide a rigorous proof for this phenomenon.
Persistent link: https://www.econbiz.de/10005450473
The standard version of "q" theory, in which investment is positively related to marginal "q", breaks down in the presence of fixed costs of adjustment. With fixed costs, q is a non-monotonic function of investment. Therefore its inverse, which is the traditional investment function, does not...
Persistent link: https://www.econbiz.de/10005450481
This paper has pushed Becker's matching insights into a quite plausible search setting. Exploiting the implicit integral equation (10), we gave a thorough characterization of cross-sectional matching patterns in the equilibrium and constrained s ocial optimum of a frictional matching model. In...
Persistent link: https://www.econbiz.de/10005748907
We prove that the recently proposed informational herding models are but special cases of a standard single person experimentation model with myopia. We then re-interpret the incorrect herding outcome as a familiar failure of complete learning in an optimal experimentation problem.
Persistent link: https://www.econbiz.de/10005748998
This paper studies properties of stochastic objective functions, that is, objective functions which can be written as the expected value of a payoff function.
Persistent link: https://www.econbiz.de/10005574414
This paper systematically analyses and enriches the observational learning paradigm of Banerjee (1992) and Bikhchandani, Hirscleifer, and Welch (1992).
Persistent link: https://www.econbiz.de/10005574419
In this paper, we derive a general Hajek-Renyi type inequality for vector-valued martingales. Several well known inequalities are shown to be special cases of this general inequality. We also derive a similar inequality for dependent sequences. We then apply the inequality to the problem of...
Persistent link: https://www.econbiz.de/10005574424
The paper provides a general analysis of the types of models with E-Perturbations which have been used recently to discuss the evolution of social conventions. Two new measures of the size and structure of the basins of attraction of dynamic systems, the radius and coradius, are introduced in...
Persistent link: https://www.econbiz.de/10005587264
Social commentators from William Julius Wilson to Charles Murray have argued that increased sorting people into internally homogeneous neighborhoods, schools, and marriages is spurring long- run inequality. Calibration of a formal model suggests that these fears are misplaced.
Persistent link: https://www.econbiz.de/10005587322
This paper has pushed Becker's matching insights into a quite plausible search setting. Exploiting the implicit integral equation (10), we gave a thorough characterization of cross-sectional matching patterns in the equilibrium and constrained s ocial optimum of a frictional matching model. In...
Persistent link: https://www.econbiz.de/10005587333