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In this paper, a model of bounded rational investors investing their portfolio in a passive investment vehicle (e ….g., an Exchange Traded Fund replicating a broad index) or an actively managed fund is presented. The model proposes that the …
Persistent link: https://www.econbiz.de/10010323727
This paper presents a Heterogeneous Agent Model of a financial market with chartist and fundamentalist traders that …, noise in financial markets can lead to long time decoupling from fundamental value. Higher market efficiency (low deviations …
Persistent link: https://www.econbiz.de/10010323743
We set out a general framework for cooperative household models, based on Samuelson's idea of a household welfare function, but extending it to incorporate the key insight from Nash bargaining models - the idea that the household's preference ordering over the utility profiles of its members...
Persistent link: https://www.econbiz.de/10010268333
This paper estimates a dynamic stochastic general equilibrium (DSGE) model for the European Monetary Union by using … Bayesian techniques. A salient feature of the model is an extension of the typically postulated quadratic cost structure for …
Persistent link: https://www.econbiz.de/10010281666
I derive an explicit solution for the saddle path in a Ramsey growth model. The existence of a closed form expression …
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