This paper contributes to the recent literature exploring linkages between international trade, environmental degradation, and growth by bringing to the fore the dynamic gaming aspects of these issues. We use genetic algorithms (GA) to search for optimal policies in the presence of knowledge...

This paper explores the extent to which the lack of rationality of economic agents has affected the economic fluctuations and the social welfare of the U.S. hog market. A group of articles has ascribed the business cycles of the hog market, observed by economists as early as the last century,...

There is a trend in investment banking to unify pricing tools in a framework of partial differential equations. The Black-Scholes equation and its extensions are solved numerically with pde-based techniques (instead of rather heuristic techniques like Monte Carlo or Trees). The predominant...

A computational approach towards economics potentially enriches economic science beyond increasing available mathematical techniques. Computational economics (CE) can foster a viable and rich institutional economics that encourages both mathematical rigor and historical relevance while avoiding...

Technical analysis, also known as "charting", has been a part of financial practice for many decades, yet little academic research has been devoted to a systematic evaluation of this discipline. One of the main obstacles is the highly subjective nature of technical analysis---the presence of...

We study Genetic Algorithms (GA) to simulate the emergence of cooperation in nonzero-sum and noncooperative competitions between different agents. The evolution of cooperation is not obvious in here since, in "nonzero-sum" competition, the benefits of one agent are not necessarily equal to the...

The widespread use and proven profitability of technical trading rules in financial markets has long been a puzzle in academic finance. In this paper we show, using an agent-based model of an evolving stock market, that widespread technical trading can arise due to a multi-person prisoners'...

Two common properties of macroeconomic models are saddle-path instability and the existence of non-linearities. Under these circumstances, a common approach is to make analysis more tractable by linearising the model in the neighbourhood of an appropriate steady-state. The linearised model is...

This paper studies the effects of two classes of borrowing constraints, collateral and income based, on wealth accumulation, portfolio behavior, and precautionary motives. We examine the sensitivity of solutions to the tightness of constraints, education levels, and preference parameters. The...

We study the consumption based asset pricing model due to Lucas (1978). The exogenous endowment sequence is modeled as a linear stochastic process driven by stable shocks in an otherwise standard framework. The Gaussian process emerges as a special case. We derive exact analytical solutions for...