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Robust decision making implies welfare costs or robustness premia when the approximating model is the true data generating process. To examine the importance of these premia at the aggregate level we employ a simple two-sector dynamic general equilibrium model with human capital and introduce an...
Persistent link: https://www.econbiz.de/10008697052
Robust decision making implies welfare costs or robustness premia when the approximating model is the true data generating process. To examine the importance of these premia at the aggregate level we employ a simple two-sector dynamic general equilibrium model with human capital and introduce an...
Persistent link: https://www.econbiz.de/10013316155
Persistent link: https://www.econbiz.de/10003335327
The authors adapt modern control theoretic techniques based on robust control theory to economic modelling and decision … entropy and in this sense the robust control theory is not only adapted but also extended in the book. The main issues … noncooperative game theory to solve the formulated decision making problems. The book is self-contained and rigorous and may be …
Persistent link: https://www.econbiz.de/10003539380
Persistent link: https://www.econbiz.de/10010350862
Model uncertainty is inherent in the design of optimal environmental policy. We investigate the consequences in a simple linear model, where the aim of the policymaker is to stabilize the carbon content of the atmosphere. We study how decision-makers' concerns about robustness alter policy using...
Persistent link: https://www.econbiz.de/10013317181
Persistent link: https://www.econbiz.de/10003496553
Persistent link: https://www.econbiz.de/10003583060
This book provides a reader with a practical foundation in general equilibrium theory, embeds the theory in a multi …-sector dynamic framework, discusses how to practically link the theory to real economic data, and provides clear instructions on how … book pulls it all together in a conceptually sound, yet practical, manner, and brings the theory to life. A unique feature …
Persistent link: https://www.econbiz.de/10013521281
Persistent link: https://www.econbiz.de/10001997689