When outcomes of developmental projects undertaken are uncertain, ruling parties in a democracy often face a difficult choice. Taking up projects that fail result in bad publicity and hence a dent in the vote bank. But on the other hand a successful project leads to more votes as well as more...

An economy is often characterised by two important objectives set for the policy makers. One regarding the growth rate of the economy and the other being the rate of inflation. A common strategy adopted by the policy makers to achieve these twin goals is to manage the interest rate through the...

In this paper we look at the PBC problem through the lens of uncertainty. The feedback control used by us is the famous NKPC with stochasticity and wage rigidities. We extend the NKPC model to the continuous time stochastic set up with an Ornstein-Uhlenbeck process. We minimize relevant expected...

This paper develops a test for intercept homogeneity in fixed effects one-way error component models assuming slope homogeneity. We show that the proposed test works equally well when intercepts are assumed to be either fixed (nonstochastic) or random. Moreover, this test can also be used to...

We provide various norm-based definitions of different types of cross-sectional dependence and the relations between them. These definitions facilitate to comprehend and to characterize the various forms of cross-sectional dependence, such as strong, semi-strong, and weak dependence. Then we...

In this paper we study the influence of large traders in the stock market in the presence of a fringe of marginal “noise traders". We formulate a trade model relating stock price to the demand strategies of these traders who wish to maximize their payoffs. Using the Nash equilibrium concept we...

We develop a jackknife estimator for the conditional variance of a minimum-tracking- error-variance portfolio constructed using estimated covariances. We empirically evaluate the performance of our estimator using an optimal portfolio of 200 stocks that has the lowest tracking error with respect...

We consider singular diffusions on k. Under a verifiable criterion for the stability in distribution of such diffusions, a broad subset of the range of the infinitesimal generator of the diffusion is identified. For functions in this set functional central limit theorems and laws of iterated...

We develop a jackknife estimator for the conditional variance of a minimum tracking error variance portfolio constructed using estimated covariances. We empirically evaluate the performance of our estimator using an optimal portfolio of 200 stocks that has the lowest tracking error with respect...