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We consider the problem of portfolio selection, with transaction costs and constraints on exposure to risk. Linear transaction costs, bounds on the variance of the return, and bounds on different shor...
This is the value of the control rule which would be used if one treated ,d as known with certainty and equal to the least squares estimate. We call this rule the least squares certainty equivalence...
Estimation and Solution of Linear Rational Expectations Models Using a Polynomial Matrix Factorization.
This paper develops three asymptotically equivalent tests for examining the validity of imposing linear inequality restrictions on the parameters of linear econometric models. First we consider the ...
This paper considers a general nonlinear econometric model framework that contains a large class of estimators defined as solutions to optimization problems. For this framework we derive several a...
Quasi-linear preferences in the macroeconomy: Indeterminacy, heterogeneity and the representative consumer.
The influence of economic and demographic variables on the annual electricity consumption in Italy has been investigated with the intention to develop a long-term consumption forecasting model. The ti...
We prove the existence of bounded solutions of quadratic backward SDEs with jumps, using a direct fixed point approach as in Tevzadze [35]. Under an additional standard assumption, we prove a uniquene...
We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian model incorporating political economy constraints. Policies are chosen sequentially over time, without commitment....
In this paper, we propose an efficient Monte Carlo implementation of non-linear FBSDEs as a system of interacting particles inspired by the ideas of branching diffusion method. It will be particularly...
We extend Kirman's model by introducing variable event time scale. The proposed exi- ble time scale is equivalent to the variable trading activity observed in nancial markets. Stochastic version ...
In this work, we have presented a simple analytical approximation scheme for the generic non-linear FBSDEs. By treating the interested system as the linear decoupled FBSDE perturbed with non-linear ...
Abstract: The vector of periodic, compound returns of a typical investment portfolio is almost never a convex combination of the return vectors of the securities in the portfolio. As a result the ex p...
Considering a production economy with an arbitrary von-Neumann Morgenstern utility, this paper derives a general equilibrium relationship between the market prices of risks and market risk aversion un...
We introduce a new approach for the numerical pricing of American options. The main idea is to choose a finite number of suitable excessive functions (randomly) and to find the smallest majorant of th...

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