Search results for "jel:C6"
showing 10 items of 29 documents
Normalizing biproportional methods
2002
International audience; Biproportional methods are used to update matrices: the projection of a matrix Z to give it the column and row sums of another matrix is R Z S, where R and S are diagonal and secure the constraints of the problem (R and S have no signification at all because they are not identified). However, normalizing R or S generates important mathematical difficulties: it amounts to put constraints on Lagrange multipliers, non negativity (and so the existence of the solution) is not guaranteed at equilibrium or along the path to equilibrium.
Growth vs. level effect of population change on economic development: An inspection into human-capital-related mechanisms
2011
ACL-1; International audience; This paper studies the different mechanisms and the dynamics through which demography is channeled to the economy. We analyze the role of demographic changes in the economic development process by studying the transitional and the long-run impact of both the rate of population growth and the initial population size on the levels of per capita human capital and income. We do that in an enlarged Lucas–Uzawa model with intergenerational altruism. In contrast to the existing theoretical literature, the long-run level effects of demographic changes, i.e. their impact on the levels of the variables along the balanced growth path, are deeply characterized in addition…
ESTIMATION OF AN EXTENDED SAM WITH HOUSEHOLD PRODUCTION FOR SPAIN 1995
2005
This paper implements the conceptual framework sketched by Pyatt (1990) to construct an extended Social Accounting Matrix for Spain in 1995 (ESAM-95) to consider, in addition to the market economy, the production of services provided by households through unpaid work. In doing so, the ESAM-95 integrates the accounts related to market activities (ESA accounts) with non-market activities (non-ESA accounts) in a consistent way. Additional classifications are introduced in both ESA and non-ESA accounts in order to disaggregate the institutional accounts by household type and those of production factors by educational level and gender. The extended SAM is useful to calibrate CGE models in which …
Prices and Pareto optima
2006
We provide necessary conditions for Pareto optimum in economies where tastes or technologies may be nonconvex, nonsmooth, and affected by externalities. Firms can pursue own objectives, much like the consumers. Infinite-dimensional commodity spaces are accommodated. Public goods and material balances are accounted for as special instances of linear restrictions.
Qualitative methods of structural analysis : layer-based methods are informationally trivial
2000
Some methods of qualitative structural analysis, as MFA, are based on the analysis of layers (flow matrices generated at each iteration when the equilibrium of an input-output model is computed). MFA mixes the analysis of the pure structure of production (the technical coefficients) and of the final demand. I have demonstrated that all column-coefficient matrices (or row-coefficient matrices) computed from each layer are the same in MFA: the information brought by one layer is identical to those of another layer. For a given structure of production, the only element of variability over layers is caused by the flows that final demand generates.If the new definition of layers proposed by the …
Conflict and segregation in networks: An experiment on the interplay between individual preferences and social influence
2016
We examine the interplay between a person's individual preference and the social influence others exert. We provide a model of network relationships with conflicting preferences, where individuals are better off coordinating with those around them, but where not all have a preference for the same action. We test our model in an experiment, varying the level of conflicting preferences between individuals. Our findings suggest that preferences are more salient than social influence, under conflicting preferences: subjects relate mainly with others who have the same preferences. This leads to two undesirable outcomes: network segregation and social inefficiency. The same force that helps peopl…
European Option Pricing and Hedging with Both Fixed and Proportional Transaction Costs
2003
Abstract In this paper we provide a systematic treatment of the utility based option pricing and hedging approach in markets with both fixed and proportional transaction costs: we extend the framework developed by Davis et al. (SIAM J. Control Optim., 31 (1993) 470) and formulate the option pricing and hedging problem. We propose and implement a numerical procedure for computing option prices and corresponding optimal hedging strategies. We present a careful analysis of the optimal hedging strategy and elaborate on important differences between the exact hedging strategy and the asymptotic hedging strategy of Whalley and Wilmott (RISK 7 (1994) 82). We provide a simulation analysis in order …
A Unified Approach to Portfolio Optimization with Linear Transaction Costs
2004
In this paper we study the continuous time optimal portfolio selection problem for an investor with a finite horizon who maximizes expected utility of terminal wealth and faces transaction costs in the capital market. It is well known that, depending on a particular structure of transaction costs, such a problem is formulated and solved within either stochastic singular control or stochastic impulse control framework. In this paper we propose a unified framework, which generalizes the contemporary approaches and is capable to deal with any problem where transaction costs are a linear/piecewise-linear function of the volume of trade. We also discuss some methods for solving numerically the p…
True prices, latent prices and the Ghosh model : some inconsistencies
2001
Beside the traditional Leontief demand-driven model, there is the Ghosh supply-driven model. This paper explores the typology of the possible models: demand driven models versus supply driven models, true prices versus latent (or index) prices, coefficients in physical terms versus coefficients in value. This demonstrates that the supply-driven model offers results of limited interest, being incapable to separate quantities and prices; and it is only when a very strange hypothesis is chosen -- demand prices, controlled by the buyer -- that the supply-driven model gives an interesting result with a separation between quantities and prices in the solution, becoming the dual of the Leontief mo…
Monotone Concave Operators: An application to the existence and uniqueness of solutions to the Bellman equation
2008
We propose a new approach to the issue of existence and uniqueness of solutions to the Bellman equation, exploiting an emerging class of methods, called monotone map methods, pioneered in the work of Krasnosel’skii (1964) and Krasnosel’skii-Zabreiko (1984). The approach is technically simple and intuitive. It is derived from geometric ideas related to the study of fixed points for monotone concave operators defined on partially order spaces.