This paper shows the potential of heterogeneous computing in solving dynamic equilibrium models in economics. We illustrate the power and simplicity of C++ Accelerated Massive Parallelism (C++ AMP) recently introduced by Microsoft. Starting from the same exercise as Aldrich et al. (J Econ Dyn...

In their model of network formation, Berninghaus et al. (Exp Econ 9:237–251, <CitationRef CitationID="CR7">2006</CitationRef>; J Evol Econ 17:317–347, <CitationRef CitationID="CR8">2007</CitationRef>) showed that a periphery-sponsored star network is a strict Nash equilibrium. To examine the validity of their result, they also performed a laboratory experiment with human...</citationref></citationref>

We develop a highly accurate numerical method for pricing discrete double barrier options under the Black–Scholes (BS) model. To this aim, the BS partial differential equation is discretized in space by the parabolic finite element method, which is based on a variational formulation and thus...

We study the relationship between openness and payment system development. In particular, we analyze how the existence of technology diffusion from a more developed country fosters a transformation of payment choice in a less developed country. We apply our analysis to Mexico. Economic growth in...

Arguments over equity during abatement goal setting is the principal obstacle to climate mitigation cooperation, while allocating global emissions to each country as deduced from the climate objective according to certain equitable principles offers an effective alternative to ending this...

In an earlier paper, i.e. Kendrick and Amman (A Taylor Rule for fiscal policy?, <CitationRef CitationID="CR9">2010</CitationRef>), we raised the question of whether adjusting fiscal policy more frequently than its current pace of once a year could be used to improve stabilization. Also, we proposed a method for shedding light on that...</citationref>

This paper provides a real option methodology in order to value a pioneer’s R&D investment opportunity allowing for more potential competitors to enter in the market. To incorporate this competitive dimension, we assume that the pioneer may lose the “competitive dividends”   if the real...

Macroeconomic models with sticky information include an infinite number of lagged expectations. Several authors have developed specialized solutions algorithms to solve these models under rational expectations. We demonstrate that it is also possible to implement this class of models in...

We propose a mean-reverting interest rate model whose mean-reverting level, speed of mean-reversion and volatility are all modulated by a weak Markov chain (WMC). This model features a simple way to capture the regime-switching evolution of the parameters as well as the memory property of the...

The Nelder-Mead simplex method is an optimization routine that works well with irregular objective functions. For a function of <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$n$$</EquationSource> </InlineEquation> parameters, it compares the objective function at the <InlineEquation ID="IEq2"> <EquationSource Format="TEX">$$n+1$$</EquationSource> </InlineEquation> vertices of a simplex and updates the worst vertex through simplex search steps. However, a...</equationsource></inlineequation></equationsource></inlineequation>