This paper describes an application of numerical methods to solve a continuous time non-linear optimal growth model with technology adoption. In the model, a non-convex production function arises from a threshold level of knowledge required to operate new technology. The study explains and...

In the present paper we apply a new Genetic Hybrid Algorithm (GHA) to globally minimize a representative set of ill-conditioned econometric/mathematical functions. The genetic algorithm was specifically designed for nonconvex mixed integer nonlinear programming problems and it can be...

Many macroeconomic policy exercises consider the mean values of parameter estimates but do not use the variances and covariances. One can argue that the uncertainty of these parameter estimates is sufficiently small that it can safely be ignored. Or one can take the position that this kind of...

The back-propagation neural network (BPN) model has been the most popular form of artificial neural network model used for forecasting, particularly in economics and finance. It is a static (feed-forward) model which has a learning process in both hidden and output layers. In this paper we...

Young economists sometimes ask which computer programming languages they should learn. This paper answers that question by suggesting that they begin with a high level language like GAUSS, GAMS, Mathematica, Maple or MATLAB depending on their field of specialization in economics. Then they...

Today's graduate students in economics must master early on a computational environment suitable for their research needs. A ease is made here why Mathematica is an eminently reasonable choice for this purpose for many students. Salient features of Mathematica are examined in this context, and...

Sorting problems constitute a major part of real world decisions, where a set of alternative actions (solutions) must be classified into two or more predefined classes. Multicriteria decision aid (MCDA) provides several methodologies, which are well adapted in sorting problems. A well known...

We consider the optimal income tax problem when income differences are due to differences in abilities and in preferences between consumption and leisure among individuals. We model this problem as an optimal control problem and develop a numerical method for solving it. The method is based on...

This paper is concerned with the development of a calibration procedure for dynamic CGE models for non-steady state situations. While the literature on calibration of dynamic models mainly concentrates on the process of calibration in the context of a steady state, this essay centers upon the...

This paper considers the effect of using a GARCH filter on the properties of the BDS test statistic as well as a number of other issues relating to the application of the test. It is found that, for certain values of the user-adjustable parameters, the finite sample distribution of the test is...