In this paper we shall construct two classes of single-sector stochastic models of economics with perfect competition. The first one is created by inclusion of the stochastic evolution of exogenous variables into the well known deterministic model. The perfect competition requires maximization...

We consider the design of C++ classes for abstract data types that are useful in scientific computing, such as vectors and matrices that appear and disappear dynamically, have varying sizes, may be sparse, and that respond to the natural arithmetic operators. These classes should be memory-safe,...

To facilitate R&D investment, it is necessary to prove a validity of economic effects of the R&D investment. This paper examines the direct effect of R&D of electrical and electronic industries (EEI) on economic growth as well as the indirect effect via the development of technical and...

In this paper we investigate trade of CO emission permits in the framework of a competitive economic equilibrium. For this purpose we integrate well established regional models called Markal-Macro [Manne and Wene1992, Ahn1992] in one multi-regional CGE model. Emphasize is put on doing as few...

Taking into account the very limited ability of individuals to handle and process information (for given information-processing technology), some economists argue that the sequential regime of data processing has been replaced by parallel methods (in economic jargon: hiererchical or...

This paper describes a way of recording information on discrete states by means of a technique called key transformation. This involves recognising that, where N discrete states of a variable are observed T groups or periods, any particular combination of states and periods can be uniquely...

Traffic congestion in the United States alone results in $n100 billion in lost productivity. In this paper we consider the modeling and solution of dynamic traffic models formulated as projected dynamical systems. The proposed discrete time algorithm, the Euler method, resolves the problem at...

Much of macroeconomics and finance employs stochastic difference equation descriptions of no-arbitrage or first-order conditions. A problem with empirical implementations of resulting present-values in the intertemporal decision rules and asset valuations of agents is that long-horizon forecasts...

Since the 70s, a wide stream of research has grown up on the presence of ``anomalies in the behavior of prices in financial markets. Both in the stock and the bond markets, many so called``puzzles were discovered, which were often explained resorting to factors such as agents heterogeneity,...

Risk-sensitive control problems are designed to exacerbate the response of decision rules to amount of uncertainty confronting the controllers. Alternatively, they can be thought of as providing an element of robustness to the decision rules. In economies populated by risk-sensitive agents, risk...