A reaction function, an interest rate adjustment policy, is identified that might have improved price stability and reduced economic oscillations over the past several decades. The dynamic relationship between the Federal funds rate, the CPI, and a vector of macroeconomic variables is estimated....

This paper elucidates hysteresis using a simple model of market entry and exit. A procedure for calculating hysteresis indices for economic time series is outlined. Some preliminary results assess the explanatory power of hysteresis variables in determining the equilibrium rate of unemployment...

This paper contributes to the recent literature exploring linkages between international trade, environmental degradation, and growth by bringing to the fore the dynamic gaming aspects of these issues. We use genetic algorithms (GA) to search for optimal policies in the presence of knowledge...

A computational approach towards economics potentially enriches economic science beyond increasing available mathematical techniques. Computational economics (CE) can foster a viable and rich institutional economics that encourages both mathematical rigor and historical relevance while avoiding...

This paper studies the effects of two classes of borrowing constraints, collateral and income based, on wealth accumulation, portfolio behavior, and precautionary motives. We examine the sensitivity of solutions to the tightness of constraints, education levels, and preference parameters. The...

This model simulates a simple exchange economy made up of geographically dispersed agents with spatially correlated initial endowments who incur transactions costs in the process of trading. Agents are able to advertise globally at no cost in order to inform other agents of potential trading...

Here we give a model of co-evolution in a society of economic agents, defined as autonomous software entities equipped with their own utility functions. These utility functions are governed by the market mechanism. We also provide an evolutionary explanation of how social competence that...

This study reports on market power experiments for an agent-based computational model of a labor market. Workers and employers repeatedly choose and refuse worksite partners on the basis of continually updated expected returns, engage in worksite interactions modelled as two-person games, and...

In the stochastic switching regression model, it is not known which of several alternative regression models has actually generated the observed dependent variable. This study develops Bayesian methods for estimating the parameters of this model. A difficulty with this approach in this context...

Here we investigate the selection of an optimal horizon for inflation targeting in the United Kingdom. We examine each of several ways for interpreting optimal horizons. To assess robustness against model uncertainty, we derive results for a set of models „ rather than just one „ having...