In a recent paper (Velupillai, 1999) I discussed the following two propositions (in reverse order):Proposition 1: Assume that the (individual) market excess-demand functions are restricted to be defined on the domain of computable reals. Suppose also that we have an arbitrary exchange economy...

This paper investigates evolutionary adaptation in a coordination game with strategic uncertainty. This game is characterized by the multiplicity of Nash equilibria that can be ranked according to the payoff that players obtain. Two different equilibrium refinement concepts predict the selection...

In modern mathematical finance the evolution of several variables such as asset prices, interest rates, latent factors is described, in a continuous time setting, through stochastic differential equations. Nevertheless, in most of the classic literature, these stochastic differential equations...

We consider the impact of local and global spillover effects on the long run market shares of two populations of firms (e.g.~firms based in two different regions) who compete on a high-tech market. Production costs of a firm are (strongly) influenced by the number of local firms and (weakly) by...

Mathematica provides powerful tools for solving differential equations. The functions LogicalExpand and Series can be used to decompose a PDE into a system of ODEs which can then be solved numerically with DSolve, providing fast and accurate solutions. These tools are illustrated by solving the...

Equilibrium allocations in models with incomplete markets are generally not Pareto-efficient, but some argue that the welfare losses from missing assets are small when time-horizons are long, agents are patient, and shocks are transitory. We show that even in the simplest infinite horizon model...

Adaptive Polar Sampling (APS) is proposed as a Markov chain Monte Carlo method for Bayesian analysis of models with ill-behaved posterior distributions. In order to sample efficiently from such a distribution, a location-scale transformation and a transformation to polar coordinates are used....

Establishing the rank of a matrix is an important problem in a wide variety of econometric and statistical contexts that includes the classical identification problem in linear simultaneous equation models, determining the rank of demand systems, the order of lag polynomials in ARMA models, and...

Artificial neural networks are nonlinear models whose parameters (weights) are estimated during so called training procedure. Applying the back propagation algorithm (which is the most popular method of supervised learning), the computed output (for the initial, usually randomly chosen weights)...

Job search theory involves perfectly rational, maximising actors which make decisions under imperfect information. In the paper we simulate a labour market which works differently: heterogeneous firms and workers interact following rules that place only bounded demands on their computational...