In recent years the relationship between ÎmoneyÌ and the macroeconomy has assumed prominence in the academic literature and in Central Banks circles. Although some Central Bankers have stated that they have formally abandoned the notion of using monetary aggregates as indicators of the impact...

In recent years a large number of models of financial markets based on interacting heterogeneous agents have been developed. These models generally allow the size of the different groups of agents to vary according to the evolution of the financial market. Adaptive belief system proposed by...

This paper discusses how forecasts may be affected by the use of real-time data rather than latest-available data. The key issue is this: In the literature on developing forecasting models, new models are put together based on the results they yield using the data set available to the model...

This paper explores the question whether boundedly rational agents learn to behave optimally when asked to voluntarily contribute to a public good. The decision process of individuals is described by an Evolutionary Algorithm. We find that the contribution level converges towards the Nash...

The issue of quantifying the empirical relevance of the different channels of transmissions through which monetary policy exerts its influence on demand, output and prices has received wide and increasing attention in recent years. In this paper we examine under which conditions the different...

Is a fair degree of equality among economic agents with respect to income and wealth compatible with an optimal level of economic growth - or does initiatives promoting equality restrain growth, or in the opposite, does initiatives promoting growth restrain equality? These are questions that...

DYNARE: A program for the simulation of rational expectation models Michel Juillard (CEPREMAP and University Paris 8) DYNARE is a user oriented general program for the simulation of deterministic or stochastic models. For linear models, it implements a generalized Schur decomposition algorithm;...

This paper solves for optimal international portfolio choice in the presence of liquidity constraints and undiversifiable labor income risk. Optimal portfolios are internationally diversified while positive correlation between domestic stock market returns and permanent labor income shocks can...

This paper solves numerically for the optimal consumption and portfolio choice of an infinitely lived investor facing short-sales and borrowing constraints, undiversifiable labor income risk and a predictable time varying equity premium. The investor aggressively times the market while positive...

We study by theoretical analysis and by direct numerical simulation the dynamics of a wide class of asynchronous stochastic systems composed of many autocatalytic degrees of freedom. We describe the generic emergence of truncated power laws in the size distribution of their individual elements....