In this paper we investigate the performance of the threshold accepting heuristic for the index tracking problem. The index tracking problem consists in minimizing the tracking error between a portfolio and a benchmark. The objective is to replicate the performance of a given index upon the...

Recent empirical studies have indicated that owner-occupation is inferior to private rental housing in enhancing efficient spatial matching of labor and jobs. While existing literature is lacking in sufficient explanations for these results, this paper attempts to fill a part of this gap. We...

We show that a class of microeconomic behavioral models with interacting agents, introduced by Kirman (1991,1993), can replicate the empirical long-memory properties of the two first conditional moments of financial time series. The essence of these models is that the forecasts and thus the...

After the presentation of the Phillips curve as an empirical regularity (Phillips 1958 ) economists and policy makers alike have tried to exploit it for policy purposes. Even before the oil shocks in the seventies and early eighties this has had mixed success only. With the advent of...

Two finite-difference methods are constructed and used for the solution of a class of endogenous growth model with physical and human capital. Although both the numerical methods to be developed are implicit by construction, each of the methods can be implemented explicitly. The first method is...

Applied cryptography and network security could bring a new commerce architecture for valuable but uncertain digital objects in an open network. This paper models the digital objects as security token, which is abbreviated into a word coinage setok. Each setok has its price, values, and...

This paper employs a stochastic endogenous growth model with productive government expenditure to analyze the macroeconomic effects of income taxation. We demonstrate that in the presence of capital and income risk the impact of taxation on consumption choice as well as on economic growth is...

We study two different modes of social influence on human or artificial decision makers operating in complex environments. One is through emulation of social values, and the other is through social recommendations for specific actions. In an economic environment where agents make trade and...

An economic model of the profit-seeking firm seeking to deploy "Open Source" or "Free" software. Both firms considering "purchase" and development of such software are considered. Open Source software as a public good. Such software is a quasi-public good which will sometimes, but not always,...

A simulation smoother in state space time series analysis is a procedure for drawing samples from the conditional distribution of state or disturbance vectors given the observations. We present a new technique for this which is both simple and computationally efficient.