Consider a bipartite network where N consumers choose to buy or not to buy M different products. This paper considers the properties of the logit fit of the N ×M array of “i-buys-j” purchase decisions, Y = [Yij ]1≤i≤N,1≤j≤M, onto a vector of known functions of consumer and product...

This paper outlines the newly developed construction sector which has been incorporated into the ESRI's macroeconometric model, COSMO. Given the importance of the construction sector to the Irish economy, incorporating specific relationships for production, employment and wages in the sector...

We study an optimal robust monetary policy for a small open economy. The robust control approach assumes that economic agents cannot assign probabilities to a set of plausible models and rather focuses on the worst possible misspecification from a benchmark model. Our findings suggest that,...

This paper derives and presents mean leads and lags as well as patterns of relative importance weights implied by the PAC (polynomial-adjustment-cost) error-correction equations which form the core of the FRB/US model at the Federal Reserve Board. Relative importance weights measure the...

We connect variational preferences with the likelihood functions and prior probabilities over parameters that are building blocks of statistics and econometrics. We use relative entropy and other statistical divergences as cost functions in the variational preferences of someone who is ambiguous...