The problem considered is sequential estimation of the mean θ of a one-parameter exponential family of distributions with squared error loss for estimation error and a cost c 0 for each of an i.i.d. sequence of potential observations X 1 , X 2 ,...A Bayesian approach is adopted, and natural...

Modern work in labor supply attempts to account for nonlinear budget sets created by government tax and transfer programs. Progressive taxation leads to nonlinear convex budget sets while the earned income credit, social security contributions, AFDC, and the proposed NIT plans all lead to...

In this paper we develop a rational expectations exchange rate model which is capable of confronting explicitly agents' beliefs about a future switch in exogenous driving processes. In our set-up the agents know with certainty both the initial exogenous process and the new process to be adopted...