At a very early age, the child becomes a real consumer and the prices becomes part of his daily basis. This exploratory study shows that the child acquires a knowledge of prices through a non linear and non cumulative training, marked out by formative incidents. He uses measures and strategies...

Ce papier s’appuie sur des théories de cognition numérique pour étudier les erreurs de rappel de prix faites par les enfants. L’objectif est, entre autre, de souligner les caractéristiques du prix qui sont sources d’erreurs et d’analyser la structure même de ces erreurs afin de...

Traditional structural models cannot distinguish whether changes in activity are a function of altered expectations today or lagged responses to past plans. Polynomial-adjustment-cost (PAC) models remove this ambiguity by explicitly separating observed dynamic behaviour into movements that have...

This study on overinvestment differs from the existing literature in that investment in machinery and equipment is modelled as a structural vector autoregression with identification achieved by imposing long-run restrictions, as in Blanchard and Quah (1989). The transitory components obtained...

In this paper, the authors use polynomial adjustment cost (PAC) models to analyze and forecast the main components of the U.S. trade sector. For instance, they model and measure the elasticities of imports and exports to changes in the exchange rate and income. PAC models provide a theoretical...