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Operational and Investment Response to Energy Prices in the OECD Manufacturing Sector

Steinbuks, J.; Neuhoff, K. - Faculty of Economics, University of Cambridge - 2010

This paper estimates the vintage capital model of energy demand and examines operational and investment responses to …-price investment elasticities of energy efficiency of capital stock vary between 0.03 and 0.9. The investment response to energy prices … that total (operational and investment) own-price elasticity of energy demand is close to one. …

Persistent link: https://www.econbiz.de/10008503178

The Revenge of the Market on the Rentiers: Why neo-liberal Reports of the end of history turned out to be premature (Updated 19 December 2011)

Palma, J.G. - Faculty of Economics, University of Cambridge - 2009

Starting from the perspective of heterodox Keynesian-Minskyian-Kindlebergian financial economics, this paper begins by highlighting a number of mechanisms that contributed to the current financial crisis. These include excess liquidity, income polarisation, conflicts between financial and...

Persistent link: https://www.econbiz.de/10005056491

Collective Behavior with Endogenous Thresholds

Xue, J. - Faculty of Economics, University of Cambridge - 2006

We endogenize the threshold points in Granovetter’s threshold model of collective behavior (Granovetter 1978). We do this in a simple model that combines strategic complementarity and private information in a dynamic setup with endogenous order of moves. Looking at Granovetter’s model in the...

Persistent link: https://www.econbiz.de/10005113731

On the Difficulty of Measuring Forecasting Skill in Financial Markets

Satchell, S.; Williams, O.J. - Faculty of Economics, University of Cambridge - 2010

The use of correlation between forecasts and actual returns is commonplace in the literature, often used as a measurement of investors’ skill. A prominent application of this is the concept of the Information Coefficient (IC). Not only can IC be used as a tool to rate analysts and fund...

Persistent link: https://www.econbiz.de/10008483949

Social Welfare Issues of Financial Literacy

Satchell, S.; Williams, O.J. - Faculty of Economics, University of Cambridge - 2010

considers to what extent this may be true generally, and specifically focuses on the case of investment forecasting skill (a …

Persistent link: https://www.econbiz.de/10008490341

Learning Stability for Monetary Policy Rules in a Two-Country Model

Wang, Q. - Faculty of Economics, University of Cambridge - 2006

This work evaluates whether or not the interest rate rules under different exchange rate regimes lead to a REE that is both locally determinate and stable under adaptive learning by private agents. I find that monetary interdependence among countries is crucial for the determinacy and learning...

Persistent link: https://www.econbiz.de/10005489321

The Impact of Technical Analysis on Asset Price Dynamics

Yang, J.-H. Steffi; Satchell, S.E. - Faculty of Economics, University of Cambridge - 2002

information. Using investment decisions of fundamentalists as a benchmark, agents’ optimal demand difference, which reflects …

Persistent link: https://www.econbiz.de/10005113741

Learning from the Expectations of Others

Granato, J.; Guse, E.; Sunny Wong, M.C. - Faculty of Economics, University of Cambridge - 2006

The assumption of perfectly rational representative agents is commonly questioned. This paper explores the equilibrium properties of boundedly rational heterogeneous agents. We combine an adaptive learning process in a modified cobweb model within a Stackleberg framework. We assume that there is...

Persistent link: https://www.econbiz.de/10005113743

Anticipated Fiscal Policy and Adaptive Learning

Evans, G.W.; Honkapohja, S.; Mitra, K. - Faculty of Economics, University of Cambridge - 2007

We consider the impact of anticipated policy changes when agents form expectations using adaptive learning rather than rational expectations. To model this we assume that agents combine limited structural knowledge with a standard adaptive learning rule. We analyze these issues using two...

Persistent link: https://www.econbiz.de/10005113861

Learning with Heterogeneous Expectations in an Evolutionary World

Guse, E. - Faculty of Economics, University of Cambridge - 2005

This paper studies a game theoretic model where agents choose between two updating rules to predict a future endogenous variable. Agents rationally choose between these predictors based on relative performance. Conditions for evolutionary stability and stability under learning are found for the...

Persistent link: https://www.econbiz.de/10005647403