This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common … knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices … algorithm has to search for the policy function of the aggregate price and for the policy function of the firm-specific price …

We run an online experiment to study the origins of algorithm aversion. Participants are either in the role of workers … in the role of a manager or by an algorithm. In a second set of experiments, managers choose whether they want to … delegate their hiring decisions to the algorithm. In the baseline treatments, we observe that workers choose the manager more …

when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that … higher future TFP through knowledge capital drives output and hours choices on the arrival of news and leads to inventory …

We propose a simple and powerful numerical algorithm to compute the transition process in continuous-time dynamic … system of functional differential equations of the retarded type. We apply the Waveform Relaxation algorithm, i.e., we …

We describe an algorithm that is able to compute the solution of a singular linear difference system under rational … expectations. The algorithm uses the Generalized Schur Factorization and is illustrated by a simple example. …

We develop a dynamic model of inventory investment and trade to examine how firms adjust to changes in international … are shown to significantly reduce both the inventory-sales and the import-sales ratios, as the firm adjusts its stockout …

costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally … adjust their inventory policy by cutting their orders of foreign intermediates disproportionately strongly. In the aggregate …

The paper develops a simple theoretical model of inventory control in global supply chains. It identifies a role for … intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a supply chain is profitable … when demand volatility is high. It also provides conditions under which the intermediary handling inventory is located in …