Consumption of a good typically diminishes the marginal utility of consuming more, but for how long? This paper adapts a model of consumption capital to allow consumption to have a lasting effect that diminishes the marginal utility of future consumption. Estimates of the model find that it...

The concept of diminishing marginal utility is a cornerstone of economic theory. The consumption of a good typically creates satiation that diminishes the marginal utility of consuming more. Temporal satiation induces consumers to increase their stimulation level by seeking variety and therefore...

In this paper, we propose a new method to forecast macroeconomic variables that combines two existing approaches to mixed-frequency data in DSGE models. The first existing approach estimates the DSGE model in a quarterly frequency and uses higher frequency auxiliary data only for forecasting...

In this paper Sato’s two-level CES production function has been estimated by nonlinear regression carried out through five different methods of optimization, namely, the Hooke-Jeeves Pattern Moves (HJPM), the Hooke-Jeeves-Quasi-Newton (HJQN), the Rosenbrock-Quasi-Newton (RQN), the Differential...

Estimation and modelling problems as they arise in many fields often turn out to be intractable by standard numerical methods. One way to deal with such a situation consists in simplifying models and procedures. However, the solutions to these simplified problems might not be satisfying. A...

Bonus point systems are a popular tournament design feature in some sports. We consider a bonus point system for the Australian Football League (AFL). In this paper, we utilise league points as a measure of team strength in a prediction model and choose the allocation of points to maximise...

This research work investigates the possibility to apply several neural network architectures for simulation and prediction of the dynamic behavior of the complex economic processes. Therefore we will explore different neural networks architectures to build several neural models of the complex...

Based on two Romanian household surveys, we analyse the structure of households’ income by sources: main job, secondary job, and hidden activities. After conceptual clarification and explanation of the methodology we used, we estimate the size of informal economy, analyse the relationship...

The finals of bicycle races have certain peculiarities compared to other sports. The leading group in a bicycle race rides comparatively slowly up to a few meters before the finishing line, until one of the competitors tries to shake off his opponents. Only then do all riders perform to the...