Although the practicability of using wavelet neural networks (WNNs) in nonlinear function approximation has been addressed extensively, selecting the optimal number of hidden nodes and their appropriate initial locations remains a great challenge for WNNs' initialization. The cuckoo search...

We implement a long-horizon static and dynamic portfolio allocation involving a risk-free and a risky asset. This model is calibrated at a quarterly frequency for ten European countries. We also use maximum-likelihood estimates and Bayesian estimates to account for parameter uncertainty. We find...