12. Exponential growth simulation.

Size: px
Start display at page:

Download "12. Exponential growth simulation."

Transcription

1 1. Exponenial growh simulaion. Mos people hink of exponenial growh as being growh ha is very fas. However, exponenial growh has a precise meaning a populaion grows exponenially when is growh rae is proporional o is sie. For example a populaion which growh by 3% each year is growing exponenially. The growh rae in his case is proporional o sie wih consan of proporionaliy.3. Suppose we wan o rack his populaion over many years saring a sie () = A. Then afer one year i has sie: (1) = A +.3A = (1.3)A. Noice he expression on he righ. Tha simple piece of algebra hides a wonderful concepual jump. I says ha o add 3% every year is he same as muliplying by 1.3. The reason ha s so grea is ha i makes ieraion easy. In year we muliply by 1.3 again: And again and again: () = (1.3)(1.3)A = (1.3) A. () = (1.3) A and ha gives us a formula for a any ime. The graph of agains saring a A = 1 is ploed a he righ. In 5 years he populaion grows o nearly 5. Okay. Do you expec a real populaion of squirrels recenly arrived in a new fores o grow according o ha nice smooh curve? Cerainly no. Real life is full of uncerainies, boh good and bad, and we expec considerable variaion. Even wih an average growh rae of 3%, he populaion will someimes, hrough ill luck, decrease. Cerainly i will oscillae above and below he heoreical curve A simulaion We each our sudens abou exponenial growh bu how many of hem have acually observed such growh? Our objecive here is o consruc such a process in he classroom, no one of hose smooh exponenial curve ype populaions, bu one ha has o cope wih he real life uncerainies of birh and deah. To simulae his sochasic behaviour, we flip coins. The game is bes played wih a large class. To ge he daa repored here I combined hree grade 1 classes The model This sochasic aspec of populaion growh can be modeled wih a large class of sudens each having 3 coins. A any ime he populaion consiss of hose individuals who are sanding. Sar by having a few (e.g 5) sudens sand. To move one ime sep (one year), each sanding individual flips his/her 3 coins. There are hree possible oucomes. H 1T T 1H 3H or 3T one offspring no offspring and no deah deah Afer everyone sanding has flipped I ask all hose in he las caegory (3H or 3T) o si down. [They are now ou of he populaion, a leas unil hey are invied back in as someone else s offspring.] Then all hose in he firs caegory (H 1T) say sanding and ge o choose one siing individual o sand. All hose in he middle caegory (T 1H) simply say sanding. Thus, if here are x individuals in he firs caegory and y individuals in he las, he populaion sie increases by x y. 1 exponenial simulaion 1

2 The daa A he righ is a daa se I generaed wih a class of 1 sudens. For example, of he 5 sanding on he firs flip, rolled H&1T and rolled 3H for a ne increase of =. I s really nice o have a compuer in he classroom o plo he daa as hey are generaed. The graph below cerainly shows an increasing populaion wih an acceleraing growh rae, bu here is considerable variaion especially a he early sage when he sie is small. I ask he class wheher his daa belongs o an exponenial populaion. Is he growh rae proporional o he sie, a leas on average? How would we deermine ha? How do you deermine wheher any daa se follows an exponenial curve? One suden ells me ha you fi an exponenial rend line and see how good i is. Tha s no a bad answer bu i s a bi waffly. My favorie answer o his quesion is ha you look a he log plo, because if is exponenial, hen log() will be linear. And we are raher good a recogniing wheher a bunch of poins lies in a sraigh line. [Why is ha? because ligh ravels in a sraigh line?] If is exponenial hen log() is linear Here s he algebra. Sar wih he equaion: Take logs: = Ar log() = log(ar ) = log(a) + log(r ) = log(a) + log(r) Wha does ha say? ha he graph of log() agains is a sraigh line wih slope log(r) and y-inercep log(a) Analysis of he daa Check i ou. A he righ I plo log() agains. Is i a sraigh line? Well, yes and no. There s cerainly considerable scaer, especially a he beginning, bu he daa has a srong overall linear characer. I s worh noing ha we would expec more scaer a he beginning when he populaion is small. When here are a large number of individuals, he bad luck of some will be more likely o balance he good luck of ohers, and he ne resul will be close o expecaion. Anyway, i is he linear characer of he log plo which ells us wheher he original daa is exponenial. And we seem here o have an exponenially growing populaion log exponenial simulaion

3 How do we ge a bes-fi exponenial equaion for he populaion? One way is o draw a bes-fi line for he log daa and find he slope of is y-inercep. We can do his wih pencil and ruler, or if we have a compuer or calculaor we can fi a rend-line. A he righ I used an excel spreadshee o ge he rend line: log() = How do we ge he exponenial equaion from ha? We exponeniae i! log( ) = 1 = 1 = 1 1 = 1 = 5.34 (1.165)..775 Our bes esimae from he daa, is ha he populaion sared wih 5.34 individuals and grew by 16.5% per year..665 ( 1 ) The calculaion above is one ha I migh have made when I was a suden back in he 6 s. Wih he echnological power sudens have oday, hey could have bypassed he logarihm suff alogeher and fied an exponenial rend-line o he original daa. Such a line (which is acually a curve) is ploed a he righ (again wih excel). [I s worh poining ou ha his curve is exacly he same as he log line, bu ploed on he - axes. Indeed, e.1531 = ] However, I make my sudens go he logarihm roue as well. One reason for ha is ha I wan hem o gain some familiariy in working wih he logarihm, bu anoher, and even more imporan one, is ha I wan hem o see ha sraigh line, because ha s he bes proof ha he daa se is exponenial. The heoreical curve. Wha sor of populaion growh curve did we expec? Afer all, we have a quie precise coin-flipping rouine ha we used o generae he daa wha sor of heoreical curve ough ha o have given us? Did we expec i o be exponenial, and if so, wih wha parameers? Here s he argumen. The able a he righ gives he probabiliies of he differen oucomes. I ells us ha if we ake 8 ypical individuals hen we expec 3 of hem o have an offspring and of hem o die, giving us a ne change of 3 = 1. Thus, each ime sep, we ge (on average) an increase of 1 for every 8 individuals, giving us an average growh rae of 1 in 8 or 1.5%. In paricular, he growh is cerainly exponenial (on average) because he expeced increase is proporional o he sie log y =.665x y = e.1531x Wha kind of curve did we expec? This is an excellen quesion o pose o he class. We have o look carefully a he coin-flipping rouine. Is he growh rae (on average) proporional o he populaion sie? If so, wha is he consan of proporionaliy? prob oucome effec 1/8 HHH die 3/8 HHT HTH offspring THH 3/8 HTT THT no change TTH 1/8 TTT die 1 exponenial simulaion 3

4 A growh rae of 1/8 means a muliplier of 9/8. Saring wih sie 5, afer years, we expec sie () = 5 (9/8). A he righ we plo his formula as a curve and compare i wih he daa. The curve lies markedly below he daa is final heigh (a =) is 53, well below 98, he final heigh of he daa poins. I doesn seem like a paricularly good fi a all. Wha happened? Sudying he daa we see ha we did seem o have a lucky surge around generaion 1. Tha carried he daa well above he curve, and once up here, i would be ap o say ha way. In fac ha brings us o he quesion of jus wha sor of variaion we migh expec. Randomness How close a fi could we expec beween he daa generaed from his experimen and he heoreical curve? Quesions like his can be quie challenging and hey are sudied by heoreical saisics. Bu one hing I hough of doing, jus o see wha happened, was o repea he experimen many imes, say 5 imes, and see how big a range of daa ses I go Does he curve provide a good fi o he daa? Apparenly no. Bu do we expec a good fi? Le s look a hings a bi more closely. No waning o wear hin he generous paience of my sudens, I hough I d ry o ge he compuer o do all he work. My programming skills are raher modes, bu I do know my way around a few MAPLE commands, and, happily enough, I managed o consruc a passable MAPLE program (which I include a he end). I did 5 runs of years, each run saring a =5. Well, 4 of hose runs wen exinc he populaion fell o ero a some poin and hen, of course, sayed here. The remaining 1 runs showed grea variaion in he sie afer years. The lowes (ha didn go exinc) reached a sie of only =14 afer years, whereas he highes go up o =166. These runs (he high run and he low run) are ploed a he righ along wih he heoreical curve. [Noe ha o accommodae he larger populaion I have exended he verical scale.] So is he heoreical curve he average, in some sense, of he high run and he low run? Le s see he final heigh of he heoreical curve is 53 and he average of 14 and 166 is: = 9. Hmm 9 is definiely no close o 53. We could already see his from he graph he heoreical curve is no halfway beween he high daa se and he low daa se, bu is much closer o he low daa se. Wha are we o make of his? The idea here is ha hese wo "exreme" daa ses serve as boundaries. I should be relaively rare for a daa se o fall ouside of hem. Of course, if we had aken he bes and he wors ou of 1 simulaions, we'd expec hese boundaries o be a bi wider bu no much. 1 exponenial simulaion 4

5 I urns ou ha we don really expec he heoreical curve o be he average of he high run and he low run. A leas, no if we use he convenional average. The average we ve calculaed above is called he arihmeic mean (AM): AM(14, 166) = = 9 bu here are oher averages around. In fac he correc average o use in his case urns ou o be he geomeric mean (GM) defined as he square roo of he produc: GM(14, 166) = = 48. and indeed ha s graifyingly close o 53. The poin is ha he law of growh of hese populaions is muliplicaive, and i follows ha he appropriae average o use is he GM, ha being a muliplicaive average. Anoher way o look a his is o observe ha aking he GM of wo numbers is really he same as aking he AM of heir logarihms. More precisely he log of he GM of wo numbers is he AM of he logs of he numbers: log(gm(a, b)) = AM(log(a), log(b)) [Verify his i s a good exercise!] So he fac ha he heoreical curve is close o he GM of he low run and he high run ells us ha if we plo he runs on a log scale, he heoreical curve (which will now be a sraigh line) should be close o he AM of he low run and he high run. The graph appears a he righ. On his scale, he heoreical line does appear o be prey much he midpoin (on average) of he high and low runs..5 log Finally, here s he maple program. The # indicaes a commen. > R:=rand(1..8): #defines R as a procedure which generaes a random ineger beween 1 and 8 N:=5:prin(N); #N is he populaion sie. I sars a 5. for j from 1 o #execues he insrucions below for each of years do for i from 1 o N #execues he insrucions below for each individual in he populaion do r:=r(): #r is a random ineger beween 1 and 8 if r<3 hen N:=N-1: #holds wih probabiliy /8 end if: if r>5 hen N:=N+1: #holds wih probabiliy 3/8 end if: end do: > prin(n); > end do: 1 exponenial simulaion 5

6 Problems 1. Here's a game you can play wih a bole of pennies. Sar wih, say, 6 coins in a cup. Shake hem and spill hem on he able and wihou paying aenion o wheher hey are heads or ails, gaher hem in groups of sie 3. Each ime a group has a leas heads, add a coin o i, and each ime a group has 3 ails, ake a coin away. Groups ha have neiher condiion are jus lef he way hey are. Then gaher up all he coins and repea. When he number of coins is no a muliple of 3, he one or wo exra coins can be jus pu o he side and recycled ino he nex generaion (hey neiher give birh nor die). Collec a daa se for 5 generaions. Esimae wha you hink he sie of he populaion "ough" o be afer his ime.. Suppose we have a populaion whose sie changes in accordance wih he general rules we formulaed a he beginning: ha in each ime sep here are hree possibiliies for each individual: reproduce and make one offspring probabiliy r die probabiliy d neiher of he above probabiliy 1 r d Now suppose ha we don' know wha r and d are bu wha we do have is he daa from he firs run (abulaed on he firs page). The problem is o use he daa o ge some idea of he sie of r and d. Now because birh and deah all happen wihin a single generaion, i's ap o be hard o ease r and d apar, bu here's some informaion abou he pair of hem you can surely ge. An esimae? An average? Explain your analysis. 1 exponenial simulaion 6

Bond Prices and Interest Rates

Bond Prices and Interest Rates Winer erm 1999 Bond rice Handou age 1 of 4 Bond rices and Ineres Raes A bond is an IOU. ha is, a bond is a promise o pay, in he fuure, fixed amouns ha are saed on he bond. he ineres rae ha a bond acually

More information

Unemployment and Phillips curve

Unemployment and Phillips curve Unemploymen and Phillips curve 2 of The Naural Rae of Unemploymen and he Phillips Curve Figure 1 Inflaion versus Unemploymen in he Unied Saes, 1900 o 1960 During he period 1900 o 1960 in he Unied Saes,

More information

Appendix B: DETAILS ABOUT THE SIMULATION MODEL. contained in lookup tables that are all calculated on an auxiliary spreadsheet.

Appendix B: DETAILS ABOUT THE SIMULATION MODEL. contained in lookup tables that are all calculated on an auxiliary spreadsheet. Appendix B: DETAILS ABOUT THE SIMULATION MODEL The simulaion model is carried ou on one spreadshee and has five modules, four of which are conained in lookup ables ha are all calculaed on an auxiliary

More information

Problem Set 1 Answers. a. The computer is a final good produced and sold in Hence, 2006 GDP increases by $2,000.

Problem Set 1 Answers. a. The computer is a final good produced and sold in Hence, 2006 GDP increases by $2,000. Social Analysis 10 Spring 2006 Problem Se 1 Answers Quesion 1 a. The compuer is a final good produced and sold in 2006. Hence, 2006 GDP increases by $2,000. b. The bread is a final good sold in 2006. 2006

More information

San Francisco State University ECON 560 Summer 2018 Problem set 3 Due Monday, July 23

San Francisco State University ECON 560 Summer 2018 Problem set 3 Due Monday, July 23 San Francisco Sae Universiy Michael Bar ECON 56 Summer 28 Problem se 3 Due Monday, July 23 Name Assignmen Rules. Homework assignmens mus be yped. For insrucions on how o ype equaions and mah objecs please

More information

Population growth and intra-specific competition in duckweed

Population growth and intra-specific competition in duckweed Populaion growh and inra-specific compeiion in duckweed We will use a species of floaing aquaic plan o invesigae principles of populaion growh and inra-specific compeiion, in oher words densiy-dependence.

More information

Ma 093 and MA 117A - Exponential Models. Topic 1 Compound Interest

Ma 093 and MA 117A - Exponential Models. Topic 1 Compound Interest Ma 093 and MA 117A - Eponenial Models Topic 1 Compound Ineres 15) Compound Ineres A person invess $7000 a 10% ineres compounded annuall. a) Find an equaion for he value of he invesmen afer ears. = a* b

More information

4452 Mathematical Modeling Lecture 17: Modeling of Data: Linear Regression

4452 Mathematical Modeling Lecture 17: Modeling of Data: Linear Regression Mah Modeling Lecure 17: Modeling of Daa: Linear Regression Page 1 5 Mahemaical Modeling Lecure 17: Modeling of Daa: Linear Regression Inroducion In modeling of daa, we are given a se of daa poins, and

More information

a. If Y is 1,000, M is 100, and the growth rate of nominal money is 1 percent, what must i and P be?

a. If Y is 1,000, M is 100, and the growth rate of nominal money is 1 percent, what must i and P be? Problem Se 4 ECN 101 Inermediae Macroeconomics SOLUTIONS Numerical Quesions 1. Assume ha he demand for real money balance (M/P) is M/P = 0.6-100i, where is naional income and i is he nominal ineres rae.

More information

Multiple Choice Questions Solutions are provided directly when you do the online tests.

Multiple Choice Questions Solutions are provided directly when you do the online tests. SOLUTIONS Muliple Choice Quesions Soluions are provided direcly when you do he online ess. Numerical Quesions 1. Nominal and Real GDP Suppose han an economy consiss of only 2 ypes of producs: compuers

More information

1.2 A CATALOG OF ESSENTIAL FUNCTIONS

1.2 A CATALOG OF ESSENTIAL FUNCTIONS SETION. A ATALOG OF ESSENTIAL FUNTIONS. A ATALOG OF ESSENTIAL FUNTIONS V Pla he Video V EXAMPLE A Table liss he average carbon dioide level in he amosphere, measured in pars per million a Mauna Loa Observaor

More information

Objectives for Exponential Functions Activity

Objectives for Exponential Functions Activity Objecives for Recognize siuaions having a consan percen change as exponenial Creae an exponenial model given wo poins Creae and inerpre an exponenial model in a conex Compound ineres problems Perform exponenial

More information

Key Formulas. From Larson/Farber Elementary Statistics: Picturing the World, Fifth Edition 2012 Prentice Hall. Standard Score: CHAPTER 3.

Key Formulas. From Larson/Farber Elementary Statistics: Picturing the World, Fifth Edition 2012 Prentice Hall. Standard Score: CHAPTER 3. Key Formulas From Larson/Farber Elemenary Saisics: Picuring he World, Fifh Ediion 01 Prenice Hall CHAPTER Class Widh = Range of daa Number of classes 1round up o nex convenien number 1Lower class limi

More information

Introduction. Enterprises and background. chapter

Introduction. Enterprises and background. chapter NACE: High-Growh Inroducion Enerprises and background 18 chaper High-Growh Enerprises 8 8.1 Definiion A variey of approaches can be considered as providing he basis for defining high-growh enerprises.

More information

Fundamental Basic. Fundamentals. Fundamental PV Principle. Time Value of Money. Fundamental. Chapter 2. How to Calculate Present Values

Fundamental Basic. Fundamentals. Fundamental PV Principle. Time Value of Money. Fundamental. Chapter 2. How to Calculate Present Values McGraw-Hill/Irwin Chaper 2 How o Calculae Presen Values Principles of Corporae Finance Tenh Ediion Slides by Mahew Will And Bo Sjö 22 Copyrigh 2 by he McGraw-Hill Companies, Inc. All righs reserved. Fundamenal

More information

UNIVERSITY OF MORATUWA

UNIVERSITY OF MORATUWA MA5100 UNIVERSITY OF MORATUWA MSC/POSTGRADUATE DIPLOMA IN FINANCIAL MATHEMATICS 009 MA 5100 INTRODUCTION TO STATISTICS THREE HOURS November 009 Answer FIVE quesions and NO MORE. Quesion 1 (a) A supplier

More information

ANSWER ALL QUESTIONS. CHAPTERS 6-9; (Blanchard)

ANSWER ALL QUESTIONS. CHAPTERS 6-9; (Blanchard) ANSWER ALL QUESTIONS CHAPTERS 6-9; 18-20 (Blanchard) Quesion 1 Discuss in deail he following: a) The sacrifice raio b) Okun s law c) The neuraliy of money d) Bargaining power e) NAIRU f) Wage indexaion

More information

CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS T. J. KEHOE MACROECONOMICS I WINTER 2011 PROBLEM SET #6

CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS T. J. KEHOE MACROECONOMICS I WINTER 2011 PROBLEM SET #6 CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS T J KEHOE MACROECONOMICS I WINTER PROBLEM SET #6 This quesion requires you o apply he Hodrick-Presco filer o he ime series for macroeconomic variables for he

More information

This specification describes the models that are used to forecast

This specification describes the models that are used to forecast PCE and CPI Inflaion Differenials: Convering Inflaion Forecass Model Specificaion By Craig S. Hakkio This specificaion describes he models ha are used o forecas he inflaion differenial. The 14 forecass

More information

UCLA Department of Economics Fall PhD. Qualifying Exam in Macroeconomic Theory

UCLA Department of Economics Fall PhD. Qualifying Exam in Macroeconomic Theory UCLA Deparmen of Economics Fall 2016 PhD. Qualifying Exam in Macroeconomic Theory Insrucions: This exam consiss of hree pars, and you are o complee each par. Answer each par in a separae bluebook. All

More information

Financial Econometrics Jeffrey R. Russell Midterm Winter 2011

Financial Econometrics Jeffrey R. Russell Midterm Winter 2011 Name Financial Economerics Jeffrey R. Russell Miderm Winer 2011 You have 2 hours o complee he exam. Use can use a calculaor. Try o fi all your work in he space provided. If you find you need more space

More information

Evaluating Projects under Uncertainty

Evaluating Projects under Uncertainty Evaluaing Projecs under Uncerainy March 17, 4 1 Projec risk = possible variaion in cash flows 2 1 Commonly used measure of projec risk is he variabiliy of he reurn 3 Mehods of dealing wih uncerainy in

More information

R e. Y R, X R, u e, and. Use the attached excel spreadsheets to

R e. Y R, X R, u e, and. Use the attached excel spreadsheets to HW # Saisical Financial Modeling ( P Theodossiou) 1 The following are annual reurns for US finance socks (F) and he S&P500 socks index (M) Year Reurn Finance Socks Reurn S&P500 Year Reurn Finance Socks

More information

Exam 1. Econ520. Spring 2017

Exam 1. Econ520. Spring 2017 Exam 1. Econ520. Spring 2017 Professor Luz Hendricks UNC Insrucions: Answer all quesions. Clearly number your answers. Wrie legibly. Do no wrie your answers on he quesion shees. Explain your answers do

More information

USE REAL-LIFE DATA TO MOTIVATE YOUR STUDENTS 1

USE REAL-LIFE DATA TO MOTIVATE YOUR STUDENTS 1 USE REAL-LIFE DATA TO MOTIVATE YOUR STUDENTS 1 Rober E. Kowalczk and Adam O. Hausknech Universi of Massachuses Darmouh Mahemaics Deparmen, 285 Old Wespor Road, N. Darmouh, MA 2747-23 rkowalczk@umassd.edu

More information

Organize your work as follows (see book): Chapter 3 Engineering Solutions. 3.4 and 3.5 Problem Presentation

Organize your work as follows (see book): Chapter 3 Engineering Solutions. 3.4 and 3.5 Problem Presentation Chaper Engineering Soluions.4 and.5 Problem Presenaion Organize your work as follows (see book): Problem Saemen Theory and Assumpions Soluion Verificaion Tools: Pencil and Paper See Fig.. in Book or use

More information

CHAPTER CHAPTER26. Fiscal Policy: A Summing Up. Prepared by: Fernando Quijano and Yvonn Quijano

CHAPTER CHAPTER26. Fiscal Policy: A Summing Up. Prepared by: Fernando Quijano and Yvonn Quijano Fiscal Policy: A Summing Up Prepared by: Fernando Quijano and vonn Quijano CHAPTER CHAPTER26 2006 Prenice Hall usiness Publishing Macroeconomics, 4/e Olivier lanchard Chaper 26: Fiscal Policy: A Summing

More information

ASSIGNMENT BOOKLET. M.Sc. (Mathematics with Applications in Computer Science) Mathematical Modelling (January 2014 November 2014)

ASSIGNMENT BOOKLET. M.Sc. (Mathematics with Applications in Computer Science) Mathematical Modelling (January 2014 November 2014) ASSIGNMENT BOOKLET MMT-009 M.Sc. (Mahemaics wih Applicaions in Compuer Science) Mahemaical Modelling (January 014 November 014) School of Sciences Indira Gandhi Naional Open Universiy Maidan Garhi New

More information

Chapter Outline CHAPTER

Chapter Outline CHAPTER 8-0 8-1 Chaper Ouline CHAPTER 8 Sraegy and Analysis in Using Ne Presen Value 8.1 Decision Trees 8.2 Sensiiviy Analysis, Scenario Analysis, and Break-Even Analysis 8.3 Mone Carlo Simulaion 8. Opions 8.5

More information

FINAL EXAM EC26102: MONEY, BANKING AND FINANCIAL MARKETS MAY 11, 2004

FINAL EXAM EC26102: MONEY, BANKING AND FINANCIAL MARKETS MAY 11, 2004 FINAL EXAM EC26102: MONEY, BANKING AND FINANCIAL MARKETS MAY 11, 2004 This exam has 50 quesions on 14 pages. Before you begin, please check o make sure ha your copy has all 50 quesions and all 14 pages.

More information

Technological progress breakthrough inventions. Dr hab. Joanna Siwińska-Gorzelak

Technological progress breakthrough inventions. Dr hab. Joanna Siwińska-Gorzelak Technological progress breakhrough invenions Dr hab. Joanna Siwińska-Gorzelak Inroducion Afer The Economis : Solow has shown, ha accumulaion of capial alone canno yield lasing progress. Wha can? Anyhing

More information

Macroeconomics II A dynamic approach to short run economic fluctuations. The DAD/DAS model.

Macroeconomics II A dynamic approach to short run economic fluctuations. The DAD/DAS model. Macroeconomics II A dynamic approach o shor run economic flucuaions. The DAD/DAS model. Par 2. The demand side of he model he dynamic aggregae demand (DAD) Inflaion and dynamics in he shor run So far,

More information

Finance Solutions to Problem Set #6: Demand Estimation and Forecasting

Finance Solutions to Problem Set #6: Demand Estimation and Forecasting Finance 30210 Soluions o Problem Se #6: Demand Esimaion and Forecasing 1) Consider he following regression for Ice Cream sales (in housands) as a funcion of price in dollars per pin. My daa is aken from

More information

Economic Growth Continued: From Solow to Ramsey

Economic Growth Continued: From Solow to Ramsey Economic Growh Coninued: From Solow o Ramsey J. Bradford DeLong May 2008 Choosing a Naional Savings Rae Wha can we say abou economic policy and long-run growh? To keep maers simple, le us assume ha he

More information

Microeconomic Sources of Real Exchange Rate Variability

Microeconomic Sources of Real Exchange Rate Variability Microeconomic Sources of Real Exchange Rae Variabiliy By Mario J. Crucini and Chris Telmer Discussed by Moren O. Ravn THE PAPER Crucini and Telmer find ha (a) The cross-secional variance of LOP level violaions

More information

1 Purpose of the paper

1 Purpose of the paper Moneary Economics 2 F.C. Bagliano - Sepember 2017 Noes on: F.X. Diebold and C. Li, Forecasing he erm srucure of governmen bond yields, Journal of Economerics, 2006 1 Purpose of he paper The paper presens

More information

Empirical analysis on China money multiplier

Empirical analysis on China money multiplier Aug. 2009, Volume 8, No.8 (Serial No.74) Chinese Business Review, ISSN 1537-1506, USA Empirical analysis on China money muliplier SHANG Hua-juan (Financial School, Shanghai Universiy of Finance and Economics,

More information

Final Exam Answers Exchange Rate Economics

Final Exam Answers Exchange Rate Economics Kiel Insiu für Welwirhschaf Advanced Sudies in Inernaional Economic Policy Research Spring 2005 Menzie D. Chinn Final Exam Answers Exchange Rae Economics This exam is 1 ½ hours long. Answer all quesions.

More information

Macroeconomics II THE AD-AS MODEL. A Road Map

Macroeconomics II THE AD-AS MODEL. A Road Map Macroeconomics II Class 4 THE AD-AS MODEL Class 8 A Road Map THE AD-AS MODEL: MICROFOUNDATIONS 1. Aggregae Supply 1.1 The Long-Run AS Curve 1.2 rice and Wage Sickiness 2.1 Aggregae Demand 2.2 Equilibrium

More information

Market and Information Economics

Market and Information Economics Marke and Informaion Economics Preliminary Examinaion Deparmen of Agriculural Economics Texas A&M Universiy May 2015 Insrucions: This examinaion consiss of six quesions. You mus answer he firs quesion

More information

CHAPTER CHAPTER18. Openness in Goods. and Financial Markets. Openness in Goods, and Financial Markets. Openness in Goods,

CHAPTER CHAPTER18. Openness in Goods. and Financial Markets. Openness in Goods, and Financial Markets. Openness in Goods, Openness in Goods and Financial Markes CHAPTER CHAPTER18 Openness in Goods, and Openness has hree disinc dimensions: 1. Openness in goods markes. Free rade resricions include ariffs and quoas. 2. Openness

More information

MA Advanced Macro, 2016 (Karl Whelan) 1

MA Advanced Macro, 2016 (Karl Whelan) 1 MA Advanced Macro, 2016 (Karl Whelan) 1 The Calvo Model of Price Rigidiy The form of price rigidiy faced by he Calvo firm is as follows. Each period, only a random fracion (1 ) of firms are able o rese

More information

, where P is the number of bears at time t in years. dt (a) Given P (i) Find

, where P is the number of bears at time t in years. dt (a) Given P (i) Find CALCULUS BC WORKSHEET ON LOGISTIC GROWTH Work he following on noebook paper. Do no use your calculaor. 1. Suppose he populaion of bears in a naional park grows according o he logisic differenial equaion

More information

Computer Lab 6. Minitab Project Report. Time Series Plot of x. Year

Computer Lab 6. Minitab Project Report. Time Series Plot of x. Year Compuer Lab Problem. Lengh of Growing Season in England Miniab Projec Repor Time Series Plo of x x 77 8 8 889 Year 98 97 The ime series plo indicaes a consan rend up o abou 9, hen he lengh of growing season

More information

LIDSTONE IN THE CONTINUOUS CASE by. Ragnar Norberg

LIDSTONE IN THE CONTINUOUS CASE by. Ragnar Norberg LIDSTONE IN THE CONTINUOUS CASE by Ragnar Norberg Absrac A generalized version of he classical Lidsone heorem, which deals wih he dependency of reserves on echnical basis and conrac erms, is proved in

More information

Problem 1 / 25 Problem 2 / 25 Problem 3 / 11 Problem 4 / 15 Problem 5 / 24 TOTAL / 100

Problem 1 / 25 Problem 2 / 25 Problem 3 / 11 Problem 4 / 15 Problem 5 / 24 TOTAL / 100 Deparmen of Economics Universiy of Maryland Economics 35 Inermediae Macroeconomic Analysis Miderm Exam Suggesed Soluions Professor Sanjay Chugh Fall 008 NAME: The Exam has a oal of five (5) problems and

More information

Output: The Demand for Goods and Services

Output: The Demand for Goods and Services IN CHAPTER 15 how o incorporae dynamics ino he AD-AS model we previously sudied how o use he dynamic AD-AS model o illusrae long-run economic growh how o use he dynamic AD-AS model o race ou he effecs

More information

Problem 1 / 25 Problem 2 / 25 Problem 3 / 30 Problem 4 / 20 TOTAL / 100

Problem 1 / 25 Problem 2 / 25 Problem 3 / 30 Problem 4 / 20 TOTAL / 100 Deparmen of Economics Universiy of Maryland Economics 325 Inermediae Macroeconomic Analysis Final Exam Professor Sanjay Chugh Spring 2009 May 16, 2009 NAME: TA S NAME: The Exam has a oal of four (4) problems

More information

Li Gan Guan Gong Michael Hurd. April, 2006

Li Gan Guan Gong Michael Hurd. April, 2006 Ne Inergeneraional Transfers from an Increase in Social Securiy Benefis Li Gan Guan Gong Michael Hurd April, 2006 ABSTRACT When he age of deah is uncerain, individuals will leave bequess even if hey have

More information

Spring 2011 Social Sciences 7418 University of Wisconsin-Madison

Spring 2011 Social Sciences 7418 University of Wisconsin-Madison Economics 32, Sec. 1 Menzie D. Chinn Spring 211 Social Sciences 7418 Universiy of Wisconsin-Madison Noes for Econ 32-1 FALL 21 Miderm 1 Exam The Fall 21 Econ 32-1 course used Hall and Papell, Macroeconomics

More information

Volatility and Hedging Errors

Volatility and Hedging Errors Volailiy and Hedging Errors Jim Gaheral Sepember, 5 1999 Background Derivaive porfolio bookrunners ofen complain ha hedging a marke-implied volailiies is sub-opimal relaive o hedging a heir bes guess of

More information

2. Quantity and price measures in macroeconomic statistics 2.1. Long-run deflation? As typical price indexes, Figure 2-1 depicts the GDP deflator,

2. Quantity and price measures in macroeconomic statistics 2.1. Long-run deflation? As typical price indexes, Figure 2-1 depicts the GDP deflator, 1 2. Quaniy and price measures in macroeconomic saisics 2.1. Long-run deflaion? As ypical price indexes, Figure 2-1 depics he GD deflaor, he Consumer rice ndex (C), and he Corporae Goods rice ndex (CG)

More information

INSTITUTE OF ACTUARIES OF INDIA

INSTITUTE OF ACTUARIES OF INDIA INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 9 h November 2010 Subjec CT6 Saisical Mehods Time allowed: Three Hours (10.00 13.00 Hrs.) Toal Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1. Please read he insrucions

More information

You should turn in (at least) FOUR bluebooks, one (or more, if needed) bluebook(s) for each question.

You should turn in (at least) FOUR bluebooks, one (or more, if needed) bluebook(s) for each question. UCLA Deparmen of Economics Spring 05 PhD. Qualifying Exam in Macroeconomic Theory Insrucions: This exam consiss of hree pars, and each par is worh 0 poins. Pars and have one quesion each, and Par 3 has

More information

Question 1 / 15 Question 2 / 15 Question 3 / 28 Question 4 / 42

Question 1 / 15 Question 2 / 15 Question 3 / 28 Question 4 / 42 Deparmen of Applied Economics Johns Hopkins Universiy Economics 602 Macroeconomic Theory and olicy Final Exam rofessor Sanjay Chugh Fall 2008 December 8, 2008 NAME: The Exam has a oal of four (4) quesions

More information

Documentation: Philadelphia Fed's Real-Time Data Set for Macroeconomists First-, Second-, and Third-Release Values

Documentation: Philadelphia Fed's Real-Time Data Set for Macroeconomists First-, Second-, and Third-Release Values Documenaion: Philadelphia Fed's Real-Time Daa Se for Macroeconomiss Firs-, Second-, and Third-Release Values Las Updaed: December 16, 2013 1. Inroducion We documen our compuaional mehods for consrucing

More information

Stylized fact: high cyclical correlation of monetary aggregates and output

Stylized fact: high cyclical correlation of monetary aggregates and output SIMPLE DSGE MODELS OF MONEY PART II SEPTEMBER 27, 2011 Inroducion BUSINESS CYCLE IMPLICATIONS OF MONEY Sylized fac: high cyclical correlaion of moneary aggregaes and oupu Convenional Keynesian view: nominal

More information

Provide a brief review of futures markets. Carefully review alternative market conditions and which marketing

Provide a brief review of futures markets. Carefully review alternative market conditions and which marketing Provide a brief review of fuures markes. Carefully review alernaive marke condiions and which markeing sraegies work bes under alernaive condiions. Have an open and ineracive discussion!! 1. Sore or Wai

More information

(1 + Nominal Yield) = (1 + Real Yield) (1 + Expected Inflation Rate) (1 + Inflation Risk Premium)

(1 + Nominal Yield) = (1 + Real Yield) (1 + Expected Inflation Rate) (1 + Inflation Risk Premium) 5. Inflaion-linked bonds Inflaion is an economic erm ha describes he general rise in prices of goods and services. As prices rise, a uni of money can buy less goods and services. Hence, inflaion is an

More information

STATIONERY REQUIREMENTS SPECIAL REQUIREMENTS 20 Page booklet List of statistical formulae New Cambridge Elementary Statistical Tables

STATIONERY REQUIREMENTS SPECIAL REQUIREMENTS 20 Page booklet List of statistical formulae New Cambridge Elementary Statistical Tables ECONOMICS RIPOS Par I Friday 7 June 005 9 Paper Quaniaive Mehods in Economics his exam comprises four secions. Secions A and B are on Mahemaics; Secions C and D are on Saisics. You should do he appropriae

More information

If You Are No Longer Able to Work

If You Are No Longer Able to Work If You Are No Longer Able o Work NY STRS A Guide for Making Disabiliy Reiremen Decisions INTRODUCTION If you re forced o sop working because of a serious illness or injury, you and your family will be

More information

ECONOMIC GROWTH. Student Assessment. Macroeconomics II. Class 1

ECONOMIC GROWTH. Student Assessment. Macroeconomics II. Class 1 Suden Assessmen You will be graded on he basis of In-class aciviies (quizzes worh 30 poins) which can be replaced wih he number of marks from he regular uorial IF i is >=30 (capped a 30, i.e. marks from

More information

INSTITUTE OF ACTUARIES OF INDIA

INSTITUTE OF ACTUARIES OF INDIA INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 05 h November 007 Subjec CT8 Financial Economics Time allowed: Three Hours (14.30 17.30 Hrs) Toal Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1) Do no wrie your

More information

Exponential Functions Last update: February 2008

Exponential Functions Last update: February 2008 Eponenial Funcions Las updae: February 2008 Secion 1: Percen Growh and Decay Any quaniy ha increases or decreases by a consan percenage is said o change eponenially. Le's look a a few eamples o undersand

More information

IJRSS Volume 2, Issue 2 ISSN:

IJRSS Volume 2, Issue 2 ISSN: A LOGITIC BROWNIAN MOTION WITH A PRICE OF DIVIDEND YIELDING AET D. B. ODUOR ilas N. Onyango _ Absrac: In his paper, we have used he idea of Onyango (2003) he used o develop a logisic equaion used in naural

More information

Real Business Cycles. Chapter III. 1 What is the Business Cycle? Professor Thomas Chaney

Real Business Cycles. Chapter III. 1 What is the Business Cycle? Professor Thomas Chaney Chaper III Real Business Cycles Professor Thomas Chaney Wha is he Business Cycle? While I will no give you a formal definiion of he business cycle (here is acually no such very formal definiion), looking

More information

Advanced Forecasting Techniques and Models: Time-Series Forecasts

Advanced Forecasting Techniques and Models: Time-Series Forecasts Advanced Forecasing Techniques and Models: Time-Series Forecass Shor Examples Series using Risk Simulaor For more informaion please visi: www.realopionsvaluaion.com or conac us a: admin@realopionsvaluaion.com

More information

Money in a Real Business Cycle Model

Money in a Real Business Cycle Model Money in a Real Business Cycle Model Graduae Macro II, Spring 200 The Universiy of Nore Dame Professor Sims This documen describes how o include money ino an oherwise sandard real business cycle model.

More information

Midterm Exam. Use the end of month price data for the S&P 500 index in the table below to answer the following questions.

Midterm Exam. Use the end of month price data for the S&P 500 index in the table below to answer the following questions. Universiy of Washingon Winer 00 Deparmen of Economics Eric Zivo Economics 483 Miderm Exam This is a closed book and closed noe exam. However, you are allowed one page of handwrien noes. Answer all quesions

More information

Watch out for the impact of Scottish independence opinion polls on UK s borrowing costs

Watch out for the impact of Scottish independence opinion polls on UK s borrowing costs Wach ou for he impac of Scoish independence opinion polls on UK s borrowing coss Cosas Milas (Universiy of Liverpool; email: cosas.milas@liverpool.ac.uk) and Tim Worrall (Universiy of Edinburgh; email:

More information

COOPERATION WITH TIME-INCONSISTENCY. Extended Abstract for LMSC09

COOPERATION WITH TIME-INCONSISTENCY. Extended Abstract for LMSC09 COOPERATION WITH TIME-INCONSISTENCY Exended Absrac for LMSC09 By Nicola Dimiri Professor of Economics Faculy of Economics Universiy of Siena Piazza S. Francesco 7 53100 Siena Ialy Dynamic games have proven

More information

Economics 301 Fall Name. Answer all questions. Each sub-question is worth 7 points (except 4d).

Economics 301 Fall Name. Answer all questions. Each sub-question is worth 7 points (except 4d). Name Answer all quesions. Each sub-quesion is worh 7 poins (excep 4d). 1. (42 ps) The informaion below describes he curren sae of a growing closed economy. Producion funcion: α 1 Y = K ( Q N ) α Producion

More information

Problem 1 / 25 Problem 2 / 25 Problem 3 / 30 Problem 4 / 20 TOTAL / 100

Problem 1 / 25 Problem 2 / 25 Problem 3 / 30 Problem 4 / 20 TOTAL / 100 Deparmen of Economics Universiy of Maryland Economics 325 Inermediae Macroeconomic Analysis Final Exam Suggesed Soluions Professor Sanjay Chugh Spring 2009 NAME: TA S NAME: The Exam has a oal of four (4)

More information

CHAPTER 3 How to Calculate Present Values. Answers to Practice Questions

CHAPTER 3 How to Calculate Present Values. Answers to Practice Questions CHAPTER 3 How o Calculae Presen Values Answers o Pracice Quesions. a. PV $00/.0 0 $90.53 b. PV $00/.3 0 $9.46 c. PV $00/.5 5 $ 3.5 d. PV $00/. + $00/. + $00/. 3 $40.8. a. DF + r 0.905 r 0.050 0.50% b.

More information

Data Mining Anomaly Detection. Lecture Notes for Chapter 10. Introduction to Data Mining

Data Mining Anomaly Detection. Lecture Notes for Chapter 10. Introduction to Data Mining Daa Mining Anomaly Deecion Lecure Noes for Chaper 10 Inroducion o Daa Mining by Tan, Seinbach, Kumar Tan,Seinbach, Kumar Inroducion o Daa Mining 4/18/2004 1 Anomaly/Oulier Deecion Wha are anomalies/ouliers?

More information

Data Mining Anomaly Detection. Lecture Notes for Chapter 10. Introduction to Data Mining

Data Mining Anomaly Detection. Lecture Notes for Chapter 10. Introduction to Data Mining Daa Mining Anomaly Deecion Lecure Noes for Chaper 10 Inroducion o Daa Mining by Tan, Seinbach, Kumar Tan,Seinbach, Kumar Inroducion o Daa Mining 4/18/2004 1 Anomaly/Oulier Deecion Wha are anomalies/ouliers?

More information

The Mathematics Of Stock Option Valuation - Part Four Deriving The Black-Scholes Model Via Partial Differential Equations

The Mathematics Of Stock Option Valuation - Part Four Deriving The Black-Scholes Model Via Partial Differential Equations The Mahemaics Of Sock Opion Valuaion - Par Four Deriving The Black-Scholes Model Via Parial Differenial Equaions Gary Schurman, MBE, CFA Ocober 1 In Par One we explained why valuing a call opion as a sand-alone

More information

Aggregate Demand Aggregate Supply 1 Y. f P

Aggregate Demand Aggregate Supply 1 Y. f P ublic Aairs 974 Menzie D. Chinn Fall 202 Social Sciences 748 Universiy o Wisconsin-Madison Aggregae Demand Aggregae Supply. The Basic Model wih Expeced Inlaion Se o Zero Consider he hillips curve relaionship:

More information

Cubic and Quartic Models

Cubic and Quartic Models Cubic and Quaric Models 52 For noncommercial use Frank C. Wilson USAA Producs (Cubic) Source: The Legacy of Membership: USAA 2006 Repor o Members s (since 1999) x USAA producs (millions) p 1999 0 14.7

More information

Homework 5 (with keys)

Homework 5 (with keys) Homework 5 (wih keys) 2. (Selecing an employmen forecasing model wih he AIC and SIC) Use he AIC and SIC o assess he necessiy and desirabiliy of including rend and seasonal componens in a forecasing model

More information

An enduring question in macroeconomics: does monetary policy have any important effects on the real (i.e, real GDP, consumption, etc) economy?

An enduring question in macroeconomics: does monetary policy have any important effects on the real (i.e, real GDP, consumption, etc) economy? ONETARY OLICY IN THE INFINITE-ERIOD ECONOY: SHORT-RUN EFFECTS NOVEBER 6, 20 oneary olicy Analysis: Shor-Run Effecs IS ONETARY OLICY NEUTRAL? An enduring quesion in macroeconomics: does moneary policy have

More information

On the Impact of Inflation and Exchange Rate on Conditional Stock Market Volatility: A Re-Assessment

On the Impact of Inflation and Exchange Rate on Conditional Stock Market Volatility: A Re-Assessment MPRA Munich Personal RePEc Archive On he Impac of Inflaion and Exchange Rae on Condiional Sock Marke Volailiy: A Re-Assessmen OlaOluwa S Yaya and Olanrewaju I Shiu Deparmen of Saisics, Universiy of Ibadan,

More information

OPTIMUM FISCAL AND MONETARY POLICY USING THE MONETARY OVERLAPPING GENERATION MODELS

OPTIMUM FISCAL AND MONETARY POLICY USING THE MONETARY OVERLAPPING GENERATION MODELS Kuwai Chaper of Arabian Journal of Business and Managemen Review Vol. 3, No.6; Feb. 2014 OPTIMUM FISCAL AND MONETARY POLICY USING THE MONETARY OVERLAPPING GENERATION MODELS Ayoub Faramarzi 1, Dr.Rahim

More information

Lecture: Autonomous Financing and Financing Based on Market Values I

Lecture: Autonomous Financing and Financing Based on Market Values I Lecure: Auonomous Financing and Financing Based on Marke Values I Luz Kruschwiz & Andreas Löffler Discouned Cash Flow, Secion 2.3, 2.4.1 2.4.3, Ouline 2.3 Auonomous financing 2.4 Financing based on marke

More information

Forecasting Sales: Models, Managers (Experts) and their Interactions

Forecasting Sales: Models, Managers (Experts) and their Interactions Forecasing Sales: Models, Managers (Expers) and heir Ineracions Philip Hans Franses Erasmus School of Economics franses@ese.eur.nl ISF 203, Seoul Ouline Key issues Durable producs SKU sales Opimal behavior

More information

Open-High-Low-Close Candlestick Plot (Statlet)

Open-High-Low-Close Candlestick Plot (Statlet) Open-High-Low-Close Candlesick Plo (Sale) STATGRAPHICS Rev. 7/28/2015 Summary... 1 Daa Inpu... 2 Sale... 3 References... 5 Summary The Open-High-Low-Close Candlesick Plo Sale is designed o plo securiy

More information

(ii) Deriving constant price estimates of GDP: An illustration of chain-linking

(ii) Deriving constant price estimates of GDP: An illustration of chain-linking Case Sudies (ii) Derivin consan price esimaes of GDP: An illusraion of chain-linkin 1. Inroducion The Office for Naional Saisics 1 esimaes ha for 2006 he oal expendiure on oods and services produced by

More information

Quadratic Function Models

Quadratic Function Models Quadraic Funcion Models Frank C. Wilson For noncommercial use 19 Tenpin Bowling Membership as a funcion of Bowling Esablishmens (Quadraic) Source: Saisical Absrac of he Unied Saes, 006, Table 134 (Since

More information

Systemic Risk Illustrated

Systemic Risk Illustrated Sysemic Risk Illusraed Jean-Pierre Fouque Li-Hsien Sun March 2, 22 Absrac We sudy he behavior of diffusions coupled hrough heir drifs in a way ha each componen mean-revers o he mean of he ensemble. In

More information

Labor Cost and Sugarcane Mechanization in Florida: NPV and Real Options Approach

Labor Cost and Sugarcane Mechanization in Florida: NPV and Real Options Approach Labor Cos and Sugarcane Mechanizaion in Florida: NPV and Real Opions Approach Nobuyuki Iwai Rober D. Emerson Inernaional Agriculural Trade and Policy Cener Deparmen of Food and Resource Economics Universiy

More information

A Note on Missing Data Effects on the Hausman (1978) Simultaneity Test:

A Note on Missing Data Effects on the Hausman (1978) Simultaneity Test: A Noe on Missing Daa Effecs on he Hausman (978) Simulaneiy Tes: Some Mone Carlo Resuls. Dikaios Tserkezos and Konsaninos P. Tsagarakis Deparmen of Economics, Universiy of Cree, Universiy Campus, 7400,

More information

DEBT INSTRUMENTS AND MARKETS

DEBT INSTRUMENTS AND MARKETS DEBT INSTRUMENTS AND MARKETS Zeroes and Coupon Bonds Zeroes and Coupon Bonds Ouline and Suggesed Reading Ouline Zero-coupon bonds Coupon bonds Bond replicaion No-arbirage price relaionships Zero raes Buzzwords

More information

An Incentive-Based, Multi-Period Decision Model for Hierarchical Systems

An Incentive-Based, Multi-Period Decision Model for Hierarchical Systems Wernz C. and Deshmukh A. An Incenive-Based Muli-Period Decision Model for Hierarchical Sysems Proceedings of he 3 rd Inernaional Conference on Global Inerdependence and Decision Sciences (ICGIDS) pp. 84-88

More information

A Theory of Tax Effects on Economic Damages. Scott Gilbert Southern Illinois University Carbondale. Comments? Please send to

A Theory of Tax Effects on Economic Damages. Scott Gilbert Southern Illinois University Carbondale. Comments? Please send to A Theory of Tax Effecs on Economic Damages Sco Gilber Souhern Illinois Universiy Carbondale Commens? Please send o gilbers@siu.edu ovember 29, 2012 Absrac This noe provides a heoreical saemen abou he effec

More information

1. FIXED ASSETS - DEFINITION AND CHARACTERISTICS

1. FIXED ASSETS - DEFINITION AND CHARACTERISTICS 1. FIXED ASSETS - DEFINITION AND CHARACTERISTICS Fixed asses represen a par of he business asses of he company and is long-erm propery, which canno be easily liquidaed (convered ino cash). Their characerisics

More information

University College Dublin, MA Macroeconomics Notes, 2014 (Karl Whelan) Page 1

University College Dublin, MA Macroeconomics Notes, 2014 (Karl Whelan) Page 1 Universiy College Dublin, MA Macroeconomics Noes, 2014 (Karl Whelan) Page 1 Growh Accouning The final par of his course will focus on wha is known as growh heory. Unlike mos of macroeconomics, which concerns

More information

Inventory Investment. Investment Decision and Expected Profit. Lecture 5

Inventory Investment. Investment Decision and Expected Profit. Lecture 5 Invenory Invesmen. Invesmen Decision and Expeced Profi Lecure 5 Invenory Accumulaion 1. Invenory socks 1) Changes in invenory holdings represen an imporan and highly volaile ype of invesmen spending. 2)

More information

Online Appendix to: Implementing Supply Routing Optimization in a Make-To-Order Manufacturing Network

Online Appendix to: Implementing Supply Routing Optimization in a Make-To-Order Manufacturing Network Online Appendix o: Implemening Supply Rouing Opimizaion in a Make-To-Order Manufacuring Nework A.1. Forecas Accuracy Sudy. July 29, 2008 Assuming a single locaion and par for now, his sudy can be described

More information

Data-Driven Demand Learning and Dynamic Pricing Strategies in Competitive Markets

Data-Driven Demand Learning and Dynamic Pricing Strategies in Competitive Markets Daa-Driven Demand Learning and Dynamic Pricing Sraegies in Compeiive Markes Pricing Sraegies & Dynamic Programming Rainer Schlosser, Marin Boissier, Mahias Uflacker Hasso Planer Insiue (EPIC) April 30,

More information

Backtesting Stochastic Mortality Models: An Ex-Post Evaluation of Multi-Period-Ahead Density Forecasts

Backtesting Stochastic Mortality Models: An Ex-Post Evaluation of Multi-Period-Ahead Density Forecasts Cenre for Risk & Insurance Sudies enhancing he undersanding of risk and insurance Backesing Sochasic Moraliy Models: An Ex-Pos Evaluaion of Muli-Period-Ahead Densiy Forecass Kevin Dowd, Andrew J.G. Cairns,

More information