A note on cointegration and control
Article Abstract:
The cointegrating relationship among the dependent variable, the target series, and the policy series or control variable, is just a linear combination of two stationary relationships. If the government utilizes the correct plant equation, the error correction model does not rely on the parameters in the equation a(sub t) = beta x y(sub t) + gamma x a(sub t-1) + e(sub at). However, if the plant equation is wrong, the dependence appears in the adjustment coefficient of the control variable.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1996
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Matchings, covers, and Jacobian matrices
Article Abstract:
An operational approach was developed to address problems that usually arise when building large and sparse systems of equations that do not immediately verify a zerofree diagonal of the Jacobian matrix. The graph-theoretic approach involves seeking a maximum cardinality matching in bipartite graph. Model builders are usually challenged when a normalization is rare. Such a case is analyzed by using properties that connect covers to matchings in bipartite graphs.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1996
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The value of information: the case of signal-dependent opportunity sets
Article Abstract:
The value of information in different economic models has shown to demonstrate a vital role in the decision-making process of individual agents. Blackwell introduced various definitions of the significant concept that one information system is more informative than the other. Blackwell has also considered a generalization of the problem in which the decision-maker selects an action after observing a signal corresponding to the state of nature.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1997
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