Robustness of computer algorithms to simulate optimal experimentation problems.

Three methods have been developed by the authors for solving optimal experimentation problems. David Kendrick (1981, 2002, Ch.10) uses quadratic approximation of the value function and linear approximation of the equation of motion to simulate general optimal experimentation (active learning) problems. Beck and Volker Wieland (2002) use dynamic programming methods to develop an algorithm for optimal experimentation problems. Cosimano (2003) and Cosimano and Gapen (2005) use the Perturbation method to develop an algorithm for solving optimal experimentation problems. The perturbation is in the neighborhood of the augmented linear regulator problems of Hansen and Sargent (2004). In this paper we take an example from Beck and Wieland which fits into the setup of all three algorithms. Using this example we examine the cost and benefits of the various algorithms for solving optimal experimentation problems.

Capital trading, stock trading, and the inflation tax on equity: a note

The authors show that there is more responsiveness of consumption and output to changes in the money supply than exists in the standard neoclassical growth models.Capital investments

Natures Solution to Climate Change

A strategy to protect whales can limit greenhouse gases and global warmin

Reserve Accounting and Variability in the Federal Funds Market.

The federal-funds market is analyzed under the reserve accounting procedures suggested by Robert D. Laurent (1979) and William Poole (1976). In general, it is shown that the forecast error for the federal-funds rate is smaller when the uncertainty arises from future random shocks. However, the current forecast error for the demand for money has an ambiguous impact on the forecast error for the federal-funds rate under Laurent or Poole's procedure. Copyright 1987 by Ohio State University Press.

The Federal Funds Market under Bank Deregulation.

The introduction of competitive interest rates on deposits is shown to effect the optimal decisions of banks by altering their optimal forecast of the federal-funds rate. The movement toward co mpetitive deposit rates increases the size of the monetary base neces sary for the Fed to maintain its deposit targets when deposits and the monetary base are substitutes. In addition there is less uncertainty in the federal-funds market under competitive deposit rates when deposits and the monetary base are substitutes, and the source of uncertainty is not from the supply of deposits. Copyright 1987 by Ohio State University Press.