We study optimal government policy in an economy where (i) search frictions create a coordination problem and generate multiple Pareto-ranked equilibria and (ii) the government finances the provision of a public good by taxing trade. The government must choose the tax rate before it knows which equilibrium will obtain, and therefore an important part of the problem is determining how the policy...

In regression problems, making accurate predictions is often the primary goal. Also, relevance of inputs in the prediction of an output would be valuable information in many cases. A sequential input selection algorithm for Radial basis function (SISAL-RBF) networks is presented to analyze importances of the inputs. The ranking of inputs is based on values, which are evaluated from the partial ...