We establish a relationship between decay centrality and two widely used and computationally cheaper measures of centrality, namely degree and closeness. We show that for low values of the decay parameter the nodes with maximum decay centrality also have maximum degree, whereas for high values of the decay parameter they also maximize closeness. For intermediate values, we provide sufficient co...

Conditional expected values in Markov chains are solutions to a set of associated backward differential equations, which may be ordinary or partial depending on the number of relevant state variables. This paper investigates the validity of these differential equations by locating the points of non-smoothness of the state-wise conditional expected values, and it presents a numerical method for ...

This paper examines the relationship between the structure of the interbank lending market and systemic risk. We consider a model in which banks finance investment opportunities through household deposits and borrowing from other banks. Using simulation techniques a range of interbank markets structures are considered. It is shown that greater levels of interbank connectivity reduce the risk of...

Egyeni preferencialistak aggregalasanak elterjedt eszkoze a pontozasi rendszerek hasznalata, amikor az egyes rangsorok minden pozicioja adott szamu pontot er, aggregalt sorrend pedig alternativak igy osszegyűjtott pontjai alapjan alakul ki. Altalaban ezt eljarast alkalmazzak tobb egymast kovető versenyből allo sportbajnoksagok eredmenyenek meghatarozasara. Tanulmanyunk ebben osszefuggesben vizs...

We simulate the short- and long-term distributional consequences of COVID-19 in four largest Latin American economies: Argentina, Brazil, Colombia, Mexico. show that short-term impact on income inequality poverty can be very significant, but additional spending social assistance more than offsets effect Brazil. The offsetting is significant Argentina Colombia nil Mexico, where there has been no...

The &as if ' view of economic rationality defends the pro"t maximization hypothesis by pointing out that only those "rms who act as if they maximize pro"ts can survive in the long run. Recently, the problem of arriving at a logically consistent de"nition of rational behavior in games has shown that one must sometimes study explicitly the evolutionary processes that form the basis of this view. ...

The reduced attractiveness of investments in reliable power plants under conditions of liberalized markets and the transition towards renewable energies has brought a discussion on capacity policies to Europe. We use a partial equilibrium model to compare important effects of three basic policies. A strategic reserve policy and a capacity market policy with administratively set capacity targets...

Habit utility has been the focus of a large and growing body of literature in financial economics. This study investigates ways of accurately and efficiently solving the Campbell and Cochrane [1999. Journal of Political Economy 107, 205–251] external habit model. Solutions for this model based on a grid of values for the state variable are shown to converge as the grid becomes increasingly fine...

The analysis of equilibrium in double auctions is complicated, with almost no closed-form examples and with formal results limited to bounds on bidding behavior. We consider the buyer’s bid double auction in a correlated, private values model. Sellers have the incentive to submit their costs as their asks while buyers strategically underbid. We determine (i) the asymptotic distribution of the e...