We study the effect of frequent trading opportunities and categorization on pricing of a risky asset. Frequent opportunities to trade can lead to large distortions in prices if some agents forecast future prices using a simplified model of the world that fails to distinguish between some states. In the limit as the period length vanishes, these distortions take a particular form: the price must...

The purpose of the paper is to discuss ten things potential users should know about the limits of the Dynamic Conditional Correlation (DCC) representation for estimating and forecasting time-varying conditional correlations. The reasons given for caution about the use of DCC include the following: DCC represents the dynamic conditional covariances of the standardized residuals, and hence does n...

Lancsar and Savage (Deriving welfare measure from discrete choice experiments: inconsistency between current methods and random utility and welfare theory. Health Econ 2004; this issue) point out that the methods currently used to derive measures of welfare in the health economics literature are often inappropriate, and recommend the use of the expected compensating variation formula derived by...

i am going to assess shortcomings of transaction cost economics (tce) of oliver williamson. my argument is that this analysis suffers from misidentification of the relevant problem of the theory, analytical incoherence, inconsistent empirical support and methodological defects. in formulating coase's fundamental idea, williamson accepts an efficient equilibrium which occurs once forever, t...

introduction: cost estimation is a important tool which assist the managers to plan and to control the economic functions of the organization. the present study aims to identify the cost of a cesarean surgery in one of the first class public hospitals in iran. methodology: reviewing all expenses of the hospital documents in the financial unit, the cost of a cesarean surgery was determined throu...

A brief overview of agent-based computational economics (ACE) is given, followed by a synopsis of the articles included in this special issue on ACE and in a companion special issue on ACE scheduled to appear in Computational Economics . JEL Classi ̄cation: B4; C6

In this essay I argue that modern macroeconomic theory has fallen behind the practice of central banking. After briefly summarizing the current state of macro theory, I focus on what strikes me as the two most important developments in monetary policy in the last two decades – inflation targeting and dealing with financial crises. My analysis rejects the claims made by several authors to the ef...

In recent years Agent-based Computational Economics (ACE) has become an increasingly important method in market simulation. After liberalization of many former governmental owned or controlled industries the used operations research models are not longer sufficient to simulate market behavior due to individual action and increasing competition. Agentbased simulation appears to be an alternative...

Pharmacoeconomics is defined as the science of identifying and comparing costs and the consequences of drug therapy in health care programs. As a sub-discipline of health economics, pharmacoeconomics, is fairly a new research discipline in the world which has come about mainly in response to economic pressures on health systems. The root of this pressure lies in the mismatch of enhanced demand ...