This paper links the theory of genetic algorithm (GA) learning to evolutionary game theory. It is shown that economic learning via genetic algorithms can be described as a speci"c form of an evolutionary game. It will be pointed out that GA learning results in a series of near Nash equilibria which during the learning process build up to "nally approach a neighborhood of an evolutionarily stabl...

This note investigates impacts of multivariate generalised autoregressive conditional heteroskedasticity (GARCH) errors on hypothesis testing for cointegrating vectors. The study reviews a cointegrated vector autoregressive model incorporating multivariate GARCH innovations and a regularity condition required for valid asymptotic inferences. Monte Carlo experiments are then conducted on a test ...

First-order approximation methods are a standard technique for analyzing the local dynamics of dynamic stochastic general equilibrium (DSGE) models. Although linear methods yield quite accurate solutions for a broad class of DSGE models, some important economic issues (e.g., portfolio choice and welfare) cannot be adequately addressed by first-order methods. This paper provides yet another case...

This paper investigates the accuracy of a perturbation method in approximating the solution to stochastic equilibrium models under rational expectations. As a benchmark model, we use a version of asset pricing models proposed by Burnside (1998, Journal of Economic Dynamics and Control 22, 329}340) which admits a closed-form solution while not making the assumption of certainty equivalence.We th...

We report on a design of a Turing tournament and its initial implementation to learning in repeated 2 person games. The principal objectives of the tournament, named after the original Turing Test, are (1) to find learning algorithms (emulators) that most closely simulate human behavior, (2) to find algorithms (detectors) that most accurately distinguish between humans and machines, and (3) to ...

We consider an exact factor model with the restriction of unobservable common stochastic trends imposed by non-stationary factors as considered by Zhou and Solberger (2012). Conditional on this, we propose a homogenous likelihood ratio test for unit roots in the idiosyncratic components. The likelihood approach has long been overlooked in this framework due to numerical burdens, and though part...

Individual bulge loops present in Xenopus 5S RNA (positions 49A-A50 in helix III, C63 in helix II and A83 in helix IV), were deleted by site directed mutagenesis. The interaction of these mutant 5S RNA molecules with TFIIIA was measured by a direct binding assay and a competition assay. The results of these experiments show that none of the bulged nucleotides in Xenopus 5S RNA are required for ...

Standard economic theories of the firm (and other organizations) stress profit maximization as the foundation for derivation of predictable behavior. Yet statistical and case-study evidence continues to accumulate that real firms do not act as required by the neoclassical framework. Instead of being represented by ever more elaborate maximization models, the firm can be modeled simply as a netw...

This paper describes the results of simulation experiments performed on a suite of learning algorithms. We focus on games in network contexts. These are contexts in which (1) agents have very limited information about the game; (2) play can be extremely asynchronous. There are many proposed learning algorithms in the literature. We choose a small sampling of such algorithms and use numerical si...