We present a new model of asset prices in which representative agent has extrapolative beliefs about stock market returns and Epstein-Zin preferences. The quantitatively explains facts prices, return expectations, cash-flow expectations. When the agent’s are calibrated to survey expectations investors, generates excess volatility predictability returns, high equity premium, low stable risk-free...

We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by weighing two signals—an average of the asset’s past price changes and the asset’s degree of overvaluation. The two signals are in conflict, and investors “waver” over time in the relative weight they put on them. The model predicts that good news about fundamentals can trigger large...

Shape optimization and surface fairing for polygon meshes have been active research areas for the last few years. Existing approaches either require the border of the surface to be fixed, or are only applicable to closed surfaces. In this paper, we propose a new approach, that computes natural boundaries. This makes it possible not only to smooth an existing geometry, but also to extrapolate it...

Consider a power series f ∈ R[[z]], which is obtained by a precise mathematical construction. For instance, f might be the solution to some differential or functional initial value problem or the diagonal of the solution to a partial differential equation. In cases when no suitable method is beforehand for determining the asymptotics of the coefficients fn, but when many such coefficients can b...

We propose a new way of performing stable and more efficient F − X wavefield extrapolation for the application of seismic imaging and datuming via Infinite Impulse Response (IIR) F − X filters. To prove the concept, we used model reduction techniques to design the complex-valued IIR F −X extrapolation filters. Simulation results indicate that we can obtain stable designs using the proposed filt...

In the motion-extrapolation hypothesis, the visual system can extrapolate the instantaneous position of a moving object from its past trajectory. The existence of such a mechanism in human vision has been intensely debated. Here, we show compelling perceptual extrapolation of both first- and second-order moving stimuli, the magnitude of which depends on blurring of the visual target. The spatio...

The paper presents a novel method for improving the estimates of closely-spaced frequencies of a short length signal in additive Gaussian noise based on the Burg algorithm with extrapolation. The proposed method is implemented in two consecutive steps. In the first step, the Burg algorithm is used to estimate the parameters of the predictive filter, while in the second step the extrapolation te...

An explicit algorithm for the extrapolation of one-way wavefields is proposed which combines recent developments in information theory and theoretical signal processing with the physics of wave propagation. Because of excessive memory requirements, explicit formulations for wave propagation have proven to be a challenge in 3-D. By using ideas from “compressed sensing”, we are able to formulate ...