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Questions tagged [simulations]

The tag has no usage guidance.

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0answers
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Use of Normal distribution in financial simulations

In paper such as this, I see the normal distribution being used to model the process of a financial investment. This seems strange because aggregating i.i.d. normal variables yields a mean that ...
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1answer
35 views

How can you model/simulate the price/value of a good?

Let's say that you have a good which price can change quite often because of its demand. Let's assume that you developed an algorithm that changes continuously the supply of the good to make its value ...
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2answers
83 views

What is a good way to generate realistic utility curves?

I am aiming to program a basic simulation of a simplified economy to look at the impact of various interventions. The economy will have N groups of homogeneous consumers and M producer / employer ...
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1answer
77 views

Can we use hotelling's lemma as a rule of thumb when wage rate can vary?

Disclaimer: I've been doing some simulation with excel to see how Hotelling's Lemma behaves when allowing another parameter to vary. I did this by producing 150 randomly generated profit functions (...
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1answer
54 views

AR 1 Process simulation

I wanted to use STATA for a kalman filter simulation and wanted to go about it the following way 1. Generate iid error terms $$ {e_t}, {n_t}, {u_t} $$ ...
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0answers
43 views

Simulation with a priori elasticity: how do I calculate elasticity of the simulated data?

I'm building a simulation with an a priori elasticity estimate, and building a simulation to see how many samples I need until I converge to the correct elasticity estimate based on that simulated ...
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0answers
64 views

Replicating a state-space model

I am trying to replicate the results of Cochrane, 1998. Most of the paper is just describing the theory behind The Fiscal Theory of the Price Level. But from p. 42 he begins the econometrics aspect. ...
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0answers
36 views

Computational economics and global market simulation

What is the largest - by number of agents - reported known global market simulation as of summer 2017?
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2answers
912 views

Understanding Inflation in a video game

I don't understand where inflation occurs in a video games. Assuming "free market" ie unlimited new players can enter any universe at will. You will say that for an economy to form, both sides must be ...
3
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1answer
105 views

Simulating macro / benchmark data

Question Are there any simulated datasets that have been designed specifically to represent macroeconomic data? In particular, are there any such datasets that can be used in benchmark studies? ...
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1answer
26 views

Software to simulate the effects of interest rates on an economy? [closed]

Is there open source software that simulates the effects of interest rates on an economy?
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0answers
19 views

Evaluate projects'/investments' impact on whole economy

I have 200 ROI investment examples (projects) in a specific industry, say manufacturing of microprocessors. How and what methods can I use to evaluate the impact (GDP, added value, job growth, etc.) ...
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0answers
158 views

Microeconomic Model of Knowledge and Technology

Can you point me to any microeconomic models of knowledge and technology? It is intended to be used for simulation. The problem that arises is that you need to simulate the effects of technology on ...
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0answers
26 views

negative initial conditions in a growth model

I try to simulate a growth model with two state (capital $K$ and resource stock $S$) and two control variables. (consumption $C$ and resource extraction $R$ ) When I try to find steady state from ...
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1answer
171 views

What caused such an abnormality in the TF2 economy?

In the video game, Team Fortress 2, an economy grew inside of it. It had its own currency and barter systems, and everything was running smoothly. But, in time, things started to get very strange. One ...
5
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1answer
136 views

Splittet Value Function and Hamilton-Jacobi-Bellman equation

General Problem Let $k\in\mathbb{R}_+$ be the state variable, $k=k^*$ a fixed point (saddle) and $v(k)$ a value function. The problem is, that the value function has two distinct functional forms, ...
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2answers
646 views

Simulating Real Business Cycle

Basically I need to replicate Hartley's 'A User's Guide to Solving Real Business Cycle Models' (http://www.econ.ucdavis.edu/faculty/kdsalyer/LECTURES/Ecn235a/Linearization/ugfinal.pdf). Specifically, ...
6
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1answer
90 views

Looking for the title of a short (~100 page) Herbert Simon book about “Bread-bricks”

I'm trying to find a short (~100 page) book by Herbert A. Simon in which he presents a simplified economics in which there is only one item of value and it is called the 'Bread-brick'. One can eat a ...
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2answers
71 views

How to make unequally spaced grid?

I want to make a grid [0,1] with 100 points but I want points to be concentrated at the edges close to 0 and 1. So I want 60-70% of the points to be in the intervals [0, 0.2] and [0.8, 1]. Any ideas ...
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4answers
660 views

Simulating a Hamilton-Jacobi-Bellman

Say I have solved an HJB of the form: $\rho V(k) = \max_c g(c) + V'(k)(z - c)$ I have calibrated $\rho$ to monthly parameters. I would like to simulate the development of $k$. I start with $k(0)$. ...
5
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0answers
77 views

Simulations Using Binomial Coefficients

In closed loop toy models with a fixed money supply, what are the downsides of calculating probable outcomes with a binomial coefficient? For example, given a toy economy where trades yield a profit ...