Certainty equivalence 

1 - 3 van 3 voor certainty equivalence

appendix derivations dsge model pdf
... other words, they display certainty equivalence. this means that the model is only valid in a stochastic environment up to a first order approximation, unless we make the certainty equivalence assumption. since the household ... to be discounted by a different stochastic discount factor for each household, unless we assume certainty equivalence. this gives the langrangian 16 lv t v t nt -(1+rt-1)nt-1 ...
cpb.nl

Onderzoeksmemorandum (set-up) [PFP#301156075]
... the proper policy analysis). if certainty equivalence applies, all the decision maker needs is our unbiased forecast.10 but in the more common case that certainty equivalence does not apply, we should ... cry from certainty equivalence, which is so much easier to swallow. policy makers have a strong tendency to choose a single scenario and use it on the assumption of certainty equivalence, rather ...
cpb.nl  meer van deze site

DNB Onderzoeksrapporten - De Nederlandsche Bank
... of the resulting error in in ation and output, following the assumption of certainty equivalence. under all reasonable levels of uncertainty this error turns out to be small ... expectations solution. j.e.l classi cation e52, e58 keywords central bank transparency, certainty equivalence, rational expectations, ambiguity and rational inattention download 759 - rational ambiguity and monitoring the ...
dnb.nl