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1 - 6 van 6 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 ...
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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 ...
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Microsoft Word - don.doc
... certainty equivalence result, stating that under certain conditions, maximum expected welfare is obtained for the policy vector that maximizes welfare under certainty, substituting expected values for the uncertain elements. one important condition for certainty equivalence ...
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memo1960.pdf
... rule is invariant to the magnitude of the stochastic disturbances in the model (certainty equivalence). the first characteristic links the method to theoretical practise to linearize complicated models ... and the same certainty equivalence indicator of the excess 9 table 3.1 the effect of the number of integration nodes and the approximation point portfolio share certainty equivalence of equity ...
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memo227.pdf
... produce very limited effects of fiscal policy. in fact, they often display full ricardian equivalence rendering fiscal policy irrelevant. consequently, models for fiscal policy analysis often use overlapping ... be discounted by a different stochastic discount factor for each household, unless we assume certainty equivalence. cost of raising funds from households. this gives the langrangian lv t v t ...
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Microsoft Word - bijz90.doc
... requirements for a good tax, which are essential for tax certainty. economists enhance the understanding of the vat by showing ... of the tax base of each consumption tax, highlighting its equivalence with other consumption taxes. subsequently, the practical and economic ... on a cash-flow basis. 1.2.2 equivalence of consumption taxes the equivalence of the various consumption taxes can be illustrated ...
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