Accuracy of numerical solutions using the eulers equation residuals

In this paper we derive sorne asymptotic properties on the accuracy of numerical solutions. We sIlow tIlat the approximation error of the policy function is of the same order of magnitude as the size of the Euler equation residuals. Moreover, for bounding this approximation error tIle most relevant parameters are the discount factor and the curvature of the return function. These findings provide theoretical foundations for the construction of tests that can assess the performance of alternative computational methods

On the policy function in continuos time economic models

In this paper, I consider a general class of continuous-time economic models with unbounded horizon. I study the sets of conditions under which the policy function is continuous, Lipschitz continuous, and Cl differentiable. 1 also single out certain postulates which may prevent higher-order differentiability. The analysis provides, therefore, a fmn foundation to the use of dynamic programming methods in continuous time models with unbounded horizo

Consistency properties of a simulation-based estimator for dynamic processes

This paper considers a simulation-based estimator for a general class of Markovian processes and explores some strong consistency properties of the estimator. The estimation problem is defined over a continuum of invariant distributions indexed by a vector of parameters. A key step in the method of proof is to show the uniform convergence (a.s.) of a family of sample distributions over the domain of parameters. This uniform convergence holds under mild continuity and monotonicity conditions on the dynamic process. The estimator is applied to an asset pricing model with technology adoption. A challenge for this model is to generate the observed high volatility of stock markets along with the much lower volatility of other real economic aggregates.Comment: Published in at http://dx.doi.org/10.1214/09-AAP608 the Annals of Applied Probability (http://www.imstat.org/aap/) by the Institute of Mathematical Statistics (http://www.imstat.org

The Merit-Order Effect of Load-Shifting: An Estimate for the Spanish Market

Renewable producers can offer selling bids with very low marginal cost since they are not obliged to include on any cost related to the use of energy from the wind or sun. Accordingly, when the Market Operator integrates a renewable bid in the merit-order generation curve, all the generators based on conventional technologies, with higher marginal cost due to the cost of fuels, are displaced to the right. The right-shifting of the merit-order generation curve leads to a lower clearing price, a small increment of the traded energy (almost inelastic demand curve), and a reduction of the total cost of the energy traded in the wholesale market. This is the key mechanism of the well-known merit-order effect of renewables. Load-shifting (demand-side management) plans are expected to yield a reduction of the cost of the traded energy for the customers, since the cost-saving due to the energy eschewed at peak hours would be greater than the extra cost due to the increased demand at off-peak hours. This work will show that the main effects of load-shifting on the market are qualitatively similar to that of renewables, which exemplify the existence a “merit-order effect of load-shifting”. To analyse the characteristics of the merit-order effect of load-shifting, a simplified model has been developed, based on the displacement of the generation and demand curves. A set of scenarios has been generated in order to quantify the main effects on the Spanish/Iberian market for 2015.Ministerio de Economía y Competitividad, España (Ministry of Economy and Competitiveness, Spain) grant ENE2016-77650-

Accuracy of numerical solutions using the eulers equation residuals.

In this paper we derive sorne asymptotic properties on the accuracy of numerical solutions. We sIlow tIlat the approximation error of the policy function is of the same order of magnitude as the size of the Euler equation residuals. Moreover, for bounding this approximation error tIle most relevant parameters are the discount factor and the curvature of the return function. These findings provide theoretical foundations for the construction of tests that can assess the performance of alternative computational methods.Accuracy; Euler equation residuals; value and policy functions;

The moneychanger and his wife: from scholastics to accounting

El cambista y su mujer es un cuadro de la escuela flamenca, de principios del siglo XVI, ampliamente utilizado para ilustrar la actividad económica. Existen dos versiones: una de Quentin Massys, 1514, y otra de Marinus van Reymerswaele, 1539, con cambios relevantes entre ambas. Estos cambios tienen un significado económico importante. Las interpretaciones de este cuadro y otros similares que hacen los historiadores del arte son coherentes con su visión del mundo de la economía, más que responder a un análisis objetivo del cuadro y de la historia. Así, mientras que la imagen muestra la actividad comercial y financiera como una profesión normal y respetable, la mayoría de los historiadores del arte consideran que tiene una intención satírica y moralizante. Mi conclusión es que los prejuicios de los historiadores del arte hacia la actividad comercial y financiera les conducen a una interpretación equivocada del cuadro.The Moneychanger and his Wife is a Flemish painting from the early 16th century, widely used to illustrate economic activity. There are two different versions: one by Quentin Massys, 1514, and another by Marinus van Reymerswaele, 1539. There are significant changes between the two versions, which I will argue do have an economic meaning. In the process of reviewing the different interpretations provided by art historians of this picture and other similar ones, we shall see that they are consistent with the views that most art historians share about the commercial and financial world rather than based on any objective interpretation of the painting and history. Thus, while the picture shows commercial and financial activity to be a normal, respectable occupation, most art historians see a moralizing and satirical intention. My view is that art historians’ prejudice towards commercial and financial activity leads them to a wrong interpretation of the painting.

Rational asset pricing bubbles

This paper provides a fairly systematic study of general economic conditions under which rational asset pricing bubbles may arise in an intertemporal competitive equilibrium framework. Our main results are concerned with non-existence of asset pricing bubbles in those economies. These results imply that the conditions under which bubbles are possible inc1uding sorne well-known examples of monetary equilibria-are relatively fragile

On convergence in endogenous growth models

In this paper we analyze the rate of convergence to a balanced path in a class of endogenous growth models with physical and human capital. We show that such rate depends locally on the technological parameters of the model. but does not depend on those parameters related to preferences. These results stand in sharp contrast with those of the one-sector neoclassical growth model where both preferences and technologies determine the speed of convergence toward a steady state

Modelling spin waves in noncollinear antiferromagnets: spin-flop states, spin spirals, skyrmions and antiskyrmions

Spin waves in antiferromagnetic materials have great potential for next-generation magnonic technologies. However, their properties and their dependence on the type of ground-state antiferromagnetic structure are still open questions. Here, we investigate theoretically spin waves in one- and two-dimensional model systems with a focus on noncollinear antiferromagnetic textures such as spin spirals and skyrmions of opposite topological charges. We address in particular the nonreciprocal spin excitations recently measured in bulk antiferromagnet $\alpha$--$\text{Cu}_2\text{V}_2\text{O}_7$ utilizing inelastic neutron scattering experiments [Phys.\ Rev.\ Lett.\ \textbf{119}, 047201 (2017)], where we help to characterize the nature of the detected spin-wave modes. Furthermore, we discuss how the Dzyaloshinskii-Moriya interaction can lift the degeneracy of the spin-wave modes in antiferromagnets, resembling the electronic Rashba splitting. We consider the spin-wave excitations in antiferromagnetic spin-spiral and skyrmion systems and discuss the features of their inelastic scattering spectra. We demonstrate that antiskyrmions can be obtained with an isotropic Dzyaloshinskii-Moriya interaction in certain antiferromagnets.Comment: 26 pages, 9 figure

First-principles investigation of spin wave dispersions in surface-reconstructed Co thin films on W(110)

We computed spin wave dispersions of surface-reconstructed Co films on the W(110) surface in the adiabatic approximation. The magnetic exchange interactions are obtained via first-principles electronic structure calculations using the Korringa-Kohn-Rostoker Green function method. We analyze the strength and oscillatory behavior of the intralayer and interlayer magnetic interactions and investigate the resulting spin wave dispersions as a function of the thickness of Co films. In particular, we highlight and explain the strong impact of hybridization of the electronic states at the Co-W interface on the magnetic exchange interactions and on the spin wave dispersions. We compare our results to recent measurements based on electron energy loss spectroscopy [E. Michel, H. Ibach, and C.M. Schneider, Phys. Rev. B 92, 024407 (2015)]. Good overall agreement with experimental findings can be obtained by considering the possible overestimation of the spin splitting, stemming from the local spin density approximation, and adopting an appropriate correction.Comment: 14 pages, 14 figure