Equilibrium policy simulations with random utility models of labour supply

Many microeconometric models of discrete labour supply include alternative-specific constants meant to account for (possibly besides other factors) the density or accessibility of particular types of jobs (e.g. parttime jobs vs. full-time jobs). The most common use of these models is the simulation of tax-transfer reforms. The simulation is usually interpreted as a comparative static exercise, i.e. the comparison of different equilibria induced by different policy regimes. The simulation procedure, however, typically keeps fixed the estimated alternative-specific constants. In this note we argue that this procedure is not consistent with the comparative statics interpretation. Equilibrium means that the number of people willing to work on the various job types must be equal to the number of available jobs. Since the constants reflect the number of jobs and since the number of people willing to work change as a response to the change in tax-transfer regime, it follows that the constants should also change. A structural interpretation of the alternative-specific constants leads to the development of a simulation procedure consistent with the comparative static interpretation. The procedure is illustrated with an empirical example.Random Utility; Discrete Choice; Labour Supply; Simulation of tax reforms; Alternative-specific constants; Equilibrium simulation

Equilibrium Policy Simulations with Random Utility Models of Labour Supply

Many microeconometric models of discrete labour supply include alternative-specific constants meant to account for (possibly besides other factors) the density or accessibility of particular types of jobs (e.g. part-time jobs vs. full-time jobs). The most common use of these models is the simulation of tax-transfer reforms. The simulation is usually interpreted as a comparative static exercise, i.e. the comparison of different equilibria induced by different policy regimes. The simulation procedure, however, typically keeps fixed the estimated alternative-specific constants. In this note we argue that this procedure is not consistent with the comparative statics interpretation. Equilibrium means that the number of people willing to work on the various job types must be equal to the number of available jobs. Since the constants reflect the number of jobs and since the number of people willing to work change as a response to the change in tax-transfer regime, it follows that the constants should also change. A structural interpretation of the alternative-specific constants leads to the development of a simulation procedure consistent with the comparative static interpretation. The procedure is illustrated with an empirical example.alternative-specific constants, simulation of tax reforms, labour supply, discrete choice, random utility, equilibrium simulation

On simulation-based approaches to risk measurement in mortality with specific reference to Poisson Lee-Carter modelling

This paper provides a comparative study of simulation strategies for assessing risk in mortality rate predictions and associated estimates of life expectancy and annuity values in both period and cohort frameworks

Comparative analysis of resonant phonon THz quantum cascade lasers

We present a comparative analysis of a set of GaAs-based THz quantum cascade lasers, based on longitudinal-optical phonon scattering depopulation, by using an ensemble Monte Carlo simulation, including both carrier-carrier and carrier-phonon scattering. The simulation shows that the parasitic injection into the states below the upper laser level limits the injection efficiency and thus the device performance at the lasing threshold. Additional detrimental effects playing an important role are identified. The simulation results are in reasonable agreement with the experimental findings.Comment: 3 pages, 3 figure

Business and financial services: new engine of economic growth?

Does unbalanced sectoral productivity growth inevitably lead to continuous shift of resources to the less productive sectors and stagnation in aggregate productivity? This paper attempts to integrate the traditional stagnationist and the modern optimist arguments within a numerical simulation framework. The simulation framework consists of an applied general equilibrium multi-sectoral growth model for a small open regional economy that incorporates unbalanced sectoral growth and the growing role of business and financial services as intermediate service providers. The simulation results lend support to the stagnationist view in the long run but reveal some unconventional comparative-static properties in the short- to medium run

Comparative simulation study of colloidal gels and glasses

Using computer simulations, we identify the mechanisms causing aggregation and structural arrest of colloidal suspensions interacting with a short-ranged attraction at moderate and high densities. Two different non-ergodicity transitions are observed. As the density is increased, a glass transition takes place, driven by excluded volume effects. In contrast, at moderate densities, gelation is approached as the strength of the attraction increases. At high density and interaction strength, both transitions merge, and a logarithmic decay in the correlation function is observed. All of these features are correctly predicted by mode coupling theory

Network Reconstruction with Realistic Models

We extend a recently proposed gradient-matching method for inferring interactions in complex systems described by differential equations in various respects: improved gradient inference, evaluation of the influence of the prior on kinetic parameters, comparative evaluation of two model selection paradigms: marginal likelihood versus DIC (divergence information criterion), comparative evaluation of different numerical procedures for computing the marginal likelihood, extension of the methodology from protein phosphorylation to transcriptional regulation, based on a realistic simulation of the underlying molecular processes with Markov jump processes

Intelligent Learning Algorithms for Active Vibration Control

YesThis correspondence presents an investigation into the comparative performance of an active vibration control (AVC) system using a number of intelligent learning algorithms. Recursive least square (RLS), evolutionary genetic algorithms (GAs), general regression neural network (GRNN), and adaptive neuro-fuzzy inference system (ANFIS) algorithms are proposed to develop the mechanisms of an AVC system. The controller is designed on the basis of optimal vibration suppression using a plant model. A simulation platform of a flexible beam system in transverse vibration using a finite difference method is considered to demonstrate the capabilities of the AVC system using RLS, GAs, GRNN, and ANFIS. The simulation model of the AVC system is implemented, tested, and its performance is assessed for the system identification models using the proposed algorithms. Finally, a comparative performance of the algorithms in implementing the model of the AVC system is presented and discussed through a set of experiments

Monte Carlo computation of optimal portfolios in complete markets

We introduce a method that relies exclusively on Monte Carlo simulation in order to compute numerically optimal portfolio values for utility maximization problems. Our method is quite general and only requires complete markets and knowledge of the dynamics of the security processes. It can be applied regardless of the number of factors and of whether the agent derives utility from intertemporal consumption, terminal wealth or both. We also perform some comparative statics analysis. Our comparative statics show that risk aversion has by far the greatest influence on the value of the optimal portfolio

Comparison of CSMA based MAC protocols of wireless sensor networks

Energy conservation has been an important area of interest in Wireless Sensor networks (WSNs). Medium Access Control (MAC) protocols play an important role in energy conservation. In this paper, we describe CSMA based MAC protocols for WSN and analyze the simulation results of these protocols. We implemented S-MAC, T-MAC, B-MAC, B-MAC+, X-MAC, DMAC and Wise-MAC in TOSSIM, a simulator which unlike other simulators simulates the same code running on real hardware. Previous surveys mainly focused on the classification of MAC protocols according to the techniques being used or problem dealt with and presented a theoretical evaluation of protocols. This paper presents the comparative study of CSMA based protocols for WSNs, showing which MAC protocol is suitable in a particular environment and supports the arguments with the simulation results. The comparative study can be used to find the best suited MAC protocol for wireless sensor networks in different environments.Comment: International Journal of AdHoc Network Systems, Volume 2, Number 2, April 201