Rules of Thumb in Life-Cycle Saving Decisions

We analyse life-cycle saving decisions when households use simple heuristics, or rules of thumb, rather than solve the underlying intertemporal optimization problem. We simulate life-cycle saving decisions using three simple rules and compute utility losses relative to the solution of the optimization problem. Our simulations suggest that utility losses induced by following simple decision rules are relatively low. Moreover, the two main saving motives re ected by the canonical life-cycle model { long-run consumption smoothing and short-run insurance against income shocks { can be addressed quite well by saving rules that do not require computationally demanding tasks such as backward induction

DYNAMIC PROGRAMMING: HAS ITS DAY ARRIVED?

Research Methods/ Statistical Methods,

A Review of Traffic Signal Control.

The aim of this paper is to provide a starting point for the future research within the SERC sponsored project "Gating and Traffic Control: The Application of State Space Control Theory". It will provide an introduction to State Space Control Theory, State Space applications in transportation in general, an in-depth review of congestion control (specifically traffic signal control in congested situations), a review of theoretical works, a review of existing systems and will conclude with recommendations for the research to be undertaken within this project