Money and Interest in a Cash-in-Advance Economy

In this paper we analyze an aggregative general equilibrimi model in which the use of money is motivated by a cash-in-advance constraint, applied to purchases of a subset of consumption goods. The system is subject to both real and monetary shocks, which are economy-wide and observed by all. We develop methods for verifying the existence of, characterizing, and explicitly calculating equilibria. A main result of the analysis is that current money growth affects the current real allocation only insofar as it affects expectations about future money growth, i.e., only through its value as a signal.

Comparing behavior under risk and under ambiguity in a lifecycle experiment

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption

A General Stochastic Process for Day-to-Day Dynamic Traffic Assignment: Formulation, Asymptotic Behaviour, and Stability Analysis

This paper presents a general modelling approach to day-to-day dynamic assignment to a congested network through discrete-time stochastic and deterministic process models including an explicit modelling of users’ habit as a part of route choice behaviour, through an exponential smoothing filter, and of their memory of network conditions on past days, through a moving average or an exponentially smoothing filter. An asymptotic analysis of the mean process is carried out to provide a better insight. Results of such analyses are also used for deriving conditions, about values of the system parameters, assuring that the mean process is dissipative and/or converges to some kind of attractor. Numerical small examples are also provided in order to illustrate the theoretical results obtained

Simple models for rope substructure mechanics: Application to electro-mechanical lifts

Mechanical systems modelled as rigid mass elements connected by tensioned slender structural members such as ropes and cables represent quite common substructures used in lift engineering and hoisting applications. Special interest is devoted by engineers and researchers to the vibratory response of such systems for optimum performance and durability. This paper presents simplified models that can be employed to determine the natural frequencies of systems having substructures of two rigid masses constrained by tensioned rope/cable elements. The exact solution for free un-damped longitudinal displacement response is discussed in the context of simple two-degree-of-freedom models. The results are compared and the influence of characteristics parameters such as the ratio of the average mass of the two rigid masses with respect to the rope mass and the deviation ratio of the two rigid masses with respect to the average mass is analyzed. This analysis gives criteria for the application of such simplified models in complex elevator and hoisting system configurations