Genetic algorithm for closed-loop equilibrium of high-order linear-quadratic dynamic games

Cataloged from PDF version of article.In this paper, we implement an adaptive search algorithm, genetic algorithm to derive closed-loop Nash equilibria for linear-quadratic dynamic games. The computation of these equilibria is quite difficult to deal with analytically and numerically. Our strategy is to search over all rime-invariant strategies depending only on the current value of the state. Also provided are some evidences which show the success of the algorithm. (C) 2000 IMACS. Published by Elsevier Science B.V. All rights reserved

Market Reaction to Risky Banks: Did Generous Deposit Guarantee Change it?

Cataloged from PDF version of article.Turkey experienced a massive banking crisis in February 2001, resulting in the loss of more than a thousand managerial jobs and the closure of 21% of all bank branches in the market. In this paper, we study the behavior of the market and the banks in Turkey before the crisis, from 1988 to 2000, which includes the period of full deposit insurance. The empirical results showed that not only depositors but also borrowers reacted negatively to risky banks and punished them even more during the period of generous government guarantee. However, in the same period, banks were found to increase their moral hazard behavior significantly. Although the International Monetary Fund and the World Bank recommend explicit deposit insurance for developing countries, the findings of this paper suggest that deposit insurance may not be an effective policy tool to improve market confidence, and it does not guarantee a stable economic environment even when the market reacts negatively to the moral hazard behavior of banks

Bank Quality, Loan Demand and Market Discipline

Cataloged from PDF version of article.In this paper, we examine the disciplinary role of borrowers, who are one of the key stakeholders in Turkish banks and are heavily affected when their banks experience difficulty. In the theoretical model, we show that borrowers prefer to have a relationship with less risky banks although it increases their cost of getting funds. Empirically, we examine the relationship between quality of a bank and its loan demand and find that as riskiness of a bank decreases, its loan demand increases significantly, suggesting the disciplinary role of borrowers in Turkey

A genetic game of trade, growth and externalities

Cataloged from PDF version of article.A genetic algorithm is introduced to search for optimal policies in the presence of knowledge spillovers and local pollution in a dynamic North/South trade game. Noncooperative trade compounds inefficiencies stemming from externalities. Cooperative trade policies are efficient and yet not credible. Short of a joint maximization of the global welfare, transfer of knowledge remains as a viable route to improve world welfare. 0 1998 Elsevier Science B.V. All rights reserved

Learning the optimum as a Nash equilibrium

Cataloged from PDF version of article.This paper shows the computational benefits of a game theoretic approach to optimization of high dimensional control problems. A dynamic noncooperative game framework is adopted to partition the control space and to search the optimum as the equilibrium of a k-person dynamic game played by k-parallel genetic algorithms. When there are multiple inputs, we delegate control authority over a set of control variables exclusively to one player so that k artificially intelligent players explore and communicate to learn the global optimum as the Nash equilibrium. In the case of a single input, each player's decision authority becomes active on exclusive sets of dates-so that k GAs construct the optimal control trajectory as the equilibrium of evolving best-to-date responses. Sample problems are provided to demonstrate the gains in computational speed and accuracy. (C) 2000 Elsevier Science B.V. All rights reserved

Mobility and Optimal Tenure Choice

Cataloged from PDF version of article.In this paper, we offer a dynamic model of the optimal tenure behavior of an individual who faces the possibility of moving multiple times during his lifetime. We also investigate the lifetime effects of such factors as income tax, property tax, transaction costs, and mortgage rates on the household's tenure choice. The agents in the model utilize a genetic algorithm, a probabilistic search approach, to determine their optimal lifetime tenure choice path. The agents are forward looking in that they anticipate such possible events as changes in jobs, marital status, household size, or dissatisfaction with current residence. Our results suggest several housing policy implications and explain some of the empirical findings in the literature. (c) 2005 Elsevier Inc. All rights reserved

How Sensitive Are Bank Managers to Shareholder Value?

Cataloged from PDF version of article.We test for the existence of market discipline by shareholders of banks with a wide range of ownership structures. Discipline by shareholders manifests itself through monitoring banks’ level of risk as well as through influencing banks’ management actions. We find that shareholders utilize the relation between stock returns and different types of risk measures to monitor risky banks. Shareholders partially influence bank management by responding to decreasing stock returns with a demand to improve loan quality. Moreover, the influence on management in small banks is more pronounced compared to large banks

Use of bioanalyzer electropherograms for quality control and target evaluation in microarray expression profiling studies of ocular tissues

Expression profiling with DNA microarrays has been used to examine the transcriptome of a wide spectrum of vertebrate cells and tissues. The sensitivity and accuracy of the data generated is dependent on the quality and composition of the input RNA. In this report, we examine the quality and array performance of over 200 total RNA samples extracted from ocular tissues and cells that have been processed in a microarray core laboratory over a 7-year period. Total RNA integrity and cRNA target size distribution were assessed using the 2100 Bioanalyzer. We present Affymetrix GeneChip array performance metrics for different ocular samples processed according to a standard microarray assay workflow including several quality control checkpoints. Our review of ocular sample performance in the microarray assay demonstrates the value of considering tissue-specific characteristics in evaluating array data. Specifically, we show that Bioanalyzer electropherograms reveal highly abundant mRNAs in lacrimal gland targets that are correlated with variation in array assay performance. Our results provide useful benchmarks for other gene expression studies of ocular systems

Political Connection, Bank Credit and Growth: Evidence from Turkey

Cataloged from PDF version of article.The pervasive existence of government-owned banks in emerging economies is often justified by their provision of access to credit in remote and underdeveloped regions that are ignored by private banks. This paper analyses whether credits provided by government-owned and private banks have a significant role in regional growth and whether this role changes in politically connected areas in Turkey. Our findings imply that private banks significantly improve the economic well-being in all Turkish provinces regardless of their development level or their political connection with the ruling party. However, credits by government-owned banks are found to be positively related to the per capita growth rate only in the less developed provinces that are advocates of the ruling political party and also developed but not politically connected provinces. These results suggest that government-owned bank credits, as implied by the political view, are used for funding politically desirable projects or politically connected borrowers