A Dynamic Stochastic Model of Asset Pricing with Heterogeneous Beliefs

This paper presents a new stochastic asset pricing model in a context of bounded rationality, where beliefs about future prices are formed via an expectations updating rule characterized by a stochastic multiplicative random variable, working as an agent-based time dependent weight of the conditional expectation of the fundamental. The agent’s belief about future prices depends on his confidence in the forecasts made by other agents, measured by the distribution type of agents and by a confidence parameter. The resulting stochastic dynamical system is firstly analyzed in a deterministic setting, deriving conditions for uniqueness and stability of steady states and proving that, for high values of the confidence parameter, no complicated dynamics can be exhibited, hence the new component has a stabilizing effect on the qualitative dynamics. Differently, for small values of the confidence parameter, we prove the existence of a stability region in the parameters plane where the only possible dynamics is convergence to a steady state, while complexity is exhibited outside such region. Starting from the results obtained in the deterministic case, the model is then explored by reintroducing randomness. More specifically, we analyze the stability region in three directions: first of all, a robust estimate of the stability region’s measure is provided; second, a long run equilibrium relation between the parameters of the system is obtained; third, the persistence properties of the series describing the bifurcation curves is performed. We finally underline some economic implications

Non-linear Dynamics in a Business-Cycle Model with Logistic Population Growth

We consider a discrete-time growth model of the Solow type where workers and shareholders have different but constant saving rates and the population growth dynamics is described by the logistic equation able to exhibit complicated dynamics. We show conditions for the resulting system having a compact global attractor and we describe its structure. We also perform a mainly numerical analysis using the critical lines method able to describe the strange attractor and the absorbing area, in order to show how cyclical or complex fluctuations may be produced in a business-cycle model. We study the dynamic behaviour of the model under different ranges of the main parameters, i.e. the elasticity of substitution between the two production factors and the one in the logistic equation (namely m). We prove the existence of complex dynamics when the elasticity of substitution between production factors drops below one (so that capital income declines) or m increases (so that the amplitude of movements in the population growth rate increases)

Complex Dynamics in a Growth Model with Corruption in Public Procurement

We study the relationship between corruption in public procurement and economic growth within the Solow framework in discrete time, while assuming that the public good is an input in the productive process and that the State fixes a monitoring level on corruption. The resulting model is a bidimensional triangular dynamic system able to generate endogenous fluctuations for certain values of some relevant parameters. We study the model from the analytical point of view and find that multiple equilibria with nonconnected basins are likely to emerge. We also perform a stability analysis and prove the existence of a compact global attractor. Finally, we focus on local and global bifurcations causing the transition to more and more complex asymptotic dynamics. In particular, as our map is nondifferentiable in a subset of the states space, we show that border collision bifurcations occur. Several numerical simulations support the analysis. Our study aims at demonstrating that no long-run equilibria with zero corruption exist and, furthermore, that periodic or aperiodic fluctuations in economic growth are likely to emerge. As a consequence, the economic system may be unpredictable or structurally unstable

Local and Global Dynamics in a Neoclassical Growth Model with NonConcave Production Function and NonConstant Population Growth Rate

In this paper we analyze the dynamics shown by the neoclassical one-sector growth model with differential savings as in Bohm and Kaas [J. Econom. Dynam. Control, 24 (2000), pp. 965--980] while assuming a sigmoidal production function as in [V. Capasso, R. Engbers, and D. La Torre, Nonlinear Anal., 11 (2010), pp. 3858--3876] and the labor force dynamics described by the Beverton--Holt equation (see [R. J. H. Beverton and S. J. Holt, Fishery Invest., 19 (1957), pp. 1--533]). We prove that complex features are exhibited, related both to the structure of the coexisting attractors (which can be periodic or chaotic) and to their basins (which can be simple or nonconnected). In particular we show that complexity emerges if the elasticity of substitution between production factors is low enough and shareholders save more than workers, confirming the results obtained with concave production functions. Anyway, in contrast to previous studies, the use of the S-shaped production function implies the existence of a poverty trap: by performing a global analysis we study the properties of the regions generating trajectories converging to it

Recommendations for post-surgical thyroid ablation in differentiated thyroid cancer: a 2015 position statement of the Italian Society of Endocrinology

Post-surgical ablation of thyroid remnant with radioactive iodine (RAI) in differentiated thyroid cancer (DTC) is aimed to destroy any thyroid remnant in the thyroid bed (remnant ablation) and any microscopic foci of cancer cells eventually present within the thyroid remnant (adjuvant therapy). The present text is an attempt to offer practice guidelines for the indication of thyroid ablation and the preparation of DTC patients considering the latest achievement in the field and the changing epidemiology of DTC observed in the last 10 years

Phase 3 Trial of 177Lu-Dotatate for Midgut Neuroendocrine Tumors

Background Patients with advanced midgut neuroendocrine tumors who have had disease progression during first-line somatostatin analogue therapy have limited therapeutic options. This randomized, controlled trial evaluated the efficacy and safety of lutetium-177 (177Lu)-Dotatate in patients with advanced, progressive, somatostatin-receptor-positive midgut neuroendocrine tumors. Methods We randomly assigned 229 patients who had well-differentiated, metastatic midgut neuroendocrine tumors to receive either 177Lu-Dotatate (116 patients) at a dose of 7.4 GBq every 8 weeks (four intravenous infusions, plus best supportive care including octreotide long-acting repeatable [LAR] administered intramuscularly at a dose of 30 mg) (177Lu-Dotatate group) or octreotide LAR alone (113 patients) administered intramuscularly at a dose of 60 mg every 4 weeks (control group). The primary end point was progression-free survival. Secondary end points included the objective response rate, overall survival, safety, and the side-effect profile. The final analysis of overall survival will be conducted in the future as specified in the protocol; a prespecified interim analysis of overall survival was conducted and is reported here. Results At the data-cutoff date for the primary analysis, the estimated rate of progression-free survival at month 20 was 65.2% (95% confidence interval [CI], 50.0 to 76.8) in the 177Lu-Dotatate group and 10.8% (95% CI, 3.5 to 23.0) in the control group. The response rate was 18% in the 177Lu-Dotatate group versus 3% in the control group (P<0.001). In the planned interim analysis of overall survival, 14 deaths occurred in the 177Lu-Dotatate group and 26 in the control group (P=0.004). Grade 3 or 4 neutropenia, thrombocytopenia, and lymphopenia occurred in 1%, 2%, and 9%, respectively, of patients in the 177Lu-Dotatate group as compared with no patients in the control group, with no evidence of renal toxic effects during the observed time frame. Conclusions Treatment with 177Lu-Dotatate resulted in markedly longer progression-free survival and a significantly higher response rate than high-dose octreotide LAR among patients with advanced midgut neuroendocrine tumors. Preliminary evidence of an overall survival benefit was seen in an interim analysis; confirmation will be required in the planned final analysis. Clinically significant myelosuppression occurred in less than 10% of patients in the 177Lu-Dotatate group. (Funded by Advanced Accelerator Applications; NETTER-1 ClinicalTrials.gov number, NCT01578239 ; EudraCT number 2011-005049-11

Dynamical analysis of a financial market with fundamentalists, chartists, and imitators

The aim of the paper is to understand the price dynamics generated by the interaction of traders relying on heterogeneous expectations in an asset pricing model. In the present work we propose a financial market populated by three types of agents – fundamentalists, chartists and imitators. The latter submit buying/selling orders according to different trading rules using a 2D Piecewise Linear (PWL) discontinuous map. Our contribution to the existing financial literature is twofold. First, we perform an analytical study of the model involving a 2D PWL discontinuous map, where mainly numerical results are provided by researchers, besides few exceptions. In particular, we investigate the bifurcations showed by the model and the large variety of dynamical behavior produced. Finally, we provide numerical simulations in order to highlight the interaction between traders with heterogeneous expectations that can lead to intricate bull and bear price dynamics