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The Bachelier model is a model of an asset price under Brownian motion presented by Louis Bachelier on his PhD thesis The Theory of Speculation (Théorie de la spéculation, published 1900). It is also called "Normal Model" equivalently (as opposed to "Log-Normal Model" or "Black-Scholes Model").
Ideally, a techno-economic model represents the best current understanding of the system being modeled. The following are examples of typical uses. Evaluating economic feasibility: TEA can be used to anticipate whether a process will be sufficiently profitable under a certain set of assumptions. It can thereby help companies to avoid pursuing ...
Peter Worley argues that this is a false assumption. This is based on Worley's central arguments that there are two different kinds of open and closed questions: grammatical and conceptual. He argues that educational practitioners should be aiming for questions that are "grammatically closed, but conceptually open". [6]
For example, as someone gets wealthier, an extra dollar or an additional good is perceived as less valuable. In other words, desirability related with a financial gain depends not only on the gain itself but also on the wealth of the person. Bernoulli suggested that people maximize "moral expectation" rather than expected monetary value.
In practice the politics and theology of the day determined the result of the dispute, but the nature of the controversy was a clear example of how different bundles of (usually implicit) auxiliary assumptions could support mutually inconsistent hypotheses concerning a single theory. In terms of either version of the Duhem–Quine thesis it ...
A Newey–West estimator is used in statistics and econometrics to provide an estimate of the covariance matrix of the parameters of a regression-type model where the standard assumptions of regression analysis do not apply. [1] It was devised by Whitney K. Newey and Kenneth D. West in 1987, although there are a number of later variants.
Rubin defines a causal effect: Intuitively, the causal effect of one treatment, E, over another, C, for a particular unit and an interval of time from to is the difference between what would have happened at time if the unit had been exposed to E initiated at and what would have happened at if the unit had been exposed to C initiated at : 'If an hour ago I had taken two aspirins instead of ...
For example, if both capital and labor inputs are doubled, output of the commodities is doubled. In other terms the production function of both commodities is "homogeneous of degree 1". The assumption of constant returns to scale CRS is useful because it exhibits a diminishing returns in a factor.