Rules of thumb versus dynamic programming

Article Abstract:

Decision-making with rules of thumb in relation to dynamic decision problems is studied and compared to dynamic programming. A fixed mapping from a subset of states into actions was used as a definition of a rule. The rules were then compared by averaging over past experiences which resulted in favoring rules which were only applicable in good states. Solving the dynamic program was done for the correction of the good state bias.

Research, Decision-making, Models, Decision making, Dynamic programming

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Understanding trend and cycle in asset values: reevaluating the wealth effect on consumption

Article Abstract:

A dollar increase in wealth simultaneously leads to an increase in spending at least five cents of it, according to Franco Modigliani, the economist of 1971. Reevaluation of the empirical foundation for such an estimate is made.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Asset Valuation & Distribution, Analysis, Dollar (United States), Asset valuation

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Life-cycle variation in the association between current and lifetime earnings

Article Abstract:

A study uses empirical data to examine the effective use of current income to enhance long-run income. Inequality in lifetime earnings of individuals is discussed.

Economic aspects, Wage gap

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