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Under some initial conditions, it is shown that time consistency requirements prevent rational expectation equilibrium (REE) existence for dynamic stochastic general equilibrium models induced by consumer heterogeneity, in contrast to…

理论经济学 · 经济学 2020-05-19 Minseong Kim

Dynamic stochastic general equilibrium (DSGE) models have been an ubiquitous, and controversial, part of macroeconomics for decades. In this paper, we approach DSGEs purely as statstical models. We do this by applying two common model…

应用统计 · 统计学 2022-11-02 Daniel J. McDonald , Cosma Rohilla Shalizi

Stochastic differential equations (SDEs) are established tools to model physical phenomena whose dynamics are affected by random noise. By estimating parameters of an SDE intrinsic randomness of a system around its drift can be identified…

统计计算 · 统计学 2012-05-03 Umberto Picchini , Susanne Ditlevsen

A number of macroeconomic theories, very popular in the 1980s, seem to have completely disappeared and been replaced by the dynamic stochastic general equilibrium (DSGE) approach. We will argue that this replacement is due to a tacit…

综合经济学 · 经济学 2019-08-29 Jean-Bernard Chatelain , Kirsten Ralf

Stochastic differential equations (SDEs) are popular tools to analyse time series data in many areas, such as mathematical finance, physics, and biology. They provide a mechanistic description of the phenomeon of interest, and their…

统计方法学 · 统计学 2021-02-01 Théo Michelot , Richard Glennie , Catriona Harris , Len Thomas

Ecological Momentary Assessment (EMA) studies enable the collection of high-frequency self-reports of suicidal thoughts and behaviors (STBs) via smartphones. Latent stochastic differential equations (SDEs) are a promising model class for…

机器学习 · 统计学 2026-05-26 Malinda Lu , Yue-Jane Liu , Matthew K. Nock , Yaniv Yacoby

The thesis of this essay is that, in heterogeneous agent macroeconomics, the assumption of rational expectations about equilibrium prices is unrealistic and should be replaced. Rational expectations imply that decision makers forecast…

综合经济学 · 经济学 2025-08-29 Benjamin Moll

The nonuniqueness of rational expectations is explained: in the stochastic, discrete-time, linear, constant-coefficients case, the associated free parameters are coefficients that determine the public's most immediate reactions to shocks.…

经济学 · 定量金融 2019-05-01 John G. Thistle

In this article, we introduce a system of stochastic differential equations (SDEs) consisting of time-dependent covariates and consider both fixed and random effects set-ups. We also allow the functional part associated with the drift…

统计理论 · 数学 2017-10-16 Trisha Maitra , Sourabh Bhattacharya

Ordinary and stochastic differential equations (ODEs and SDEs) are widely used to model continuous-time processes across various scientific fields. While ODEs offer interpretability and simplicity, SDEs incorporate randomness, providing…

统计方法学 · 统计学 2025-05-20 Qingchuan Sun , Susanne Ditlevsen

This paper characterizes DSGE models as fixed-point selection devices for self-referential economic specifications. We formalize this structure as $(S, T, \Pi)$: specification, self-referential operator, and equilibrium selector. The…

理论经济学 · 经济学 2026-01-28 Mitsuhiro Okano

Two approaches to incorporate heterogeneity in discrete models are compared. In the first, standard approach, the heterogeneity is dictated by geometrical structure of the discrete system. In the second approach, the heterogeneity is…

计算工程、金融与科学 · 计算机科学 2025-06-26 Jan Raisinger , Qiwei Zhang , John E. Bolander , Jan Eliáš

Most previous contributions to BSDEs, and the related theories of nonlinear expectation and dynamic risk measures, have been in the framework of continuous time diffusions or jump diffusions. Using solutions of BSDEs on spaces related to…

计算金融 · 定量金融 2010-01-14 Samuel N. Cohen , Robert J. Elliott

In many scientific fields, the generation and evolution of data are governed by partial differential equations (PDEs) which are typically informed by established physical laws at the macroscopic level to describe general and predictable…

统计方法学 · 统计学 2025-07-01 Ziyuan Chen , Shunxing Yan , Fang Yao

In this study, we propose a new method that is useful for estimating unknown parameter values of stochastic differential equation (SDE) models, based on probability density function (PDF) data measured from random dynamical systems. As our…

系统与控制 · 电气工程与系统科学 2020-10-05 Katsutoshi Yoshida , Yoshikazu Yamanaka

Stochasticity plays a key role in many biological systems, necessitating the calibration of stochastic mathematical models to interpret associated data. For model parameters to be estimated reliably, it is typically the case that they must…

统计方法学 · 统计学 2025-12-11 Alexander P Browning , Michael J Chappell , Hamid Rahkooy , Torkel E Loman , Ruth E Baker

Differential equations (DEs) are commonly used to describe dynamic systems evolving in one (ordinary differential equations or ODEs) or in more than one dimensions (partial differential equations or PDEs). In real data applications the…

统计方法学 · 统计学 2013-11-25 Gianluca Frasso , Jonathan Jaeger , Philippe Lambert

Delattre et al. (2013) considered a system of stochastic differential equations (SDEs) in a random effects setup. Under the independent and identical (iid) situation, and assuming normal distribution of the random effects, they established…

统计理论 · 数学 2020-05-04 Trisha Maitra , Sourabh Bhattacharya

Delayed processes are ubiquitous in biological systems and are often characterized by delay differential equations (DDEs) and their extension to include stochastic effects. DDEs do not explicitly incorporate intermediate states associated…

定量方法 · 定量生物学 2016-09-28 Jingchen Feng , Stuart Sevier , Bin Huang , Dongya Jia , Herbert Levine

This study proposes an approach based on a perturbation technique to construct global solutions to dynamic stochastic general equilibrium models (DSGE). The main idea is to expand a solution in a series of powers of a small parameter…

经济学 · 定量金融 2015-06-16 Viktors Ajevskis
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