We consider an optimal investment-consumption portfolio optimization model in which an investor receives stochastic dividends. As a first problem, we allow the drift of stock price to be a bounded function. Next, we consider a stochastic volatility model. In each problem, we use the dynamic programming method to derive the Hamilton-Jacobi-Bellman…

Existing empirical work looking at the effects of parental income on IQ, schooling, wealth, race, and personality is only able to explain about half of the observed intergenerational income elasticity. This paper provides a possible behavioral explanation for this elasticity in which heterogeneous agents in sequential generations choose their…

Post-conventional economic theories are assembled to inquire into the contingent, mimetic, symbolic, and material spirals unfolding the dot-com bubble, 1992-2002. The new technologies bubble is reconstructed as a rhetorical movement across the practices of the hybrid market-industry risk culture of communications. The legacies of the bubble task…

Scope and Method of Study. One of the major obstacles in Information Technology (IT) adoption is its return on investment analysis. IT benefits in organizations are hard to measure and are usually realized over time. System dynamics approach has been used in IT literature to identify the impact of IT on business processes. Given benefits of any IT…

Motivated by the large differences in labor market outcomes across college majors, we survey the literature on the demand for and return to high school and post-secondary education by field of study. We combine elements from several papers to provide a dynamic model of education and occupation choice that stresses the roles of specificity of human…

Does investing taxpayer money in higher education lead to major payoffs in economic growth? State legislators and policy makers say yes. They routinely advocate massive appropriations for university education and research, even in poor economic times, on the grounds that taxpayers will be rewarded many times over. The investment of federal funds…

Based on cross-section data worldwide and time series data in China, the essay is intended to make an analysis of the factors which have impacts on the ratio of public investment in education by using econometric models and then the future ratio may be predicted. Conclusions are as follows. First, the proportion of fiscal revenue to GDP (gross…

This paper evaluates the central insight of the consumption capital asset pricing model that an asset's expected return is determined by its equilibrium risk to consumption. Rather than measure risk by the contemporaneous covariance of an asset's return and consumption growth, we measure risk by the covariance of an asset's return and consumption…

A simplified model based on assumed linear realtionships between the main variables is used to show how changes in expenditure, tax rate, etc. affect other parts of the national economy in successive periods. See SO 505 143 for ordering information. (Author/ND)

Policy discussions about teacher quality and teacher "shortages" often focus on recruitment and retention of young teachers. However, attention has begun to focus on the incentive effects of teacher retirement benefit systems, particularly given their rising costs and the large unfunded liabilities. In this paper we analyze accrual of…

Analyzes black economic separatism following an approach which rests upon a modification of G.S. Becker's model of economic discrimination: black and white societies are viewed as being in a trading relationship in which resources are exchanged. (Author/JM)

Explains economists' general approach to family behavior and describes how that framework is useful for thinking about families and children. Outlines how economists model parental investment in children. Examines the implications of approach for developmental science. Illustrates this approach using the example of the involvement of children and…

THE PARTICULAR CHARACTERISTICS OF EDUCATION AS AN ECONOMIC GOOD ARE EXAMINED. THE LITERATURE ON THE ECONOMIC VALUE OF EDUCATION, THE DIFFERENT APPROACHES TO EDUCATIONAL PLANNING, AND THE MATHEMATICAL MODELS PROPOSED FOR THIS PURPOSE ARE ANALYZED. THESE APPROACHES ARE SYNTHESIZED TO OBTAIN A COMPREHENSIVE ESTIMATE OF THE DEMAND FOR EDUCATION. THE…

Shows how the Cournot-Nash and Stackelberg equilibria can be represented in the familiar supply-demand graphical framework, allowing a direct comparison with the monopoly, competitive, and industrial organization models. This graphical analysis is represented throughout the article. (MJP)

Designed as an accompaniment to college level macroeconomic lectures (see SO 011 937), this package contains materials for three approaches to the macroeconomics course. The course covers topics of basic macroeconomic concepts, income and expenditure determination, aggregate demand, unemployment and inflation, policy making, investment and…