scholarly journals A Statistical Equilibrium Approach to the Distribution of Profit Rates

2016 ◽  
Vol 68 (3) ◽  
pp. 465-499 ◽  
Author(s):  
Ellis Scharfenaker ◽  
Gregor Semieniuk
Entropy ◽  
2018 ◽  
Vol 20 (11) ◽  
pp. 831 ◽  
Author(s):  
Özlem Ömer

In this article, we demonstrate that a quantal response statistical equilibrium approach to the US housing market with the help of the maximum entropy method of modeling is a powerful way of revealing different characteristics of the housing market behavior before, during and after the recent housing market crash in the US. In this line, a maximum entropy approach to quantal response statistical equilibrium model (QRSE) is employed in order to model housing market dynamics in different phases of the most recent housing market cycle using the S&P Case Shiller housing price index for 20 largest- Metropolitan Regions, and Freddie Mac housing price index (FMHPI) for 367 Metropolitan Cities for the US between 2000 and 2015. Estimated model parameters provide an alternative way to understand and explain the behaviors of economic agents, and market dynamics by questioning the traditional economic theory, which takes assumption for the behavior of rational utility maximizing representative agent with self-fulfilled expectations as given.


1995 ◽  
Vol 31 (8) ◽  
pp. 301-309 ◽  
Author(s):  
Govert D. Geldof

In integrated water management, the issues are often complex by nature, they are capable of subjective interpretation, are difficult to express in standards and exhibit many uncertainties. For such issues, an equilibrium approach is not appropriate. A non-equilibrium approach has to be applied. This implies that the processes to which the integrated issue pertains, are regarded as “alive”’. Instead of applying a control system as the model for tackling the issue, a network is used as the model. In this network, several “agents”’ are involved in the modification, revision and rearrangement of structures. It is therefore an on-going renewal process (perpetual novelty). In the planning process for the development of a groundwater policy for the municipality of Amsterdam, a non-equilibrium approach was adopted. In order to do justice to the integrated character of groundwater management, an approach was taken, containing the following features: (1) working from global to detailed, (2) taking account of the history of the system, (3) giving attention to communication, (4) building flexibility into the establishing of standards, and (5) combining reason and emotions. A middle course was sought, between static, rigid but reliable on the one hand; dynamic, flexible but vague on the other hand.


2019 ◽  
Vol 33 (4) ◽  
pp. 37-58 ◽  
Author(s):  
Timothy D. Haight

SYNOPSIS I examine whether firms strategically classify earnings components when reporting bad earnings news. Specifically, I examine whether firms reporting small earnings shortfalls allocate profits across their business segments in a manner that understates the future implications and within-firm drivers of disappointing earnings performance. I find that firms reporting small earnings shortfalls transfer profits toward segments in which profit rates are more informative for firm value and away from segments that operate in industries with higher frequencies of bad earnings news. In addition, I find that shortfall shifting initially tempers negative market responses to shortfall news, but pricing effects reverse in the months following shortfall announcements. My findings suggest that firms strategically classify earnings components when reporting small earnings shortfalls and that strategic classifications temporarily affect the pricing of shortfall news. Data Availability: Data are available from public sources identified in this paper.


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