scholarly journals Saddlepoint Problems in Continuous Time Rational Expectations Models: A General Method and Some Macroeconomic Examples

Econometrica ◽  
1984 ◽  
Vol 52 (3) ◽  
pp. 665 ◽  
Author(s):  
Willem H. Buiter
Keyword(s):  
Continuous Time ◽  
Rational Expectations ◽  
Saddlepoint Problems ◽  
General Method

EXCESS CAPACITY IN POST ENTRY COURNOT COMPETITION

2002 ◽  
Vol 04 (02) ◽  
pp. 101-118 ◽  
Author(s):  
JACQUES THÉPOT
Keyword(s):  
Continuous Time ◽  
Rational Expectations ◽  
Comparative Test ◽  
Excess Capacity ◽  
Continuous Time Model ◽  
Time Model ◽  
Nash Strategies ◽  
Linear Demand ◽  
Post Entry ◽  
Established Firm

This paper discusses the occurrence of excess capacity in a post entry duopoly continuous time model when capacity building is irreversible. It is proved that the Cournot–Nash strategies used by firms may induce persistent capacity for the established firm. In the linear demand case, the investment periods of the established firm and the entrant are analytically derived. These results generalize findings of Spulber (1981). A comparative test in terms of rational expectations of quantities is designed to characterize excess capacity occurrence.

scholarly journals Rational Expectations Estimation of Georgia Soybean Acreage Response

1995 ◽  
Vol 27 (2) ◽  
pp. 500-509 ◽  
Author(s):  
Nicolas B. C. Ahouissoussi ◽  
Christopher S. McIntosh ◽  
Michael E. Wetzstein
Keyword(s):  
Response Function ◽  
Method Of Moments ◽  
Rational Expectations ◽  
Futures Prices ◽  
Crop Acreage ◽  
Government Programs ◽  
Demand Shocks ◽  
General Method Of Moments ◽  
General Method ◽  
Significant Factors

AbstractThe general method of moments procedure is used for estimating a soybean acreage response function assuming that producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

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