This paper extends Slutsky’s classic work on consumer theory to a random horizon stochastic dynamic framework in which the consumer has an inter-temporal planning horizon with uncertainties in future incomes and life...This paper extends Slutsky’s classic work on consumer theory to a random horizon stochastic dynamic framework in which the consumer has an inter-temporal planning horizon with uncertainties in future incomes and life span. Utility maximization leading to a set of ordinary wealth-dependent demand functions is performed. A dual problem is set up to derive the wealth compensated demand functions. This represents the first time that wealth-dependent ordinary demand functions and wealth compensated demand functions are obtained under these uncertainties. The corresponding Roy’s identity relationships and a set of random horizon stochastic dynamic Slutsky equations are then derived. The extension incorporates realistic characteristics in consumer theory and advances the conventional microeconomic study on consumption to a more realistic optimal control framework.展开更多
Multiple objectives to be optimized simultaneously are prevalent in real-life problems. This paper develops a new Pareto Method for bi-objective optimization which yields analytical solutions. The Pareto optimal front...Multiple objectives to be optimized simultaneously are prevalent in real-life problems. This paper develops a new Pareto Method for bi-objective optimization which yields analytical solutions. The Pareto optimal front is obtained in closed-form, enabling the derivation of various solutions in a convenient and efficient way. The advantage of analytical solution is the possibility of deriving accurate, exact and well-understood solutions, which is especially useful for policy analysis. An extension of the method to include multiple objectives is provided with the objectives being classified into two types. Such an extension expands the applicability of the developed techniques.展开更多
Economies of scale,economies of scope,and technology spillover are decisive eco-nomic elements that are crucial to the development in the Fintech industry.Thesepositive externalities are often realized through network...Economies of scale,economies of scope,and technology spillover are decisive eco-nomic elements that are crucial to the development in the Fintech industry.Thesepositive externalities are often realized through network links.In this paper,we presenta dynamic network offinancialfirms which exhibits these decisive elements.Thenetwork game equilibria are characterized.A Pareto efficient solution involving col-laboration of allfirms is provided.To obtain a fair-share distribution of cooperativegains,the Shapley value is adopted as the sharing mechanism.Payoff distributionmechanisms which guarantee the fulfilment of the Shapley value distribution in eachstage of the cooperation duration are derived.展开更多
文摘This paper extends Slutsky’s classic work on consumer theory to a random horizon stochastic dynamic framework in which the consumer has an inter-temporal planning horizon with uncertainties in future incomes and life span. Utility maximization leading to a set of ordinary wealth-dependent demand functions is performed. A dual problem is set up to derive the wealth compensated demand functions. This represents the first time that wealth-dependent ordinary demand functions and wealth compensated demand functions are obtained under these uncertainties. The corresponding Roy’s identity relationships and a set of random horizon stochastic dynamic Slutsky equations are then derived. The extension incorporates realistic characteristics in consumer theory and advances the conventional microeconomic study on consumption to a more realistic optimal control framework.
文摘Multiple objectives to be optimized simultaneously are prevalent in real-life problems. This paper develops a new Pareto Method for bi-objective optimization which yields analytical solutions. The Pareto optimal front is obtained in closed-form, enabling the derivation of various solutions in a convenient and efficient way. The advantage of analytical solution is the possibility of deriving accurate, exact and well-understood solutions, which is especially useful for policy analysis. An extension of the method to include multiple objectives is provided with the objectives being classified into two types. Such an extension expands the applicability of the developed techniques.
文摘Economies of scale,economies of scope,and technology spillover are decisive eco-nomic elements that are crucial to the development in the Fintech industry.Thesepositive externalities are often realized through network links.In this paper,we presenta dynamic network offinancialfirms which exhibits these decisive elements.Thenetwork game equilibria are characterized.A Pareto efficient solution involving col-laboration of allfirms is provided.To obtain a fair-share distribution of cooperativegains,the Shapley value is adopted as the sharing mechanism.Payoff distributionmechanisms which guarantee the fulfilment of the Shapley value distribution in eachstage of the cooperation duration are derived.
