An Experimental Study of Decisions in Dynamic Optimization Problems
Abstract
In this paper we use an experimental approach to study the decisions of human subjects who are given cash incentives to solve a particular representative agent dynamic model widely studied in macroeconomics. In a representative agent dynamic model, an economy is modelled as a single decision maker, who maximizes the discounted utility of consumption over the appropriate time horizon. The assupmtion of a single decision maker in the economy removes complications resulting from the existence of multiple agents, such as inefficiencies resulting from strategic behavior or externalities, and technical difficulties arising from the aggregation of preferences.Download Info
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Paper provided by Purdue University, Department of Economics in its series Purdue University Economics Working Papers with number 1110.Length: 43 pages
Date of creation: Mar 1998
Date of revision:
Handle: RePEc:pur:prukra:1110
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Related research
Keywords: OPTIMIZATION ; DECISION MAKING ; MACROECONOMICS;Other versions of this item:
- Kenneth Matheny & Charles Noussair, 2000. "An experimental study of decisions in dynamic optimization problems," Economic Theory, Springer, vol. 15(2), pages 389-419.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Cellarier, Laurent L., 2008. "Least squares learning and business cycles," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 553-564, December.
- C. Mónica Capra & Tomomi Tanaka & Colin Camerer & Lauren Munyan & Veronica Sovero & Lisa Wang & Charles Noussair, 2005.
"The Impact of Simple Institutions in Experimental Economies with Poverty Traps,"
Emory Economics
0508, Department of Economics, Emory University (Atlanta).
- C.Mónica Capra & Tomomi Tanaka & ColinF. Camerer & Lauren Feiler & Veronica Sovero & CharlesN. Noussair, 2009. "The Impact of Simple Institutions in Experimental Economies with Poverty Traps," Economic Journal, Royal Economic Society, vol. 119(539), pages 977-1009, 07.
- C. Mónica Capra & Tomomi Tanaka & Colin F. Camerer & Lauren Munyan & Veronica Sovero & Lisa Wang & Charles Noussair, 2005. "The Impact of Simple Institutions in Experimental Economies with Poverty Traps," Levine's Bibliography 666156000000000662, UCLA Department of Economics.
- Ferruccio Ponzano & Roberto Ricciuti, 2012. "An Experimental AK Model of Growth," CESifo Working Paper Series 3744, CESifo Group Munich.
- Lei, V. & Noussair, C., 2000.
"An Experimental Test of an Optimal Growth Model,"
Purdue University Economics Working Papers
1131, Purdue University, Department of Economics.
- Vivian Lei & Charles N. Noussair, 2002. "An Experimental Test of an Optimal Growth Model," American Economic Review, American Economic Association, vol. 92(3), pages 549-570, June.
- Noussair, C.N. & Lei, V., 2002. "An experimental test of an optimal growth model," Open Access publications from Tilburg University urn:nbn:nl:ui:12-378701, Tilburg University.
- Vivian Lei & Charles N. Noussair, 2007. "Equilibrium Selection in an Experimental Macroeconomy," Southern Economic Journal, Southern Economic Association, vol. 74(2), pages 448-482, October.
- Roberto Ricciuti, 2003.
"Bringing Macroeconomics into the Lab,"
Royal Holloway, University of London: Discussion Papers in Economics
03/9, Department of Economics, Royal Holloway University of London, revised Dec 2003.
- Ricciuti, Roberto, 2008. "Bringing macroeconomics into the lab," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 216-237, March.
- Roberto Ricciuti, 2005. "Bringing Macroeconomics into the Lab," Labsi Experimental Economics Laboratory University of Siena 004, University of Siena.
- Roberto Ricciuti, 2004. "Bringing Macroeconomics into the Lab," ICER Working Papers 26-2004, ICER - International Centre for Economic Research.
- Robinson, W.T. & Min, S., 1998. "Is the First to Market the First to fail?: Empirical Evidence for Manufacturing Business," Purdue University Economics Working Papers 1115, Purdue University, Department of Economics.
- Wolfgang Luhan & Johann Scharler, 2013.
"Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study,"
Working Papers
2013-03, Faculty of Economics and Statistics, University of Innsbruck.
- Wolfgang J. Luhan & Johann Scharler, 2013. "Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study," Ruhr Economic Papers 0402, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Dawid, Herbert & Day, Richard H., 2007. "On sustainable growth and collapse: Optimal and adaptive paths," Journal of Economic Dynamics and Control, Elsevier, vol. 31(7), pages 2374-2397, July.
- John Duffy, 2008. "Macroeconomics: A Survey of Laboratory Research," Working Papers 334, University of Pittsburgh, Department of Economics, revised Mar 2008.
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