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on Computational Economics |
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Issue of 2008‒09‒05
two papers chosen by |
| By: | Shan Chen (Department of Economics, University of Waterloo); Margaret Insley (Department of Economics, University of Waterloo) |
| Abstract: | This paper investigates a regime switching model of stochastic lumber prices in the context of an optimal tree harvesting problem. Using lumber derivatives prices, two lumber price models are calibrated: a regime switching model and a single regime model. In the regime switching model, the lumber price can be in one of two regimes in which different mean reverting price processes prevail. An optimal tree harvesting problem is specified in terms of a linear complementarity problem which is solved using a fully implicit finite difference, fully-coupled, numerical approach. The land value and critical harvesting prices are found to be significantly different depending on which price model is used. The regime switching model shows promise as a parsimonious model of timber prices that can be incorporated into forestry investment problems. |
| Keywords: | optimal tree harvesting, regime switching, calibration, lumber derivatives prices, fully implicit finite difference approach |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:08003&r=cmp |
| By: | Tom Mustillo (Indiana University-Purdue University Indianapolis); Sarah Mustillo (Purdue University.) |
| Abstract: | Stata can be used as a companion to relational database programs to compute and serve up statistical and non-standard functions for live public use. This session builds upon previous North America Stata Users Group meetings on “Translating Data between MySQL and Stata” (2004), “Working with ODBC Data Sources in Stata” (2004), and “Integrating Stata with Database Management Systems” (2005) by demonstrating how a Microsoft Access database of electoral data can call up Stata do files to compute and/or estimate alternative measures of political party nationalization. This database uses Stata to compute Jones and Mainwaring’s (2003) measure of “Party Nationalization” using the egen_inequal command and Morgenstern and Potthoff’s (2005) measure of the “Components of Elections” using xtmixed. More generally, where data reside live and for broad public consumption, Stata can play a valuable role operating behind the scenes for non-technical users where measures of conceptual value cannot be generated from within the database environment. |
| Date: | 2008–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:boc:nsug08:13&r=cmp |