New Economics Papers
on Neuroeconomics
Issue of 2014‒03‒08
two papers chosen by

  1. Regional Clustering of Human Capital - School Grades and Migration of University Graduates By Tano, Sofia
  2. Time-Inconsistent Mean-Utility Portfolio Selection with Moving Target By Hanqing Jin; Yimin Yang

  1. By: Tano, Sofia (Department of Economics, Umeå School of Business and Economics)
    Abstract: The spatial distribution of human capital plays a fundamental role for regional differences in economic growth and welfare. This paper examines how individual ability indicated by the grade point average (GPA), from comprehensive school, affects the probability of migration among young university graduates in Sweden. Using detailed micro data available from the Swedish population registers, the study examines two cohorts of individuals who enrol in tertiary education. The results indicate that individual abilities reflected by the GPA are strongly influential when it comes to completing a university degree and for the migration decision after graduation. Moreover, there is a positive relationship between the GPA and the choice of migrating from regions with a relatively low tax base and a relatively small share of highly educated people in the population. Analogously, individuals with a high GPA tend to stay at a higher rate in more flourishing regions.
    Keywords: Bivariate probit; individual ability; migration; regional clustering; university graduates
    JEL: I23 J24 R23
    Date: 2014–02–26
  2. By: Hanqing Jin; Yimin Yang
    Abstract: In this paper, we solve the time inconsistent portfolio selection problem by using different utility functions with a moving target as our constraint. We solve this problem by finding an equilibrium control under the given definition as our optimal control. We firstly derive a sufficient equilibrium condition for second-order continuously differentiable utility funtions. Then we use power functions of order two, three and four in our problem and find the respective condtions for obtaining an equilibrium for our different problems. In the last part of the paper, we consider using another definition of equilibrium to solve our problem when the utility function that we use in our problem is the negative part of x and also find the condtions for obtaining an equilibrium.
    Date: 2014–02

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