An Experimental Study of Decisions in Dynamic Optimization Problems

Charles Noussair, K. Matheny and M. Olson

Purdue University Economics Working Papers from Purdue University, Department of Economics

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.

Keywords: OPTIMIZATION; DECISION MAKING; MACROECONOMICS (search for similar items in EconPapers)
JEL-codes: C61 D91 (search for similar items in EconPapers)
Pages: 43 pages
Date: 1998-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://business.purdue.edu/research/Working-papers-series/Year-1998/1110.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://business.purdue.edu/research/Working-papers-series/Year-1998/1110.pdf [301 Moved Permanently]--> https://business.purdue.edu/research/working-papers-series/Year-1998/1110.pdf)

Related works:
Journal Article: An experimental study of decisions in dynamic optimization problems (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pur:prukra:1110

Access Statistics for this paper

More papers in Purdue University Economics Working Papers from Purdue University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Business PHD ().