<t>QuoteOriginally posted by: rezaMCMC vs MLEany reason to perfer one to the other?advantages/ disadvantages ... philosophical differences?for an unusual distribution, both would require simulation and would be computationally expensive ...I wonder why recently most researchers use MCMC for SV probl...

<t>Has anyone had success capturing time varying parameters using only univariate data? I have been playing around with the kalman filter and found that despite using multiple configurations of ARIMA and various asset classes (FX, equities, bonds) the state transition parameter is either highly nega...

<t>QuoteNo, you don't have the skills, you don't have the right attitude either, and your social views render you unsuitable for the work in any way. You can't be trained to do it, and if by accident you got such a job you'd be so unhappy it would be a race between you quitting and being fired. Ther...

<t>Hi I am an Econ grad student that is looking into breaking into Algo trading but am not certain if I have the correct skills for the industry. I am really good at econometrics/statistics and have self thought myself C++ skills. In the process of learning programming I have discovered that i have ...

<t>there are two ways that I can come up with (I am sure they are more ) as to why this would be the case. one reason is coordination costs. It is simply easier to coordinate action among fewer players. the possibility that one member of a group will shirk and defect (expanding capacity at the behes...

<r>1. LIBOR is specifically sensitive to perceived bank risk. As it is a short term rate, it is not as sensitive to interest rates and inflation as longer term securities.<you can do the math yourself. how much can you expect to loose if interest rates rise 1% (which is a lot in three months) on an ...

<t>if you actually bothered to read it, you would see that the paper discusses how the adjustments of capital by firms in practice can be reconciled with two theories of capital structure. in practice we cannot observe ideal levels of capital structures that firms have, only their moments towards th...

<r>Here is a good paper on the topic:<URL url="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=651345in"><LINK_TEXT text="http://papers.ssrn.com/sol3/papers.cfm? ... d=651345in">http://papers.ssrn.com/sol3/papers.cfm?abstract_id=651345in</LINK_TEXT></URL> short, it seems that agency costs dominat...

<t>Sure. Lets say that the local government wants to build a bridge and they fund that with bonds paid by foreign investors. to build a bridge it takes a few things, labour (i.e. people to build the bridge) capital (i.e. equipment used to build the bridge) and materials ( steel, concrete, etc.). by ...

<t>It is also important to remember what the government is spending the stimulus on. if the government spends 1$ on domestic resources (i.e. labour, materials, capital) that is 1$ that the private sector cannot use for its own purposes. there is a fixed amount of labour and capital for a given unit ...

<r>the external "external factors" high commoditiy/energy prices, weakened currency are entirely under the control of the BOE. If they want a stronger currency, they can just print less of it. it is a simple supply and demand picture. if you go to <URL url="http://www.bankofengland.co.uk/markets/bal...

<t>In QE 1, (QE 2 is a bit different) the fed was buying mortgages from the banks outright who then placed those moneys in the central bank. A substitution of balance sheets between the fed and the banks if you will. this money (1 trillion) is just sitting there and not floating around the economy. ...

<r> I can understand why it is confusing but i suggest that you ignore ANY THING that the popular media says about such topics. The topic is simply too complicated for it to be conveyed profitably in a major media outlet. If you want to better understand monetary policy I highly suggest that you rea...

I am not sure that the statement is correct. It is hard for me to see how t-bills impact consumer loans as banks do not get funding from t-bills. my car loan is quoted in LIOBOR + spread, not the treasury rate.

you can try looking at oil futures:http://www.cmegroup.com/trading/energy/ ... crude.html