Neutrality in the choice of number of firms or level of fixed costs in calibrating an Armington-Krugman-Melitz encompassing module for applied general equilibrium models

This paper shows how an Armington-Krugman-Melitz encompassing module based on Dixon and Rimmer (2012) can be calibrated, and clarifies the choice of initial levels for two kinds of number of firms, or parameter values for two kinds of fixed costs, that enter a Melitz-type specification can be set freely to any preferred value, just as the cases we derive quantities from given value data assuming some of the initial prices to be unity. In consequence, only one kind of additional information, which is on the shape parameter related to productivity, just is required in order to incorporate Melitz-type monopolistic competition and heterogeneous firms into a standard applied general equilibrium model. To be a Krugman-type, nothing is needed. This enables model builders in applied economics to fully enjoy the featured properties of the theoretical models invented by Krugman (1980) and Melitz (2003) in practical policy simulations at low cost.

Two Novel Methods For The Determination Of The Number Of Components In Independent Components Analysis Models

Independent Components Analysis is a Blind Source Separation method that aims to find the pure source signals mixed together in unknown proportions in the observed signals under study. It does this by searching for factors which are mutually statistically independent. It can thus be classified among the latent-variable based methods. Like other methods based on latent variables, a careful investigation has to be carried out to find out which factors are significant and which are not. Therefore, it is important to dispose of a validation procedure to decide on the optimal number of independent components to include in the final model. This can be made complicated by the fact that two consecutive models may differ in the order and signs of similarly-indexed ICs. As well, the structure of the extracted sources can change as a function of the number of factors calculated. Two methods for determining the optimal number of ICs are proposed in this article and applied to simulated and real datasets to demonstrate their performance.

The Minimum Number of Points Taking Part in k-Sets in Sets of Unaligned Points

En este trabajo se da un ejemplo de un conjunto de n puntos situados en posición general, en el que se alcanza el mínimo número de puntos que pueden formar parte de algún k-set para todo k con 1menor que=kmenor quen/2. Se generaliza también, a puntos en posición no general, el resultado de Erdõs et al., 1973, sobre el mínimo número de puntos que pueden formar parte de algún k-set. The study of k- sets is a very relevant topic in the research area of computational geometry. The study of the maximum and minimum number of k-sets in sets of points of the plane in general position, specifically, has been developed at great length in the literature. With respect to the maximum number of k-sets, lower bounds for this maximum have been provided by Erdõs et al., Edelsbrunner and Welzl, and later by Toth. Dey also stated an upper bound for this maximum number of k-sets. With respect to the minimum number of k-set, this has been stated by Erdos el al. and, independently, by Lovasz et al. In this paper the authors give an example of a set of n points in the plane in general position (no three collinear), in which the minimum number of points that can take part in, at least, a k-set is attained for every k with 1 ≤ k < n/2. The authors also extend Erdos’s result about the minimum number of points in general position which can take part in a k-set to a set of n points not necessarily in general position. That is why this work complements the classic works we have mentioned before.