With the aid of Taylor-based approximations, this paper presents results for pricing insurance contracts by using indifference pricing under general utility functions. We discuss the connection between the resulting “theoretical” indifference prices and the pricing rule-of-thumb that practitioners use: Best Estimate plus a “Market Value Margin”. Furthermore, we compare our approximations with k...

The series solution is widely applied to differential equations onR but is not found in q-differential equations. Applying the Taylor andmultiplication rule of two generalized polynomials, we develop a series solution of linear homogeneous q-difference equations. As an example, the series solution method is used to find a series solution of the second-order q-difference equation of Hermite’s type.

The interest setting of a central bank can be explained using rule-based monetary policy. A rulebased policy framework considers major economic variables to make recommended rate. In an economy, the fluctuations in are vital indicators that signal action from bank. this paper, we scrutinize short-term rate European Central Bank (ECB) based on observed conditions. We have our analysis simple Tay...

Speaker: Gregory Arone (Virginia) Title: Part 1: operads, modules and the chain rule Abstract: Let F be a homotopy functor between the categories of pointed topological spaces or spectra. By the work of Goodwillie, the derivatives of F form a symmetric sequence of spectra ∂∗F . This symmetric sequence determines the homogeneous layers in the Taylor tower of F , but not the extensions in the tow...

This paper presents preliminary fi ndings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the author and are not necessarily refl ective of views at the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author....

This paper reexamines the role of money demand for the local dynamics of a sticky price model where money enters the utility function and monetary policy is either conducted according to a Taylor-type interest rate rule or to a Friedman-type constant money growth rule. It is shown that activeness, which is commonly recommended as a device for a stabilizing interest rate policy, leads to stable ...

This paper empirically evaluates the operational performance of the McCallum rule, the Taylor rule and hybrid rules in India over the period 1996–2011 using quarterly data, with a view to analytically informing the conduct of monetary policy. The results show that forward-looking formulations of both rules and their hybrid version setting a nominal output growth objective for monetary policy wi...

We use two different nonparametric methods to determine whether there were multiple regimes in U.S. monetary policy over the period 1955—2003. We model monetary policy using two different versions of Taylor’s rule for the nominal interest rate target. By contrast with parametric tests for regime changes, the nonparametric methods we use allow the data to determine the dimensions on which to spl...