Mummolo and Peterson improve the use interpretation of fixed-effects models by pointing out that unit intercepts fundamentally reduce amount variation variables in models. Along a similar vein, we make two claims context random effects First, show potentially large reductions variation, this case caused quasi-demeaning, also occur using effects. Second, many instances, what authors claim to be ...

The value of an American option is the maximized discounted cash flows from option. At each time step, one needs to compare immediate exercise with continuation and decide as soon strictly greater than value. We can formulate this problem a dynamic programming equation, where main difficulty comes computation conditional expectations representing values at step. In (Longstaff Schwartz, 2001), t...