Common Excel Link Problems

Excel indicates Runtime error '429' Active X component can't create object. 2. Excel does not start MATLAB automatically. 3. Your commands show up in Excel with errors. 4. Excel Link shuts down entirely, taking Excel with it. If you are having problems with Excel Link, try the following Check Excel Link Files and References 1. Check, and if necessary reinstall, the correct Excel Link files, using the Excel Tools Add-Ins function. If you have switched MATLAB versions, try the steps listed under...

Present Value of a Future Stream With Poisson Risk

Some business variables have a small risk of changing in each period, but if changed can cause a termination of business income, e.g., the default of a bond, the termination of a brand or franchise rights, or the destruction of crops or other products. 195 A clear explanation is found in Alpha Chiang, Fundamental Methods of Mathematical Economics, 2nd. ed. New York McGraw-Hill, 1974 , Section 13.5. 195a Among the assumptions often violated in its common use perpetual constantly-growing earning...

Fair Market Value

When we say value, we generally mean fair market value, defined as follows The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.214 It is interesting to note that, at least among taxing, finance, and valuation authorities, there is very little theoretical debate about the standard of value. The market of buyers and...

Modeling Location and Retail Sales

Introduction The Spatial Dimension in Economics This chapter explicitly and rigorously develops the spatial dimension in economics. We start by reviewing the weak development of the spatial dimension in contemporary academic economics training and compare that with both the rich historical tradition and the primary importance of location in applied economics. From this point, we follow the development of gravity models of spatial interaction from the time of Isaac Newton to today and then apply...

Applications for Finance

Half Year Convention Macrs

Finance is a field within economics, which is devoted to the study of the capitalization of enterprises and households. By capitalization we mean the various forms of financing and operating, including borrowing debt and direct investment equity . How an enterprise is financed affects its growth prospects, its current profits, and its fair market value.296 Interest in finance has grown rapidly in the past few decades, and today there are many times more workers employed in occupations more...

Drawbacks of Matlab and Simulink

In the impressive list of attributes above, there are two notable absences easy to use and inexpensive to acquire. However, economics is about trade-offs. Through this book and others recommended here, we can help the interested reader quickly use MATLAB to perform advanced analyses and create impressive graphics. It is still harder to perform simple calculations in MATLAB than it is to perform the same tasks in a spreadsheet. It is sometimes harder to perform rudimentary analysis such as a...

Complex Uncertainty Geometric Brownian Motion

The random walk behavior of the coin flip may be combined with other systematic behavior to present complex forms of uncertainty Returning to the previous example, the manager forecast revenue using a random walk with drift model, meaning that he or she took last period's level and added a 6 drift. Even if the drift was consistent over time, the path of a variable generated by a random walk with drift will not be the same except by coincidence with one generated by a deviation-around-a-trend...

Maxims of Business Economics

Economists learn a lot through detailed academic work and then receive additional practical training. When prompted about their training, I have noted that professionals early in their career recite specific academic classes as well as opportunities to learn skills. The same question, put to successful business people later in their careers, often produces a surprisingly different set of lessons that has enabled them to succeed. Most of the remainder of this book is devoted to skills in...

Matlab Scripts and Functions

Most of the work done in the MATLAB environment is performed by command files that end in the suffix .m, such as print.m. These files may have been included as part of the MATLAB software, created by the user, or created by a third party. Because of the suffix, these files are often collectively called m-files. There are two types of m-files scripts and functions. Scripts are commands that take no argument they perform exactly the same tasks each time. Scripts operate on the data already in the...

TABLE 41 Sample Excel Sheet for Inputting Data

Variable Name Amount1 Amount2 Definition Statement Evaluation Statement 200 MLEvalString D2 toolbar. However, for repeated use of similar data, this process can be automated in the same fashion as importing data. The method for reporting your data is the same as for inputting the data with the following changes 1. Define the range of cells into which you want to place the data calculated in MATLAB. Put the ap propriate headings and related formatting items in place as well. The data cells will...

Setting Up the Matlab Workspace

The first place to start with good design is the design of the workspace. Just as it is difficult to find and complete work in a disorganized office, it is easy to work in a well-organized software environment. We suggest the following ways of organizing the MATLAB software environment. 1. Create your own startup file, which should accomplish the following a. Display any greetings or messages unique to the user. An example of this is in Chapter 1, under A Simple Startup File on page 7. b....

Introduction to Simulink Models

One of the major advantages of working within the MATLAB software environment, especially with Simulink, is the ability to comprehensively model and then simulate complex, dynamic economic phenomena. By dynamic we mean changing over time. Most problems in business economics and finance involve multiple variables that change over time. Thus, simulation models are a natural and powerful tool for these problems. Simulink is not the only environment that allows simulation modeling, and indeed we...