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misestimate |
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Usually a firm will not join such an alliance unless it misestimates either the strategic value of external knowledge or the appropriability of its own knowledge. The earlier misestimates can result from a variety of factors, including the simplicity of the benefit approximation (the adjustments are based on changes to the benefits of workers with average earnings, rather than those whose benefits put them near the poverty line, and do not reflect several important changes in spouse and widow benefits). 2) The ability of depository institutions to average their holdings of balances at the Federal Reserve over two-week periods to meet their requirements gives them flexibility in managing their accounts from day to day, which helps limit the volatility in rates that can develop when the Desk misestimates either the supply of or demand for balances. |
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