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It is assumed that the change in unobservable equilibrium unemployment follows a random walk process given by (12) and (13).
Fortunately, the analysis is simplified by the equivalence between optimal linear incentive contracts and generalized least squares (GLS) estimates of the agents' unobservable acts.
Once the unfamiliarity of thinking about estimating parameters of unobservable distributions diminishes, practitioners will find it easier to do appraisals based on the random variable concept rather than the more confusing and contentious verbal definitions.
Identity and Motive: The Problem of the "Unobservable Observer"
To the author's knowledge, this is the first study that analyzes the insurance market with four unobservable types.
In this equilibrium, nations whose unobservable military capabilities fall between the thresholds pil and pih or between pjl and pjh do not want to fight; nevertheless, they respectively make and resist demands in the hope of gaining a negotiated settlement.
A DES system is considered as diagnosable if it is possible to identify, within a finite delay, occurrences of precise unobservable events that are referred to as fault events [25].
The government would like to encourage the best firms, but policies have to work despite the asymmetric information and unobservable inputs, and need to distinguish productive firms from less productive ones.
are some of the means of acquiring knowledge about unobservable phenomena.
According to Airwars, the coalition failed to properly assess 'unobservable' civilian harm in urban fighting and relied on remote analysis, which did not allow non-combatant damage in residential areas to be realistically estimated.
He argued that there was a distinction in science made between two components of a thing: its observable and unobservable parts.
Mathematical realists might reply that an empirical refutation of a scientific theory does not mean that all unobservable entities of the theory are discarded.