The simulation studies by Lux and Marchesi (1999),(2000) of the noise trader infection model invented by Lux (1998) were among the first to demonstrate detailed agreement of the simulated time series of an artificial market with the main stylized facts of empirical asset returns, e.g. heteroscedastic returns with a realistic tail index and long memory in clustered return volatility despite uncorrelated returns. I extend their univariate model into a multivariate setup containing a second risky asset and a riskless bond, which was not available in their original model. In order to add some further realism, the investment process will be split up into asset allocation and security selection, as is common practice in financial institutions.
Two important trends are emerging in the computer industry. These are the development of object-oriented systems and the use of more complex user interface methods, especially the use of 3D computer graphics and visualization. Object-oriented systems offer the possibility to create better, more maintainable systems with reusable software components. Computer graphics offers a window into the computer and the virtual worlds created there; and when coupled with visualization, enables users to rapidly explore and understand complex systems. Taken together, these two trends will be major forces as the computer industry moves into the 21st century.
Empirical work by Card and Krueger (1994, 1995) has called the classical model of the minimum wage as a price floor into question. Their research suggests that an increase in the minimum wage may even have small positive employment effects. While there has been considerable controversy regarding their findings(See Neumark and Wascher (2000) and the reply by Card and Krueger (2000).) the evidence for strong negative employment effects from an increase in the minimum wage is surprisingly weak.
