We study in detail the log-linear return approximation introduced by Campbell and Shiller (1988a). First, we derive an upper bound for the mean approximation error, given stationarity of the log ...

We humans seem to be born with a number line in our head. But a May 30 study in Science suggests it may look less like an evenly segmented ruler and more like a logarithmic slide rule on which the ...

We describe an algorithm, based on the simplex method of linear programming, for solving the discrete l 1 approximation problem with any type of linear constraints. The numerical results reported here ...

This paper studies the theoretical underpinnings of log-linear models of relative asset demand. It shows that log-linearity provides a poor approximation - in both a global and local sense - to asset ...