SALPMPE
Class ApproxLP.prob

java.lang.Object
  SALPMPE.ApproxLP.prob

Enclosing class:

ApproxLP

public static class ApproxLP.prob
extends java.lang.Object

Defines the transition dynamics for the model (subclass).

Version:

2.0

Field Summary

(package private) double	Down Probability of decreasing quality level
(package private) double	Stay Probability of maintaining quality level
(package private) double	Up Probability of increasing quality level

Constructor Summary

ApproxLP.prob()
Initialize the transition probability structure.

Method Summary

void	setProb(double investment, int level, double inGamma) Sets up transition probabilities depending on the investment decision and the current quality of the firm.

Methods inherited from class java.lang.Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Field Detail

Up

double Up

Probability of increasing quality level

Stay

double Stay

Probability of maintaining quality level

Down

double Down

Probability of decreasing quality level

Constructor Detail

ApproxLP.prob

public ApproxLP.prob()

Initialize the transition probability structure.

Method Detail

setProb

public void setProb(double investment,
                    int level,
                    double inGamma)

Sets up transition probabilities depending on the investment decision and the current quality of the firm. This is the model used in Farias, Saure and Weintraub (2011).

Parameters:

investment - Investment decision.

level - Quality of the firm.

inGamma - Appreciation factor