Uncertain Paternity, Power Utility, and Fractional Moments: The Case of Binomially Distributed Reproductive Success

Dirk Bethmann

Uncertain Paternity, Power Utility, and Fractional Moments: The Case of Binomially Distributed Reproductive Success

Department of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

In this paper, Newton’s Theorem is used to derive a formula for the fractional moment of the binomial distribution. The formula is general enough to handle a continuous number of draws and thereby facilitates the analysis of representative agent models where discrete quantities are typically reflected by continuous variables. An application of the formula illustrates that it is eas-ily implemented and can be quickly calculated using standard mathematical software.

Original language	English
Pages (from-to)	11-22
Number of pages	12
Journal	Annals of Economics and Finance
Volume	23
Issue number	1
Publication status	Published - 2022

Keywords

Binomial Distribution
Expected Power Util-ity
Fractional Moment
Newton’s Theorem
Uncertain Paternity

ASJC Scopus subject areas

Finance
Economics and Econometrics

Cite this

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abstract = "In this paper, Newton{\textquoteright}s Theorem is used to derive a formula for the fractional moment of the binomial distribution. The formula is general enough to handle a continuous number of draws and thereby facilitates the analysis of representative agent models where discrete quantities are typically reflected by continuous variables. An application of the formula illustrates that it is eas-ily implemented and can be quickly calculated using standard mathematical software.",

keywords = "Binomial Distribution, Expected Power Util-ity, Fractional Moment, Newton{\textquoteright}s Theorem, Uncertain Paternity",

author = "Dirk Bethmann",

note = "Funding Information: *This research is supported by a Korea University Grant (K2010181). All remaining errors are my own. †Department of Economics, Korea University, Anam-dong, Sungbuk-gu, Seoul 02841,Korea. Email: dirk@korea.ac.kr. Publisher Copyright: {\textcopyright} 2022, Central University of Finance and Economics. All rights reserved.",

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N2 - In this paper, Newton’s Theorem is used to derive a formula for the fractional moment of the binomial distribution. The formula is general enough to handle a continuous number of draws and thereby facilitates the analysis of representative agent models where discrete quantities are typically reflected by continuous variables. An application of the formula illustrates that it is eas-ily implemented and can be quickly calculated using standard mathematical software.

AB - In this paper, Newton’s Theorem is used to derive a formula for the fractional moment of the binomial distribution. The formula is general enough to handle a continuous number of draws and thereby facilitates the analysis of representative agent models where discrete quantities are typically reflected by continuous variables. An application of the formula illustrates that it is eas-ily implemented and can be quickly calculated using standard mathematical software.

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Uncertain Paternity, Power Utility, and Fractional Moments: The Case of Binomially Distributed Reproductive Success

Abstract

Keywords

ASJC Scopus subject areas

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