Controlled Options: Derivatives with Added Flexibility

Policy options for value added to different levels of production

This paper presents an analytic procedure for the value added to different production levels with different policy options. The approach is stochastic and thus provides a framework for informed decision-making on productivity growth under uncertainty conditions. The model was applied to data collected from a firm and re-sults recommend that the firm should redevelop if in diversification and sy...

Valuing flexibility in demand-side response: A real options approach

The investment interests in the electricity industry are transmitted through various mechanisms to other economic activities. This paper considers methods for esteeming the adaptability of demand-side response (DSR) in its capacity to react to future uncertainties. The capacity to evaluate this adaptability is particularly critical for vitality frameworks speculations given their extensive and ...

Flexibility options in electricity systems

Subnational Value-Added Taxes: Options for Georgia

ii Acknowledgments The authors wish to thank David Sjoquist and Sally Wallace for their valuable comments. All errors or omission, though, remain the responsibility of the authors.

Coordination and Flexibility in Supply Contracts with Options

We investigate the role of options (contingent claims) in a buyer-supplier system. Specifically using a two-period model with correlated demand, we illustrate how options provide flexibility to a buyer to respond to market changes in the second period. We also study the implications of such arrangements between a buyer and a supplier for coordination of the channel. We show that, in general, ch...