Stochastic equilibrium solution for a debt management problem with currency devaluation

A Benders\' Decomposition Based Solution Method for Solving User Equilibrium Problem: Deterministic and Stochastic Cases

The traffic assignment problem is one of the most important problems for analyzing and optimizing the transportation network to find optimal flows. This study presented a new formulation based on a generalized Benders' decomposition approach to solve its important part, i.e. user equilibrium problems, in deterministic and stochastic cases. The new approach decomposed the problem into a master p...

Global Production and Currency Devaluation

This simple paper models the production allocation choices of a multinational enterprise (MNE) in a three-country framework -a northern country and two southern countries. The products made in the southern countries are of lower quality, and have higher substitutability than those between the south and the north. We investigate how exchange rates affect production, employment, profits and welfa...

Transaction Costs, Multiple Equilibria, and Currency Devaluation

This paper attempts to examine the effect of a currency devaluation on domestic output by incorporating the Coase (1937) assertion into a standard open economy model. Our results show that there will be multiple equilibria in the labor market, i.e. low or high employment equilibrium, because of transaction cost externalities. If the labor market is in the high-employment equilibrium, a currency...

A Closed-Form Solution for Options with Stochastic Volatility with Applications to Bond and Currency Options

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A Stochastic Optimization Model for Groundwater Management