We characterize the optimal linear tax on capital in an Overlapping Generations model with two period lived households facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of private precautionary saving. For logarithmic utility our full analytical solution of the Ramsey problem shows that the optimal aggregate saving rate is in...

The problem of determining an optimal parameter setup at the physical layer in multi-user, multiantenna downlink is considered. An aggregate utility, which is assumed to depend on the users’ rates, is used as performance metric. It is not assumed that the utility function is concave, allowing for more realistic utility models of applications with limited scalability. Due to the structure of the...

Metal price is one of the most important parameters in the calculation of cut- off grade. The cut- off grade has the main role in determination of mine layout. Mine layout actuates mineable reserve, mine life and economic profitability. Not considering the uncertainty in metal prices can lead to a non-optimal layout. In this paper optimum underground mine layout is determined by expected utilit...

The neoclassical growth model is modiŽed to include a variable rate of time preference. With no commitment ability and log utility, the equilibrium features a constant effective rate of time preference and is observationally equivalent to the standard model. The extended framework yields testable linkages between the extent of commitment ability and the rates of saving and growth. The model als...

In this paper we propose an analytical model for managing non-cooperative or mis-behaving flows in the Internet by manipulating congestion penalties conveyed to them. We show that a penalty transformation derived from the Duality formulation of Utility Maximization problem can map a user’s utility function, , to any objective utility function, . These penalty transformation modules can be compl...

We consider the problem of maximizing expected lifetime utility from consumption of a geometric Brownian motion with variable coefficients, in the presence of controlling costs with a fixed component. Under general assumptions on the utility function and the intervention costs our main result is to show that, if the discount rate is large enough, there always exists an optimal Markovian impulse...