In this paper we develop a bioeconomic model of timber harvesting that includes dynamic interactions between mountain pine beetle (MPB) and a lodgepole pine forest with a disaggregated size structure. The model is used to investigate the consequences of alternative public management strategies on forest dynamics in the presence of MPB outbreaks. Management practices similar to those commonly pr...

This paper considers a general class of discounted Markov stochastic games characterized by multidimensional state and action spaces with an order structure, and one-period rewards and state transitions satisfying some complementarity and monotonicity conditions. Existence of pure-strategy Markov (Markov-stationary) equilibria for the …nite (in…nite) horizon game, with nondecreasing –and possib...

We contribute to the understanding of marine reserves and the management of renewable resources with uncertainty. We show that the key benefit of reserves is that they increase resilience, or the speed it takes a population to return to a former state following a negative shock. Resilience can also increase resource rents even with optimal harvesting. We contradict the accepted wisdom that rese...

This paper studies the dynamics of fundamental research. We develop a simple model where researchers allocate their effort between improving existing fields and inventing new ones. A key assumption is that scientists derive utility from recognition from other scientists. We show that the economy can be either in a regime where new fields are constantly invented, and then converges to a steady s...

This paper provides a uni…ed framework to study how capital adjustment costs and uncertainty a¤ect investment dynamics and capital accumulation. It considers an ongoing …rm with stochastic downward sloping demand curve and facing three possible forms of adjustment costs: complete or partial irreversibility, …xed costs of undertaking any investment and the traditional quadratic adjustment costs....

This paper analyses the optimal timing of switching between alternative and consecutive regimes in optimal growth models. We derive the appropriate necessary conditions for such problems by means of the standard techniques from calculus of variations and some basic properties of Sobolev spaces. Keywords: Multi-stage optimal control, Sobolev spaces, Optimal growth models JEL classi…cation: C61; ...

This paper uses mixed combinatorial-cum-real particle swarm method to obtain a heuristically optimal order in which the constituent variables can be arranged so as to yield some generalized maximum entropy synthetic indicators that represent the constituent variables in the best information-theoretic sense. It may help resolve the arbitrariness and indeterminacy of Pena’s method of construction...

In this paper we argue that in realistically calibrated two period general equilibrium models with incomplete markets CAPM-pricing provides a good benchmark for equilibrium prices even when agents are not mean-variance optimizers and returns are not normally distributed. We numerically approximate equilibria for a variety of di erent speci cations for preferences, endowments and dividends and c...

The rise in online social networking has brought about a revolution in social relations. However, its effects on offline interactions and its implications for collective well-being are still not clear and are under-investigated. We study the ecology of online and offline interaction in an evolutionary game framework where individuals can adopt different strategies of socialization. Our main res...

This paper investigates the decision of an automaker concerning the alternative promotion of a hybrid vehicle (HV) and a full electric vehicle (EV). We evaluate the HV project by considering the option to change promotion from the HV to the EV in the future. The results not only extend previous findings concerning American options on multiple assets, but also include several new implications. O...