This paper studies optimal investment and dynamic behaviour of stochastically growing economies. We assume neither convex technology nor bounded support of the productivity shocks. A number of basic results concerning the investment policy and the Ramsey–Euler equation are established. We also prove a fundamental dichotomy pertaining to optimal growth models perturbed by standard econometric sh...

Generalized stability theory is applied to a simple dynamical model of interannual ocean–atmosphere variability in the southern midlatitudes to determine the perturbations that create the most rapid growth of energy in the system. The model is composed of a barotropic quasigeostrophic atmosphere coupled to a 1.5-layer quasigeostrophic ocean, each linearized about a zonally invariant mean state,...

Methods are described for transient growth analysis of flows with arbitrary geometric complexity, where in particular the flow is not required to vary slowly in the streamwise direction. Emphasis is on capturing the global effects arising from localized convective stability in streamwise-varying flows. The methods employ the ‘timestepper’s approach’ in which a nonlinear Navier–Stokes code is mo...

Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut Internationa...

Some recent evidence on government finance statistics of European countries suggests that countries with public debt issues also show a low tax revenue-GDP ratio. In this paper we develop a small open economy model of endogenous growth in which the engine of growth is public spending. We assume that government can finance public expenditures by borrowing on imperfect international financial mar...

Potential relative increment (PRI) is a new method to derive optimal diameter growth equations using inventory information from a large public database. Optimal growth equations for 24 species were developed using plot and tree records from several states (Michigan, Minnesota, and Wisconsin) of the north central US. Most species were represented by thousands of individuals measured across an ex...