Transient stability problem for multi-machine infinite bus system with the generator excitation was addressed via the non-certainty equivalent nonlinear re-parameterization method. The system need not to be linearized. The damping coefficient uncertainty was considered. A non-certainty equivalent excitation controller and a novel parameter updating law were obtained simultaneously via adaptive ...

The prices and allocations in two sets of asset markets experiments are studied. One set is the certainty equivalent of the other. In both sets, markets evidently price risk correctly (expected excess returns are proportional to covariance with aggregate risk) even when allocations are wrong (individual allocations do not reflect the portfolio separation predicted by theory). We explain this pr...

The use of natural resource revenues for achievement of development has been a challenging issue for resource abundant countries. These challenges stem from the fact that incomes from natural resources are non-durable, unpredictable and uncertain. Different countries have pursued various approaches and tools for managing these revenues to avoid economic fluctuations. The international organizat...

We introduce a novel simulated certainty equivalent approximation (SCEQ) method for solving dynamic stochastic problems. Our examples show that SCEQ can quickly solve high?dimensional finite? or infinite?horizon, stationary nonstationary problems with hundreds of state variables, wide space, and occasionally binding constraints. With the method, desktop computer will suffice large problems, but...

An agronomic crop growth model—the Decision Support System for Agro-Technology Transfer—and a constant relative risk aversion utility function are used to examine corn irrigation strategies in Mitchell County, Georgia. Precipitation contracts are designed to help farmers manage risk. Three conclusions originate from the findings. First, the optimal irrigation strategy can greatly increase produ...

Preference reversals occur when different (but formally equivalent) elicitation methods reveal conflicting preferences over two alternatives. This paper shows that when people have fuzzy preferences i.e. when they choose in a probabilistic manner, their observed decisions can generate systematic preference reversals. A simple model of probabilistic choice and valuation can account for a higher ...