We consider a general class of endogenous growth models with infinitely lived households and analyze how different budgetary rules affect the stability of the economy. We show that a discretionary fiscal policy implies that the government always violates its inter-temporal budget constraint along a balanced growth path, whereas a balanced budget rule tends to stabilize the economy. A rule based...

Grids are emerging as a promising solution for resource and computation demanding applications. However, the heterogeneity of resources in Grid computing, complicates resource management and scheduling of applications. In addition, the commercialization of the Grid requires policies that can take into account user requirements, and budget considerations in particular. This paper considers a bas...

We consider a loss system with a fixed budget for servers. The system owner’s problem is choosing the price, and selecting the number and quality of the servers, in order to maximize profits, subject to a budget constraint. We solve the problem with identical and different service rates as well as with preemptive and non-preemptive policies. In addition, when the policy is preemptive we prove t...

We develop a model of budget allocation for permanent and contingent workforce under stochastic demand. The level of permanent capacity is determined at the beginning of the horizon and is kept constant throughout whereas the number of temporary workers to be hired must be decided in each period. Compared to existing budgeting models, this paper explicitly considers a budget constraint. Under t...

where Q is the firm’s output, K is quantity of the firm’s capital input and L is the quantity of the firm’s labor input. The constants, α, β and A are all positive and we also assume that α+ β = 1. If the prices per unit of capital and labor are pK and pL, respectively, and the firm’s production budget is B, then how should the firm allocate its budget to maximize its output? The constraint in ...

We analyze effects of public debt in a basic endogenous growth model with productive public spending. We demonstrate that a discretionary policy violates the inter-temporal government budget constraint along a balanced growth path. A balanced government budget gives a unique saddle point stable growth path. With a rule based policy, two saddle point stable balanced growth paths can occur, depen...

In this paper, we consider the revealed preferences problem from a learning perspective. Every day, a price vector and a budget is drawn from an unknown distribution, and a rational agent buys his most preferred bundle according to some unknown utility function, subject to the given prices and budget constraint. We wish not only to find a utility function which rationalizes a finite set of obse...

In this paper the problem of maximal increase of system reliability is formulated as a resource allocation problem under a budget constraint. Dynamic programing is used for the optimal solution. Time to system failure is dictated by a Markov process. The system is composed of several subsystems. Each subsystem has several possible configurations that exhibit different levels of fault tolerance ...

A major challenge faced by marketers attempting to optimize their advertising campaigns is to deal with budget constraints. The problem is even harder in the face of multidimensional budget constraints, particularly in the presence of many decision variables involved and the interplay among the decision variables through such constraints. Concise bidding strategies help advertisers deal with th...

The Real Options approach has proved to be a suitable methodology for capturing the flexibility in the investment decision process. This is very useful for the financial evaluation of R&D projects where there are several possible decisions concerning to the investment – delaying, improving or abandoning. Since the risk of an R&D project is usually due to singular characteristics of the project ...