Sandal, Leif Kristoffer; Steinshamn, Stein Ivar - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2004
The effects of discounting, stochasticity, non-linearities and maximum decay upon an optimal corrective tax are analyzed using stochastic dynamic optimization. Optimal corrective taxes are derived as explicit feedback control laws in the presence of both flow and stock externalities when the...