Financial regulators are increasingly taking aim at the culture of Wall Street by demanding risk mitigation. Proprietary trading with its accompanying lucrative and yet risky operations was one of the key drivers of the 2008 financial crisis. Several banks traded for their own gains at extremely...

Using an option pricing framework, we extend Stock and Wise (1990)’s and Fraser, Jennings, and King (2000)’s into a new model that shows how different forms of price indexing alter the calculation of the present values of Social Security benefits. We find that, under the current method (wage...

Recent developments of technologies for extracting oil and natural gas from shale formations are changing the global energy landscape. In light of notable progress in fracking technology, oil imports have dropped to the lowest level in 20 years within the U.S., propelling it on the path to...

Regime-switching Levy processes integrate jump-diffusions and Markov regime-switchings. When they are coalesced with nonlinear partial differential equations of second order, the technique of viscosity solutions proves critical in the resolution process. However, applications to carbon policies...

Rising global oil production is contributing to the increase of domestic revenues through a variety of fiscal mechanisms in many governments around the world. Concomitantly, the global low-carbon transition is compelling the same governments to require special taxes such as carbon tax on oil...

Even though worldwide greenhouse gas emissions have significantly declined because of COVID-19 pandemic-related restrictions, emissions are likely to return to pre-pandemic levels if govern- ments do not prioritize policies that address climate change. An illustration is the new U.S....

While the role of organizational learning in improving firms’ performance is well documented, there are still questions surrounding the dominant forces driving technological learning. This is particularly true in the electricity industry where the growth of renewable technologies has been...

In this paper, we use a structural credit risk model developed by Geske (1977) and generalized by Chen et al. (2014) to assess the delinquency risk of U.S. Treasury debt implied by U.S. sovereign CDS spreads. We also use the fitted structural model to determine the implied debt ceiling for the...

This paper formulates a model that assesses the economic and policy implications of the adoption and operation of microgrids. The recent climate agreement between the US and China as well as the historic Lima accord on climate change are prompting a massive demand in climate- friendly...