We consider a multinational firm that seeks to maximize its total amount of interest tax shield while following a constant debt ratio policy on a global level. The firm's total interest tax shield can then be considered as a piecewise-linear increasing function that is concave with respect to...

Saudi Arabia aims to reduce the growth of its energy demand. This paper shows how to substantially reduce the current fuel consumption and economic inefficiencies in the Saudi energy system, without altering consumer prices. We use the newly-developed KAPSARC Energy Model, a multi-sector...

Using a multi-sector equilibrium model of the Saudi energy system that handles administered prices in a mixed-complementarity formulation, we present results from a set of policy scenarios where end consumer prices are not altered. Some of these scenarios are the solutions to Mathematical...

We examine quarterly oil price forecasts from the Survey of Professional forecasters by the European Central Bank. We find statistical evidence at short forecast horizons that oil price volatility observed ex post explains ex-ante disagreement between oil price forecasters of the ECB's...

Analysts can use various methods to value an investment project including the standard weighted average cost of capital (WACC) method, the Arditti-Levy method, the equity residual method, and the Adjusted Present Value. We propose a unique formulation from which these methods can be derived....