Day-ahead energy market clearing relies on a deterministic equivalent model with a limited time horizon, which may lead to inefficient scheduling of generating units from the point of view of generators. For this reason, generators may wish to forgo the profit hedging offered by day-ahead...

We present a theoretical model of residential growth that emphasizes the path-dependent nature of urban sprawl patterns. The model is founded on the monocentric urban economic model and uses a cellular automata (CA) approach to introduce endogenous neighbourhood effects. Households are assumed...

A separation heuristic for mixed integer programs is presented that theoretically allows one to derive several families of " strong" valid inequalities for specific models and compuationally gives results as good as or better than those obtained from several existing separation routines...

The Ramsey model of economic growth is revisited from the point of view of viability. A viable state is a state from which there exists at least one tra jectory that remains in the set of constraints of minimal consumption and positive wealth. Viability is presented with a constraint of minimal...

Real options present a wide topic in investment litterature nowadays. However, despite big advances in the single asset investment pricing, the theory is miser of informations about problems involving more than one asset. We show in this paper that using dynamic programming, one can find an...

In the framework of consumer theory ala Lancaster, in which preferences are defined over bundles of characteristics embodied in goods rather than over goods themselves, a concept of "irrelevant" product differentiation is introduced and its relevance at equilibrium is analyzed. It is also argued...

We develop in this paper simple geometrical methods to study local indeterminacy, bifurcations and stochastic (sunspot) equilibria near a steady state, in nonlinear two dimensional economic models. We present stochastic sunspot equilibria, which allows a constructive description of local...

It is well known from the literature that the introduction of financial constraints in economies with infinite-lived agents can be responsible for the occurrence of multiple equilibria and en- dogenous fluctuations. However, the question of the persistence of such phenomena when the constraints...

Adaptive Polar Sampling (APS) is proposed as a Markov chain Monte Carlo method for Bayesian analysis of models with ill-behaved posterior distributions. In order to sample efficiently from such a distribution, location-scale transformation and a transformation to polar coordinates are used....

The maximum likelihood estimation of dynamic demand models has usually been based on the likelihood function conditional on the first observations of the dependent variables. However, this neglects information which may be necessary for identifying the long-run structure. We formulate the...