We built a general equilibrium endogenous growth model in which final goods are produced either in the relatively skilled-labour intensive exports sector or in the relatively unskilled-labour intensive domestic sector. We show that, by affecting the technological-knowledge bias, subsidies...

We propose a framework to solve dynamic nonlinear infinite-horizon models like those found in the standard economic growth literature. We employ a direct method to solve the underlying optimal control problem, something novel in the economic literature. Instead of deriving the necessary...

The Minimum Cost Network Flow Problem (MCNFP) includes a wide range of combinatorial optimization problems. Many applications exist for MCNFPs for instance supply chains, logistics, production planning, communications and transportations. Concave costs are, in many applications, more realistic...

We derive a closed-form solution for the price of a European call option in the presence of ambiguity about the stochastic process that determines the variance of the underlying asset's return. The option pricing formula of Heston (1993) is a particular case of ours, corresponding to the case in...

This article analyses the contribution of E3 models to fully understand the complex relationship between the environment, economics and the energy sector. We present a survey of the literature on these models, analyzing the assumptions, features and scope of the main kinds of methodological...

Literature on dynamic portfolio choice has been finding that volatility risk has low impact on portfolio choice. For example, using long-run U.S. data, Chacko and Viceira (2005) found that intertemporal hedging demand (required by investors for protection against adverse changes in volatility)...

Scientific literature is prolific both on exact and on heuristic solution methods developed to solve optimization problems. Although the former methods have an indisputable theoretical value when it comes to solve large realistic combinatorial optimization problems they are usually associated...

The Hop-constrained Minimum cost Flow Spanning Tree (HMFST) problem is an extension of the Hop-Constrained Minimum Spanning Tree problem since it considers flow requirements other than unit flows. Given that we consider the total costs to be nonlinearly flow dependent with a fixed-charge...

The Portuguese banking sector has been recently subjected to important structural changes. The diversification of the supply of financial services, the specialization phenomena and the growing importance of new technologies are changing the sector dramatically. A profit perspective is used to...

In this work we address the facility network restructuring problem. This problem is closely related to location/allocation and set covering problems. However, none of the above includes all its complexity nor involves all the decision types. Due to the presence of economies of scale, another...