We present a duality concept for a class of stochastic dynamic optimization problems thatespecially includes models of investment under uncertainty. This concept allows us to deriveexplicit characterizations of optimal investment behavior from an adjustment cost model withexpectations described...

In this paper, we analyze the consequences of mass and energy conservation and the second law of thermodynamics foreconomic activity. In contrast to former studies, we deduce our results formally from a general model of production andconsumption. We show that in a static setting for economies...