A discrete time "resource allocation process" bearing on international negotiations relating to SO? transfrontier pollution between Finland, Russia and Estonia is formulated here as a sequence of solutions to successive non linear programs. A novel assumption concerning local information on...

This paper investigates the relation between the optimal amount of pollution permits issued by an environmental agency and the mechanisms used to trade these permits in the "secondary market". We show that when permits are traded using a quote-driven mechanism, the total amount of permits to be...

Differential equations with advanced and delayed arguments arise in the optimality conditions of continuous time growth models with delays. In this paper, we use optimal control theory with delays, and we propose a shooting method to numerically deal with this class of models. We find that for a...

In this paper, we analyze the role played by capacity utilization and maintenance costs in the propagation of aggregate fluctuations. To this purpose we use an extension of the general equilibrium stochastic growth model that incorporates a depreciation technology depending upon both capital...

In a general equilibrium framework, this paper tries to reproduce an important stylized fact of real economies: firms set prices under demand uncertainty while consumption decisions are taken when prices are already known. Under these assumptions, there is place for a quantity rationing...

In the tradition of Tobin's q models, the influence on investment of demand uncertainty and capacity constraints is analyzed in a monopolistically competitive economy. Under these conditions, the degree of capacity utilization has a positive effect on the markup rate and explains the difference...

In this paper, we stress the influence of forecasts about the real economy on financial behaviour, and more particularly on the equilibrium prices of financial assets. We adapt the Portfolio Model and the CAPM (Capital Assets Pricing Model) so as to introduce explicitly the process of...