We study continuous-time consumption and portfolio choice in the presence of Knightian uncertainty about interest rates. We develop the stochastic model that involves singular priors and analyze optimal behavior. When there is sufficiently large uncertainty about interest rates, the agent...

We explore the link between cyclical and smooth resource exploitation. We define an impulse control framework which can generate both cyclical solutions and steady-state solutions. Our model can admit convex and concave profit functions and allows the integration of different stock-dependent...

This note offers a new proof of the necessary conditions for fixed endpoint optimal control. Our approach simplifies the conventional derivation of the necessary conditions by using a transversality condition to ensure feasibility of modifications to the optimal path. We further prove that this...

In any dynamic model of the economy with changing population, the latter should properly be one of the state variables of the system. It enters both in the maximand, at least under total utilitarianism, and into the production function in one way or another. If population growth is exponential...

We study slow Dutch auctions, where the clock does not fall instantaneously, but instead falls over time. Buyers are assumed less patient than the seller. In a symmetric setting, we investigate the properties of the optimal revenue-maximizing clock. We find that the clock is genuinely dynamic...

We study the properties of a GEI model with nominal assets, outside money (injected into the economy as in Magill and Quinzii (J Math Econ 21:301–342, <CitationRef CitationID="CR17">1992</CitationRef>)), and multiple currencies. We analyze the existence of monetary equilibria and the structure of the equilibrium set under two different...</citationref>