This paper will demonstrate how European and American option prices can be computed under the jump-diffusion model using the radial basis function (RBF) interpolation scheme. The RBF interpolation scheme is demonstrated by solving an option pricing formula, a one-dimensional partial...

We argue that although UK monetary policy can be described using a Taylor rule in 1992- 2007, this rule fails during the recent financial crisis. We interpret this as reflecting a change in policymakers’ preferences to give priority to stabilising the financial system. Developing a model of...

The term anti-Americanism has become common in public and academic debate in the last decade. Yet we have only limited knowledge of those who hold such views. From 2003, 2005 and 2006 Eurobarometer data, almost 20% of EU respondents disapproved of USA policy in all five dimensions the surveys...

In neoclassical economics, individuals are assumed to perceive tax payments as commensurate with any other payment. This paper challenges this assumption. Individuals are more likely to identify with the community when they pay a higher share of their income in tax and when compliance is also an...

We propose a discrete choice model of sustainable transitions from dirty to clean technologies. Agents can adopt one technology or the other, under the influence of social interactions and network externalities. Sustainable transitions are addressed as a multiple equilibria problem. A pollution...

We undertake the first empirical investigation of the relationship between the slope of the wagetenure profile and the level of monitoring. On the assumption that firms strive for the optimal trade-off between these various instruments, we hypothesise that increased monitoring leads to a decline...

A political economy model is presented that proposes an effective explanation as to why national allocation plans in the emissions trading scheme of the European Union have taken the form they have. The influence of the national bureaucracy, which is omitted in the majority of the related...