We offer a continuous-time contingent claims valuation framework to quantify the tax shield value of US mortgage interest deduction (MID) under uncertainty. We identify non-linear forms (both convex and concave regions) in the pay-off of MID, and discuss the implications for optimal mortgage...

We offer a novel approach for solving optimal price adjustment problems, when the underlying process is a Geometric Brownian Motion (GBM) process. Our approach relies on characterizing the cumulative cost of deviation and the cost of adjusting price until the hitting time of the lower or upper...

We exploit three major transport fuel (gasoline and diesel) subsidy reforms in Iran, as quasi-experiments, to investigate the impact of permanent upward price changes on the responsiveness of fuel consumption. We employ monthly regional-level data of fuel consumption in Iran and also explicitly...

We investigate whether virtual water trade may alleviate the initial unequal distribution of hydric resources. On average, countries that are relatively abundant (with respect to capital) in the combined availability of water and arable land are, in absolute terms, scarce in capital and rich in...