Public owners face a constant demand for developing new projects and for funding the renewal, maintenance and operation of existing infrastructure projects. One way to raise capitals to provide new financial resources to constrained budgets is to securitize a stream of revenue cash flows from a...

We develop a macroeconomic model with adverse selection. A continuum of households purchase goods from a continuum of anonymous producers. The quality of products can only be learned after trade. Adverse selection arises as low-quality goods deliver higher profits for producers but are less...

Carbon emissions, per capita carbon emissions, and carbon emissions per unit GDP are traditionally used as indicators of the real carbon emission of a region. However, input variables such as capital and labor and influential factors such as the industrial structure and regional differences are...

Renewable energy systems depend on large financial incentives to compete with conventional generation methods. Market-based incentives, including state-level REC markets and international carbon markets have been proposed as solutions to increase renewable energy investment. In this paper we...

In integrated project delivery methods such as build-operate-transfer (BOT), a thorough financial risk analysis model should incorporate completion risk analysis into operation risk analysis as the timing of financial events such as refinancing and debt servicing depend on the construction...

Assessment of BOT project financial risk is generally performed by combining Monte Carlo simulation with discounted cash flow analysis. The outcomes of this risk assessment depend, to a significant extent, upon the total project uncertainty, which aggregates aleatory and epistemic uncertainties...

We study the effect of the red card in a soccer game. A red card is given by a referee to signify that a player has been sent off following serious misconduct. The player who has been sent off must leave the game immediately and cannot be replaced during the game. His team must continue the game...

In this paper we studyy arithmetic Asian options when the underlying stock is driven by special semimartingale processes. We show that the inherently path dependent problem of pricing Asian options can be transformed into a problem without path dependence in the payoff function. We also show...

Optimal trading strategies are found for an insider who is trading in two convergent stocks and is bound by margin constraints.

We study drawdowns and rallies of Brownian motion. A rally is defined as the difference of the present value of the Brownian motion and its historical minimum, while the drawdown is defined as the difference of the historical maximum and its present value. This paper determines the probability...