This paper analyzes the optimal time to abandon a fixed exchange rate regime in response to a fiscal shock that renders … large fiscal shock it is optimal to abandon the peg as soon as the shock occurs, regardless of the level of international … fiscal shock plays no direct role in the decision to abandon the peg and matters only insofar as it affects the speed at …

This paper aims to investigate rare natural disasters and studies adaptation decisions in a dynamic stochastic economy … non-productive but alleviates the damage caused by a rare natural disaster. We present a modeling way to include uncertain … rare natural disasters in discrete time and solve the model by using the time iteration collocation with the adaptive …