Models use for natural resources prices usually preclude the possibility of large changes (jumps) resulting from discrete, unexpected events. To test for the presence of jumps and ARCH effects, we propose to use bounds and bootstrap test techniques, thus solving the unidentified nuisance...

The main result of this paper is that when two asymmetric regions compete in pollution taxes to attract a polluting firm, optimal location will happen under complete information but not necessarily under incomplete information. It is shown that incomplete information on regions' pollution costs...

This paper expands on the theory of irreversible investment under uncertainty, incorporating capacity constraints and uncertainty of input price. No restriction on the demand elasticity value is imposed. Assuming that the input price follows a geometric Brownian motion, the optimal irreversible...