We study merchant energy production modeled as a compound switching and timing option. The resulting Markov decision process is intractable. State-of-the-art approximate dynamic programming methods applied to realistic instances of this model yield policies with large optimality gaps that are...

Escalating geopolitical tensions between countries may lead to a country’s adoption of foreign economic policies that promote economic decoupling from the rival country. Our study examines which multinational enterprises (MNEs) tend to embrace their home government’s decoupling policies in...

This paper examines the implications of fuel subsidy removal in an oil-producing economy, focusing on the central bank's response to volatile oil prices. Using a Markov-switching dynamic stochastic general equilibrium model, we analyze the welfare effects of this policy change under different...