This lengthy paper extends the author's work on optimal planning of consumption versus capital accumulation to stochastic versions of traditional continuous-time one­sector growth models. Risk is assumed to be exogenous but is otherwise specified in a very general form. An optimal plan is...

The article comments on Kenneth Arrow and Robert Lind's theory on the social costs of risky public projects. The conditions stated by Arrow and Lind as sufficient for the validity of their result include the following: (i) the government initially appropriates all benefits and pays all costs,...

In Part A of the present study, subtitled The Consumption Function as Solution of a Boundary Value Problem, Discussion Paper No. TE/96/297, STICERD, London School of Economics, we formulated a Brownian model of accumulation and derived sufficient conditions for optimality of a plan generated by...