This paper develops a model of optimal education choice of an agent who has an option to emigrate. Using a real options framework, we analyze the time evolution of human capital in the home country and investigate the role of migration opportunities in the accumulation of different types of...

In this paper,we discuss the implications of financing constraints for future energy and climate scenarios. Aspirations to improve energy access and electrification rates in developing countries, while simultaneously reducing green house gas emissions, can be seriously hindered by the...

We examine the incremental power of a large set of key fundamental, financial, and macroeconomic variables for forecasting the volatility of natural gas futures prices. Among other results, we find that the option implied volatility (IV) significantly improves the performance of predictions...

This paper tests the integration property of US natural gas consumption at the sector level and finds a heterogenous behavior. Residential, commercial, and power consumption are stationary. However, even after allowing for endogenous structural breaks, tests fail to reject unit-root in the...

This paper studies a resource extraction problem with capacity constraints, expansion options and stochastic demand process. The producer has to decide on the optimal rate of extraction and the optimal time to build further capacity simultaneously. Using numerical methods to solve the problem,...

We present an equilibrium model of the prices of crude oil and refined products that accounts for supply and demand shocks, the elasticity of the supply and demand markets, and the characteristics of the production and adjustment costs of refiners. We use the model to examine the relation...

We investigate whether virtual water trade may alleviate the initial unequal distribution of hydric resources. On average, countries that are relatively abundant (with respect to capital) in the combined availability of water and arable land are, in absolute terms, scarce in capital and rich in...