As part of the Kyoto Protocol, many countries have committed themselves to substantially reduce the emission of greenhouse gases within a politically imposed time constraint. Investment subsidies can be an important instrument to stimulate the adoption of energy-saving technologies to achieve...

We demonstrate the possibility of shake-out of firms and emergence of inter-firm heterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with free entry and exit, even when there is no uncertainty and all firms are ex ante identical with perfect foresight....

This article surveys results established to date for the "criterion filtering" approach to adaptive control. Criterion filtering bypasses the usual preliminary updating of probability distributions via transitional probability assessments (Bayes' rule) and focuses instead on the direct updating...