In this note we sketch a dynamic framework within which the discussion on the macroeconomic effects of climate change take place. The problem setting is characterized by scientific uncertainties about the development of climate, potential large economic losses and human beings having their...

We will show by means of an example that, stated this way, this assertion is in general not correct. Therefore, we reconsider in this paper first the conditions under which the finite-planning- horizon linear-quadratic differential game has an open-loop Nash equilibrium solution. We present both...

Toward the late 1990s, several research groups independently began developing new, related theories in mathematical finance. These theories did away with the standard stochastic geometric diffusion "Samuelson" market model (also known as the Black-Scholes model because it is used in that most...