280,192 research outputs found
Equilibrium points for Optimal Investment with Vintage Capital
The paper concerns the study of equilibrium points, namely the stationary
solutions to the closed loop equation, of an infinite dimensional and infinite
horizon boundary control problem for linear partial differential equations.
Sufficient conditions for existence of equilibrium points in the general case
are given and later applied to the economic problem of optimal investment with
vintage capital. Explicit computation of equilibria for the economic problem in
some relevant examples is also provided. Indeed the challenging issue here is
showing that a theoretical machinery, such as optimal control in infinite
dimension, may be effectively used to compute solutions explicitly and easily,
and that the same computation may be straightforwardly repeated in examples
yielding the same abstract structure. No stability result is instead provided:
the work here contained has to be considered as a first step in the direction
of studying the behavior of optimal controls and trajectories in the long run
Control of Complex Economy through Fiscal Variables. Economics & Complexity - Spring - 1998 - Vol2 N1
The aim of this work is that of exemplifying some applications of the modern theory of the complexity to the economic sector; we will highlight some of the possibilities of control of chaotic systems and some of that possibilities which are opened by the study of such systems. Remembering how a simple traditional macroeconomic model can give place to deterministic chaotic phenomena we will highlight: a) how it is possible to control such a system using opportune values of the fiscal variables; b) how it is possible to foresee the trend of the objective variable through a neural network, and, therefore, subsequently to control it on the basis of the value instruments chosen by the neural network. This will be done either in the presence of casual noises or in the case of a completely deterministic model; c) finally a different and more recent method of controlling chaotic systems will be indicated.Public Finance, Complexity, Control of Economics, Macroeconomics
Fiscal spillovers in the Euro area
Copyright @ 2011 Brunel UniversityThis paper analyses the dynamic effects of fiscal imbalances in a given EMU member state on the borrowing costs of other countries in the euro area. The estimation of a multivariate, multi-country time series model (specifically a Global VAR, or GVAR) using quarterly data for the EMU period suggests that euro-denominated government yields are strongly linked with each other. However, financial markets seem to be able to discriminate among different issuers. Consequently, fiscal imbalances in Italy and in other peripheral countries should be closely monitored by their EMU partners and the European institutions
Regulating Ex Post: How Law Can Address the Inevitability of Financial Failure
Unlike many other areas of regulation, financial regulation operates in the context of a complex interdependent system. The interconnections among firms, markets, and legal rules have implications for financial regulatory policy, especially the choice between ex ante regulation aimed at preventing financial failure and ex post regulation aimed at responding to that failure. Regulatory theory has paid relatively little attention to this distinction. Were regulation to consist solely of duty-imposing norms, such neglect might be defensible. In the context of a system, however, regulation can also take the form of interventions aimed at mitigating the potentially systemic consequences of a financial failure. We show that this dual role of financial regulation implies that ex ante regulation and ex post regulation should be balanced in setting financial regulatory policy, and we offer guidelines for achieving that balance
Financial development and economic growth in an oil-rich economy: The case of Saudi Arabia
© 2014 Elsevier B.V.We investigate the effect of financial development on economic growth in the context of Saudi Arabia, an oil-rich economy. In doing so, we distinguish between the effects of financial development on the oil and non-oil sectors of the economy. Using the Autoregressive Distributed Lag (ARDL) Bounds test technique, we find that financial development has a positive impact on the growth of the non-oil sector. In contrast, its impact on the oil-sector growth and total GDP growth is either negative or insignificant. This suggests that the relationship between financial development and growth may be fundamentally different in resource-dominated economies
Pakistanâs Nuclear Weapons Program and Implications for US National Security.
This article analyzes Pakistanâs nuclear weapons program and the characteristics of the environment in which the program is nested. These characteristics include Pakistanâs history of internal and external instability; nuclear saber rattling during crises; support for Islamic terrorism in order to advance state goals; indigenous production of many elements of its nuclear forces; possession of delivery and command and control systems with destabilizing characteristics; and finally, nuclear doctrine that appears to advocate first use of nuclear weapons. The article argues that the characteristics of Pakistanâs nuclear weapons program generate threats to US national security interests. The article examines six interrelated and synergistic challenges for US national security: first, Pakistan is engaged in an arms race in Southwest Asia that has negative implications for Pakistanâs stability; second, the threat of nuclear proliferation from Pakistan continues; third, Pakistanâs arsenal characteristics make accidental and/or unauthorized nuclear war more likely; fourth, there is an ongoing possibility of war with India; fifth, Islamist influence is spreading through key sectors of Pakistani society; and finally, there is an increasing danger of state failure in Pakistan
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