We consider the problem of a government that wants to manage the country's debt-to- GDP (gross domestic product) ratio. The latter evolves stochastically in continuous time, and its drift is given by the interest rate on government debt, net of the growth rate of GDP. We further allow the...

In this paper we propose and solve an optimal dividend problem with capital injections over a finite time horizon. The surplus dynamics obeys a linearly controlled drifted Brownian motion that is reflected at zero, dividends give rise to time-dependent instantaneous marginal profits, whereas...

We study economies in which agents face Knightian uncertainty about state prices. Knightian uncertainty leads naturally to nonlinear expectations. We introduce a corresponding equilibrium concept with sublinear prices and prove that equilibria exist under weak conditions. In general, such...

We formulate a notion of doubly reflected BSDE in the case where the barriers xi and zeta do not satisfy any regularity assumption. Under a technical assumption (a Mokobodzki-type condition), we show existence and uniqueness of the solution. In the case where xi is right upper-semicontinuous and...

This paper studies the implications of a segmented labor market with efficient wage-employment bargaining on the internal labor market and a competitive external labor market on the temporary equilibrium of a closed monetary macroeconomy of the AS-AD type with government activity, fiat money,...

Empirical studies show that female workers are under-represented in highest hierarchical positions of companies, which is known as the glass-ceiling effect. In this study we investigate the relationship between social networks and the glass-ceiling effect. Specifically, we develop an equilibrium...

We study a model of transmission of continuous cultural traits across generations where children learn their cultural trait from their parents and their social environment modeled by a network. Parents can engage in the socialization process of their children by biasing links in the network in...

We consider a robust version of the full information best choice problem (Gilbert and Mosteller (1966)): there is ambiguity (represented by a set of priors) about the measure driving the observed process. We solve the problem under a very general class of multiple priors in the setting of Riedel...