We provide benchmarks to evaluate what is an optimal foreign debt and a maximal foreign debt (debt-max), when risk is explicitly considered. When the actual debt exceeds debt-max, then the economy will default when a "bad shock" occurs. This paper is an application of the stochastic optimal...

The interaction between economic and ecologic dynamic systems is analyzed with a multi-player dynamic game, in which each player invests and allocates available capital to the production or consumption of natural resources and goods, and evaluates the outcome of all players’ actions as well as...