We solve, in closed form, a stock-bond-cash portfolio problem of a risk- and ambiguity-averse investor when interest rates and the inflation rate are stochastic. The expected inflation rate is unobservable, but the investor can learn about it from observing realized inflation and stock and bond...

We determine the optimal investment strategy for an ambiguity-averse investor in a setting with stochastic interest rates. The investor has access to stocks, bonds, and a bank account and he is ambiguous about the expected rate of return of both bonds and stocks. The investor can have different...

Central banks face uncertainty about potential output. We model optimal monetary policy under discretion in a situation in which the central bank adopts a min–max approach to policy. The case for appointing a conservative central banker who puts a larger weight on inflation stabilization...

Control strategies for auto-ignition control in turbocharged internal combustion engines operating with gaseous fuels are presented. Ambient temperature and ambient pressure are considered as the disturbing variables. A thermodynamic model for predicting temperature at the ignition point is...

Recent works have introduced perimeter feedback-control strategies for a homogenous urban region and multiple urban regions with the help of the Macroscopic Fundamental Diagram (MFD) representation, that relates average flow and density (or accumulation) across the network. The perimeter...