We use a two-state linear control model to examine the socially optimal management of disease in a valuable wildlife population when diseased animals cannot be harvested selectively. The two control variables are nonselective harvests and supplemental feeding of wildlife, where feeding increases...

We examine production economic implications of a specialized input to which a biological system (e.g., an animal) becomes desensitized over time, but its marginal productivity can be restored by increasing the dosage level. Optimal dosage levels and their timing become choice variables and may...

Using multicointegration methodology, we develop criteria for testing sustainability of fiscal budgeting processes across all states of nature. Criteria are derived from the optimal control literature where levels and rates of change of a system of variables are determinants of policy response....

We examine the relationship between a tree price and a tree age (height) using a Hotelling-Faustmann model of optimal plantation management, which accounts for the possibility of replanting and biological growth. The model's predictions are tested using the data on Christmas tree prices in North...

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...

In linear-quadratic control (LQC) problems with singular control cost matrix and/or singular transition matrix, we derive a reduction of the dimension of the Riccati matrix, simplifying iteration and solution. Employing a novel transformation, we show that, under a certain rank condition, the...