This essay develops the "concept of stocks" – a conceptual notion designed to enable a clearer understanding of the interaction between the dynamics of ecosystems and the economy. The notion of stocks is formulated in a general manner based on set theory. The central attribute of a stock is...

We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks that damage the natural environment, which acts as a dynamic driving force for the...

The interaction of capital stock with overlapping generations is investigated where the time structures of human capital and other physical capital does not match. We consider the economies with either gold or fiat as the outside money and consider the financing problems that appear in the...

A rapidly growing literature has documented important improvements in volatility measurement and forecasting performance through the use of realized volatilities constructed from high-frequency returns coupled with relatively simple reduced-form time series modeling procedures. Building on...

Central limit theorem, quadratic variation, bipower variation

This paper proposes using realized range-based estimators to draw inference about the quadratic variation of jump-diffusion processes. We also construct a range-based test of the hypothesis that an asset price has a continuous sample path. Simulated data shows that our approach is efficient, the...

We consider a new class of estimators for volatility functionals in the setting of frequently observed It¯o diffusions which are disturbed by i.i.d. noise. These statistics extend the approach of pre-averaging as a general method for the estimation of the integrated volatility in the presence...