This paper examines investment decisions regarding innovation and emissions abatement in a dynamic framework, where knowledge stock is an impure public good. We take a sector perspective based on neo Schumpeterian theory that emphasises the role of both sector and innovation systems. We...

This paper develops a theoretical model to study how investment decisions in innovation taken by a single agent are influenced by environmental externalities produced by investment decisions taken by other agents. The model acts in a dynamic framework, where knowledge stock represents the...

Structural models' main source of uncertainty is the stochastic evolution of the firm's asset value. These models are commonly used to value corporate debt at the issue and hence to determine its yield given the amortization plan. This paper proposes two discrete models to value securities...