A projection method employing finite elements and a parameterized expectations algorithm is proposed for the global approximation of the equilibrium of a cash-in-advance model economy. The algorithm is shown to be accurate and efficient approximating highly nonlinear regions of the policy...

We develop a highly accurate numerical method for pricing discrete double barrier options under the Black–Scholes (BS) model. To this aim, the BS partial differential equation is discretized in space by the parabolic finite element method, which is based on a variational formulation and thus...

This paper presents a computationally fesible procedure for the optimalcontrol and stochastic simulation of large nonlinear models with rationalexpectations under the assumption of certainty equivalence. Copyright Kluwer Academic Publishers 2003

In this paper we present empirical facts on oil exploitation and a model that can replicate some of these facts. In particular, we show that the time path of the oil price, on the one hand, and the extraction rate, on the other hand, seem to follow a U-shaped and an inverted U-shaped...

This paper considers the optimal control of small econometric models applying the OPTCON algorithm. OPTCON determines approximate numerical solutions to optimum control problems for nonlinear stochastic systems. These optimum control problems consist in minimizing a quadratic objective function...

Arguments over equity during abatement goal setting is the principal obstacle to climate mitigation cooperation, while allocating global emissions to each country as deduced from the climate objective according to certain equitable principles offers an effective alternative to ending this...