This book examines sustainable wealth formation and dynamic decision-making. The global economy experienced a veritable meltdown of asset markets in the years 2007-9, where many funds were overexposed to risky returns and suffered considerable losses. On the other hand, the long-term upswing in...

Editorial -- Market Dynamics With Heterogeneous Agents: Allocative Efficiency and Traders' Protection Under Zero Intelligence Behavior -- Using Software Agents to Supplement Tests Conducted by Human Subjects -- Diversification Effect of Heterogeneous Beliefs -- Can Investors Benefit from Using...

Interactions between Economy and Climate: Climate Change and Technical Progress: Impact of Informational Constraints -- Environmental Policy in a Dynamic Model with Heterogeneous Agents and Voting -- Optimal Environmental Policy in the Presence of Multiple Equilibria and Reversible Hysteresis --...

This book deals with the application of wavelet and spectral methods for the analysis of nonlinear and dynamic processes in economics and finance. It reflects some of the latest developments in the area of wavelet methods applied to economics and finance. The topics include business cycle...

Introduction -- Money, Bonds and Economic Activity: Money, Bonds and Interest Rates -- Term Structure of Interest Rates -- The Credit Market and Economic Activity: Theories on Credit Market, Credit Risk and Economic Activity -- Empirical Tests on Credit Market and Economic Activity -- The Stock...

Part I The Fundamentals of Derivative Security Pricing -- 1 The Stock Option Problem -- 2 Stochastic Processes for Asset Price Modelling -- 3 An Initial Attempt at Pricing an Option -- 4 The Stochastic Differential Equation -- 5 Manipulating Stochastic Differential Equations and Stochastic...

The Classical Cournot Model -- Concave Oligopolies -- General Oligopolies -- Modified and Extended Oligopolies -- Oligopolies with Misspecified and Uncertain Price Functions, and Learning -- Overview and Directions for Future Research

Transferring Negative Externalities: Feedback Effects of Self-Protection Choices in a Two Hemispheres Model -- Structural Change, Economic Growth and Environmental Dynamics with Heterogeneous Agents -- Bifurcations and Chaotic Attractors in an Overlapping Generations Model with Negative...