In this paper, we analyse how certain subsidies and guarantees given to private firms in public--private partnerships should be optimally arranged to promote immediate investment in a real options framework. We show how an investment subsidy, a revenue subsidy, a minimum demand guarantee, and a...

Chen and Shen [Chen, A.-S., and P.-F. Shen. 2003. Computational complexity analysis of least-squares Monte Carlo (LSM) for pricing US derivatives. Applied Economics Letters 10: 223-9] argue that we can improve the least squares Monte Carlo method (LSMC) to value American options by removing the...