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What is an optimal or a sustainable external debt - for a country, region or sector? How should one monitor and evaluate debt to preclude a crisis? We use stochastic optimal control/dynamic programming to derive an optimal debt. The deviation of the actual from the optimal will serve as a...
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We investigate how the relationship between economic growth and pollution is affected by the source of pollution: production or consumption. We are interested in polluting waste that cannot be naturally absorbed, but for which recycling efforts aim to avoid massive pollution accumulation with...
Persistent link: https://www.econbiz.de/10014116828
The main contributions of this paper are to introduce growth into a crisis framework and to derive the contingency plans for consumption and investment in a manner consistent with the stochastic nature of the state of the economy. The conclusion is that expected deviations from trend in the...
Persistent link: https://www.econbiz.de/10014123866
that drive economic growth. The two stages of economic development have been indicated in the growth theory of … macroeconomics and in the various “turning point” theories in development economics, including Lewis's dual economy theory, Kuznets … reveals these two stages. Using the two-stage theory of economic development, we find that the People's Republic of China …
Persistent link: https://www.econbiz.de/10012966411
We build a robustness (RB) version of the Obstfeld (1994) model to study the effects of financial integration on growth and welfare. Our model can account for the empirically observed heterogeneity in the relationship between growth and volatility for different countries. The calibrated model...
Persistent link: https://www.econbiz.de/10012906857
Our analysis focuses on a novel theoretical model which explains the relationship between pollution and output as well as recycling and output in the context of the Environmental Kuznets Curve (EKC) framework. Our model incorporates habit formation on recycling in a circular economy model and we...
Persistent link: https://www.econbiz.de/10012886337