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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...
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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...
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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 …
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