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Education choice under uncertainty: Implications for public policy

Hogan, Vincent; Walker, Ian - 2006

We analyse how progressive taxation and education subsidies affect schooling decisions when the returns to education are stochastic. We use the theory of real options to solve the problem of education choice in a dynamic stochastic model. We show that education attainment will be an increasing...

Persistent link: https://www.econbiz.de/10010293839

Education Choice under Uncertainty - Implications for Public Policy

Hogan, Vincent; Walker, Ian - School of Economics, University College Dublin - 2006

Persistent link: https://www.econbiz.de/10005686032

Education Choice under Uncertainty and Public Policy

Hogan, Vincent; Walker, Ian - School of Economics, University College Dublin - 2003

We analyse how progressive taxation and education subsidies affect schooling deci- sions when the returns to education are stochastic. We use the theory of real options to solve the problem of education choice in a dynamic, life-cycle consistent, stochastic model. We show that education...

Persistent link: https://www.econbiz.de/10005686061

Uncertainty over uncertainty in environmental policy adoption : Bayesian larning of unpredictable socioeconomic costs

Basei, Matteo; Ferrari, Giorgio; Rodosthenous, Neofytos - 2023

The socioeconomic impact of pollution naturally comes with uncertainty due to, e.g., current new technological … scenario will be realised and the scientific debate is still open. This paper captures those two layers of uncertainty by …

Persistent link: https://www.econbiz.de/10014277005

Dynamic Hedging in Incomplete Markets: A Simple Solution

Basak, Suleyman; Chabakauri, Georgy - C.E.P.R. Discussion Papers - 2011

Despite much work on hedging in incomplete markets, the literature still lacks tractable dynamic hedges in plausible environments. In this article, we provide a simple solution to this problem in a general incomplete-market economy in which a hedger, guided by the traditional minimum-variance...

Persistent link: https://www.econbiz.de/10009024486

Dynamic Mean-Variance Asset Allocation

Basak, Suleyman; Chabakauri, Georgy - C.E.P.R. Discussion Papers - 2009

Mean-variance criteria remain prevalent in multi-period problems, and yet not much is known about their dynamically optimal policies. We provide a fully analytical characterization of the optimal dynamic mean-variance portfolios within a general incomplete-market economy, and recover a simple...

Persistent link: https://www.econbiz.de/10005656376

Consumption of durable goods under ambiguity

Moreno, Othón M. - 2014

with infinite horizon. Uncertainty comes from prices, which is summarized in a state variable that follows a Brownian …

Persistent link: https://www.econbiz.de/10010243419

Ambiguity in a real option game

Hellmann, Tobias; Thijssen, Jacco J. J. - 2015

In this paper we study a two-player investment game with a first mover advantage in continuous time with stochastic payoffs, driven by a geometric Brownian motion. One of the players is assumed to be ambiguous with maxmin preferences over a strongly rectangular set of priors. We develop a...

Persistent link: https://www.econbiz.de/10010468336

Land Conversion Pace under Uncertainty and Irreversibility: too fast or too slow?

Corato, Luca Di; Moretto, Michele; Vergalli, Sergio - Fondazione ENI Enrico Mattei (FEEM) - 2011

landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion … Government to induce adequate participation in a conservation plan. We study the impact of uncertainty on the optimal conversion … of deforestation. Interestingly, we show that uncertainty, even if it induces conversion postponement in the short …

Persistent link: https://www.econbiz.de/10009421254

An Equilibrium Model of Habitat Conservation under Uncertainty and Irreversibility

Corato, Luca Di; Moretto, Michele; Vergalli, Sergio - Dipartimento di Scienze Economiche "Marco Fanno", … - 2010

under uncertainty about the value of environmental services and irreversible development. We study land conversion under … adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy …

Persistent link: https://www.econbiz.de/10008876625