We introduce a new class of basic functions based on characteristic functions to approximate two kinds of conditional expectations. we give the proofs and the error analysis of the approximations. In terms of such approximations, we employ a theta-discretization of time integrands for numerical...

This paper presents an economic model of sustainability defined as intergenerational fairness. Assuming that intergenerational fairness is an obligation of each generation, a recursive optimization problem is obtained. The problem has the advantage that uncertainty can readily be incorporated in...