This paper provides a step further in the computation of the transition path of a continuous time endogenous growth model discussed by Privileggi (2010) – based on the setting first introduced by Tsur and Zemel (2007) – in which knowledge evolves according to the Weitzman (1998)...

This paper constitutes a first attempt at studying the transition dynamics of the Tsur and Zemel (2007) continuous time endogenous growth framework in which knowledge evolves according to the Weitzman (1998) recombinant process. For a specific choice of the probability function characterizing...

Since the end of the seventies Skiba points have been studied in infinite time optimal control problems with multiple steady states. At such a Skiba point the decision maker is indifferent between choosing trajectories that approach different steady states. This paper extends this theory towards...

We present a novel model of corruption dynamics in the form of a nonlinear optimal dynamic control problem. It has a tipping point, but one whose origins and character are distinct from that in the classic Schelling (1978) model. The decision maker choosing a level of corruption is the chief or...

We address the problem of optimal management of a self organizing ecosystem along ecological succession. A dynamic carrying capacity is interpreted as depicting the dynamics of habitat creation and occupation along ecological succession. The ecosystem may have three growth modes: pure...

In this paper we extend the deterministic model of Dechert and Brock (forthcoming) to stochastic models. First, we consider the lake game in a Brock and Mirman framework and show what happens to the Skiba point when there is uncertainty in the model. Second, we develop the model as an optimally...

A central objective of modern US housing policy is deconcentrating poverty through "housing mobility programs" that move poor families into middle class neighborhoods. Pursuing these policies too aggressively risks inducing middle class flight, but being too cautious squanders the opportunity to...