Cap and trade (CAT) results in lower abatement costs relative to command and control, but might increase industry marginal abatement cost, resulting in higher equilibrium emissions. With lumpy investment, command and control leads to multiple investment equilibria and “regulatory uncertainty”. CAT, a first best policy, eliminates this uncertainty. Command and control policies cause firms to imi...

Research ...nds that ...rms’ investment and dividend policies are distorted by irreversibility and ...nance constraints. Whereas the existing literature examines these features separately, this paper considers their interaction. The main theoretical result concerns the separation of the investment and payout thresholds. The ordering of investment and distribution activities is endogenously dete...

Despite significant investment in many countries, the extent of schools' adoption of obesity prevention policies and practices has not been widely reported. The aims of this article are to describe Australian schools' adoption of healthy eating and physical activity policies and practices over an 8-year period and to determine if their adoption varies according to schools' size, geographic or s...

5 We determine the optimal dynamic investment policy for a mean quadratic variation ob6 jective function by numerical solution of a nonlinear Hamilton-Jacobi-Bellman (HJB) partial 7 differential equation (PDE). We compare the efficient frontiers and optimal investment poli8 cies for three mean variance like strategies: pre-commitment mean variance, time-consistent 9 mean variance, and mean quad...

In this paper we develop a framework for optimal investment decisions for insurance companies under unhedgeable risk. The perspective that we choose is from an insurance company that tries to maximise the stream of dividends paid to its shareholders. The policy instruments that the company has are the dividend policy and the investment policy. The insurance company can continue to pay dividends...

The development of climate policy in the United States mirrors international developments, with efforts to initiate a coordinated approach giving way to jurisdictions separately taking actions. The centerpiece of US policy is regulation in the electricity sector that identifies a carbon emissions rate standard (intensity standard) for each state but leaves to states the design of policies, incl...

The paper analyses alternative investment policies and their consequences for the evolution of human capital in Europe based on a model of age dependent skill formation where the life span depends on investments during childhood. What makes the approach special is the analysis of the returns to education of alternative educational policies targeted at certain ages, countries, or productivity le...

We study managerial style effects in investment decisions, financing policies, and firm profitability by examining exogenous CEO changes arising from deaths, health issues, and natural retirements. In a comprehensive panel of 8,615 Compustat firms from 1990 to 2007, we find that policy changes and profitability changes subsequent to exogenous turnover do not display abnormally high variability....