The study of asset price characteristics of stochastic growth models such as the riskfree interest rate, equity premium and the Sharpe ratio has been limited by the lack of global and accurate methods to solve dynamic optimization models. In this paper a stochastic version of a dynamic programming method with adaptive grid scheme is applied to compute the above mentioned asset price characteris...

Major League Baseball and other professional sports leagues have long been concerned with competitive imbalances caused by differences in local revenues. The fear is that in the absence of salary caps or other regulatory mechanisms, smaller-market teams will be unable to remain competitive. This research uses a structural dynamic programming model to analyze ownership’s payroll investment decis...

This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the ...

This thesis presents the design, analysis, and validation of a hierarchical transactive control system that engages demand response resources to enhance the integration of renewable electricity generation resources. This control system joins energy, capacity and regulation markets together in a unified homeostatic and economically efficient electricity operation that increases total surplus whi...

Dynamic optimization problems present great challenges to the research community because their parameters are either revealed or changed during the course of an ongoing optimization process. These problems are more challenging than static problems in real-world applications because the latter are usually dynamic, with the environment constantly subjected to change or the size of a problem incre...

We introduce endogenous probability of survival in the standard Keynes-Ramsey optimal growth model. An individual’s probability of survival is assumed to be dependent on past levels of consumption. Endogenous probability of survival effectively also implies that the rate of time preference (or degree of patience) of an individual is no longer an exogenously given parameter. We solve the dynamic...

The ecological effects of environmental stress occur within complex communities and ecosystems. Prior to the current award, the PIs formulated and tested general dynamic energy budget models characterizing the response of individual organisms to toxicants, and developed methodology for using these models to predict population dynamics. They also developed new theory describing the trophic dynam...

This paper investigates optimization in dynamic environments where the numbers of optima are unknown or fluctuating. The authors present a novel algorithm, Dynamic Population Differential Evolution (DynPopDE), which is specifically designed for these problems. DynPopDE is a Differential Evolution based multi-population algorithm that dynamically spawns and removes populations as required. The n...

Aging of the population will affect the growth path of all countries. To assess the historical and future importance of this claim we use two popular approaches and evaluate their merits and disadvantages by confronting them to Swedish data. We first simulate an endogenous growth model with human capital linking demographic changes and income growth. Rising longevity increases the incentive to ...

A primary impact of urbanization on the local climate is evident in the phenomenon recognized as the Urban Heat Island (UHI) effect. This urban thermal anomaly can increase the health risks of vulnerable populations to heat waves. The surface UHI results from emittance in the longer wavelengths of the thermal infrared; however, there are also urban anomalies that are detectable from radiance in...