ABSTRACT With companies increasingly expected to undertake potentially costly climate-response strategies, we explore the roles of management control systems (MCSs) in how simultaneously manage their decarbonization objectives and financial commitments. Based on research at 19 European chemical, steel, utility corporations, extend concept “proactive/reactive” response strategies by proposing th...

The aim of this study is to investigate the effect oil price changes on exchange rates five ASEAN economies. In study, a rolling and recursive evolving window algorithm applied detect in link between rate from January 1988 June 2022 for countries. We extend existing literature using Time-varying Granger causality model, which captures sensitivities across various time horizons. findings reveale...

This paper studies optimal consumption and portfolio choice in a Merton-style model with incomplete information when there is a distinction between ambiguity and risk. The latter distinction is afforded by adoption of recursive multiple-priors utility. The fundamental issues are: (i) How does the agent optimally estimate the unobservable processes as new information arrives over time? (ii) What...

The α–maxmin model is a prominent example of preferences under Knightian uncertainty as it allows to distinguish ambiguity and ambiguity attitude. These preferences are dynamically inconsistent for nontrivial versions of α. In this paper, we derive a recursive, dynamically consistent version of the α–maxmin model. In the continuous–time limit, the resulting dynamic utility function can be repre...

When generalization algorithms are known to the public, an adversary can obtain a more precise estimation of the secret table than what can be deduced from the disclosed generalization result. Therefore, whether a generalization algorithm can satisfy a privacy property should be judged based on such an estimation. In this paper, we show that the computation of the estimation is inherently a rec...

The objective of this paper is to determine the socially optimal discount rate for public investment projects that entail costs and benefits in the very long run. We suppose that there is an exogenous process for the growth of consumption per capita, which is stochastic. We first evaluate the determinants of the discount rate for a specific horizon when the representative agent has a recursive ...

We derive an inter-temporal theory, in the spirit of Kreps and Porteus (1978), of changing tastes and unforeseen contingencies from normative primitives by weakening the completeness axiom of von Neumann and Morgenstern. Our agent can only partially order future decisions, yet desires inter-temporal consistency. Our formulation contrasts with existing literature in several ways: (i) the theory ...

We prove that for any incomplete market and any concave utility function the marginal propensities to consume and to save are always positive. Furthermore, we introduce a class of incomplete markets that includes almost all well known examples of market incompleteness in finance and macroeconomics. Two concrete examples are idiosyncratic income shocks and general, diffusion driven incompletenes...

Risk aversion and decreasing absolute risk aversion play prominent roles in the expected utility theory of demand for insurance against a known risk of accident losses. Demand for insurance against an accident risk that is not known with certainty depends on the attitude toward bearing this ambiguity as well as the underlying risk. Ambiguity aversion in the recursive model developed by Klibanof...