The ability of agricultural lands to sequester carbon from the atmosphere and help mitigate global warming has the potential to add value to farmland through the development of carbon-credit trading. Crucial to the creation of a market-based carbon credit trading system is the monitoring and verification of agricultural practices that promote carbon storage. Using remotely sensed images for thi...

We discuss optimal trading strategies for general utility functions in portfolios of cash and stocks subject to small proportional transaction costs. We present a new interpretation of scalings found by Soner, Shreve, and others. To leading order in the small transaction cost parameter, the free boundary problem for the expected utility’s value function is shown to be dual, in the sense of Lagr...

In this paper, we consider carbon tax and emissions trading as the national policy against the global warming problem. The attitude of the United States, whether they join the international carbon dioxide emissions trading under the Kyoto Protocol or not, will bring a large influence on the global environment and the emissions trading. Therefore, we evaluate the influence on the revenue, the pr...

We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly rational and their interpretation of prices injects noise into the price system, which serves as a source of endogenous noise trading. Compared to the standard rational expectations equilibrium, our setup features price momentum and yields higher return vo...

I replicate Barron, Harris, and Stanford's (2005) " Evidence That Investors Trade on Private-Event-Period Information around Earnings Announcements " which provides empirical support for theoretical models developed in Holthausen and Verrecchia (1990) and Kim and Verrecchia (1997). These model predict that private information generated at the time of an earnings announcement (private event-peri...

Title IV of the 1990 amendments to the Clean Air Act initiated a historic experiment in incentive-based environmental regulation through the use of tradable allowances for emission of sulfur dioxide by electric generating facilities. To date, relatively little allowance trading has taken place; however, the costs of compliance have been much less than anticipated. The purpose of this paper is t...

We assemble the dates of announcement and actual introduction of electronic trading by the leading exchange of 120 countries to examine the long term and medium term impact of automation. Estimates from dividend growth model as well as international CAPM suggest a significant decline in expected returns after the introduction of electronic trading in the world’s equity markets, especially in th...

Although brokers’ trading is endemic in securities markets, the form of this trading differs between markets. Whereas in some securities markets, brokers may trade with their customers in the same transaction (simultaneous dual trading or SDT), in other markets, brokers are only allowed to trade after their customers in a separate transaction (consecutive dual trading or CDT). We show theoretic...

Electronic trading of equities and other securities makes heavy use of “arrival price” algorithms, that determine optimal trade schedules by balancing the market impact cost of rapid execution against the volatility risk of slow execution. In the standard formulation, mean-variance optimal strategies are static: they do not modify the execution speed in response to price motions observed during...

We discuss optimal trading strategies in the presence of small proportional transaction costs for general utility functions. We present a new interpretation of scalings found by Soner, Shreve, and others. To leading order in the small transaction cost parameter, the free boundary problem for the expected utility’s value function is shown to be dual, in the sense of Lagrange multipliers for opti...