Policy has become an important factor in network de-sign, and there is now a bewildering bevy of architec-tural proposals. Each one aims at a different set of policygoals, and we don’t know which one is right. This pa-per’s animating assumption is that we can’t predict thefuture policy requirements of the Internet so should in-stead seek the most general policy framework...

Background: The Far Future Argument Certain major global catastrophes could cause permanent harm to humanity. A large body of scholarship makes a moral argument for confronting the threat of these catastrophes based on a concern for far future generations. The far future can be defined as anything beyond the next several millennia, including millions or billions of years from now, or even longe...

We study the relation between the liquidity of the firm’s assets and the liquidity of financial claims on the assets, thereby linking corporate finance decisions to stock liquidity. Our model highlights an ambiguous relationship. While greater asset liquidity reduces uncertainty regarding valuation of assets-in-place, it increases future investments and the associated uncertainty. The model sho...

Abstract: This paper investigates whether various components of wealth affect real consumption asymmetrically through a threshold adjustment model. The empirical findings for the U.S. show that only stock market assets, financial assets including stock market assets, and household net assets exert a practical wealth effect on consumption expenditure. By contrast, financial assets excluding stoc...

Systemic risk builds up endogenously during booms in an economy featuring asymmetric information in asset markets, where investors’ hidden effort choices determine asset quality distribution. Higher asset prices in booms induce more investors to sell their assets, which lowers their incentive to improve quality. This quality deterioration in turn makes the economy vulnerable to future exogenous...

This paper analyzes public goods whose benefits cross countries’ borders and generations. Once provided, transnational intergenerational public goods (TIPGs) are assets that generate benefits for subsequent generations. For treaties involving TIPGs, a coalition of rich developed countries are apt to shoulder more of the provision burden then a coalition of poor developing countries. This burden...

Technological innovations create an increasing sense of strategic uncertainty. Executives are concerned about failure to implement the infrastructure that they might need and the opportunity costs that this might entail as a result of missed market opportunities. They are equally concerned with avoiding any unnecessary investments in technology infrastructure in support of market opportunities ...

In a financial market with one riskless asset and n risky assets following geometric Brownian motions, we solve the problem of a pension fund maximizing the expected CRRA utility of its terminal wealth. By considering a stochastic death time for a subscriber, we solve a unique problem for both accumulation and decumulation phases. We show that the optimal asset allocation during these two phase...

This paper examines the continuous time optimal consumption and portfolio choice of an investor having an initial wealth endowment and an uncertain stream of income from non-traded assets. The income stream is not spanned by traded assets and the investor is not allowed to borrow against future income, so the "nancial market is incomplete. We solve the corresponding stochastic control problem n...