An optimal control model of wildlife management is developed to analyze the transitory dynamics set forth by the reintroduction of animals that provide benefits but can also come into conflict with humans. The shadow price of these resources can be positive or negative, potentially creating a nonconvexity. The conditions under which reintroduction is not desirable are determined, and those char...

This paper develops an affine term structure for the valuation of money market funds. This valuation framework is then used to consider the economic implications of funds that are supported by a capital buffer. The main findings are twofold. First, relatively small capital buffers are capable of absorbing daily fluctuations between a fund’s shadow price and its amortized cost. For example, a fu...

Appropriate assessment of the social value of market access is at the core of a broad range of inquiries in trade research. A selection include: the appraisal of industry-level production and consumption distortions due to selective trade liberalization and partial tax reform; the construction of national-level quantity indicators of market access consistent with welfare change, and the use of ...

Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously...

In our paper on "Revenue Seeking: A Generalization of the Theory of Tariffs" (1980), we extended the theory of tariffs to include revenue seeking. We also compared tariffs with quotas, under seeking activities associated with the revenues from the former and with the rents (i.e., license premia) from the latter. We argued, among other propositions, that: (1) Revenue seeking was a zero-output ac...

We examine an economy whose consumers have different discount factors for utility, possibly not exponential. We characterize the properties of efficient allocations of resources and of the shadow prices that would decentralize such allocations. We show in particular that the representative agent has a decreasing discount rate when, as is usually posited, all of a group’s members have a constant...

We use the linear programming approach to examine the overall macroeconomic performance and compute shadow prices of SO2 emission abatements for thirty regions in China during the 1996-2002 period. Our major findings are as follows: On average, the east is the most efficient and the west is the most inefficient during these seven years. The average efficiency of those regions with serious acid ...

In a financial market with a continuous price process and proportional transaction costs we investigate the problem of utility maximization of terminal wealth. We give sufficient conditions for the existence of a shadow price process, i.e. a least favorable frictionless market leading to the same optimal strategy and utility as in the original market under transaction costs. The crucial ingredi...

We consider a distribution grid interconnecting a number of consumers with flexible power consumption. Each consumer is under the jurisdiction of exactly one balancing responsible party (BRP), who buys energy at a day-ahead electricity market on behalf of the consumer. We illustrate how BRPs can utilize the flexibility of the consumers to minimize the imbalance between the consumed and the purc...