This article presents a Monte Carlo methodology for solving the stochastic optimal timber harvest problem modeled as a recurrent American call option. A detailed description of the proposed methodology is given, and the Monte Carlo technique is contrasted with finite difference methods typically used to find solutions of the optimal harvest problem with stochastic prices. The use of the methodo...

BACKGROUND Corn stover composition changes considerably throughout the growing season and also varies between the various fractions of the plant. These differences can impact optimal pretreatment conditions, enzymatic digestibility and maximum achievable sugar yields in the process of converting lignocellulosics to ethanol. The goal of this project was to determine which combination of corn sto...

This paper uses data from an actual fishery to construct a tractable, dynamic model to compare expected profit and its variance, optimal stock size, optimal harvest rate, and optimal fishing effort under different management regimes under uncertainty. The results provide a comparison of instrument choice between a total harvest control and a total effort control under uncertainty, an original m...

the main purpose of this paper is theoretically to design the optimal intervention in the foreign exchange market in iran, which has not been investigated by previous studies. the economic fundamentals are strongly affected by the optimal foreign exchange intervention, the consistency of foreign exchange intervention with other policies and political authorities' beliefs about the interven...

policy capacity focuses on the managerial and organizational abilities to inform policy decisions with sound research and analysis, and facilitate policy implementation with operational efficiency. it stems from a view of the policy process that is rational and positivistic, in which optimal policy choices can be identified, selected, and implemented with objectivity. by itself, however, policy...

Given the optimality of revealing good news whenever it is received, we can without loss focus on the agents’ check in times and their experimentation decisions as the two control variables. The optimal policy is therefore described by a process (Xt, αt)t where Xt ≤ t is the right-continuous measure of all agents that have checked in by time t, and αt ∈ [0, 1] is the probability of consumption ...

This paper discusses how optimal stopping theory can be used to determine the price that governments should pay for (distressed) assets in case these are nationalised. In addition, optimal stopping theory is used to indicate what the return on these assets to the tax payer might be, depending on different sell-back policies.