Dynamic Economic Problems with Regime Switches

1. Front Matter

   Pages i-xiii

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2. Managing, Inducing, and Preventing Regime Shifts: A Review of the Literature

   • Ngo Van Long

   Pages 1-36

3. Institutional Change, Education, and Population Growth: Lessons from Dynamic Modelling

   • Gustav Feichtinger, Andreas Novak, Franz Wirl

   Pages 37-56

4. Poverty Traps and Disaster Insurance in a Bi-level Decision Framework

   • Raimund M. Kovacevic, Willi Semmler

   Pages 57-83

5. Rationally Risking Addiction: A Two-Stage Approach

   • Michael Kuhn, Stefan Wrzaczek

   Pages 85-110

6. Modeling Social Status and Fertility Decisions Under Differential Mortality

   • Sergey Orlov, Elena Rovenskaya, Matthew Cantele, Marcin Stonawski, Vegard Skirbekk

   Pages 111-135

7. Financing Climate Change Policies: A Multi-phase Integrated Assessment Model for Mitigation and Adaptation

   • Willi Semmler, Helmut Maurer, Tony Bonen

   Pages 137-158

8. On Scientific Innovations and Constraints: A Dynamic Analysis

   • Yuri Yegorov, Franz Wirl

   Pages 159-186

9. On the Structure and Regularity of Optimal Solutions in a Differential Game with Regime Switching and Spillovers

   • Anton Bondarev, Dmitry Gromov

   Pages 187-207

10. Optimal Switching from Competition to Cooperation: A Preliminary Exploration

    • Raouf Boucekkine, Carmen Camacho, Benteng Zou

    Pages 209-225

11. Delaying Product Introduction in a Duopoly: A Strategic Dynamic Analysis

    • Herbert Dawid, Serhat Gezer

    Pages 227-248

12. On the Cournot-Ramsey Model with Non-linear Demand Functions

    • Luca Lambertini, George Leitmann

    Pages 249-265

13. Optimal Taxation with Endogenous Population Growth and the Risk of Environmental Disaster

    • Tapio Palokangas

    Pages 267-285

14. A Regime-Switching Model with Applications to Finance: Markovian and Non-Markovian Cases

    • E. Savku, G.-W. Weber

    Pages 287-309

This book presents the state of the art in the relatively new field of dynamic economic modelling with regime switches. The contributions, written by prominent scholars in the field, focus on dynamic decision problems with regime changes in underlying dynamics or objectives. Such changes can be externally driven or internally induced by decisions. Utilising the most advanced mathematical methods in optimal control and dynamic game theory, the authors address a broad range of topics, including capital accumulation, innovations, financial decisions, population economics, environmental and resource economics, institutional change and the dynamics of addiction. Given its scope, the book will appeal to all scholars interested in mathematical and quantitative economics.

• Dynamic Economic Modeling
• Regime changing
• Optimal Control
• Stochastic Control
• Dynamic Games
• Quantitative Economics
• Game Theory
• Econometrics

• Inst. of Stochastics & Math. Economics, Vienna University of Technology, Wien, Austria

  Josef L. Haunschmied

• Institute of Stochastics and Mathematical Economics, Vienna University of Technology, Wien, Austria

  Raimund M. Kovacevic, Vladimir M. Veliov

• Department of Economics, The New School for Social Research, New York, USA

  Willi Semmler

Vladimir M. Veliov is Professor and Head of research Unit "Operations Research and Control Systems (ORCOS)" at Vienna University of Technology, Austria. He has edited four books and has over 120 peer-reviewed journal publications in optimal control, variational analysis, and applications. Apart from having been a main organiser of several international workshops and conferences, Veliov has led or participated in numerous funded research projects in Europe and abroad. He is associate editor of SIAM Journal on Control and Optimization, Journal of Optimization Theory and Applications, European Journal of Mathematics, etc.

 Willi Semmler is the Arnhold Professor of Economics at  The New School for Social Research, and a former member of the Faculty of the University of Bielefeld, Germany. He was Fulbright Profesor at the University of Economics, Vienna. His research focuses on nonlinear macro-dynamics and macro-econometrics, financial economics, public and international finance, and the economics of climate change.   He is also a senior research fellow at the IIASA, Laxenburg, and consultant of multilateral organizations such as the ILO, the World Bank, and the IMF.  He is an associate editor of the journal Econometrics and Statistics.

 Josef Haunschmied holds a Ph.D. in Mathematical Economics and is a Senior Lecturer at Vienna University of Technology, Austria. He has participated in over ten research projects and edited books as well as about 20 peer-reviewed journal publications. His main interests are in operations research, economic dynamics, optimal control, mathematical business modelling and mathematical programming. 

 Raimund M. Kovacevic received his Ph.D. in Statistics at the the University of Vienna and habilitated in the field of Operations Research at the Vienna University of Technology, after having worked for several years in industry. He is Assistant Professor at at the "Institute of Stochastics and Mathematical Economics" at the Vienna University of Technology. Having co-edited two books and co-authored over over 25 journal publications, Kovacevic won the IIE Transactions 2015 Best Application Paper in Operations Engineering and Analytics award and the OR Spectrum Outstanding Reviewer Award 2016. Currently, he is a member of the editorial board of OR Spectrum. His research specialises in  stochastic optimisation and optimal control with applications in risk management and finance, electricity production and trading, economics, and epidemiology.

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