A Stochastic Control Model for Agency Costs

2013 ◽  
Author(s):  
Arnav Sheth
Keyword(s):  
Stochastic Control ◽  
Agency Costs ◽  
Control Model

A Portfolio Approach for the Forest Asset Dynamic Management under Stochastic Timber Price and Growth

2013 ◽  
Vol 295-298 ◽  
pp. 2338-2342
Author(s):  
Jian Wu Xiao ◽  
Hong Zhai
Keyword(s):  
Forest Management ◽  
Stochastic Control ◽  
Optimal Strategy ◽  
Commodity Price ◽  
Control Model ◽  
Dynamic Management ◽  
Dynamic Strategy ◽  
Optimal Dynamic ◽  
Portfolio Approach ◽  
Timber Growth

Considering the valuation of forest stands based on revenue from wood sales, concession policy (such as carbon subsidies) and associated costs, the paper focuses on the stochastic control model to study the forest asset dynamic management. The key contribution is to find the optimal dynamic strategy about harvesting quantity in the continual and multiple periods in conditions of stochastic commodity price and timber growth by using portfolio approach. Finally, an analytical optimal strategy is obtained to analyze the quantification relations through which some important conclusions about the optimal forest management can be drawn.

Comparatively Study Renting and Purchasing Carbon Subsidies Schemes on Portfolio and Stochastic Control Theory

2013 ◽  
Vol 869-870 ◽  
pp. 1029-1033
Author(s):  
Jian Wu Xiao ◽  
Ming Jun Jiang ◽  
Hong Zhai
Keyword(s):  
Control Theory ◽  
Stochastic Control ◽  
Commodity Price ◽  
Control Model ◽  
Stochastic Control Theory ◽  
Dynamic Strategy ◽  
Negative Effect ◽  
Optimal Dynamic ◽  
Timber Growth

Applying the portfolio and stochastic control theory, the paper comparatively considers tow carbon subsidies schemes: Renting and Purchasing, and focuses on the rental scheme to present a stochastic control model and obtain an analytical optimal dynamic strategy about harvesting quantity in conditions of stochastic commodity price and timber growth. Through contrasts, the conclusion shows that government will pay less under the rental scheme than under the purchasing scheme for the same negative effect on harvesting quantity.

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