STOCHASTIC MODELS AND OPTION VALUES: APPLICATIONS TO RESOURCES,ENVIRONMENT AND INVESTMENT PROBLEMS CEA 200CONTRIBUTIONS TO ECONOMIC ANALYSIS VOL.200 Book

Introduction. Stochastic Models and Option Values: An Introduction. Stochastic Control Theory - A Brief Summary (B. Øksendal). Financial Option Theory Applied to Real Investment. The Price of Convenience and the Valuation of Commodity Contingent Claims (M.J. Brennan). Valuation of Long Term Oil-Linked Assets (R. Gibson and E. Schwartz). The Cost of a Promise to Develop an Oil Field within a Fixed Future Date (P. Bjerksund). Irreversibility and the Explanation of Investment Behavior (R.S. Pindyck). Financial and Non-financial Option Valuation. Stochastic Control and Dynamic Programming. Partial Investment (T. Ø. Kobila). The High Contact Principle as a Sufficiency Condition for Optimal Stopping (K.A. Brekke, B. Øksendal). Invariant Controls in Stochastic Allocation Problems (T.E. Olsen, G. Stensland). Shadow Prices in Stochastic Programming: Their Existence and Significance (S.D. Flåm). Statistical Models of Natural Resource Exploitation. Estimating Structural Resource Models when Stock is Uncertain: Theory and its Application to Pacific Halibut (P. Berck, G. Johns). Optimal Decision with Reduction of Uncertainty over Time - An Application to Oil Production. Author index. Subject index.