Global Coordination: Weighted Voting | Chapter 12 | Emerging Issues and Development in Economics and Trade Vol. 3

In order to halt the depletion of global ecological capital, a number of different kinds of meetings between Governments of countries in the world has been scheduled. The need for global coordination of environmental policies has become ever more obvious, supported by more and more evidence of the running down of eco-logical capital. But there are no formal or binding arrangements in sight, as global environmental coordination suffers from high transaction costs (qualitative voting). The CO2 equivalent emissions, resulting in global warming, are driven by the un-stoppable economic expansion in the global market economy, employing mainly fossil fuel generated energy, although at the same time lifting sharply the GDP per capita of several emerging countries. Only global environmental coordination on the successful model of the World Band and the IMF (quantitative voting) can stem the rising emissions numbers and stop further environmental degradation. However, the system of weighted voting in the WB and the IMF must be reformed by reducing the excessive voting power disparities, for instance by reducing all member country votes by the cube root expression.

Author(s) Details

Jan-Erik Lane
University of Genova, Genova, Switzerland.

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Investor’s Power Utility Optimization with Consumption, Tax, Dividend and Transaction Cost under Constant Elasticity of Variance Model | Chapter 07 | Advances in Mathematics and Computer Science Vol. 3

This work considered an investor’s portfolio where consumption, taxes, transaction costs and dividends are in involved, under constant elasticity of variance (CEV). The stock price is assumed to be governed by a constant elasticity of variance CEV model and the goal is to maximize the expected utility of consumption and terminal wealth where the investor has a power utility preference. The application of dynamic programming principles, specifically the maximum principle obtained the Hamilton Jacobi-Bellman (HJB) equation for the value function on which elimination of variable dependency was applied to obtain the close form solution of the optimal investment and consumption strategies. It is found that optimal investment on the risky asset is horizon dependent.

Author(s) Details

Silas A. Ihedioha
Department of Mathematics, Plateau State University, Bokkos, P.M.B. 2012, Jos, Plateau State, Nigeria.

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View Volume: https://doi.org/10.9734/bpi/amacs/v3