On variable discounting in dynamic programming: applications to resource extraction and other economic models

This paper generalizes the classical discounted utility model introduced in Samuelson (Rev. Econ. Stud. 4:155–161, 1937) by replacing a constant discount rate with a function. The existence of recursive utilities and their constructions are based on Matkowski’s extension of the Banach Contraction Principle. The derived utilities go beyond the class of recursive utilities studied in the literature and enable a discussion on subtle issues concerning time preferences in the theory of finance, economics or psychology. Moreover, our main results are applied to the theory of optimal economic growth related with resource extraction models with unbounded utility function of consumption.     

Quasi-Banach spaces of almost universal disposition

We show that for each p∈(0,1]$p\in (0,1]$ there exists a separable p  -Banach space _Gp${\mathbb{G}}_p$ of almost universal disposition, that is, having the following extension property: for each ε>0$\epsilon >0$ and each isometric embedding g:X→Y$g:X\to Y$, where Y is a finite-dimensional p-Banach space and X   is a subspace of _Gp${\mathbb{G}}_p$, there is an ε  -isometry f:Y→_Gp$f:Y\to {\mathbb{G}}_p$ such that x=f(g(x))$x=f(g(x))$ for all x∈X$x\in X$.     

Holomorphic mappings preserving Minkowski functionals

We show that the equality _m1(f(x))=_m2(g(x))$m_1\left(f\left(x\right)\right)=m_2\left(g\left(x\right)\right)$ for x$x$ in a neighborhood of a point a$a$ remains valid for all x$x$ provided that f$f$ and g$g$ are open holomorphic maps, f(a)=g(a)=0$f\left(a\right)=g\left(a\right)=0$ and _m1,_m2$m_1,m_2$ are Minkowski functionals of bounded balanced domains. Moreover, a polynomial relation between f$f$ and g$g$ is obtained.     

Risk preferences on the space of quantile functions

We propose a novel approach to quantification of risk preferences on the space of nondecreasing functions. When applied to law invariant risk preferences among random variables, it compares their quantile functions. The axioms on quantile functions impose relations among comonotonic random variables. We infer the existence of a numerical representation of the preference relation in the form of a quantile-based measure of risk. Using conjugate duality theory by pairing the Banach space of bounded functions with the space of finitely additive measures on a suitable algebra \(\varSigma \) , we develop a variational representation of the quantile-based measures of risk. Furthermore, we introduce a notion of risk aversion based on quantile functions, which enables us to derive an analogue of Kusuoka representation of coherent law-invariant measures of risk.     

A Representation of a Point Symmetric 2-Structure by a Quasi-Domain

In a symmetric 2-structure ${\Sigma =(P,\mathfrak{G}_1,\mathfrak{G}_2,\mathfrak{K})}$ we fix a chain ${E \in \mathfrak{K}}$ and define on E two binary operations “+” and “·”. Then (E,+) is a K-loop and for ${E^* := E {\setminus}\{o\}}$ , (E ^*,·) is a Bol loop. If ${\Sigma}$ is even point symmetric then (E,+ ,·) is a quasidomain and one has the set ${Aff(E,+,\cdot) := \{a^+\circ b^\bullet | a \in E, b \in E^*\}}$ of affine permutations. From Aff(E, +, ·) one can reproduce via a “chain derivation” the point symmetric 2-structure ${\Sigma}$ .     

Symmetric 2-Structures,a Classification

We classify symmetric 2-structures ${(P, \mathfrak{G}_1, \mathfrak{G}_2, \mathfrak{K})}$ , i.e. chain structures which correspond to sharply 2-transitive permutation sets (E, Σ) satisfying the condition: “ ${(*) \, \, \forall \sigma, \tau \in \Sigma : \sigma \circ \tau^{-1} \circ \sigma \in \Sigma}$ ”. To every chain ${K \in \mathfrak{K}}$ one can associate a reflection ${\widetilde{K}}$ in K. Then (*) is equivalent to “ ${(**) \, \, \forall K \in \mathfrak{K} : \widetilde{K}(\mathfrak{K}) = \mathfrak{K}}$ ” and one can define an orthogonality “ ${\perp}$ ” for chains ${K, L \in \mathfrak{K}}$ by “ ${K \perp L \Leftrightarrow K \neq L \wedge \widetilde{K}(L) = L}$ ”. The classification is based on the cardinality of the set of chains which are orthogonal to a chain K and passing through a point p of K. For one of these classes (called point symmetric 2-structures) we proof that in each point there is a reflection and that the set of point reflections forms a regular involutory permutation set.     

Application of a multi-component Eulerian approach to capture interface evolution and vorticity generation in compressible multiphase flow

The hyperbolic Eularian model is used as a mathematical framework for compressible multiphase flows. The formulation was obtained after an averaging process of the single phase Navier-Stokes equations. The closure of multi-component system leads to the volume fraction equation containing a non-conservative term and a pressure equilibrium condition. As a result the model equations cannot be written in a conservative form. To solve the equations a finite volume Godunov type computational approach is developed which uses an approximate Riemann solver combined with a numerical scheme to tackle the non-conservative terms. The approach accounts for pressure non-equilibrium. It enables resolving interfaces separating compressible fluids and captures the baroclinic source of vorticity generation. The computations are performed for various initial conditions and compared with theoretical and experimental data for a shock-bubble interaction problem. The investigated cases include acoustic wave transmission through isolated bubbles of helium and krypton. The numerical results illustrate the characteristic features of the evolving interfaces. The impulsively generated flow perturbations are dominated by the reflection and refraction of the shock and by the vorticity generation within the media. (© 2014 Wiley-VCH Verlag GmbH & Co. KGaA, Weinheim)     

The jump of the Milnor number in the X 9 singularity class

The jump of the Milnor number of an isolated singularity f ₀ is the minimal non-zero difference between the Milnor numbers of f ₀ and one of its deformations (f _s ). We prove that for the singularities in the X ₉ singularity class their jumps are equal to 2.     

Ordinal ultrafilters versus P-hierarchy

An earlier paper [Starosolski A., P-hierarchy on βω, J. Symbolic Logic, 2008, 73(4), 1202–1214] investigated the relations between ordinal ultrafilters and the so-called P-hierarchy. The present paper focuses on the aspects of characterization of classes of ultrafilters of finite index, existence, generic existence and the Rudin-Keisler-order.