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.

Presents the state of the art in, and outlines future directions in, a modern topic in mathematical economics

Chapter 1 Managing, Inducing, and Preventing Regime Shifts: A Review of the Literature.- Chapter 2 Institutional change, education and population growth: lessons from dynamic modelling.- Chapter 3 Poverty Traps and Disaster Insurance in a Bi-Level Decision Framework.- Chapter 4 Rationally risking addiction: a two-stage approach.- Chapter 5 Modelling social status and fertility decisions under differential mortality.- Chapter 6 Financing Climate Change Policies: A Multi-Phase Integrated Assessment Model for Mitigation and Adaption.- Chapter 7 On Scientific Innovations and Constraints: A Dynamic Analysis.- Chapter 8 On the structure and regularity of optimal solutions in a differential game with regime switching and spillovers.- Chapter 9 Optimal switching from competition to cooperation: a preliminary exploration.- Chapter 10 Delaying Product Introduction in a Duopoly: A Strategic Dynamic Analysis.- Chapter 11 On the Cournot-Ramsey model with non-linear demand functions.- Chapter 12 Optimal Taxation with Endogenous Population Growth and the Risk of Environmental Disaster.- Chapter 13 A Regime-Switching Model with Applications to Finance: Markovian and Non-Markovian Cases.