Stochastic dynamic programming Each of the above techniques will be employed to solve problems related to natural resource and environmental economics. In the test, I will ask you to formulate the Hamiltonian of these problems and calculated the necessary and sufficient conditions. It is based on scientific facts. It is to say that there is hypothesis and deductivism for each theory. The theory believes that efficiency can be brought by allowing the trade.
Resources are part of the production unit where environmental quality is taken as a constraint.
Since environmental quality is taken as constraint, it calculates the effect of using environmental constraint to welfare change. Economic analysis is done using benefit cost analysis. Neoclassical model focus on the profit maximizing behavior of a firm. When societal working rules are not under serious debate and improving the efficiency of a given system is desired. Institutionalist try to merge politics and economics and use the merger to shape values and political infrastructure.