Consumption and portfolio rules whit stochastic hyperbolic discounting

We extend the classic Merton (1969, 1971) problem that investigates the joint consumption-savings and portfolio-selection problem under capital risk by assuming sophisticated but time-inconsistent agents. We introduce stochastic hyperbolic preferences as in Harris and Laibson (2013) and find closed-form solutions for Merton's optimal consumption and portfolio selection problem in continuous time. We find that the portfolio rule remains identical to the time-consistent solution with power utility and no borrowing constraints. However,the marginal propensity to consume out of wealth is unambiguously greater than the time-consistent, exponential case and,importantly, it is also more responsive to changes in risk. These results suggest that hyperbolic discounting with sophisticated agents offers promise for contributing to explaining important aspects of asset market data.

Low Effort L-i Nuclear Fusion Plasma Control Using Model Predictive Control Laws

One of the main problems of fusion energy is to achieve longer pulse duration by avoiding the premature reaction decay due to plasma instabilities. The control of the plasma inductance arises as an essential tool for the successful operation of tokamak fusion reactors in order to overcome stability issues as well as the new challenges specific to advanced scenarios operation. In this sense, given that advanced tokamaks will suffer from limited power available from noninductive current drive actuators, the transformer primary coil could assist in reducing the power requirements of the noninductive current drive sources needed for current profile control. Therefore, tokamak operation may benefit from advanced control laws beyond the traditionally used PID schemes by reducing instabilities while guaranteeing the tokamak integrity. In this paper, a novel model predictive control (MPC) scheme has been developed and successfully employed to optimize both current and internal inductance of the plasma, which influences the L-H transition timing, the density peaking, and pedestal pressure. Results show that the internal inductance and current profiles can be adequately controlled while maintaining the minimal control action required in tokamak operation.