Hwang, Uk; Magris, Francesco - In: Swiss Journal of Economics and Statistics (SJES) 141 (2005) III, pp. 437-457
This paper studies the political economy of resource management in an OLG framework with an intertemporal externality problem. The externality arises because a common resource used for production is depleted by production of "dirty" goods. An intergenerational conflict arises because the young...