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Social capital is often place-specific while schooling is portable, so the prospect of migration may reduce the returns to social capital and increase the returns to schooling. If social capital matters for urban success, it is possible that an area can get caught in a bad equilibrium where the...
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Environmental risks may comprise the most important policy-related application of the economics of risk and uncertainty. Many biases in risk assessment and regulation, such as the conservatism bias in risk assessment and the stringent regulation of synthetic chemicals, reflect a form of...
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This paper presents an analytical framework to encompass contributions to the literature on equity in climate change …, and highlights the consequences—in terms of future emissions allocations—of different approaches to equity. These include …, each of the approaches to equity necessarily imposes large costs on at least some groups of countries. …
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We study how the availability of credit shapes adaptation to a climatic shock, specifically, the long 1950s US drought. We find that bank lending, net immigration, and population growth decline sharply in drought exposed areas with limited initial access to bank finance. In contrast,...
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